The global Air Transport MRO Market is expected to attain a valuation of USD 79.2 billion in 2023 and is projected to reach USD 130 billion by 2033, trailing a CAGR of 5% during the forecast period.
The market is projected to grow due to rapid urbanization, economic growth in emerging countries, and increased business and tourism travel. Factors such as air traffic volumes, global fleet size, and aircraft utilization are projected to have a significant impact on the market. Additionally, the rise in individual air travel for business and personal reasons is expected to lead to increased aircraft production, in turn influencing the market.
The growing investments in aircraft MRO software are poised to create fresh business prospects. This software encompasses maintenance tracking, logbook tracking, flight time tracking, service bulletin management, maintenance scheduling, budget forecasting, electronic task card management, and work order management.
Significant foreign direct investments were observed in India, including the aircraft maintenance, repair, and overhaul sectors, in May 2021. As a result, investments and acquisitions are anticipated to provide profitable opportunities for market expansion.
Regulatory compliance with organizations such as the Federal Aviation Administration (FAA) and International Civil Aviation Organization (ICAO) exerts influence on the market. Additionally, the increasing demand for old planes and environmental considerations highlight the importance of ongoing monitoring and maintenance for these aircraft, creating market traction.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 79.2 billion |
| Anticipated Forecast Value (2033) | USD 130 billion |
| Projected Growth Rate (2023 to 2033) | CAGR 5% |
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The air transport MRO market was worth USD 65.6 billion in 2018. It accumulated a market value of USD 76.5 billion in 2022 while thriving at a CAGR of 3.9% during the historical period.
Demand for air transport MRO increased at a sluggish pace, exhibiting a 3.9% CAGR between 2018 and 2022. A persistent decline in sales hampered the market growth significantly, as air travel and transport witnessed downturns due to the novel COVID-19 outbreak.
FMI has projected the air transport MRO market to expand at a moderate 5% CAGR during the forecast period. With fast-track vaccination drives and the resumption of movement, the market is expected to recover in the forthcoming years.
Improvements in product offerings, along with growth in air cargo transportation might continue fuelling growth in the global air transport MRO market. Apart from this, increasing focus on aircraft maintenance, efforts to provide the latest onboard services, and the demand for cost-effective servicing solutions are estimated to further improve growth prospects on the market.
In recent years, maintenance costs have exceeded fuel costs in the air transport industry. The sudden surge in maintenance costs has compelled airlines to rely on digital solutions to monitor physical assets such as engines and cockpit controls in real-time, which might allow them to plan maintenance protocols effectively.
Just like connective technologies and cloud services, mobile solutions are paving the way into the control rooms of airlines. Furthermore, air transport MRO players are getting keen on developing software as a service (SaaS) and other effective closely connected mobile solutions to enable users to access aircraft management remotely.
These technologies eliminate the overhead costs of hardware acquisitions, maintenance, licensing, installation, and support.
Airlines and MRO providers have raised concerns regarding toughened maintenance of physical hardware over the years, which in turn has created opportunities for the development of data-driven technologies.
Cloud-based mobile solutions can be integrated into the workforce with no physical installation. Consequently, airlines can focus on the return on investments and superior onboard comfort, without worrying about the physical maintenance of infrastructure.
Principal Consultant
Leveraging blockchain technology in the aviation industry has opened opportunities for MRO providers and organizations regarding maintenance, data security, and passenger information, helping organizations to increase efficiency and accuracy levels.
Blockchain is emerging as one of the superior connective technologies in the aviation industry, helping organizations redefine their operations while saving costs and improving maintenance practices.
This technology can be used for recording the location of vital assets in real time in a reliable manner. Important information such as passenger data, flight path, baggage onboarding, and tracking lost entities, which can help the management take necessary actions during a crisis.
Blockchain can significantly improve data logging and updating for aircraft parts’ conditions, thereby reducing the time consumed in periodic inspections and maintenance. In addition, blockchain can provide predictive maintenance to eliminate any challenges that may affect airline operations.
With a myriad of other benefits, MRO service providers can use blockchain to provide verifiable documents for components that they have installed. These developments are anticipated to bode well for the air transport MRO market during the assessment period
The aviation industry in the United States plays a humongous role in supporting the country’s economy. Currently, the United States has a large fleet of commercial and military aircraft in the world, which makes MRO services highly significant.
The presence of leading OEMs and MRO providers in the United States places it as an attractive market. FMI projects, North America’s air transport MRO market is estimated to expand at a 4.8% CAGR. In addition, stringent government regulations about timely aircraft inspection are encouraging airlines and MRO providers to sign contracts and agreements for required services in the long run.
The introduction of new aircraft models and technologically advanced on-board services might continue driving demand for air transport MRO in the United States.
As per FMI’s analysis, the United Kingdom is anticipated to dominate Europe’s air transport MRO market. In the market study, FMI projects the Europe market to expand at a 4.5% CAGR.
The rapid adoption of advanced technologies such as augmented reality (AR), virtual reality (VR), and blockchain to streamline aircraft maintenance processes is going to continue boosting market growth.
VIP, corporate, and business aviation operators in the United Kingdom, rely hugely on MRO services for private jets as they are typically owned by high-net-worth individuals. This sector operates expensive and sophisticated aircraft and private jets that need servicing from time to time as they do not fly as much as commercial aircraft, making MRO services vital.
China’s aviation industry is one of the most significantly growing industries in the world. The demand for MRO services in the region is anticipated to expand with a CAGR of 4.9% during the forecast period. Many airports are under construction as airlines are adding new routes and aircraft, which in turn is driving expansions in the air transport MRO market.
Various global and regional players are investing in strategic collaborations with OEMs to devise efficient MRO services to meet growing aircraft servicing requirements. This is creating opportunities for the growth of market players to launch technology-enabled MRO services, thereby augmenting market growth.
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As per FMI’s analysis, the engine segment is anticipated to account for maximum applications of air transport MRO services. The segment is expected to account for over 48% market share by the end of the forecast period. Also, the demand for MRO services in the engine segment is projected to expand with a CAGR of 5.5% from 2023 to 2033.
Maintenance and safety of engines are kept at the forefront of the aviation industry, as even a slight disruption could result in serious consequences.
Increasing joint ventures between MRO providers and OEMs facilitates technological advancements in engine manufacturing, which is increasing the lifecycle and maintenance parameters of engines. These factors are driving many applications of MRO services in engines as compared to other aircraft components and equipment.
Based on aircraft type, the narrow-body segment is anticipated to reign supreme. The narrow-body aircraft are anticipated to accumulate over 45% market share while exhibiting a CAGR of 5.7% during the forthcoming years. Moreover, in recent years, traditional aircraft are notably being replaced by narrow-body aircraft.
This, in turn, is resulting in the need for sophisticated maintenance services to support single-aisle jets.
Narrow-body aircraft are frequently used in private and commercial services and are restricted to short journeys. Increasing the use of narrow-body aircraft might further create growth opportunities in the air transport MRO market.
Start-ups play a vital role in identifying growth opportunities. With their ability to efficiently convert inputs into outputs and adapt to market uncertainties, start-ups contribute significantly to the expansion of the industry. Some of the startups involved in manufacturing and providing services in the air transport MRO market are:
The market for air transport MRO is highly competitive, with several prominent industry players making substantial investments in increasing their manufacturing capabilities.
The key industry players working in the market are AAR Corporation, KLM Engineering & Maintenance, Delta TechOps, HAECO Ltd., Lufthansa Technik AG, Turkish Technic Inc., Singapore Technologies Engineering Ltd, Guangzhou Aircraft Maintenance Engineering Company Limited, Sabena Technics, Aeroman, Airbus SAS, SIA Engineering Company (SIAEC).
Some Recent Developments in the Air Transport MRO Market
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 79.2 billion |
| Market Value in 2033 | USD 130 billion |
| Growth Rate | CAGR of 5% from 2023 to 2033 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By application type, By aircraft type, By region |
| Regions Covered | North America; Latin America; Europe; South Asia; East Asia; Oceania; The Middle East and Africa |
| Key Countries Profiled | The United States of America, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, South Africa, Israel |
| Key Companies Profiled | AAR Corporation; KLM Engineering & Maintenance; Delta TechOps; HAECO Ltd.; Lufthansa Technik AG; Turkish Technic Inc.; Singapore Technologies Engineering Ltd; Guangzhou Aircraft Maintenance Engineering Company Limited; Sabena Technics; Aeroman; Airbus SAS; SIA Engineering Company (SIAEC) |
| Customization | Available Upon Request |
the market is valued at USD 79.2 billion in 2023.
The market is likely to experience a 6.2% CAGR until 2033.
The global market is predicted to value at USD 130 billion in 2033.
The market captured a CAGR of 3.9% from 2018 to 2022.
Sabena Technics, Aeroman, and, Airbus SAS are the essential market players.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application Type 5.1. Airframe 5.2. Engine 5.3. Component 5.4. Line 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Aircraft Type 6.1. Narrow Body Aircraft 6.2. Wide-Body Aircraft 6.3. Regional Jet 6.4. Turbo Prop 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. South Asia 7.5. East Asia 7.6. Oceania 7.7. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. AAR Corporation 17.2. KLM Engineering & Maintenance 17.3. Delta TechOps 17.4. HAECO Ltd. 17.5. Lufthansa Technik AG 17.6. Turkish Technic Inc. 17.7. Singapore Technologies Engineering Ltd 17.8. Guangzhou Aircraft Maintenance Engineering Company Limited 17.9. Sabena Technics 17.10. Aeroman 17.11. Airbus SAS 17.12. SIA Engineering Company (SIAEC) 18. Assumptions & Acronyms Used 19. Research Methodology
Industrial Automation
June 2022
REP-GB-703
250 pages
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Air Transport MRO Market
