The Global Market for Aircraft Maintenance, Repair and Overhaul (MRO) is Forecast to Reach US$82.4 Billion by 2024

The Continuous Importance Shed by the Aviation Industry on Airworthiness Management Drives the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO), According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Aircraft Maintenance, Repair and Overhaul (MRO) market. The global market for Aircraft Maintenance, Repair and Overhaul (MRO) is forecast to reach US$82.4 billion by 2024, driven by stringent airworthiness requirements and the resulting increase in expenditure involved in restoring aircraft to their original state, function and performance.

As one of the most critical aspects of aircraft ownership, aircraft maintenance, repair and overhaul (MRO) represents a multi-billion dollar industry driven by a host of factors which include health of the aviation industry; size of the commercial aircraft fleet and their age; frequency of new aircraft upgrades; and stringent compliance regulations for aircraft ownerships, among numerous others. Few of the factors that make aircraft MRO important include its ability to reduce lost opportunities due to aircraft downtime caused by failure; optimize aircraft performance and in turn reduce operating expenditure; ensure maximum passenger safety; ability to prolong life of the aircraft and enhance ROI in capital investments; reduced risk of mechanical failure; increased long-term savings offered by proactive maintenance; and the competitive need to provide value added, superior services that ensure that passengers have a pleasant, safe and timely journey. Downtime caused by unscheduled maintenance has the potential to erode corporate bottom-line, and damage service credibility and brand in the market. Conversely, given that passenger safety plays a vital role in influencing customers’ choice of airline carrier, MRO can help boost safety record/rating of airline companies and reduce churn rates by positively influencing future travel choices of the customer.

Another factor which helps throw into perspective the importance of MRO is the fact that over 18% to 20% of an airline’s operating cost is accounted for by MRO. Total spending on aircraft MRO (inclusive of military aircraft MRO), exceeds the total manufacturing cost of a new aircraft. In fact, profitability of airline companies is not dependent upon purchase of aircraft but rather upon appropriate and regular maintenance, since optimal utilization of assets is influenced by regular maintenance. Poised to benefit in the coming years will be MROs with the ability to offer custom tailored service and maintenance programs uniquely tailored to match specific needs and time/schedule expectations of customers. To optimally leverage opportunities in this space, MROs are infusing flexibility into their service models such as inclusion and provision of prepaid service plans; fixed pricing plans; flight-hour-based contracts; repair-by-the-Hour contracts; performance-based contracts, among others. New generation MROs offer a broad services portfolio encompassing  maintenance, repairs and overhauls; modifications, upgrades and retrofits; 24/7 Aircraft-on-Ground (AOG) service; spare parts and components sourcing; exchange and rental programs; field engineering services and technical support; obsolescence management; spare parts provisioning; custom service and maintenance programs; and OEM licensing programs.

As stated by the new market research report on Aircraft Maintenance, Repair and Overhaul (MRO), Asia-Pacific ranks as the largest and the fastest growing market worldwide with a CAGR of 6.9% over the analysis period led by factors such as rapid urbanization, robustly growing travel and tourism industry and the ensuing increase in air passenger traffic; rise of low cost carriers in price sensitive Asian economies ; expansion in aircraft fleet and air routes; rise of China as the largest travel market in Asian; and increased focus of airline companies on smart management of assets and adoption of predictive and condition based maintenance.   

Major players in the market include AAR Corp., Aeroman, AIRBUS SAS, Air France KLM Engineering & Maintenance, Ameco Beijing, AMETEK MRO, Aviation Technical Services, Inc., Bedek Aviation Group, Bombardier, Inc., Delta TechOps, GMF AeroAsia, Honeywell International Inc., Hong Kong Aircraft Engineering Company, Lufthansa Technik AG, MTU AeroEngines AG, Sabena Technics, Singapore Technologies Aerospace, SR Technics, SIA Engineering Company, STAECO, TAP Maintenance & Engineering and The Boeing Company among others. 

The research report titled “Aircraft Maintenance, Repair and Overhaul (MRO): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the USA, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India, Singapore, South Korea and Rest of Asia-Pacific), Middle East & Africa and Latin America. The report also provides market estimates and projections for Maintenance Type such as Heavy Airframe Maintenance, Modifications, Components Maintenance, Engine Overhaul and Line Maintenance.

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