The global aircraft MRO market was valued at USD 78.6 billion in 2022 and it is predicted to surpass around USD 128.28 billion by 2032 with a CAGR of 5.02% from 2023 to 2032.
Report Scope of the Aircraft MRO Market
|Market Size in 2022||USD 78.6 billion|
|Revenue Forecast by 2032||USD 128.28 billion|
|Growth rate from 2023 to 2032||CAGR of 5.02%|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Companies Covered||AAR Corp.; Airbus SE; Delta Airlines, Inc. (Delta TechOps); Hong Kong Aircraft Engineering Company Limited; KLM U.K. Engineering Limited; Lufthansa Technik; MTU Aero Engines AG; Raytheon Technologies Corporation (Previously United Technologies Corporation); Singapore Technologies Engineering Ltd; TAP Maintenance & Engineering (TAP Air Portugal)|
Rapid urbanization and the rising economic growth in emerging countries with increased business and tourism travels are expected to increase the market growth. Various external factors, such as air traffic volumes, global fleet size, and aircraft utilization, are the factors expected to significantly impact the market. Also, the increased air travel by individuals for business and personal purposes is expected to create more aircraft production, thereby substantially impacting the market.
The rise in investments in aircraft (maintenance, repair and overhaul) MRO software are also expected to create new business prospects. Aircraft MRO software consists of maintenance tracking, logbook tracking, flight time tracking, service bulletins management, maintenance scheduling, budget forecasting, electronic task card management, and work order management. For instance, in May 2021, India observed significant foreign direct investments in different sectors, including aircraft maintenance, repair, and overhaul industries. Therefore, investments and acquisitions are the factors expected to create lucrative opportunities for the market.
The market is also influenced by the regulatory compliance with organizations like the Federal Aviation Administration (FAA) and International Civil Aviation Organization (ICAO). Furthermore, the rise in demand for older planes and environmental concerns emphasize the continuous monitoring and maintenance of the older planes, thereby creating traction for the market. Furthermore, the global outburst of the COVID-19 and shutting down of travel and tourism due to strict lookdowns imposed by the governments to curb the spread hampered the revenue and profit margins of the airline industry.
The shutting down of the functioning of airlines resulted in more airlines turning to MRO to maintain fleet efficiency. Moreover, numerous government programs have been developed to encourage airports to embrace MRO as a strategic activity. Governments are currently pursuing a variety of holistic measures to ensure that enough space is available for the MRO at various airports around the country, which could boost aircraft MRO activities during the forecasted period.
The MRO industry has faced challenges such as shortage in workforce supply, rise in labor force costs, lack of an experienced workforce, and reduced interest in technical maintenance jobs from the recent graduate engineers. This is expected to affect the aircraft maintenance, repair, and overhaul (MRO) industry in the forecast period. For MRO operators, right-sourcing and outsourcing are the two options that are more relevant to MRO service providers.
Ever-increasing material prices are becoming a critical factor that affect the expansion. Due to this, MRO service providers are targeting to create strategic alliances with OEMs to get help in procuring aircraft parts and components. For instance, in November 2021, Singapore-headquartered SIA Engineering Company (SIAEC) announced that it has set up 23 joint ventures and subsidiaries across seven countries with OEMs, including Pratt & Whitney, Collins, Jamco, Rolls-Royce, GE, Safran, aiming to develop a range of MRO capabilities.
Aircraft MRO Market Segmentations:
|By Service Type||By Organization Type||By Aircraft Type||By Aircraft Generation|
Original Equipment Manufacturer (OEM) MRO