Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Research Report: Forecast (2024-2029)

Market Insights & Analysis: Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market (2024-29):

The Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market size in the year 2022 was around USD 78.9 billion and it is estimated to grow at a CAGR of around 7.32% during the forecast period, i.e., 2024-29. The factors attributing to the growth of aircraft MRO services across the globe have been the extensive usage of the aircrafts for the air travel & cargo shipping, aging aircraft and stringent government regulations that mandate the Maintenance, services of the airliner at regular time intervals.

According to Airbus, the demand for over 40,850 aircraft is anticipated to arise during 2023-2042 as a result of surging air passenger fleets annually, and increasing commercial aviation activities supported by the thriving e-commerce industry. As airlines continuously add new planes to ease their operations and earn higher revenues, there is a corresponding need for Maintenance, repair, and overhaul services to ensure the safety and reliability of these aircraft.

Moreover, aircraft generally require significant capital investments and cost millions for the end-users. According to Boeing, a leading aircraft manufacturer, their aircraft cost ranges from USD 89.1 to USD 442 million. Therefore, end-users such as airlines & leasing companies use the aircraft for a long duration to maximize the return on their investment. They do so by ensuring that their fleets undergo proper maintenance & inspection, driving the Global Aircraft MRO Service Market.

In addition, the limited budget allocation by governments across the globe compels the air force to use aircraft for a long service life. According to the United States Air Force, in 2022, the country's air force currently operates more than eight fleets aged 50 years, approximately 13 fleets aged 40 years, around 22 aircraft aged 30 years, and 31 airplanes aged 20 years old. The aging fleets essentially require MRO services to maintain the operation efficiency of the airplanes. Further, there has been a growing focus towards sustainability, which is leading to the inclination of aircraft operators towards replacing the aircraft parts rather than entirely replacing the aircrafts. These factors are widely driving the revenue growth of Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market.

Moreover, the nations like India, the US, etc., are increasingly forming associations such as the Aircraft Maintenance Division (Federal Aviation Administration, the US) and laying policies to ensure that the fleets in the country undergo regular maintenance. Rigorous safety regulations enforced by the global aviation authorities mandate regular maintenance and the strict observance of safety standards. As a result, the end-users undergo maintenance, amplifying the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market.

Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Driver:

Extensive Air Cargo Delivery & Air Travel Driving Market Growth – Over the past few years, air traffic has consistently increased due to the surge in the transportation of goods via air and the rising tourism across the globe. Air cargo is crucial for perishable goods transportation like pharmaceuticals, seafood, vaccines, etc., since it provides timely delivery of these goods and ensures the preservation of the quality & shelf life of the goods.

According to the International Air Transport Association, in 2022, Air Cargo transports over USD 6 trillion worth of goods annually and accounts for approximately 35% of world trade. In addition, valuable & expensive products like electronics and other luxury goods are transported from one country to the destination via air to reduce the risk of theft. This rising usage of aircraft for the delivery of goods is resulting in a surge in aircraft utilization rates. As a result, the aircraft are more prone to some failures in aircraft systems and components. Thus, cargo operators such as DHL Aviation, Emirates SkyCargo, etc., are going for Aircraft MRO Services to ensure the smooth functioning of the aircraft.

Moreover, the rising net disposable income in countries like the UAE, Hong Kong, Germany, etc., and the increasing inclination of the Millennials & GenZ population towards exploration of different regions is leading to an increase in air travel. The surge in air travel is putting strain on aircraft components like engines, propellers, etc. Hence, the fleets of airlines like Go First, Akasa Air, etc., undergo regular maintenance, driving the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market.

Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Opportunity:

Increasing Deployments of Military Aircrafts & Their Modernization to Amplify the Demand for MRO Services – Aircraft are fundamental part of the country’s military sector since the militaries primarily use these aircraft for offensive & defensive purposes. Therefore, to enhance their capabilities and maintain a competitive edge over other countries, the governments of several countries like the US, India, China, etc., are investing in purchasing military aircraft. For instance,

• In 2023, the Defence Acquisition Council of India approved the procurement of around 30 MKI jets & 12 SU for the Indian Air Force (IAF).

This increasing deployment of aircraft systems is foreseen to generate the requirement for regular maintenance & pose an opportunity for the MRO services providers such as Boeing, Delta Airline, etc., to deliver their services to the military in the forthcoming years.

Moreover, several nations like South Korea, Japan, etc., are opting for the modernization of the existing aircraft fleet. This modernization effort includes avionics upgrades, structural enhancements, and the amalgamation of new weapons systems. These projects require extensive maintenance and overhaul work to ensure that the upgraded aircraft meets safety and performance standards. Consequently, this poses an opportunity for MRO providers specializing in military aviation to tap into a growing market.

Thus, the growing deployment of military aircraft & the increasing fleet modernization presents a lucrative avenue for MRO growth in the aerospace sector.

Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Challenge:

Increasing Material Costs & Unavailability of Skilled Labour Impedes Market Growth – MRO Service Providers essentially require a wide range of materials like metals, plastics, elastomers, etc., to support various maintenance & repair tasks of the aircraft. However, the fluctuations in the prices of these essential components are due to the geopolitical tensions between countries like Russia & Ukraine and supply chain constraints. As a result, the MRO Service providers are delaying their service, i.e., increasing turnaround & the airline operators have to wait for a prolonged period to get their aircraft back after maintenance, resulting in them incurring losses. Hence, the airline operators purposely skip the regular maintenance checks, restraining the market growth.

Moreover, MRO service providing companies require highly skilled labor to ensure that maintenance, repair, and overhaul activities are carried out correctly and following strict safety standards and regulations. However, qualified personnel have been scarce in the aviation industry due to the rapidly evolving aviation technology & modern systems. According to the Federal Aviation Administration (FAA), in 2020, the governing authority issued approximately 30% fewer new mechanic certificates, in contrast with 2019.

In addition, FEAM, an aircraft maintenance service provider in the US, stated that the company is currently 8% short of its desired staffing level. This unavailability of qualified staff elevates longer lead times for service appointments, hampering market growth.

Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Trend:

Rising Inclination Towards Sustainable Maintenance Boosting Market Growth – In recent years, aircraft emissions have marginally increased due to extensive aircraft usage for reasons like travel & transportation. According to the International Energy Agency (IEA), in 2022, aircraft emissions accounted for approximately 2% of the total CO2 emissions, and the emissions are growing at a relatively faster rate than the other modes of transportation such as rail, road, and ships. As a result, countries like the US, India, etc., are laying out policies such as Civil Aviation Policy 2020-2050, National Green Aviation Policy, etc., encouraging aircraft operators to imbibe sustainable practices. For instance,

• In 2021, the government of the US launched the US Aviation Climate Action Plan to reduce aircraft emissions to zero by 2050.

Moreover, the aircraft MRO service providers are offering sustainable solutions such as fuel-efficient practices, lean operations, etc., which reduces the release of emissions from aircraft engines. Hence, aircraft operators are increasingly inclining towards these sustainable MRO services to reduce their carbon footprint and minimize environmental harm, enhancing the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market.

Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market (2024-29): Segmentation Analysis

The Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2029 at the global level. According to the analysis, the market has been further classified as:

Based on Service Type:

• Airframe Maintenance
• Engine Overhaul
• Modification
• Component Repair & Maintenance
• Line Maintenance

Engine overhaul segment witnessed remarkable growth in the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market due to the increasing insurance & warranty agreements between the MROs and airline operators related to engine maintenance and performance. In addition, the governing authorities like the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) of countries like the US, Germany, the UK, etc., are increasingly laying out strict regulations regarding aircraft engine maintenance. As a result, airline operators, leasing companies, and other end users are forced to opt for the engine overhaul maintenance services.

Moreover, in case of early failures of the aircraft engine due to insufficient maintenance, the replacement costs of the aircraft engine are exceedingly high. According to Jet Engine, a leading aircraft engine manufacturer & provider, its aircraft engine costs are more than USD 2.5 million. Therefore, to avoid additional replacement costs & minimize the risk of early failures, the end-users undergo regular engine maintenance services, amplifying the share of Engine Overhaul in the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market.

Additionally, the growing concern of governments across the globe to minimize carbon emissions is also leading aircraft operators, leasing companies, and defense forces to opt for engine maintenance services to make the aircraft more fuel efficient. Thus, the shift towards fuel efficiency would increase the share of Engine Overhaul in the Global Aircraft Maintenance Repair and Overhaul (MRO) Services Market in the foreseen years.

Based on Aircraft Type:

• Commercial Aviation
  • Narrow-body Jet
  • Wide-body Jet
  • Regional Jet
  • Cargo
• General Aviation
  • Single-Engine Piston Aircraft
  • Twin-Engine Piston Aircraft
  • Turboprop Aircraft
  • Business Jets
  • Amphibious Aircrafts
  • Others (Rotorcraft, Aerobatic Aircraft, etc.)
• Military Aviation
  • Fighter Aircraft
  • Bomber Aircraft
  • Reconnaissance Aircraft
  • Special Mission Aircraft
  • Others (Transport Aircraft, Trainer Aircraft, etc.)

The increasing air travel by individuals & the surging air cargo has led to a surge in the demand for commercial aviation. As a result, airline operators are increasingly purchasing wide-body aircraft to accommodate freight and mail in the lower cargo compartments. In addition, wide-body aircraft are more complex than narrow-body aircraft since they are designed & crafted with more components. Therefore, the requirement for MRO services is relatively higher for wide-body aircraft to ensure its smooth functioning. Hence, the expanded usage of these aircraft types has amplified commercial aviation's share in the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services market.

Moreover, the airline operators' Wide-body aircraft have a larger seating capacity, making them more appropriate to carry more passengers at a time. As a result, airlines such as Indigo, Spicejet, Akasa Air, etc., are increasingly purchasing wide-body aircraft. For instance,

• In 2023, Indigo, an airline operator, announced its plans to purchase around 20 wide-body aircraft to expand its international traveling operations.

This increasing purchase of wide-body aircraft by different end-users across the globe would result in the requirement for maintenance services, consequently uplifting the share of commercial aviation aircraft in the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market in the foreseen years.

Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market (2024-29): Regional Projections

Geographically, the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Asia-Pacific countries like China, India, and others are witnessing rapid economic growth & inclination toward e-commerce due to changing consumer behavior. As a result, there is a surge in the requirement for aircraft for air travel & transportation of goods. Hence, leasing companies, airlines, and cargo operators are increasingly purchasing aircraft, leading the Asia-Pacific region to have relatively more airplanes than other regions like the Middle East, South America, and others.

According to CH- Aviation, a reliable database for active & ground aircraft, in 2022, Asia-Pacific has more than 10,000 aircraft and it is the leading region. The prevalence of more aircraft in the Asia-Pacific region is resulting in the requirement for MRO Services, consequently enhancing the market share of the Asia-Pacific region in the Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market.

Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Industry Recent Development:

• 2023: AAR Corp. announced to provide airframe MRO services to the existing fleet of United Airlines till 2030.
• 2022: Delta TechOps announced an agreement with CFM International to provide engine overhaul MRO services for their next-generation LEAP-1B aircraft engine.

Gain a Competitive Edge with Our Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Report

• Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Aircraft Maintenance, Repair and Overhaul (MRO) Services Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.