Maintenance Repair and Overhaul (MRO)
Outlook of the global aircraft line maintenance market
At present, the global market for aircraft line maintenance is witnessing stable growth and is anticipated to grow at a CAGR of over 4% by 2020. Much of this region’s growth can be attributed to the establishment of new facilities to accommodate increasing fleet size. It has been noted that most global aircraft manufacturers are establishing maintenance facilities in different regions across the globe. This increase in the number of manufacturing facilities allows vendors to penetrate regional markets and also establishes competition with the local maintenance service providers. In most regions, the customer tends to choose the maintenance service providing an arm of the aircraft manufacturer, rather than any third-party or outsourced service provider. As a result, most vendors prefer offering specialized manufacturer-certified line maintenance services locally to increase their market shares.
Another key factor that is estimated to foster market growth is the rising preference for outsourcing line maintenance services. The outsourcing of non-core activities, such as like aircraft MRO, to reduce the overall cost is a key trend in the global aviation industry due to its ability to bring about cost effectiveness and augment effectual time management. Most MRO activities like heavy airframe, components, and engines are mostly outsourced, apart from line maintenance, as most aircraft carriers consider it a core activity and prefer that it is done in-house. For instance, Air Works performs third party line maintenance services at the Chennai, Trichy, Thiruvananthapuram, and Bengaluru airports in India. It costs around USD 200 and takes around 45 minutes to complete line maintenance for each narrow-bodied aircraft, and USD 400 and two hours per wide-bodied aircraft.
Competitive landscape and key vendors
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Overview of the global commercial aircraft MRO market
Technavio’s market research analyst predicts the global commercial aircraft MRO market to grow at a CAGR of more than 3% during the forecast period. The global commercial aircraft MRO market is expected to witness massive growth owing to the expanding aircraft fleet by established airline service providers and the introduction of new airlines. The growing number of low-cost carriers (LCCs) and increased affordability by the middle-class population have led to a rise in the demand for air travel. The increasing GDP also plays a significant role in the expansion of existing fleet. Besides, the growing air passenger traffic has propelled the manufacturers to upgrade their avionics systems at regular intervals to ensure the safety of the passengers. Technological advancements and the growing demand for outsourcing MRO services are other factors driving growth in the market. With the increasing requirements for next-generation products and systems, the demand for aircraft modernization has gained momentum, which in turn, has intensified MRO activities in commercial aircrafts.
Several OEMs in the market are extending their services portfolio with respect to new airframe and engine aftermarket support. To gain competitive edge over these OEMs, the third-party MRO service providers are making investments in the R&D projects related to engine and composite airframe MROs. Wichita, a US-based Spirit AeroSystems, has come up with an out-of-autoclave repair process for composite propulsion system components in aircrafts that is suitable for all propulsion products. Also, this innovative technology reduces the repair time to two days as compared to 14 days using an autoclave. The new technology will allow MRO technicians to access small, local areas of components with complicated
Outlook of the civil helicopter MRO market
Technavio’s market research analyst anticipates the global civil helicopter maintenance, repair, and overhaul (MRO) market to grow at a moderate CAGR of approximately 4% until 2020. The growing global demand for civil helicopters is the primary growth driver for this market. Much of this demand can be attributed to factors such as the increase in offshore activities, increased utilization in law enforcement agencies, search and rescue operations, and emergency medical evacuation. This increase in the demand for civil helicopters will foster the need for MRO services, which in turn will promote the prospects for growth in the global market for civil helicopter MRO services during the forecast period.
The augmented utilization of composites will impel the opportunities for growth in this market during the forecast period. Composites play a vital role in helicopters as they are used to design seats, engine bay doors, and the fuselage. Factors like its high-cost effectiveness increased strength, corrosion resistive properties, chemical inertness, great fatigue, ease of manufacture, high strength-to-weight ratio, design flexibility, and lower part count will augment its adoption during the forecast period.
Segmentation by type and analysis of the civil helicopter MRO market
- Engine and modifications
In this market study, analysts have estimated the components services segment to account for approximately 35% of the total market share by 2020. This segment includes services like testing, repair, and overhaul of an extensive range of transmission, mechanical, and hydraulic components. Continuous investments by the vendors will boost growth in this market segment during the forecast period.
Market segmentation by aircraft type
- Regional jets
As of 2014, there were more than 2,600 regional jets in service. For improving regional connectivity, airliners are majorly investing in the seating configuration and HUD technology. This segment is expected to reach a market size of 1.2 billion until 2019.
Geographical segmentation of global commercial aircraft modernization retrofit market
The market in APAC is growing at a steady rate because of the new aircraft deliveries and hence giving less opportunity for the retrofit market. The growing market is buoyant on the demand for sharklets among the leading airlines of the region. With the help of sharklet, an aircraft can reduce 900 tons of carbon dioxide emission annually and also reduces the fuel costs up to 4%. With this, the market in the APAC region is expected to reach more than $3 billion in the next four years.
Vendor landscape of the aircraft modernization, upgrade, and retrofit market
- ST Aerospace
- L-3 Communications
As of 2014, there were around 13,500 narrow-body aircrafts in service that were being majorly utilized by the low-cost carriers. These carriers are focusing on upgrading existing cabin designs and installing sharklets that help to reduce the fuel intake. Such new developments in the market have lured increasing investments in the aircraft modernization space.
For instance, in 2015, Southwest Airlines
About aircraft component MRO
Aircraft component MRO services are essential in ensuring the smooth operation of aircraft. MRO providers and companies are regulated by various aviation authorities, such as the FAA, the CASA, and the EASA. Aircraft component MRO services include maintenance, repair, and overhaul of avionics and electronics, mechanical actuators, fuel systems and carburetors, landing gear, and auxiliary power units.
Technavio's analysts forecast the global aircraft component MRO market to grow at a CAGR of 1.5% over the period 2014-2019.
Covered in this report
The report includes the present scenario and the growth prospects of the global aircraft component MRO market for the period 2015-2019. Based on the type of aircraft, the market can be segmented into narrow-body, wide-body, and regional jets/turboprop.
Technavio's report, Global Aircraft Component MRO Market 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the Americas, APAC, and EMEA; it also covers the landscape of the global aircraft component MRO market and its growth prospects in the coming years. The report includes a discussion on the key vendors operating in this market.
• GE Aviation
• Honeywell Aerospace
• Lufthansa Technik
• Pratt & Whitney
Other prominent vendors
• Barnes Aerospace
• Delta TechOps
• FL Technics
• Turkish technic
• Increase in joint ventures
• For a full, detailed list, view our report
About aircraft engine MRO
In the aerospace industry, engine MRO is carried out at regular intervals after an aircraft reaches the certain flight hour or flight cycle. Engine MRO includes performing routine checks or major overhauls to maintain the condition of an aircraft engine as per the requirements of operators. Engine MRO overhaul work usually involves off-wing disassembly, inspection, repair and replacement of parts, and re-assembly.
Technavio's analysts forecast the global aircraft engine MRO market to grow at a CAGR of 6.42% over the period 2014-2019.
Covered in this report
In this report, Technavio covers the present scenario and growth prospects of the global aircraft engine MRO market for 2015-2019. The report provides a global overview as well as growth prospects by region (Americas, APAC, and EMEA). The report also presents the vendor landscape and a corresponding detailed analysis of the prominent vendors operating in the market. In addition, it discusses the major drivers influencing market growth and outlines the challenges faced by vendors and the market as a whole. The report also examines key emerging trends and their influence on current and future market scenarios.
Technavio's report, Global Aircraft Engine MRO Market 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the Americas, APAC, and EMEA, and its growth prospects in the coming years. The report includes a discussion of the key vendors operating in this market.
• Delta TechOps
• GE Aviation
• Honeywell Aerospace
• Pratt & Whitney Division
• Rolls Royce
Other prominent vendors
MRO is a comprehensive term for all the services related to assessing and ensuring aircraft safety. It is critical for sustaining the world’s airline fleets.
As of 2013, the largest aircraft MRO market was military aircraft MRO valued at $60.7 billion, followed by commercial aircraft with $59.2 billion and business aviation with $10.8 billion.
Military aircraft MRO is classified into field maintenance, airframes, and component and engine MRO. The commercial aircraft segment is classified into engines, components, lines, airframes, and modification.
Rapid growth in commercial air transport, growing air traffic, and aging aircraft fleets will be the driving factors for MRO growth in the coming years.