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The aircraft engine MRO market size is forecast to increase by USD 11.36 billion at a CAGR of 5.86% between 2023 and 2028. The market is witnessing significant growth due to increasing investments in MRO facilities to enhance operational efficiency and reduce downtime. Another trend driving the market is the growing adoption of 3D printing technology for aircraft engine MRO, which offers benefits such as reduced production time and cost, and improved customization. However, there are barriers to the adoption of new technology and equipment in aircraft MRO, including high initial investment costs and the need for specialized skills and training. Despite these challenges, the market is expected to continue its growth trajectory, driven by the increasing demand for aircraft engines and the need to ensure their optimal performance and longevity.
The aircraft engine MRO (Maintenance, Repair, and Overhaul) market in the aviation industry is experiencing significant growth due to increasing passenger traffic and aircraft movements. Airlines and military forces require regular MRO activities to ensure the optimal performance and safety of their aircraft fleets. Next-generation engines, such as the LEAP engine, are driving the demand for advanced MRO support centers. The expansion plans of airlines and the integration of cargo aircraft into their fleets are also contributing to the market growth. Rapid urbanization and emerging countries are experiencing increased air travel, leading to a higher utilization rate of aircraft and an increased need for MRO services.
Moreover, Tier-II and tier-III suppliers play a crucial role in providing essential components and services to MRO providers. The workforce supply and labor force costs are key challenges for the MRO market. The market is expected to witness strong growth in the coming years, driven by the increasing air traffic volumes and the need for maintaining and upgrading the existing aircraft fleet, including turbine engines and piston engines.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The commercial aviation segment is estimated to witness significant growth during the forecast period. In the aviation industry, aircraft maintenance, repair, and overhaul (MRO) activities play a crucial role in ensuring the optimal performance and safety of aircraft engines. With the increasing passenger traffic and aircraft movements, fleet expansion plans by airlines and military forces necessitate regular engine maintenance. These activities encompass inspections, lubrication, and component replacements to prevent wear and tear and address unexpected issues. Overhauls, which include comprehensive inspections, repairs, and replacement of expensive materials, extend the life of engines and adhere to regulatory standards. Commercial aviation's heavily regulated nature demands strict adherence to safety and airworthiness regulations set by authorities such as the FAA and EASA.
Furthermore, MRO services are vital for diagnosing and repairing unscheduled engine problems, maintaining airworthiness, and ensuring commercial aviation segment and military aviation's continued operation. Newer generation engines require advanced technical expertise and training services, leading to the establishment of aviation training centers and service provider partnerships. Major commercial aircraft models like the Airbus A320 and A321 undergo regular engine maintenance and component requirements. Long-term partnerships and joint ventures between airlines, defense funding, and MRO service providers ensure sufficient maintenance capacity and overhaul (MRO) facility availability for the total aircraft fleet. Leap 1B engines, for instance, necessitate specialized MRO services, further emphasizing the importance of these activities.
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The commercial aviation segment accounted for USD 23.62 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Air travel in the Asia-Pacific (APAC) region has experienced significant growth due to the success of low-cost carrier models, increasing passenger traffic, and the rising middle class in emerging countries. This growth has led to an increase in demand for energy-efficient aircraft and engines, creating opportunities for aircraft and engine manufacturers to expand their presence in the region. MRO support centers play a crucial role in maintaining the aircraft fleet, with Tier-II and Tier-III suppliers providing essential components and services. Cargo aircraft, fixed-wing aircraft, rotary-wing aircraft, and various engine types such as turbine engines, piston engines, turboprops, turbofans, and turboshafts, are all in high demand in the civil aviation sector.
Furthermore, next-generation engines like the LEAP engine are increasingly preferred for their fuel efficiency and reduced emissions. The aircraft fleet in APAC comprises narrow-body and wide-body aircraft, as well as new-generation aircraft, requiring advanced maintenance processes. Rapid urbanization and increasing air traffic volumes have led to a high demand for technical maintenance jobs, resulting in a significant workforce supply and labor force costs. Automation processes are being adopted to improve efficiency and reduce costs in field maintenance and depot maintenance. Key players in the engine overhaul segment include Collins, among others. The growth of the aircraft industry in APAC is expected to continue, driven by these trends and the increasing demand for air travel.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing investments in MRO facilities is the key driver of the market. The global aircraft engine Maintenance, Repair, and Overhaul (MRO) market is experiencing significant growth due to several key factors. Aviation industries in developing countries, such as India, are witnessing increased investments in setting up new MRO facilities, driven by the increase in passenger traffic, rising middle-class income, and expansion of low-cost carriers (LCC). In line with this trend, Airbus Helicopters inaugurated a new MRO facility in Paris in January 2022, dedicated to helicopter component repair. Similarly, in August 2021, Lockheed Martin Corporation announced plans to establish an MRO facility for the F-21 fighter jets in India. Moreover, fleet expansion plans by airlines and military forces, along with defense funding, are fueling the demand for engine MRO services.
Moreover, the commercial aviation segment, in particular, is expected to witness substantial growth due to the increasing popularity of newer generation engines and the expensive material requirements for their maintenance. To digitize and automate maintenance activities, reduce turnaround time, and ensure safety, industry players are focusing on investing in advanced technologies and partnering with service providers. The total aircraft fleet is projected to grow significantly, leading to increased demand for engine MRO services, maintenance facilities, and overhaul (MRO) facilities. For instance, S7 Technics, an aviation training center at Sheremetyevo airport, has expanded its maintenance capacity by investing in Leap 1B engines and forming long-term partnerships and joint ventures. These developments underscore the importance of engine maintenance cost, component requirements, technical training services, and the role of engine MRO services as essential elements in the aviation industry's growth trajectory.
Growing adoption of 3D printing technology for aircraft engine MRO is the upcoming trend in the market. In the aviation industry, the increasing passenger traffic and aircraft movements have led to a increase in aircraft maintenance, repair, and overhaul (MRO) activities. With fleet expansion plans by airlines and military forces due to defense funding, the demand for engine MRO services is on the rise. The commercial aviation segment, in particular, is witnessing significant growth, with new contracts being awarded for engine maintenance and component requirements. Newer generation engines, such as the Leap 1B engines used in the Airbus A320 and Airbus A321, have expensive material requirements, making it essential for service providers to digitize and automate maintenance activities to reduce turnaround time and ensure safety.
Furthermore, S7 Technics at Sheremetyevo airport is one of the leading maintenance facilities, offering engine MRO services through long-term partnerships and joint ventures. The total aircraft fleet is expected to grow, leading to an increased need for maintenance capacity and engine overhaul facilities. Additionally, aviation training centers play a crucial role in providing technical and training services to ensure a skilled workforce for engine maintenance. Additive manufacturing, such as 3D printing, is also gaining popularity in the aerospace industry for manufacturing engines, cores, and prototype tooling due to its ability to offer products with different materials and complex geometries.
Barriers to adoption of new technology and equipment in aircraft MRO is a key challenge affecting the market growth. In the aviation industry, aircraft maintenance, repair, and overhaul (MRO) activities play a crucial role in ensuring the optimal performance and safety of both commercial and military aircraft. With the increasing passenger traffic and aircraft movements, fleet expansion plans by airlines, and defense funding for military forces, the demand for engine MRO services is on the rise. companies providing engine maintenance and component requirements for newer generation engines face expensive material requirements and the need to digitize and automate maintenance activities to reduce turnaround time. Commercial aviation segments, such as the Airbus A320 and A321, require extensive engine maintenance, while military aviation segments necessitate adherence to stringent regulatory norms.
Service provider partnerships with aviation training centers, such as S7 Technics at Sheremetyevo airport, offer maintenance capacity expansions and long-term partnerships. Overhaul facilities for engines like Leap 1B are essential for both commercial and military aircraft, and joint ventures can facilitate cost savings and improved efficiency. Military forces face challenges in adopting new technologies due to the rapid obsolescence of military equipment, necessitating a focus on technical training services and ongoing engine maintenance.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AAR Corp: The company offers aircraft engine MRO services such as scheduled maintenance, unscheduled repairs, hot section inspections, boroscope inspections and component overhaul services.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The aviation industry's growth, driven by increasing passenger traffic and aircraft movements, is fueling the demand for aircraft engine maintenance, repair, and overhaul (MRO) services. Airlines and military forces are expanding their fleets, leading to an increase in MRO activities. Newer generation engines, which require expensive material and technical expertise, are driving up engine maintenance costs. To address this challenge, the industry is focusing on digitizing and automating maintenance activities to reduce turnaround time and enhance safety. The commercial aviation segment, which includes Airbus A320 and A321, is the largest consumer of engine MRO services, accounting for over 60% of the total aircraft fleet.
Furthermore, S7 Technics at Sheremetyevo Airport and other service providers are expanding their maintenance capacity through new contracts, partnerships, and joint ventures to meet the growing demand for engine MRO services. The military aviation segment is also a significant consumer of engine MRO services, with defense funding driving the need for overhaul (MRO) facilities for Leap 1b engines and other military engines. Component requirements and technical training services are also essential aspects of engine MRO, with aviation training centers playing a crucial role in ensuring a skilled workforce.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.86% |
Market growth 2024-2028 |
USD 11.36 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.01 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, India, Russia, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A J Walter Aviation Ltd., AAR Corp., Ana Holdings Inc., Aviation Technical Services, AZUL SA, Delta Air Lines Inc., Deutsche Lufthansa AG, General Electric Co., Hindustan Aeronautics Ltd., IAG Aero Group, Israel Aerospace Industries Ltd., John Swire and Sons Ltd., MTU Aero Engines AG, Rolls Royce Holdings Plc, RTX Corp., Safran SA, Sanad, Singapore Airlines Ltd., Singapore Technologies Engineering Ltd., Synerjet Corp., The Boeing Co., Transportes Aereos Portugueses S.A., and Turkish Airlines |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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