Aircraft Maintenance, Repair and Overhaul (MRO) Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, India, Russia, Germany - Size and Forecast 2024-2028

Aircraft Maintenance, Repair and Overhaul (MRO) Market Forecast 2024-2028

The Aircraft Maintenance, Repair and Overhaul (MRO) Market size is forecast to increase by USD 19.55 billion, at a CAGR of 4.78% between 2023 and 2028. The growth rate of the market depends on several factors, such as the increasing demand for air travel, the stringent regulations imposed on regular maintenance of aircraft, and the expansion of airline fleets. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.

The market growth in APAC is fuelled by factors such as an increase in air travel, growth in the travel and tourism industry, tremendous growth in the IT industry, and the increasing number of business tours. A J Walter Aviation Ltd offers aircraft maintenance, repair, and overhaul services including component repair such as parts supply, repair, and exchange to help minimize downtime for airlines. AAR Corp offers aircraft maintenance, repair, and overhaul services including airframe maintenance, landing gear, component repair, wheels and brakes, and engineering services for commercial and military aircraft.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamics

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Driver - Increasing demand for air travel

The surge in air travel demand, driven by factors such as the growth of the middle class in emerging economies and rapid urbanization, has led to increased aircraft fleet utilization. This heightened demand necessitates more frequent maintenance, repair, and overhaul (MRO) services in the aerospace sector. As more people in countries like China, India, and Brazil enter the middle class, there is a greater affordability for air travel, fueling the expansion of the passenger pool. Additionally, urbanization, which results in increased movement to cities for better economic opportunities, has further stimulated the demand for air transportation.

Cities, functioning as hubs for various activities, experience a surge in the need for air travel connectivity. Advances in aviation technology, coupled with efficient aircraft design and expanded airline networks, contribute to the convenience, affordability, and accessibility of air travel. The presence of low-cost carriers expanded airline alliances, and the opening of new routes enhanced connectivity between cities and regions, further boosting the demand for air travel. This rise in air travel leads to heightened aircraft utilization, resulting in more frequent flights and longer operating hours for airline fleets. This increased demand is expected to create growth opportunities for engine overhaul services and other aerospace MRO activities in the commercial aviation sector. Hence, such factors are driving the market growth during the forecast period.

Key Trends - Integration of digitalization and automation in aircraft MRO processes

Digital technologies including artificial intelligence (AI), machine learning, and robotic process automation (RPA) are increasingly being integrated into MRO processes to streamline operations, enhance efficiency, and improve decision-making. In addition, automation of routine tasks, data-driven insights, and digital workflows contribute to increased productivity and reduced turnaround times. Furthermore, augmented reality (AR) and virtual reality (VR) technologies are being integrated into MRO operations for training, maintenance visualization, and remote assistance.

Moreover, these technologies enable technicians to access digital manuals, visualize complex procedures, and receive real-time guidance, enhancing safety, efficiency, and accuracy in MRO activities. In addition, the integration of predictive maintenance programs helps in leveraging data analytics, machine learning, and sensors to monitor aircraft health in real-time. Furthermore, predictive maintenance algorithms analyze data from aircraft systems to detect potential issues before they occur, allowing for proactive maintenance interventions and reducing unscheduled downtime. Hence, such factors are driving the market growth during the forecast period.

Significant Challenge - High costs associated with aircraft MRO services

The costs related to labor, equipment, facilities, and materials in the aircraft MRO services are high. In addition, high upfront investments are required to establish and operate MRO facilities, procure specialized tools and equipment, and employ skilled technicians. Furthermore, MRO facilities require substantial investment in infrastructure, including hangars, workshops, maintenance bays, and storage areas.

Moreover, the construction, maintenance, and operation of these facilities entail significant capital expenditure and ongoing operational expenses, including utilities, rent or mortgage payments, insurance, and property taxes. In addition, aircraft MRO services also demand significant investments in technology and software solutions, which are essential for modernizing MRO operations, improving efficiency, and enhancing safety and compliance. Furthermore, costs associated with purchasing, implementing, and maintaining software platforms, data analytics tools, predictive maintenance systems, and digitalization initiatives contribute to overall MRO expenses. Hence, such factors are hindering the market growth during the forecast period.

Market Segmentation by Application, Service, and Geography

Application Segment Analysis:

The commercial aviation segment is estimated to witness significant growth during the forecast period. Commercial aircraft can be referred to as the type of plane that transports people or cargo from one area to another. In addition, it includes a wide range of activities related to scheduled air transportation, including passenger airlines, cargo carriers, charter services, and other commercial aviation operations. Furthermore,  aircraft MRO play an important role in ensuring the safety and reliability of commercial aircraft.

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The commercial aviation segment was the largest segment and was valued at USD 41.39 billion in 2018. Moreover, the airplane MRO services include inspection, repair, servicing, and overhaul of commercial airplane components, systems, and structures to maintain them in optimal condition and compliance with regulatory requirements. In addition, factors such as urbanization, increase in disposable income, economic growth, and growth in global trade drive the growth of the commercial aviation segment. Furthermore, the increasing participation in tourism and leisure activities plays a significant role in driving the demand for commercial aviation. In addition, growing affluence, changing lifestyles, and increasing leisure time encourage people to travel for vacations, holidays, and recreational activities and, in turn, fuel the demand for commercial aviation. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Service Segment Analysis:

Based on the service, the market has been segmented into engine overhaul, airframe maintenance, line maintenance, modification, and components. The engine overhaul segment will account for the largest share of this segment. The engine overhaul segment plays a key role in the comprehensive inspection, repair, and refurbishment of airplane engines to restore them to a serviceable condition and extend their operational life. In addition, the engine overhaul is important for maintaining the safety, reliability, and performance of airplane engines, which are among the most complex and expensive components of an airplane. Moreover, the growth of the engine overhaul is driven by compliance with manufacturer maintenance schedules and regulatory requirements.  In addition, airplanes used for high-utilization operations, such as commercial airlines, cargo carriers, and charter services, often require more frequent engine maintenance and overhaul due to intensive flight schedules and operational demands. Furthermore, high-utilization operators prioritize engine reliability, durability, and performance to minimize downtime and maintain operational efficiency. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 32% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Several factors including rapid fleet expansion in the region will fuel the growth of the regional market. In addition, APAC is one of the fastest-growing regions in terms of air travel demand, supported by robust economic growth, rising disposable incomes, and increasing urbanization. Moreover, as airlines in the region expand their fleets to meet growing passenger traffic, there is a corresponding increase in demand for MRO services to maintain and support these airplanes. In addition, the APAC countries are investing heavily in expanding and modernizing their aviation infrastructure, including airports, MRO facilities, and aerospace manufacturing capabilities. Furthermore, infrastructure development projects, such as the construction of new airports and MRO centers, create opportunities for MRO providers for business expansion in the region. Hence, such factors are driving the market growth in APAC during the forecast period.

Who are the Major Market Companies?

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. 

Avia Solutions Group PLC: The company offers aircraft maintenance, repair, and overhaul services includes complete all stages of heavy aircraft maintenance and repair for passenger and cargo airlines.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Aviation Technical Services, AZUL SA, Barnes Group Inc., Delta Air Lines Inc., Deutsche Lufthansa AG, General Electric Co., Hindustan Aeronautics Ltd., Honeywell International Inc., Israel Aerospace Industries Ltd., Lockheed Martin Corp., MRO Holdings, MTU Aero Engines AG, RTX Corp., Safran SA, Sanad, Singapore Technologies Engineering Ltd., SR Technics Switzerland Ltd., StandardAero, The Boeing Co., and Turkish Airlines

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook
  • Commercial aviation
  • Military aviation
  • General aviation
• Service Outlook
  • Engine overhaul
  • Airframe maintenance
  • Line maintenance
  • Modification
  • Components
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market encompasses a comprehensive range of services, including the rebuilding of engines, manufacturing of parts, technical assistance, and one-equipment maintenance activities. These services cater to various sectors, from engine maintenance to software maintenance. Original Equipment Manufacturers (OEMs) and independent airline overhaul shops play pivotal roles in providing full MRO support programs. Notably, low-cost airlines like Flynas of Saudi Arabia enter Rate per Flight Hour (RPFH) agreements with entities such as CFM International to ensure efficient maintenance for their fleets, which may include Airbus Aneo aircraft. The market witnesses growth propelled by factors such as increased air traffic volumes, a burgeoning global fleet size, and the rising demand for aircraft utilization. Several market players are offering airline assemblies, repair overhaul, aerospace mro, aircraft maintenance, aircraft movements, and wide-body aircraft fleet services across the globe. The market dynamics are influenced by regulatory compliance, workforce supply, labor force costs, and material prices. As emerging countries become significant players in business and tourism travel, the demand for MRO services continues to rise. The market caters to various segments, including narrowbody and widebody aircraft, new-generation aircraft, and cargo aircraft maintenance, providing a comprehensive solution to the evolving needs of the airline industry.

The market plays a crucial role in ensuring the operational efficiency and safety of aircraft. This sector encompasses a wide array of services, including depot maintenance checks, major repairs, testing, and fabrication. Original Equipment Manufacturers (OEMs) and independent airline overhaul shops contribute significantly, offering full MRO support programs for various powerplant generations. In the evolving landscape of the market, commercial low-cost airlines, exemplified by Flynas in Saudi Arabia, enter strategic agreements like Rate per Flight Hour (RPFH) with providers such as CFM International to optimize maintenance for their fleets. The market dynamics are shaped by technical maintenance jobs, aerospace MRO, and depot-level maintenance. The independent MRO sector caters to diverse segments, including narrowbody aircraft, providing crucial support to the global aviation industry. As the demand for air travel grows, the market becomes increasingly essential for maintaining regulatory compliance, ensuring safety, and extending the lifespan of aircraft components.

Aircraft Maintenance Repair And Overhaul Market Scope
Report Coverage	Details
Page number	170
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.78%
Market Growth 2024-2028	USD 19.55 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.34
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 32%
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., Avia Solutions Group PLC, Aviation Technical Services, AZUL SA, Barnes Group Inc., Delta Air Lines Inc., Deutsche Lufthansa AG, General Electric Co., Hindustan Aeronautics Ltd., Honeywell International Inc., Israel Aerospace Industries Ltd., Lockheed Martin Corp., MRO Holdings, MTU Aero Engines AG, RTX Corp., Safran SA, Sanad, Singapore Technologies Engineering Ltd., SR Technics Switzerland Ltd., StandardAero, The Boeing Co., and Turkish Airlines
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the Aircraft Maintenance, Repair and Overhaul (MRO) Market between 2023 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive market report analysis of factors that will challenge the growth of market  companies

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