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The commercial and military aircraft MRO market size is forecast to increase by USD 20.82 billion at a CAGR of 4.64% between 2023 and 2028. The Commercial and Military Aircraft Maintenance, Repair, and Overhaul (MRO) market experiences continuous expansion, driven by various factors. These include the increasing demand for sophisticated synthetic vision avionic systems, which enhance flight safety and efficiency. Additionally, advancements in ultrasonic inspection technologies enable early detection and prevention of structural damages, reducing maintenance costs and downtime. Furthermore, the integration of innovative technologies, such as artificial intelligence, robotics, and 3D printing, into aircraft design and maintenance processes streamlines operations and improves overall performance. Consequently, the market growth is underpinned by these technological advancements and the resulting demand for enhanced aircraft reliability and operational efficiency.
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The market encompasses the maintenance, repair, and overhaul (MRO) services for both civilian and military aircraft. This market is significant due to the increasing demand for aircraft fleet expansion and the need for maintaining the existing fleet in optimal condition. Commercial aircraft MRO involves the maintenance of passenger planes, cargo planes, and helicopters. The market growth is driven by factors such as the increasing number of air travelers, the growing demand for freight transportation, and the need for fleet modernization. Military aircraft MRO, on the other hand, involves the maintenance of military jets, helicopters, and transport aircraft. The market growth is driven by factors such as the increasing military budgets, the need to maintain the existing fleet, and the requirement for upgrading military aircraft with advanced technologies. The MRO market for both commercial and military aircraft is expected to grow at a steady pace due to the increasing demand for aircraft maintenance and the need to keep the fleet in optimal condition.
The market is also driven by the need for cost-effective solutions and the adoption of advanced technologies such as predictive maintenance and digitalization. The market caters to various segments, including engine MRO, component MRO, line maintenance, and heavy maintenance. The market is also segmented based on the type of aircraft, including fixed-wing aircraft and rotary-wing aircraft. In conclusion, the market is a critical sector that plays a vital role in ensuring the safe and efficient operation of aircraft fleets. The market is driven by various factors, including the increasing demand for aircraft maintenance, the need for cost-effective solutions, and the adoption of advanced technologies. Our researchers studied the market research and growth data for years, 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.
Synthetic vision avionics continuously collect three-dimensional data on the screen to provide better situational awareness to pilots. In the dynamic realm of Commercial and Military Aircraft Maintenance, Repair, and Overhaul (MRO), technological advancements and manpower-related challenges continue to shape the industry landscape. Airlines face intricate problems related to engine malfunctions and workforce supply, necessitating innovative solutions. Machine Learning, Artificial Intelligence, Robotics, Drones, Big Data, and Blockchain Technologies are revolutionizing the sector, offering enhanced efficiency and precision. The time between overhauls is a critical factor in the aviation industry, with rapid urbanization and increasing air traffic volumes leading to higher aircraft utilization. Air travel remains a significant contributor to the global economy, necessitating the need for efficient and cost-effective MRO services.
Aircraft production continues to rise, fueled by the demand for fuel-efficient and sustainable fuel aircraft, including narrow body, wide body, and new generation models. The engine segment dominates the MRO market, with engine overhaul being a significant focus area for Original Equipment Manufacturers (OEMs) such as AAR, MTU Maintenance, and Engine components suppliers. Field maintenance and depot maintenance are essential components of the engine maintenance process, with the engine segment accounting for a substantial portion of the MRO market. The labor force costs and the need for an experienced workforce continue to pose challenges for the industry.
Technical maintenance jobs, including engine overhaul, are in high demand, with the engine MRO segment expected to grow at a robust pace. Airline overhaul industries and logistics industries are key consumers of MRO services, with air shipment and engine segment being the primary areas of focus. In conclusion, the market is undergoing a transformative phase, driven by technological advancements and manpower-related challenges. Machine Learning, Artificial Intelligence, Robotics, Drones, Big Data, and Blockchain Technologies are playing a pivotal role in enhancing efficiency and precision in the industry. The engine segment remains the key focus area, with engine overhaul being a significant growth driver. The need for an experienced workforce and cost-effective solutions continues to be a critical challenge for the industry. As these systems continue to be upgraded, aircraft OEMs are boosting their development towards better versions of these systems, which is driving the growth of the market during the forecast period.
Growing demand for luxury and connected travel is raising the need for VIP cabin conversions. To meet the growing expectations and ever-changing preferences of customers, floor interior designers, engineers, and finishing specialists, manufacturers are focusing on innovative technologies and retrofits. luxury cabins. Furthermore, as political leaders and other VVIPs also continue to focus on improving their safety, comfort, and information security, the demand for VIP cabins on planes is growing continuously.
For example, in November 2020, two new VIP aircraft with many interior and exterior upgrades were delivered to India. These planes are designed to be used by the Prime Minister of India, the President of India, and other state dignitaries for official purposes. These trends suggest good growth in this market in the short and even medium term. Thus, the growing number of billionaires around the world is significantly contributing to the growing demand for inflight VIP cabins, which will drive the growth of the market during the forecast period.
Military aircraft are expensive to maintain and operate, so significant funding is required to upgrade and modernize the fleet. In the context of major military powers such as the US and some European countries restricting their defense spending, the market for upgrading and refurbishing military aircraft is expected to suffer a significant negative impact. This is mainly due to the costs involved in upgrading and modernizing highly advanced systems, and the defense ministries of some countries find it more profitable to purchase new aircraft than to modernize the old aircraft.
Moreover, in the military aircraft market, it is common to discard one aircraft part to repair another. This resulted in a shortage of compatible parts for the aircraft. Shortages of parts affect the efficiency of operation and maintenance. Parts shortages are most severe among the most in-demand jets, such as the EA-6B Prowler electronic warfare aircraft flying to jam enemy radar and communications. Therefore, high costs and lack of spare parts may impede the growth of the market during the forecast period.
The military aircraft MRO segment will account for a major share of the market's growth during the forecast period.?Military aircraft play an important strategic and tactical role in combat areas. They are also used to transport troops and supplies over long distances in a short period of time, an important factor in conflicts. Countries such as the US, Russia, and China are rising their investment in modernizing existing fighter fleets to achieve a combined air defense capability.
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The military aircraft MRO segment was valued at USD 40.06 billion in 2018.?There is a growing need to develop and operate long-range airborne surveillance and strike platforms to effectively combat countries that can deploy advanced offensive weapon systems to counter attacks such as cruise and ballistic missiles. In addition, major countries are facing budgetary constraints, forcing some defense agencies to cut back on new aircraft procurements. As a result, maintenance service costs tend to be high. Additionally, increasing joint ventures, mergers and acquisitions (M&A), and collaborations between MRO service providers and the defense industry are expected to propel the growth of the market during the forecast period.
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APAC is estimated to contribute 33% to the growth during the forecast year. 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. This market is dominated by China, India and Australia, which are investing heavily in modernizing their fleets of existing military aircraft. Market growth is also supported by military aircraft modernization programs in Indonesia, Thailand, and South Korea. China has been working on developing domestic military aircraft for many years.
Furthermore, OEMs and other service providers such as Airbus, Boeing and Pratt and Whitney have also expressed strong interest in establishing their commercial and military aircraft maintenance, repair & overhaul (MRO) facilities in the region. Japan, India, South Korea, China, Australia, Taiwan, and Singapore are contributing significantly to the growth of the MRO market. The main reason for the growth of the regional MRO market for civil and military aircraft is the increase in development spending by governments on military and defense forces. Hence, such factors are expected to drive market growth in this region during the forecast period.
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.
Thales Group: The company offers commercial and military aircraft MRO such as avionics maintenance, systems integration, and advanced MRO services for efficient operations.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
A J Walter Aviation Ltd., AAR Corp., Airbus SE, Avia Solutions Group PLC, Aviation Technical Services, Barnes Group Inc., Delta Air Lines Inc., General Electric Co., Israel Aerospace Industries Ltd., Lockheed Martin Corp., MROHoldings, MTU Aero Engines AG, RTX Corp., Safran SA, Singapore Technologies Engineering Ltd., SR Technics Switzerland Ltd., StandardAero, Thales Group, 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.
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.
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The market is critical for ensuring the safety and efficiency of aviation. Technological problems and manpower related problems often challenge the industry. The Engine Services Division (ESD) plays a pivotal role in addressing these issues. With increasing business and tourism travels, the demand for maintenance of aircraft parts and components has surged. The engine overhaul segment is vital for maintaining aircraft frequency, especially for narrow body aircraft and wide body aircraft. The market includes maintenance of new generation aircraft and fuel efficient aircraft, enhancing CO2 related efficiency. The commercial aircraft MRO market has a worldwide presence and is increasingly adopting automation processes and robots for improved efficiency. This ensures that both commercial and military fleets operate reliably.
Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.64% |
Market Growth 2024-2028 |
USD 20.82 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.36 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Russia, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A J Walter Aviation Ltd., AAR Corp., Airbus SE, Avia Solutions Group PLC, Aviation Technical Services, Barnes Group Inc., Delta Air Lines Inc., General Electric Co., Israel Aerospace Industries Ltd., Lockheed Martin Corp., MRO Holdings, MTU Aero Engines AG, RTX Corp., Safran SA, Singapore Technologies Engineering Ltd., SR Technics Switzerland Ltd., StandardAero, Thales Group, The Boeing Co., and Turkish Airlines |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, 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 Sector
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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