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The is estimated to grow at a CAGR of 4.68% between 2022 and 2027. The market size is forecast to increase by USD 20,151.64 million. The growth of the market depends on several factors, such as growing demand for advanced synthetic vision avionic systems, developments in ultrasonic inspection technologies, and incorporation of new technologies in aircraft. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
Commercial and Military Aircraft MRO Market Forecast 2023-2027
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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 39,036.28 million in 2017 and continued to grow until 2021.?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.
Based on component, 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. Engines are one of the most important components of an aircraft and proper maintenance is essential to maintain performance, efficiency and safety standards. Commercial and military aircraft maintenance, repair & overhaul (MRO) involves many tasks, from regular inspections to major overhauls. With an increasing demand for fuel efficiency and emission reduction, many advanced engine programs are planned to accelerate the MRO market for civil and military aircraft. Furthermore, increasing joint ventures and cooperation agreements between MRO service players and the defense industry are expected to fuel the growth of this segment in the market during the forecast period.
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine 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. Advanced synthetic vision systems promise pilots uninterrupted situational awareness, unaffected by weather or time of day. As these systems greatly reduce the workload of pilots even in complex situations, their needs are constantly increasing. Aggregate system manufacturers continually improve their systems to increase acceptance by aircraft manufacturers.
For example, in September 2020, Embraer's Synthetic Vision Guidance System (SVGS) was given the green light by ANAC Brazil and the Federal Aviation Administration (FAA) for use in the Praetor 500 and 600. Embraer is the first business jet OEM to achieve this certification. These examples clearly show the growing popularity of advanced synthetic vision avionics systems in the aerospace 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.
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APAC is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during 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.
The market shows an defense expenditure and military modernization programs are driving demand for maintenance, repair, and overhaul services for fighter jets and military fleets. However, supply chain disruptions and production halts have led to challenges in meeting these requirements, exacerbated by economic slowdowns and structural repairs needed for aging aircraft systems. Avionics upgrades, engine overhauls, and system modifications are essential for enhancing aircraft performance and extending their lifecycle amidst warfare situations and political disputes.
In North America, the US Air Force (USAF) has been a major player in procuring advanced military aircraft like the F-35, manufactured by Lockheed Martin Corporation. Despite geopolitical tensions and cross-border conflicts, investments in defense organizations continue to focus on advanced materials and avionics to ensure the readiness and capabilities of military fleets.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market 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., MRO Holdings, MTU Aero Engines AG, Raytheon Technologies Corp., Safran SA, Singapore Technologies Engineering Ltd., SR Technics Switzerland Ltd., StandardAero, The Boeing Co., and Turkish Airlines
Technavio report provides 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.68% |
Market growth 2023-2027 |
USD 20,151.64 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.23 |
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., 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, Raytheon Technologies Corp., Safran SA, Singapore Technologies Engineering Ltd., SR Technics Switzerland Ltd., StandardAero, Thales Group, The Boeing Co., and Turkish Airlines |
Market dynamics |
Parent market analysis, Market growth and forecasting,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 forecast period |
Customization purview |
If our market growth analysis 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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