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The Aircraft Engine Maintenance, Repair and Overhaul (MRO) Market size is forecast to increase by USD 11.36 billion, at a CAGR of 5.86% between 2023 and 2028. Aviation demand is set to increase because of the rising affluence of the middle classes in emerging markets. In addition, the demand for commercial aircraft is likely to witness an upsurge due to the growth in air travel in key countries like China, Russia, India, Indonesia, and the US. In addition, the year-on-year increase in air traffic has also essentialized the induction of new aircraft to cater to the growing demand.
Moreover, ensuring a robust supply chain with efficient Tier-II suppliers is crucial for the smooth operation and maintenance of engines like the LEAP engine alongside traditional piston engines. Additionally, considerations regarding workforce supply and labor force costs are pivotal in sustaining the aviation industry's growth amidst rapid urbanization and increasing aircraft utilization.
Market Forecast 2024-2028
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The commercial aviation segment is estimated to witness significant growth during the forecast period. Commercial aviation operators schedule daily maintenance activities to make sure that aircraft engines remain in optimal condition. In addition, this comprises regular inspections, lubrication, and component replacements to prevent wear and tear. Furthermore, aircraft-engines encounter unexpected issues during operation.
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The commercial aviation segment was the largest segment and was valued at USD 23.62 billion in 2018. Moreover, MRO services are essential for diagnosing and repairing these unscheduled problems to maintain the airworthiness of the aircraft. In addition, overhauls involve comprehensive inspections, repairs, and replacement of components to extend the life of the aircraft-engine. Furthermore, commercial airlines may undertake overhauls based on operating hours or other predetermined intervals. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the type, the market has been segmented into turbofan and turbojet, and turboprop. The turbofan and turbojet segment will account for the largest share of this segment. In turbojet segment, the air passes from the front of the engine and enters the combustion chamber where the fuel inlet and igniter are located. In addition, the turbine is then driven by the exhaust air, which escapes at high speeds from the rear of the engine. Moreover, this produces a reaction that pushes the aircraft forward. In addition, the turbojet is the simplest form of all aircraft-turbine engines and consists of four sections, which include compressors, combustion chambers, a turbine section, and an exhaust. Furthermore, the majority of modern airliners use turbofan engines because of their high thrust and good fuel efficiency. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 34% 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.
Another region offering significant growth opportunities to companies is APAC. The ongoing success of the low-cost carrier (LCC) model has fuelled a steady growth in passenger traffic in APAC. In addition, reduced airfares, high standards of living, the growing middle class in developing countries, and the growth of tourism have largely contributed to the growth of the commercial aircraft-industry in APAC. Moreover, there is an increasing demand for energy-efficient aircraft-among fleet operators to replace aging-aircraft movements with technologically advanced ones. In addition, such trends have opened significant opportunities for aircraft and engine manufacturers to place their products in the region with a competitive pricing strategy. Furthermore, APAC has been witnessing the highest growth rates in the global aviation industry and is anticipated to lead the industry over the next two decades. Hence, such factors are driving the market growth in APAC during the forecast period.
The market is witnessing growth propelled by the increase in aircraft deliveries, driving demand for aircraft maintenance, repair, and overhaul activities. A notable trend in this market is the growing popularity of recycled aircraft parts, offering cost-effective solutions for fleet expansion plans among airlines and military forces. However, the industry faces challenges such as the scarcity of skilled resources for aircraft MRO operations, particularly in MRO support centers and among Tier-II and Tier-III suppliers. With a focus on servicing diverse aircraft types, including cargo aircraft and those equipped with next-generation engines such as the LEAP engine, the market caters to the evolving needs of an aging military aircraft fleet and the demands of rapid urbanization in emerging countries.
As air traffic volumes and aircraft utilization continue to rise, regulatory bodies like the Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO) play crucial roles in ensuring safety and compliance standards. Addressing workforce supply and labor force costs remains essential to sustaining technical maintenance jobs and supporting industry growth, with companies like Pratt & Whitney playing pivotal roles in driving innovation and efficiency in aircraft engine MRO operations.
Aviation demand is set to increase because of the rising affluence of the middle classes in emerging markets. In addition, the demand for commercial-aircraft is likely to witness an upsurge due to the growth in air travel in key countries like China, Russia, India, Indonesia, and the US. In addition, the year-on-year increase in air traffic has also essentialized the induction of new aircraft to cater to the growing demand.
Therefore, aircraft OEMs and their suppliers are revamping their production facilities to ensure scheduled deliveries. In addition, the increased efficiency, coupled with reduced fuel consumption and noise generation, has been driving the procurement of Airbus A320 neo-aircraft and its upgraded versions among major airline companies. Hence, such factors are positively impacting the aircraft engine maintenance repair and overhaul market. Therefore, it is expected to drive the market growth during the forecast period.
The recycling of aircraft parts from end-of-life aircraft is becoming increasingly popular with the aviation industry's attempts to become more environment-friendly and cost-effective. Thus, the focus has been laid on choosing advanced materials that can help extend the durability and service life of an operational engine while ensuring efficient performance.
Moreover, engine MRO service providers and leasing companies are witnessing increasing demand for some of the older engine types in their portfolios, such as the Rolls-Royce Trent 700 and the Airbus A330 powerplant. In addition, this is a result of lower fuel prices that have encouraged airlines to fly the aircraft for longer durations. Furthermore, the global commercial aircraft aftermarket parts market is witnessing demand for aircraft-worthy spare parts at below OEM prices. Therefore, it is positively impacts the market. Hence, such factors are driving the market growth during the forecast period.
The emergence of predictive maintenance has flooded the MRO industry with a flurry of problems related to both technology and manpower. In addition, even though machine learning can be a valuable tool for anomaly detection, logistics optimization, and customer service management, it needs a large number of resources to achieve desired performance levels on a constant basis.
Moreover, these aspects require immense calculations to be made within a fraction of the time and lead to the consumption of a significant amount of raw processing power. Even though cloud computing and parallel processing systems have come as temporary solutions, the rapid increase in data volumes and complex algorithms will lead to bottlenecks and hamper the adoption rate of predictive maintenance systems by MRO operators. Therefore, it is negatively impacting the aircraft-engine maintenance repair and overhaul market. Hence, such factors are driving the market growth 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.
Delta Air Lines Inc: The company offers aircraft-engine MRO services such as scheduled maintenance, unscheduled maintenance, engine overhauls, parts repair, and replacement through its subsidiary Delta TechOps.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
A J Walter Aviation Ltd., Aviation Technical Services, AZUL SA, 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.
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 plays a critical role in ensuring safety and efficiency in the aviation industry through aircraft maintenance and overhaul activities. As air traffic volumes increase globally, new contracts and agreements are being signed to meet the component requirements of modern aircraft engines such as CFM56-5B, CFM56-7B, and LEAP 1B engines.
Service providers like S7 Technics and Pratt & Whitney are expanding their maintenance capacity and forming partnerships with maintenance facilities and MRO support centers to accommodate the growing total aircraft fleet. Joint ventures and Tier-II/Tier-III suppliers play a vital role in providing training services and technical maintenance jobs to meet the demand for skilled labor in rapidly urbanizing and emerging countries.
The market also caters to cargo aircraft and next-generation engines, including turbofans and turboshafts, ensuring overall maintenance process efficiency and compliance with regulatory standards set by organizations like the Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO). With advancements in automation processes, the market continues to evolve, supporting the maintenance needs of both narrow-body and wide-body aircraft for safe and reliable operations in civil aviation.
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.
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, Fast-growing and slow-growing segment analysis, market research and growth, 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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