Commercial Aircraft MRO Market Size

Commercial Aircraft MRO Market Size

Commercial Aircraft MRO Market Size exceeded USD 70 billion in 2020 and is anticipated to grow at a CAGR of over 4.9% from 2021 to 2027. Increasing economic growth and rapid urbanization in emerging countries along with business & tourism travels are likely to augment the market growth.

The maintenance, repair, and overhaul (MRO) market is dominated by external factors including aircraft utilization, global fleet size, and air traffic volumes, i.e., both cargo and passengers. The growth in air travel requires more aircraft production, which will support the MRO industry.
 

Increasing investments in aircraft MRO software are also predicted to offer new growth opportunities. Aircraft MRO software includes software components for maintenance tracking, maintenance scheduling, logbook tracking, budget forecasting, manuals, flight time tracking, electronic task card management, service bulletins management, and work order management. It also includes features aiding compliance with regulatory organizations such as FAA and ICAO. It is majorly used to streamline maintenance processes and reduce downtime. It is significantly modified based on the changes, which are associated with big data and analytics in the aviation industry. This industry generates an enormous amount of data, which will benefit the MRO companies in improving their operational efficiency and providing customized solutions that cater to the demands of the airlines.
 

A growing number of air passenger carriers on account of the rising number of passengers choosing air travel is expected to boost the demand for MRO facilities. The relaxation in foreign direct investments for the airline industry is encouraging airlines companies to outsource maintenance activities to sure the smooth functioning of aircraft. The aircraft market will showcase a high growth rate, attributed to the rising number of air passengers flying per year due to flight frequencies, affordable prices of tickets, and route availability. These factors are slated to drive the demand and need for MRO services, in turn, fostering the industry growth.
 

The aircraft MRO industry is facing challenges owing to a shortage of labor supply, rising labor costs, an aging workforce, and decreasing interest on maintenance technician job role from newly graduated engineer. Without a significant change, this trend is poised to continue during the forecast period. Right-shorting and outsourcing are two options that are more relevant to MRO operators. Increasing material costs are becoming a major factor, influencing the market expansion. MRO companies are trying to create strategies that insulate themselves through strategic partnering with OEMs. It will also help in real-time procurement of aircraft parts and components.