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Commercial Aircraft MRO Market worth over $95bn by 2027
- Published Date: August 16, 2021
Commercial Aircraft MRO Market Size is set to surpass USD 95 billion by 2027, according to a new research report by Global Market Insights Inc.
Commercial aircraft MRO companies provide services through a network of facilities that bundle landing gears and technical & engineering capabilities into one. Backed by world-class processes & systems and a combined track record of safety, performance & diverse services, aircraft MRO companies can lower costs by fully maximizing aircraft availability. With multiple facilities located worldwide, independent MRO providers are in a better position to maximize profit by reducing turn times with integrated global parts and supply chains.
Growing demand for aircraft modernization, rules & legislation, and environmental issues in the replacement of components & upgrading of older fleets are expected to drive the commercial aircraft MRO market growth. Several engine modifications and inspections of aircraft projects are also anticipated to experience popularity. In the commercial aviation industry, the aircraft MRO market dynamics is developing promptly. Sustainability in the sector needs a fast implementation of strategies to address the dynamics. In addition, frequent servicing of engine parts & engines due to the government regulations is a key factor propelling the global industry demand.
Developing economies are witnessing a growth in the number of aircraft MRO service providers owing to the cheap labor costs and partnerships between aircraft manufacturers & MRO service providers. OEMs in the aircraft industry are trying to develop a new business model that will allow supply chain integration, low inventory costs, and real-time procurement of parts. The shift toward composite materials, such as carbon-fiber-reinforced polymer, glass-fiber-reinforced polymers, and others, to manufacture aircraft parts is poised to change maintenance techniques. Furthermore, development in technologies along with the advancements in software systems will play a significant role in enhancing system performance. A surging focus on autonomous control and flight safety will positively impact the commercial aircraft MRO market during the forecast timeframe. Predictive maintenance and data analytics are estimated to introduce new sets of maintenance requirements.
In the COVID-19 pandemic situation, demand for international airlines fell significantly. Presently, the daily utilization rate of widebody aircraft is low due to high operating costs and a lower number of boarding passengers. It is predicted that the rising number of tourism and business travelers, especially in APAC countries including China, Japan, Singapore & India, will majorly contribute to the aviation industry growth. This factor will surge the demand for MRO aircraft services in the APAC region.
Browse key industry insights spread across 140 pages with 182 market data tables & 21 figures & charts from the report, “Commercial Aircraft MRO Market Size, By MRO Services (Modifications, [Paintings, Avionics Upgrades, Interiors], Engines, Components, [Wheels & Brakes, Avionics, Auxiliary Power Unit, Fuel Systems, Hydraulic Power, Flight Controls, Thrust Reversers, Landing Gear, Electrical], Line, Airframe), By Service Provider (OEM, Operator/Airline In-house, Airline Third Party, Independent), By Aircraft (Narrowbody, Widebody, Regional Jet, Turboprop), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The upgrading of aging fleets and the overhaul of older components will create growth opportunities
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The components MRO service segment will showcase 4.5% growth rate through 2027. Airline companies and OEMs have been utilizing radio frequency identifications to enhance the cost-effectiveness of the services provided by them in the commercial aerospace component MRO market. Airline operators are now outsourcing these activities to third-party organizations via contracts. Aircraft MRO companies provide and perform borescope inspections for engines on site, wheels & brakes, fuel systems, auxiliary power units, avionics, hydraulic power, landing gears, flight controls, electrical, and others maintenance services. Airline operators pay a significant portion of their airline expenses in aircraft component MRO, creating numerous growth opportunities in the market for OEMs and other MRO service providers. Rising economic conditions in regions including Asia and the Middle East will boost the airline industry value.
Increasing demand for widebody aircraft for long-haul flights
The widebody aircraft segment in the commercial aircraft MRO market was valued at USD 15 billion in 2020. Widebody aircraft can board a large number of passengers and are always used in medium-haul and long-haul flights. It can occasionally be used for a shorter-range distance. A widebody aircraft requires high monthly ownership costs, fuel, and labor requirements. The demand for cargo airlines business has been increasing. It is also projected that cargo will outperform the passenger aircraft business after the pandemic. Rising e-commerce international & domestic sales are fostering the widebody aircraft demand globally along with the market demand.
North America industry to exhibit steady growth during the forecast period
North America commercial aircraft MRO market is slated to attain a CAGR of over 4% by 2027. In the U.S. and Canada, the market is led by various factors including increased domestic & international air travel. The market is observing unprecedented growth in North America owing to increasing travelers, economic growth, and increasing investments in aviation infrastructure. The evolution and expansion of aviation MRO services are funded by policymakers in the U.S. and other developed countries.
Some of the major players operating in the commercial aircraft MRO market include Airbus, Boeing Company, AAR Corporation, Bombardier Inc., Embraer S.A., Delta TechOps, General Dynamics Corp., Hong Kong Aircraft Engineering Company (HAECO) Ltd., GE Aviation, Honeywell Aerospace, Lufthansa Technik AG, Rolls-Royce plc, MTU Aero Engines AG, and Safran SA, among others.