Improvements in product offerings, along with growth in air cargo transportation will continue fueling growth in the global air transport MRO market. Apart from this, increasing focus on aircraft maintenance, efforts to provide latest onboard services, and the demand for cost-effective servicing solutions will further improve growth prospects on the market.
NEWARK, DE / ACCESSWIRE / December 9, 2024 / The global Air Transport MRO Market is estimated to reach a valuation of USD 79.2 billion in 2023 and is projected to grow to USD 130 billion by 2033, reflecting a CAGR of 5% over the forecast period.
This growth is driven by rapid urbanization, economic development in emerging markets, and a surge in business and tourism-related air travel. Key factors influencing the market include rising air traffic, the expanding global fleet, and higher aircraft utilization rates. Additionally, the increasing prevalence of individual air travel for both business and personal purposes is expected to boost aircraft production, indirectly supporting the MRO market's growth.
Innovations in aircraft MRO software are creating new business opportunities, offering solutions for maintenance tracking, logbook management, flight time monitoring, service bulletin updates, maintenance scheduling, budget forecasting, electronic task card handling, and work order management.
Increased foreign direct investments have also been pivotal, such as in India's aircraft MRO sector in May 2021. These investments, along with strategic acquisitions, are anticipated to open lucrative avenues for market growth.
Furthermore, compliance with regulatory authorities like the Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO) plays a significant role in shaping the market. Growing interest in older aircraft and environmental concerns further emphasize the need for consistent monitoring and maintenance, thereby driving market expansion.
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What is the Impact of COVID-19 on the Air Transport MRO Market?
With the outbreak of COVID-19, the air transport industry has suffered potentially long-lasting impacts in terms of airline spending, maintenance of parked fleets, and delayed arrival for new aircraft models.
As the pandemic resulted in plummeting passenger demand corresponding to travel restrictions, airlines across the globe were forced to cut down costs. A majority of these cost-cutting measures translated into a reduction in aircraft sales and orders.
At the peak of the first wave of the COVID-19 crisis, airlines had to park a majority of their total fleet, which caused unprecedented maintenance and repair challenges. While parked aircraft may experience less wear and tear, most aircraft are parked with ‘flight ready' conditions as the post-pandemic travel plans are still uncertain.
As per a study published in the Journal of Air Transport Management, timely maintenance interventions will decelerate, the longer an aircraft is parked. However, airlines are hesitant to put aircraft in deep storage, which might put the fleet under a grey area, in which they will receive less maintenance than they normally would.
Most maintenance manuals include instructions for long-term storage, but they don't offer details regarding preparation of aircraft standstills for extended out-of-service periods. The unprecedented impact of the coronavirus outbreak has left airlines under-prepared for adequate fleet management and maintenance, resulting in challenges for MRO providers.
Parked fleets could have a tremendous impact on independent MRO providers, as airlines may resort to basic maintenance processes to reduce costs. The longer these fleets remain grounded, the higher the chances that some airlines might not recover from the losses.
This will have a direct impact on the growth of air transfer MRO market. To tackle these concerns, market players are investing in research and development to devise cost-effective MRO services to maintain their position in the market.
Will Integration of Connective Technology Improve Air Transfer MRO Sales?
In recent years, maintenance costs have exceeded fuel costs in the air transport industry. The sudden surge in maintenance costs has compelled airlines to rely on digital solutions to monitor physical assets such as engines and cockpit controls in real-time, which will allow them to plan maintenance protocols more effectively.
Just like connective technologies and cloud services, mobile solutions are paving way into the control rooms of airlines. Air transport MRO players are getting keener on developing software as a service (SaaS) other effective closely connected mobile solutions to enable users to access aircraft management remotely.
These technologies eliminate the overhead costs of hardware acquisitions, maintenance, licensing, installation and support. Over the years, airlines and MRO providers have raised concerns regarding toughened maintenance of physical hardware, which in turn has created opportunities for the development of data-driven technologies.
In addition, cloud-based mobile solutions can be integrated into the workforce with no physical installation. Consequently, airlines can focus on the return on investments and superior onboard comfort, without worrying about the physical maintenance of infrastructure
How Will Blockchain Enhance Air Transport MRO Growth Prospects?
Leveraging blockchain technology in the aviation industry has opened opportunities for MRO providers and organizations with regards to maintenance, data security, and passenger information, helping organizations to increase efficiency and accuracy levels.
Blockchain is emerging as one of the more superior connective technologies in the aviation industry, helping organizations redefine their operations while saving costs and improving maintenance practices.
This technology can be used for recording the location of vital assets in real-time in a reliable manner. Important information such as passenger data, flight path, baggage onboarding, tracking lost entities, which can help the management take necessary actions during a crisis.
Besides this, blockchain can significantly improve data logging and updating for aircraft parts' conditions, thereby reducing time consumed in periodic inspections and maintenance. In addition, blockchain can provide predictive maintenance to eliminate any challenges that may affect airline operations.
With a myriad of other benefits, MRO service providers can use blockchain to provide verifiable documents for components that they have installed and services. These developments are anticipated to bode well for the air transport MRO market during the assessment period
"The Air Transport MRO market is poised for significant growth, driven by factors such as rising air traffic, expanding global fleets, and increasing demand for air travel for both business and leisure. Economic growth in emerging regions and technological advancements in maintenance services are expected to further fuel the market's expansion. The need for efficient maintenance, repair, and overhaul practices remains essential to ensure safety, operational efficiency, and sustainability in the aviation industry." - says Nikhil Kaitwade, Associate Vice President at Future Market Insights (FMI).
Key Takeaways for the Air Transport MRO Market:
Market Growth: The global Air Transport MRO Market is valued at USD 79.2 billion in 2023 and is projected to reach USD 130 billion by 2033, with a steady CAGR of 5% during the forecast period.
Urbanization and Travel Demand: Rapid urbanization and economic growth in emerging regions, coupled with increased air travel for business and tourism, are key drivers of market expansion.
Rising Aircraft Utilization: Growing air traffic, an expanding global fleet, and higher utilization rates are boosting demand for MRO services.
Technological Advancements: Investments in MRO software solutions offering functionalities like maintenance tracking, logbook management, and budget forecasting are creating new business opportunities.
Investment and Acquisition Impact: Strategic investments, such as those in India's MRO sector in May 2021, are expected to significantly contribute to market growth and expansion.
Regulatory Influence: Compliance with standards set by the Federal Aviation Administration (FAA) and International Civil Aviation Organization (ICAO) ensures safety and operational reliability, driving market demand.
Focus on Older Aircraft: The need for consistent monitoring and maintenance of aging aircraft, along with rising environmental considerations, further propels the market.
Is Integration of Connective Technology Likely to Improve Air Transfer MRO Sales?
In recent years, maintenance costs have exceeded fuel costs in the air transport industry. The sudden surge in maintenance costs has compelled airlines to rely on digital solutions to monitor physical assets such as engines and cockpit controls in real-time, which might allow them to plan maintenance protocols effectively.
Just like connective technologies and cloud services, mobile solutions are paving the way into the control rooms of airlines. Furthermore, air transport MRO players are getting keen on developing software as a service (SaaS) and other effective closely connected mobile solutions to enable users to access aircraft management remotely.
These technologies eliminate the overhead costs of hardware acquisitions, maintenance, licensing, installation, and support.
Airlines and MRO providers have raised concerns regarding toughened maintenance of physical hardware over the years, which in turn has created opportunities for the development of data-driven technologies.
Cloud-based mobile solutions can be integrated into the workforce with no physical installation. Consequently, airlines can focus on the return on investments and superior onboard comfort, without worrying about the physical maintenance of infrastructure.
How Blockchain Enhance Air Transport MRO Growth Prospects?
Leveraging blockchain technology in the aviation industry has opened opportunities for MRO providers and organizations regarding maintenance, data security, and passenger information, helping organizations to increase efficiency and accuracy levels.
Blockchain is emerging as one of the superior connective technologies in the aviation industry, helping organizations redefine their operations while saving costs and improving maintenance practices.
This technology can be used for recording the location of vital assets in real time in a reliable manner. Important information such as passenger data, flight path, baggage onboarding, and tracking lost entities, which can help the management take necessary actions during a crisis.
Blockchain can significantly improve data logging and updating for aircraft parts' conditions, thereby reducing the time consumed in periodic inspections and maintenance. In addition, blockchain can provide predictive maintenance to eliminate any challenges that may affect airline operations.
With a myriad of other benefits, MRO service providers can use blockchain to provide verifiable documents for components that they have installed. These developments are anticipated to bode well for the air transport MRO market during the assessment period.
Regional Analysis for the Air Transport MRO Market:
How Will Air Transport MRO Sales Fare Across the U.S.?
The aviation industry in the U.S. plays a humongous role in supporting the country's economy. Currently, the U.S. has the largest fleet of commercial and military aircraft in the world, which makes MRO services highly significant.
The presence of leading OEMs and MRO providers in the U.S. place it as an attractive market. FMI projects the North American air transport MRO market to grow at a 4.8% CAGR.
In addition, stringent government regulations regarding timely aircraft inspection are encouraging airlines and MRO providers to sign contacts and agreements for required services in the long run. Further, introduction of new aircraft models and technologically advanced onboard services will continue driving demand for air transport MRO in the U.S.
Why is the U.K. Considered a Leading Air Transport MRO Market?
As per FMI's analysis, the U.K. is anticipated to dominate the European air transport MRO market. In the market study, FMI projects the European market to expand at a 4.5% CAGR.
Rapid adoption of advanced technologies such as augmented reality (AR), virtual reality (VR), and blockchain to streamline aircraft maintenance processes will continue boosting market growth.
In addition, VIP, corporate, and business aviation operators in the U.K. reply heavily on MRO services for private jets as they are typically owned by high net worth individuals. This sector operates expensive and sophisticated aircraft and private jets that need servicing from time to time as they do not fly as much as commercial aircraft, making MRO services vital.
What Will be the Demand Outlook for Air Transport MRO in China?
The Chinese aviation industry is one of the fastest-growing industries in the world. Many airports are under construction as airlines are adding new routes and aircraft, which in turn is driving expansions in the air transport MRO market.
To meet growing aircraft servicing requirements, various global and regional players are investing in strategic collaborations with OEMs to devise efficient MRO services. This is creating opportunities for growth for market players to launch technology-enabled MRO services, thereby augmenting market growth.
In-Depth Market Analysis: A Complete Report
https://www.futuremarketinsights.com/reports/global-air-transport-mro-market
Category-wise Insights
Applications of Air Transport MRO to Remain High in Engines
As per FMI's analysis, the engines segment is anticipated to account for maximum applications of air transport MRO services. Maintenance and safety of engines are kept at the forefront in the aviation industry, as even a slight disruption could result in serious consequences.
Moreover, increasing joint ventures between MRO providers and OEMs facilitating technological advancements in engine manufacturing, which is increasing the lifecycle and maintenance parameters of engines. These factors are driving more applications of MRO services in engines as compared to other aircraft components and equipment.
Narrow-Body Aircraft to Remain Dominant Aircraft Type
Based on aircraft type, the narrow-body segment is anticipated to reign supreme. In recent years, traditional aircraft are rapidly being replaced by narrow-body aircraft. This, in turn, is resulting in the need for sophisticated maintenance services to support single-aisle jets.
Narrow-body aircraft are frequently used in private and commercial services and are restricted to short journeys. Increasing use of narrow-body aircraft will further create growth opportunities in the air transport MRO market.
Competitive Landscape
The market for air transport MRO is highly competitive, with several prominent industry players making substantial investments in increasing their manufacturing capabilities.
The key industry players working in the market are AAR Corporation, KLM Engineering & Maintenance, Delta TechOps, HAECO Ltd., Lufthansa Technik AG, Turkish Technic Inc., Singapore Technologies Engineering Ltd, Guangzhou Aircraft Maintenance Engineering Company Limited, Sabena Technics, Aeroman, Airbus SAS, SIA Engineering Company (SIAEC).
Some Recent Developments in the Air Transport MRO Market
In February 2021, SIA Engineering Company Ltd. established the Engine Services Division, focusing on research, development, and support for advanced aircraft engine servicing, repairs, wing testing, and more.
In July 2022, Delta TechOps, the MRO division of an airline, announced its signing of a CFM Branded Service Agreement (CBSA) to provide support for LEAP-1B engines. This agreement potentially allows Delta to join CFM's MRO network for LEAP-1B engines.
AAR, a prominent MRO service provider for commercial and government operators, announced in October 2021 the renewal of their power-by-the-hour (PBH) component pool and repair support agreement with Flydubai. This five-year contract extends and reinforces the partnership initiated in 2016, aimed at delivering comprehensive rotatable component support for Flydubai's Boeing 737NG fleet.
Key Segments Profiled in the Air Transport MRO Market
By Application Type:
Airframe
Engine
Component
Line
By Aircraft Type:
Narrow Body Aircraft
Wide-Body Aircraft
Regional Jet
Turbo Prop
By Region:
North America
Latin America
Europe
South Asia
East Asia
Oceania
The Middle East and Africa
Authored By:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
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About Future Market Insights (FMI)
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