The Aviation MRO Market is projected to reach $87.43 billion by 2030, at a CAGR of 3.9% during the forecast period 2023–2030. The growth of the aviation MRO market is driven by the rising investments in aircraft MRO, the growth in air travel, and increasing government focus on the aviation sector. However, stringent regulations in the aviation sector restrain the growth of this market. Furthermore, the increasing demand for remote maintenance & repair systems is expected to create market growth opportunities.
Growing Air Travel is Expected to Drive Aviation MRO Market Growth
The aviation industry and businesses at its periphery are experiencing robust growth with the expansion of the global population. Affordable air travel and the rising disposable income of the middle class are pushing passenger travel to a record level. This has influenced the demand for a new fleet of aircraft from airliners, boosting the MRO market's growth to ensure the availability and airworthiness of aircraft.
The air industry relies heavily on MRO services to keep aircraft in operational condition, and MRO providers work to minimize downtime and reduce costs for their customers. As airlines seek to improve efficiency and reduce costs, they increasingly outsource their MRO needs to specialized service providers who can offer cost-effective solutions and expertise in maintaining and repairing aircraft. The demand for MRO services is also driven by the increasing complexity of modern aircraft, which require specialized knowledge and equipment to maintain and repair. As aircraft become more advanced and incorporate new technologies, the demand for skilled technicians and engineers will increase, driving growth in the MRO industry.
The aviation sector is growing fast and will continue to grow. According to International Energy Agency (IEA) (France), air passenger demand recovered gradually in 2021, with domestic traffic at 68% of 2019 and international traffic at just 28%. This represents an overall increase of 28% versus 2020. In 2022, European carriers saw full-year traffic jump 132.2% compared to 2021. Air cargo, however, showed stronger growth in 2021, rising by nearly 7% above the pre-pandemic peak. In addition, according to the most recent estimates by the International Civil Aviation Organization (ICAO) (Canada), the demand for air transport will increase by an average of 4.3% per annum over the next 20 years. The International Air Transport Association (IATA) announced that the recovery in air travel continued in December 2022 and for the full year. With the expected boost in air travel over the next few years, the aviation MRO market is projected to grow.
Stringent regulations in the aviation sector are a major challenge for the growth of the aviation MRO market.
The market depends on regulatory compliance with government organizations, including the Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO). During the COVID-19 pandemic, all airlines were compelled to halt operations due to strict lockdowns imposed by governments, which hampered the growth of the airline industry. The lockdown affected all segments of the aviation industry, including MRO services. As passenger traffic went down due to government imposed travel restrictions, airlines were forced to find ways to cut costs, which included cutting back on MRO spending and maintenance whenever possible. Also, governments across the world are imposing various standards to improve quality management systems in the aviation industry.
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Key Findings in the aviation MRO Market Study:
In 2023, the Engine Overhaul Segment is Expected to Dominate the Aviation MRO Market
Based on service type, the aviation MRO market is segmented into engine overhaul, airframe maintenance, line maintenance, modification, and components. In 2023, the engine overhaul segment is expected to account for the largest share of the global aviation MRO market. Aircraft engines require immaculate maintenance, repair, and overhaul at various intervals throughout their lifetime. They are subject to extreme wear due to vibrations caused by rotating components. Moreover, constant exposure to varying climates results in physical and material stresses on the engine.
A major overhaul consists of the complete disassembly of an engine. The overhaul facility inspects the engine, repairs it as necessary, reassembles, tests, and approves it for return to service within the fits and limits specified by the manufacturer's overhaul data. A jet engine may require between 60 and 90 days at an MRO facility for a complete overhaul. The average cost of a complete overhaul can be one-fourth of the engine price when new. Large engines can cost USD 2–5 million for a complete overhaul. Therefore, the rising need to ensure that an aircraft performs according to applicable serviceable tolerances set by its manufacturer for continued airworthiness is expected to drive the growth of this segment.
In 2023, the Rotary-wing Aircraft Segment is Expected to Dominate the Aviation MRO Market
Based on aircraft type, the aviation MRO market is broadly segmented into fixed-wing aircraft and rotary-wing aircraft. In 2023, the rotary-wing aircraft segment is expected to account for the largest share of the global aviation MRO market. Rotary-wing aircraft, also known as rotorcraft or helicopters, are heavier-than-air aircraft with rotary wings, which use rotors to generate lift and propulsion.
Some of the aviation MRO services provided to rotary-wing aircraft are engine maintenance and repair, rotor blade maintenance and repair, airframe maintenance and repair, and inspection services such as pre-flight inspections, annual inspections, and major periodic inspections. Some examples of rotary-wing aircraft are the Bell 206, Sikorsky S-76, Eurocopter AS350, Bell UH-1 Iroquois, Boeing CH-47 Chinook, AgustaWestland AW139, Robinson R44, Kamov Ka-52, Mil Mi-17 and Boeing AH-64 Apache. The large market share of this segment is attributed to the increasing use of MRO services to extend the life of an aircraft and the growing need for rotor blade maintenance, repair, and regular inspections to ensure the structural integrity and airworthiness of rotorcraft.
Asia-Pacific: Largest Regional Market
Based on geography, the global aviation MRO market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, Asia-Pacific is expected to account for the largest share of the aviation MRO market.
Over the past decade, Asia-Pacific has become the fastest-growing in the world for airline activity and attracted global MRO players to enter the market and expand their consumer base. Rapid urbanization and rising economic growth in emerging countries with increased business and tourism boosted airline operations, which is expected to increase the demand for aviation MRO in this region. Various external factors, such as air traffic volume, global fleet size, and aircraft utilization, are also expected to significantly impact the market.
The region has experienced significant growth in the total aircraft fleet over the past decade, which has increased the demand for engine MRO services and is expected to lead the market during the forecast period. According to Airbus SE (Netherlands), air freight will double in Asia-Pacific by 2040, with a 5.3% passenger traffic growth per year, translating to a need for 17,620 passenger and freighter aircraft. In addition, several regional airlines are expanding their in-house maintenance facilities, which is expected to support the market growth.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the aviation MRO market in the last 3–4 years. The key players profiled in the aviation MRO market report are AAR CORP. (U.S.), Airbus SE (Netherlands), Delta Air Lines, Inc. (U.S.), Hong Kong Aircraft Engineering Company Limited (China), KLM UK Engineering Limited (U.K.), Lufthansa Technik AG (Germany), MTU Aero Engines AG (Germany), Raytheon Technologies Corporation (U.S.), Singapore Technologies Engineering Ltd. (Singapore), and TAP Maintenance & Engineering (Portugal).
Scope of the report:
Aviation MRO Market, by Service Type
- Engine Overhaul
- Airframe Maintenance
- Line Maintenance
- Modification
- Components
Aviation MRO Market, by Aircraft Type
- Fixed-wing Aircraft
- Narrow-body
- Wide-body
- Regional Jet
- Turboprop
- Rotary-wing Aircraft
Aviation MRO Market, by Geography
- North America
- Europe
- U.K.
- Germany
- France
- Italy
- Spain
- Ireland
- Turkey
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Singapore
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East
- UAE
- Saudi Arabia
- Jordan
- Rest of Middle East
- Africa
Key questions answered in the report: