Air Transport MRO Market

2021 Analysis and Review: Air Transport MRO Market by Application Type – Air Frame, Engine, Component, and Line for 2021-2031

Air Transport MRO Market Snapshot

The global air transport MRO market is poised to reach a market valuation of US$ 72.6 Bn in 2021, finds ESOMAR-certified consulting firm Future Market Insights (FMI) in a recent market survey.

As per the study, the air transport MRO market registered year-over-year growth by 5.0% between 2020 and 2021. Bucking the initial impact of the COVID-19 outbreak, sales of air transport MRO will recover steered by rising number of aircraft MRO service hubs and increasing air travel and cargo transport.

Amid soaring competition, Hong Kong Aircraft Engineering Company Limited, Singapore Technologies Engineering Ltd, Air France–KLM, AAR Corp., and Lufthansa Technik AG remain the top 5 players, holding 11% of the total market share.

Key Points Covered in Air Transport MRO Market Survey

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Air Transport MRO Market and how to Navigate
  • Recommendation on Key Winning Strategies

Air Transport MRO Market Historic Sales Compared to 2021-2031 Forecast Outlook

Demand for air transport MRO increased at a sluggish pace, exhibiting a 0.8% CAGR between 2016 and 2020. A persistent decline in sales hampered the market growth significantly, as air travel and transport witnessed downturns due to the novel COVID-19 outbreak.

However, FMI has projected the air transport MRO market to grow at a moderate 4.8% CAGR. With fast-track vaccination drives and resumption of movement, the market is expected to recover in the forthcoming years.

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.

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

Country-wise Insights

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 4.5% 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 4.0% 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.

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

Top 5 players in the air transport MRO market comprise Hong Kong Aircraft Engineering Company Limited, Singapore Technologies Engineering Ltd, Air France–KLM, AAR Corp., and Lufthansa Technik AG, accounting for 11% of the total market share.

Leading players operating in the air transport MRO market are focusing on product portfolio expansion through strategic collaborations, mergers, and acquisitions as a part of their growth strategies. For instance:

  • In August 2021, Delta Air Lines entered an agreement with Airbus to add 30 new A321neo aircraft to its order. Through this agreement, Delta Air Lines aims to reinforce its strategic fleet objective to improve operational simplification, achieve profit targets and increase productivity.
  • In March 2021, Air France Industries KLM Engineering & Maintenance and Triumph Group announced a definitive agreement regarding a joint venture to overhaul nacelles for next-generation aircraft in Triumph’s repair facility in Hot Springs, Arkansas. The partnership will allow Triumph and AFI KLM to leverage their combined capabilities to provide seamless global MRO support to organizations regardless of location.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Application Type, Aircraft Type, and Regions

Key Companies Profiled

  • 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)

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current Air Transport MRO market value?

    The air transport MRO market is anticipated to reach US$ 72.6 Bn in 2021.

  • At what rate did the air transport MRO market grow between 2016 and 2020

    The air transport MRO market experience stagnated growth at a 0.8% CAGR between 2016 and 2020.

  • What are the key trends driving air transport MRO sales?

    Increasing developments in MRO service hubs, coupled with gradually increasing air travel and cargo transport are driving air transport MRO sales.

  • Who are the leading players in the air transport MRO market?

    Hong Kong Aircraft Engineering Company Limited, Singapore Technologies Engineering Ltd, Air France–KLM, AAR Corp., and Lufthansa Technik AG are the leading players operating in the air transport MRO market.

  • What will be the demand outlook for North America air transport MRO  market

    The North American air transport MRO market is poised to expand at a 4.5% CAGR.

  • What is the market share of leading players in the air transport MRO market

    Leading air transport MRO market players are estimated to account for 11% of the total market share.

  • What will be the air transport MRO market share in Europe?

    The European air transport MRO market is projected to grow at a 4.0% CAGR through 2031.

  • What is the current market share of Japan and South Korea in the global air transport MRO market?

    Japan and South Korea will account for 4.8% of the total market share collectively.

Air transport MRO Market by Category

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
  • Western Europe
  • Eastern Europe
  • China
  • Japan
  • India
  • South East Asia & Others (SEA)
  • Middle East & Africa (MEA)

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