Air Transport MRO Market
Air Transport MRO Market (Type- Engine, Components, Line, Airframe; Aircraft Type- Narrowbody Jet, Widebody Jet, Turboprop, Regional Jet; MRO Provider Type- OEM, Non-OEM MRO) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2026
Press Release :
Maintenance, Repair, and Operation (MRO) plays an important role in the airline industry. MRO has become one of the major expenditure by the airline company as international aviation authorities across the globe has made MRO mandatory. One of the biggest driving factors in the air transport MRO market is increasing focus on cost reduction through proper maintenance. However, OEMs are also focusing on aftermarket services which is proving to be successful, thus hampering independent MRO companies, especially small businesses.
According to a study by Transparency Market Research (TMR), the global air transport MRO market is expected to witness moderate growth. The market is estimated to register 4.2% CAGR between 2017 and 2026. The global market for air transport MRO is also likely to reach US$ 101,941.2 million revenue by the end of 2026.
Engine to Witness Steady Growth during 2017-2026
An engine is expected to account for nearly half of the revenue share by 2017 end. Engine is projected to reach close to US$ 42,800 million revenue towards the end of 2026. Engine being an important part of the aircraft, maintenance, periodic checking, and repairing of engine is done on the large scale. Hence, engine is responsible for majority of MRO market’s value. Moreover, there has been an increase in the number of joint ventures between OEM and MRO along with the focus on the next-generation engine. Also as the aircraft gets older, more value is transferred to its engine, hence more focus is given to the maintenance and repair of aircraft engine.
Narrowbody Aircraft to Gain Maximum Traction in the Global Air Transport MRO Market
Compared to various types of aircrafts, narrowbody aircraft is likely to gain maximum traction. By the end of 2026, the narrowbody aircraft is estimated to surpass US$ 51,900 million revenue. Narrowbody aircrafts are replacing existing aircrafts, hence, maintenance industry is providing support to new single-aisle jets by appointing qualified workforce to handle the maintenance service and provide necessary support. However, high cost of repair, retrofit of old aircraft with the upgraded system are some of the factors restricting the growth of narrowbody aircraft MRO. The trend of outsourcing line maintenance to the third party MRO service providers is also emerging.
OEM to Emerge as the Largest Air Transport MRO Provider during 2017-2026
Original Equipment Manufacturer (OEM) is likely to emerge as one of the largest MRO providers. Between 2017 and 2026, OEM is estimated to create an incremental opportunity of more than US$ 19,500 million. Owing to the development of new generation of commercial jets, component, airframe, engine, OEMs are witnessing better revenue generating opportunities in the aftermarket services. With the launch of next-gen aircrafts, MRO companies are entering into a partnership with OEMs to maintain their position in providing maintenance, repair and overhaul services.
Europe to Remain Dominant in the Global Market for Air Transport MRO
Europe is likely to account for the highest share in the global air transport MRO market between 2017 and 2026. There has been an increase in the airlines replacing old aircrafts with new technology models in Europe. This has resulted in the growth of MRO market, especially for single-aisle jets in Eastern and Western Europe. Meanwhile, the air transport MRO market is also focusing on developing automated mechanism to gain sustainable economic advantages to Aviation Company as well as third parties. However, lack of skilled workforce is one of the biggest challenges in the air transport MRO market across the globe.
Some of the prominent players in the global market for air transport MRO market are MTU Aero Engines AG, Deutsche Lufthansa Aktiengesellschaft, Iberia Lineas Aereas de Espana S.A., John Swire & Sons HK Ltd, General Electric Company, Delta Air Lines, Inc., British Airways PLC, Air France-KLM SA, China National Aviation Holding Company, and AAR Corporation.
Air Transport Maintenance, Repair, and Overhaul (MRO) Market Pins High Hopes on Blockchain to Gain Substantial Cost Reduction
Air transport maintenance, repair, and overhaul (MRO) market has evolved on the back of the evolving regulatory and compliance frameworks in various countries. Growing focus on maintaining the airworthiness of commercial aircrafts is a key trend driving the demand for new systems, technologies, and maintenance schedules in the air transport MRO market. Strides being made by aviation industry in various developing regions of the world have focused on reducing the overall cost of MRO operations. A number of services have emerged to meet the demand for civil and military transport operations. The need for reducing the overall cost of air transport MRO operations has propelled the aviation industry to test new and novel technologies. A case in point is blockchain technology. The technology is a novel one and is showing vast potential in tracking aircraft parts. The cost gains may run into billions according to some of the recent research. A number of blockchain alliances launched in MRO has expanded the horizon for players in the air transport MRO market. The movement and maintenance history of commercial aircraft parts is increasingly complex, and the blockchain is emerging as a novel system to meet the needs of the logistic value chain. In many proof of concept studies, the aviation industry has seen the blockchain to facilitate information sharing between the stakeholders.
Rise in demand for cost cutting has also become vital in the wake of Covid-19 putting bans on the commercial flying. Thus, air transport MRO market is also looking to leverage the technologies that can help it to be agile when the pandemic has led to the aviation industry squeezing profits. Further, over the last few months as the airports allow commercial flying, air transport MRO operators must also adopt systems that help maintain pandemic-specific guidelines. This will see some interesting avenues cropping up in the air transport MRO market.
Global Air Transportation MRO Market: Overview
The global air transport MRO market is expected to witness a moderate growth attributed to slow economic growth in the developing countries and low investment in the aviation industry. Moreover, constant financial turbulence has further led the policy makers to focus on structural reforms. On the other hand, growing expansion of the travel and tourism industry will continue to impact growth of the global air transport MRO market positively. As the passengers prefer travelling through the aircrafts, manufacturers are focusing on maintaining and repairing of the aircraft components.
The report offers detailed information on the important aspects of the global air transport MRO market and provides data on competition landscape, the factors propelling growth of the global market, growth patterns and important segments.
Global Air Transportation MRO Market: Dynamics
Growth of the global air transport MRO market is mainly bound to various macro-economic and micro-economic features. The report reveals that the global air transport MRO market is expected to register a moderate growth due to low investment in the aviation industry globally. As various developing are witnessing slow economic growth, investment in the aviation industry continues to remain low. However, demand for the repair, operations and maintenance is expected to remain high in the aviation industry due to growing need to enhance operability and efficiency of the aircrafts. Growing requirement for disassembling various parts of the aircraft, checking and repair of the various aircraft components is further expected to contribute towards growth of the global air transport MRO market.
While maintenance, operability and repair of the aircrafts continue to remain a major concern, the manufacturers in the aviation industry are focusing on integrating innovative solutions. Adoption of the innovative solutions such as blockchain technology enables the end users to track the activities related to maintenance and repair. Moreover, manufacturers are further integrating the blockchain technology as it allows traceability, resilience, disintermediation of the supply chain, and organized integration. Growing need for management of the power distribution system has further led to increasing adoption of the blockchain technology. Manufacturers are focusing on developing and incorporating leading technological solutions, which is expected to impact growth of the global air transportation MRO market positively.
Demand for the maintenance, operations and repair of the aircrafts is further expected to remain high attributed to increasing number of flight bookings. With the growing number of the vacations, business trips, occasions and events, passengers are increasingly preferring to travel through air transportation options such as aircraft. As passengers prefer travelling through the air transportation options, the requirement of maintaining the operability and checking for repairing the damaged components of the aircraft continues to increase. Growing preference to travel through air transportation is expected to contribute towards growth of the global air transportation MRO market significantly.
Global Air Transportation MRO Market: Segmentation
In the next section, the global sir transportation MRO market is segmented into type, aircraft type, and region. On the basis of type, the global market is segmented as engine, components, line and airframe. Based on aircraft type, the global market is segmented as narrowbody jet, widebody and turboprop. By region, the global market is segmented as North America, Latin America, Europe, Japan, APEJ and MEA.
Global Air Transportation MRO Market: Competition
Major players in the global air transportation MRO market are China National Aviation Holding Company, AAR Corporation, British Airways PLC, Air France-KLM SA, General Electric Company, Delta Air Lines, Inc, Iberia Lineas Aereas de Espana S.A., John Swire & Sons HK Ltd, MTU Aero Engines AG and Deutsche Lufthansa Aktiengesellschaft.
MRO Provider Type