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Aircraft Maintenance Repair & Overhaul (MRO) Market Report, 2025

Aircraft MRO Market Analysis Report By Service Type, By Organization Type, By Aircraft Type, By Aircraft Generation And Segment Forecasts From 2019 To 2025

Report ID: MN17619949  |  Published: July 2020  |  No of Pages: 118
Format: Electronic (PDF)  |  Industry: Military Aerospace & Defense  |  Publisher: Grand View Research

Industry Insights

The global aircraft maintenance repair and overhaul (MRO) market size was accounted for USD 75.71billion in 2018. It is projected to grow at the CAGR of 4.7%over the forecast period,2019 to 2025. The aircraft maintenance involves different multifaceted activities such as maintenance repair, Servicing, and overhaul (SMRO). All these key tasks are performed by OEMs. These services are also outsourced to service providers of aerospace engineering (ESP). These ESPs track on servicing activities and ensure maximum efficiency.

U.S. aircraft MRO market

Airline companies invest a large amount of money for MRO activities, with a focus on providing safety and security to its crew and passengers. Key OEMs such as Airbus, Boeing, and others emphasize on new technologies like aircraft maintenance tools in MRO service. All these OEMs spending on aircraft maintenance services, which, in turn, is expected to foster the market growth.

In addition, different engine development activities along with aircraft modernization are also expected to support the demand for aircraft services. Moreover, the use of the refurbished parts is on the rise for engine maintenance. Thus, these factors are expected to propel the aircraft’s parts demand. This demand is projected to get double in the coming decade.

Commercial sector development in the aviation industry is also increasing demand for MRO services. For example, the launch of the new-generation type fleet requires new expertise and contemporary material designs.

Furthermore, the growing trend of low-cost carriers in the aerospace industry is expected to open up opportunities for MRO servicing market. These carriers are cost-sensitive which influencing MRO service providers to offer suitable service.

Service Type Insights

The aircraft MRO market is bifurcated into engine overhaul, line maintenance, airframe maintenance, components and modification depending on the service type. In 2018, the engine overhaul type dominated the market with a share of over 40.0% in the overall market. The growing number of OEMs in the aircraft services is projected to spur the market growth.

Components type of service is estimated to grow at a CAGR of around 5.0% over the forecasted period. The growing aviation industry along with increasing flying frequencies is constituting cargo planes maintenance and repair activities.

The line maintenance service has attributed to over 15.0% market share in 2018. It is projected to grow at a significant rate in the coming few years. This service involves addressing of in-service examination, and pre-determined schedule management.

Organization Type Insights

In 2018, the independent MRO segment held the largest share in the overall market. It is estimated to account for over USD 47.0 billion by the end of 2025.  The OEMs are focusing on outsourcing MRO services to different ESPs. This trend is expected to propel at a significant rate in the coming few years.

In addition, the OEMs are developing various maintenance programs with specific airplane type for aircraft MRO servicing. The OEMs monitors all manufacturing and designing of service operations. This helps to analyze the aircraft performance.

Moreover, the OEMs also offers customized maintenance operations to better maintain aircraft services. They also helps to eradicate the redundant maintenance processes since it has the large data available for aircraft service analysis.

Aircraft Type Insights

In 2018, the narrow-body type of aircraft segment led the aircraft maintenance repair & overhaul market with the highest share of over 50.0% in the overall market. The airline operators focus on updating their planes with factors like fuel efficiency and cost-saving, which, in turn, is boosting demand for the narrow-body type aircraft. For example, Airbus has upgraded its A320 to A320 neo with high fuel efficiency.

Wide-body aircraft segment is projected to grow at the highest CAGR during the forecasted period. The increasing trend of turbofan engines is driving the growth of wide-body aircrafts. Moreover, these aircraft require high MRO expenditure due to the high maintenance.

Aircraft Generation Insights

Mid generation type segment is projected to hold the largest market share in the overall market by 2025. The growing applications of innovative technologies along with artificial intelligence is encouraging aircraft manufacturers to develop the planes by designing suitable MRO landscape especially in mid generation type planes.

Global aircraft MRO market

New generation type aircraft segment is projected to expand at the highest CAGR over the forecasted period. The development of new aircrafts by replacing old generation planes with greater efficiency is supporting the segmental growth. Asia pacific is projected to be key market for this segment.

Regional Insights

In 2018, Asia Pacific accounted for the highest market share in the overall market. It is also projected to grow at the fastest CAGR over the forecasted period. Additionally, the increasing air traffic is anticipated to surge the market growth. China has over 5000 aircrafts available in its service. Furthermore, the growing demand for new planes and international trade activities is expected to boost the demand for MRO services. Moreover, OEMs are integrating service with the help of advanced technologies, especially in the European market. All these key factors are projected to positively impact the market growth.

Impact of COVID-19

COVID-19 has impacted the aviation industry drastically, as a result there has been reduction in productivity due to travel restriction being imposed by the governments across the globe. The production in aircraft manufacturing has been in a slowdown, the demand for aircraft over the next few years is not likely to get affected since the airline projects have been allocated before the pandemic situation. However, the manufacturers in the aviation industry may face the cash-flow challenges owing to disruption in the supply chain.

Amid the coronavirus pandemic, there has been a significant reduction in air traffic owing to lockdown and international travel restriction across the globe. For example, Air France has foreseen its air traffic decline to 1.8 million from 4.35 million in March 2020.

Aircraft MRO Market Share Insights

Leading players in the market include, AAR Corp; Bombardier Inc.; Lufthansa Technik; GE Aviation; Delta TechOps; Hong Kong Aircraft Engineering Co. Ltd.; Air-France Industries KLM Engineering & Maintenance;Triumph Group, Inc.; and MTU Aero Engines AG.

Growing number of OEMs across the globe are expected to expand MRO services industry in the next few years.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America &Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, U.K., China, Japan, India, and Brazil.

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global aircraft MRO market report on the basis of service type, organization type, aircraft type, aircraft generation and region:

• Service Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • Engine Overhaul
    • Airframe Maintenance
    • Line Maintenance
    • Modification
    • Components

• Organization Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • Airline/Operator MRO
    • Independent MRO
    • Original Equipment Manufacturer (OEM) MRO

• Aircraft Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • Narrow-Body
    • Wide-Body
    • Regional Jet
    • Others

• Aircraft Generation Outlook (Revenue, USD Billion, 2015 - 2025)
    • Old Generation
    • Mid Generation
    • New Generation

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East &Africa (MEA)

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