Commercial Aircraft MRO Market Growth Predicted at 4.9% Through 2027: GMI
The regional jets segment in the commercial aircraft MRO market will capture a sizeable share of around 10% by 2027.
The commercial aircraft MRO market is anticipated to record a valuation of USD 95 billion by 2027, according to the most recent study by Global Market Insights Inc. Rising globalization coupled with increasing economic growth has led to a considerable rise in air travel across the globe. This has indeed impelled the production of commercial aircraft over recent years. The burgeoning demand for aircraft has subsequently increased the need for maintenance, repair and overhaul (MRO) services in the commercial aviation sector. These services ensure the airworthiness and safety of aircrafts as per international standards. The rising significance of these services is expected to transform the market outlook over the upcoming years.
Cargo and passenger aircraft operators heavily rely upon aircraft MRO services to facilitate safe and hassle-free flights. As manufacturers of the airframe original equipment are focused on the production and development and not on the aftermarket, the aircraft MRO industry has apparently emerged as a profitable business in the aviation sector. This has urged the airline companies to outsource MRO services from the airline third-party and independent service providers that are providing ample growth opportunities for the commercial aircraft MRO market.
Strategic initiatives by major industry participants
The strong presence of various eminent players and strategic initiatives undertaken by them is positively influencing the commercial aircraft MRO market landscape. For instance, in 2021, Ramco Systems announced deploying its Aviation M&E MRO Software V5.8 for Bristow Group Inc., a leading helicopter operator. This move is aimed at facilitating the digital transformation of the maintenance and engineering operations of the latter.
Citing another instance, in 2021, Magnetic MRO signed a partnership deal with Atlantic Jet Support aimed at spare parts sourcing and supply, repair management and technical support.
Rising demand for regional jets
The regional jet, which is a small aircraft with usually less than 150 seats, is observing heightened demand for short-haul flights within a certain area, country, or continent. Reportedly, regional aviation surpassed 700 billion available seat kilometers of annual air traffic globally. Regional aviation is known to have shown the strongest traffic in the last two decades. It has been speculated that regional airports and smaller passenger aircrafts will be in high demand after the Covid-19 pandemic due to the rise of tier-2 & tier-3 cities, urbanization and migration of the population away from metro cities. On account of these factors, the regional jets segment in the commercial aircraft MRO market will capture a sizeable share of around 10% by 2027.
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Growing preference for in-house airline MRO services
Airline operators are showing an increased inclination towards setting up in-house aircraft MRO capability and pursuing more insourcing. This is majorly due to the increasing costs of aircraft MRO services and shortage of labor and capacity due to the reducing competition in the aftermarket. Airline companies are now seeing in-house services as a necessary strategic measure as they provide a high degree of control over input, higher visibility of the process as well as economies of scale and scope. To illustrate, Malaysia Airlines and Air Asia announced investing in additional in-house maintenance capabilities.
Increasing focus on enhancing aviation infrastructure in Europe
The growth of the commercial aircraft MRO market in Europe can be credited to the increasing demand for MRO services driven by the rising expenditure on aviation infrastructure in conjunction with economic growth. A growing number of business travelers and tourists are the major factors leading to air travel growth, which is subsequently fueling the adoption of aircraft MRO in the region. Besides, the strong presence of eminent players like GE Aviation, Rolls-Royce and Airbus coupled with the availability of established MRO hubs, especially in Germany is further contributing to the market growth. Reportedly, the regional market is projected to register a robust CAGR of over 4.5% through 2027.
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Original Source: Commercial Aircraft MRO Market Revenue 2021 - Global Industry Trends and Forecast to 2027: Global Market Insights Inc.