Written by Aircraft Engine MRO Market Overview
The Aircraft Engine MRO Market was valued at USD 23.5 billion in 2023 and is projected to grow from USD 24.1 billion in 2024 to USD 34.5 billion by 2030, with a compound annual growth rate (CAGR) of 4.80% during the forecast period (2024 – 2030). This growth is primarily driven by the expansion of airline and military fleets.
Market Trends
Rising Air Travel and Fleet Expansion
The growth of the aircraft engine MRO market is propelled by the increasing number of air travelers and the expansion of airline fleets. Numerous new MRO support centers have been established globally, and regional companies (Tier-II or Tier-III suppliers) are enhancing their presence in the market. Additionally, the rise in foreign trade has led to increased cargo aircraft operations, necessitating timely inspections and repairs for optimal efficiency and safety. The industry is further driven by stringent flight regulations and the need for effective maintenance of aircraft engines and components.
Technological Advancements
The adoption of fuel-efficient engines, such as the Leading Edge Aviation Propulsion (LEAP) engine, is accelerating the market’s growth. The demand for proper maintenance of engines and components is expected to drive the market. The global aircraft fleet is projected to exceed 38,000 by 2028, boosting the aircraft maintenance market to an estimated $115 billion by that year.
Investments in MRO Software
Investments in aircraft engine MRO software are creating new business opportunities. This software includes features such as maintenance tracking, logbook tracking, flight time tracking, service bulletin management, maintenance scheduling, budget forecasting, electronic task card management, and work order management.
Market Segment Insights
- Engine Type
The market is segmented by engine type into turbine engines and piston engines. The turbine engine segment, which includes turboprops, turbofans, and turboshafts, dominated the market with 58% of the revenue. The demand for turboprop and turboshaft aircraft, along with the aging turboprop fleet, is driving growth in this segment. Joint partnerships between engine suppliers and local industries are creating frameworks for providing fleet repair services to governments.
- Aircraft Type
Based on aircraft type, the market is segmented into fixed-wing and rotary-wing aircraft. The fixed-wing segment generated the most revenue (73.5%). These aircraft offer advantages over rotary-wing aircraft, including endurance, wide-area coverage, high flight speed, and greater passenger carrying capacity. The rapid rise in air passenger traffic is driving the growth of this segment.
- Application
The market is segmented by application into civil aviation and military aviation. The civil aviation segment dominated the market, accounting for 75.9% of the revenue ($16.8 billion). The larger fleet of commercial aircraft and higher maintenance costs compared to general aviation planes drive this segment. Recent agreements between airlines and MRO service providers for aircraft engine maintenance further support this growth. For example, in November 2021, SR Technics signed an agreement with Vietjet Air to provide MRO services for the engines on Vietjet’s Airbus A320 and Airbus A321 aircraft.
Regional Insights
- Asia-Pacific
The Asia-Pacific region dominates the aircraft engine MRO market, with a third of the global aircraft fleet operated in this region. This figure is expected to grow during the forecast period. The advanced and widely available MRO options in Asia-Pacific allow airlines to extend the lifespan of their fleets. MRO providers target the region due to its large client base, attractive investment opportunities, and low labor costs.
- North America
North America holds the second-largest market share due to sustainable goals achieved with advanced technologies. As the world’s largest aircraft fleet, North America generates significant demand for aircraft maintenance and repair services. However, entry into this market is challenging due to high safety standards and regulations. The ease of deploying advanced technologies also attracts MROs to this market.
- Europe
The European aircraft engine MRO market is expected to grow at the fastest CAGR from 2023 to 2030. Growth in air traffic will fuel regional growth. The reliance on advanced technologies for repair practices and OEMs will contribute to industry growth. Other factors, such as growing international trade and the need for new aircraft, may also drive regional growth. For instance, Air China plans to establish a joint venture MRO facility with Rolls-Royce in China, worth around USD 378.2 million, to provide MRO support for various Rolls-Royce engines.
Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, further driving the growth of the aircraft engine MRO market. Market participants engage in strategic activities, including new product launches, contractual agreements, mergers and acquisitions, and collaborations, to offer cost-effective solutions and thrive in a competitive environment.
Key Companies in the Aircraft Engine MRO Market
- GE Aviation (U.S.)
- Rolls-Royce (U.K.)
- Pratt & Whitney (U.S.)
- Lufthansa Technik (Germany)
- Safran Aircraft Engines (France)
- SIA Engineering Company (Singapore)
- Air France Industries KLM Engineering & Maintenance (France)
- MTU Aero Engines (Germany)
- ST Aerospace (Singapore)
- Delta TechOps (U.S.)
Notable Developments
MTU Aero Engines AG, in partnership with Lufthansa Technik, developed an overhaul shop for Pratt & Whitney PW1000G engines, focusing on a modular architecture with optimal processes and material flows. Additionally, SIA Engineering Co Ltd provides overhaul and technical ground handling services, manufactures aircraft cabin equipment, and renovates aircraft galleys.
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