Aircraft MRO Market Competitive Scenario and Key Benefits, Revenues by 2025
May 11, 2021
The global aircraft MRO market is estimated to attain USD 104.46 billion, by the end of 2025, and is anticipated to grow at a CAGR of 4.7% from 2019 to 2025. The increasing number of aircraft OEMs in the maintenance and repair sector is expected to boost the market growth.
According to the air transport association, MRO services constitute around15.0% of the overall airline operating costs. Moreover, the growing investment by the MRO providers and OEMs on technology is helping to improve the efficiency. The profitability of the industry is dependent on old planes maintenance, which is primarily supporting the MRO service market.
Service providers in the industry have a separate department for the airline operators. Service providers also offer full-service to serve the MRO needs of all the airlines. For example, Lufthansa Technik offers its MRO services through the use of different advanced technologies.
MRO service providers in North America provide huge opportunities for skilled and experienced workers to support the increasing demand from airline maintenance. For example, avionics and mechanics led the worker demand then followed by software and electrical engineers. In 2018, MRO spending on outsourcing service has foreseen high demand.
Airbus a France based airline company is keen on developing Air+ programs that will provide opportunities for the MRO service providers. The company is allowing MRO providers to collaborate with others to offer customized solutions. The company is also planning to open an MRO center in Asian countries such as India.
In 2019, AFI KLM E&M has started using climbing robots for its line maintenance service. The company is also planning to make the integration of these robots with Donecle drones.
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.