The Global market for air transport MRO systems is forecast to reach $9.2 billion by 2025, growing at a CAGR of 8.6% from 2020 to 2025. The market growth is attributed to the factors such as growing air travelling passengers, technological advancements, government rules and regulations and others boosts the market growth.
- The worldwide demand for MRO air transport by application is dominated by the commercial group. Commercial aviation firms are conducting major efforts to sustain their aircraft fleets due to the need for fuel efficiency and customer and aircraft health.
- APAC region is anticipated to dominate the global air transport MRO systems market in the forecast period 2020-2025 owing to growing investments, technological developments, strategic collaborations and others.
By Type- Segment Analysis
Engine segment held the highest market share of air transport MRO systems in 2019. Moreover, it is anticipated to witness the significant market growth during the forecast period 2020-2025. Growing aviation activities in both developing and devolving countries is a major factor projected to raise demand for MRO aircraft fuel. In recent years, many new MRO service centres have been established in different countries, which in effect raises the exposure of national companies to the global MRO sector for aircraft engines. Global contacts between different countries have also expanded the deployment of freight aircraft, and adequate aircraft repairs or tests must be organized to ensure standard of service and healthy air travelForeign exchange between various countries has also increased freight aircraft deployment, and it is necessary to coordinate appropriate aircraft maintenance or checks to ensure quality in performance and secure air travel . Such trends are estimated to boost development in the global MRO aircraft engine market. Furthermore, growing advancements in the aerospace sector and increasing demand for next-generation engines are another additional factor projected to fuel the market growth. In addition, straight-forward policy restrictions on aircraft and the need for regular servicing of engine parts and engines is another aspect driving the development of the global MRO aircraft engine industry.
By Aircraft Type- Segment Analysis
Air transport MRO systems market is segmented into Narrow Body Aircraft, Wide Body Aircraft, Regional Jet, Turbo prop and others. The narrow body aircraft type segment held the highest market share in 2019. The market growth is owing to factors such as increased range and efficiency, lowest fuel burn and others. Narrow body aircraft provide improved range and performance due to which it has gained popularity in the market that was , enabling them to succeed in a market previously occupiedpopulated by wide body aircraftjetliners. The A321LR has a range of 7,400 km, whereas the 737 MAX is still capable of covering comparable ranges. Previously, it was only feasible for wide body aircraft to fly these lengths, but the success of these modern narrow body aircraft on long-haul routes is a game changer. According to estimates from the International Air Transport Association, each new generation of aircraft is capable of rising fuel consumption by approximately 20 per cent% and this has ensured that narrow body aircraft have become increasingly feasible on long-distance routes. Small fuel usage by narrow-gauge aircraft will often result in cost reductions, which can then be passed on to lower fare passengers. Consequently all these factors leverages appositive impact on the market growth.
Geography – Segment Analysis
APAC region held the highest market share in 2019 and is anticipated to have the significant market growth during the forecast period 2020-2025. The market growth is owing to increasing passenger traffic, increase in the penetration and expansion of low-cost carriers, technical advancements and others. According to the study of the International Air Transport Association, China is the largest revenue contributor to the global aviation industry with a very strong growth pace that will further fuel the MRO market. While air traffic rising, Asia Pacific business leaders are preparing to develop new facilities and services that will fuel competition for the MRO industry. The recent occurrence of the Covid-19 pandemic and subsequent lockdowns prompted a variety of international airlines and general airline operators in the area to land their aircraft, which is likely to raise the need for grounded aircraft for MRO operations, because the airline will ensure the airworthiness of its aircraft fleet. In March 2020, Aviage Systems was offered a three-year deal to offer avionics MRO services to the Boeing 787s Hainan Airlines fleet. The deal refers to the review, maintenance and redesign of the incorporated composite avionics modules of the Boeing 787. Such contracts tends to drive the market growth.
Drivers – Air transport MRO systems market
Growing air travelling passengers
Air travel passengers are growing on a regular basis around the globe, largely due to the development of more than 700 routes for greater connectivity. This rise poses major issues for the government to have sufficient facilities, technologies and utilities to support this development and to insure that laws and taxes will not become a constraining factor. This growth in passenger traffic drive the aviation market, in turn, leading to the growth of air transport MRO market.
Challenges – Air transport MRO systems market
Lack of skilled personnel
Lack of skilled professional factor is expected to hamper global air transport MRO market. Lack of expertise could raise airline maintenance costs and increase the turnaround times for scheduled maintenance.
Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the air transport MRO systems market. As of 2019, the market for air transport MRO systems market is consolidated with the top players including Collins Aerospace., GE Aviation, Israel Aerospace Industries (IAI), United Technologies Corporation (Pratt and Whitney division), AAR Corporation, Deutsche Lufthansa AG, John Swire & Sons (H.K.) Ltd., TIMCO Aviation Services, Inc., Delta TechOps, and Airbus S.A.S. and among others.
- In February 2020, SITA and key industry partners launch MRO block-chain alliance. The partnership will conduct a proof of concept to illustrate the usage of block-chain for remote monitoring and documenting the transport and repair background of pieces through a broad variety of participants. Those comprise carriers, landlords, original equipment manufacturers (OEMs) such as turbine makers, distribution vendors and repair companies.
- In 31 March, SIAEC and low-cost carrier NokScoot formed a new Line Maintenance Joint Venture (JV) to support Boeing 777-200s and fleet expansion plans. The proposed JV would have a declared capital base of approximately $ 2 million, with NokScoot owning 51 per cent and SIAEC having the remaining 49 per cent.