Aircraft Engine MRO Market

An increase in air travel is driving the market growth

Market CAGR for aircraft engine MRO is being driven by the rising number of air travel. A number of new MRO support centers have been opened in those countries in recent years. In the MRO market for aircraft engines, regional companies (Tier-II or Tier-III suppliers) have increased their presence. Growth in foreign trade between countries has also increased the frequency of cargo aircraft. Therefore, due to multiple factors, such as the development of next-generation engines and rapid expansion of fleets, timely inspections or repairs of airplanes are essential for optimal efficiency and safety.

In addition to increased constraints on  flight regulations, the aircraft engine MRO industry is driven by the need to maintain aircraft engines and engine components effectively.

Additionally, in recent years, the most fuel-efficient engine on the market, the leading edge aviation propulsion (LEAP) engine, has propelled aircraft engine MRO. The aircraft engine MRO market is also anticipated to grow due to the need to maintain engines and components properly. The  aircraft fleet is expected to reach over 38,000 by 2028, which means the  aircraft maintenance market is projected to grow to $115 billion by 2028.

Aircraft engine MRO software (maintenance, repair and overhaul) investments are also expected to create new business opportunities. Maintenance tracking software, logbook tracking software, flight time tracking software, service bulletin management, maintenance schedule software, budget forecasting software, electronic task card management software, and work order management software are among the features of aircraft MRO software.

For instance, India observed significant foreign direct investments in different sectors in May 2021, including aircraft maintenance, repair, and overhaul industries. Thus, investment and acquisitions are expected to create lucrative opportunities for the market in future years. Thus, driving the aircraft engine MRO market revenue.

The Global Aircraft Engine MRO Market Industry is experiencing a surge in demand driven by the increasing volume of air traffic. With the International Air Transport Association projecting that global air passenger numbers will reach 4.3 billion in 2024, airlines are compelled to enhance their fleet capabilities. This growing demand necessitates regular maintenance and overhauls of aircraft engines to ensure safety and efficiency. Consequently, the market is expected to expand significantly, with a valuation of 24.1 USD Billion in 2024, reflecting the industry's response to the heightened operational requirements of airlines.

By Region, the study provides aircraft engine MRO market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific aircraft engine MRO market area will dominate this market. As a third of the  aircraft fleet is operated in Asia Pacific, this figure is expected to grow during the forecast period. In addition, due to the advanced and widely available MRO options available in the Asia Pacific market, airlines in this region can extend the lifespan of their air fleets.

MRO providers often target the region due to its more clients, attractive investment opportunities, and low labor costs.

Further, the major countries studied in the aircraft engine MRO market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2  AIRCRAFT ENGINE MRO MARKET SHARE BY REGION 2022 (%)

Source Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North American aircraft engine MRO market accounts for the second-largest market share due to sustainable goals achieved with advanced technologies. As the world's largest aircraft fleet, North America generates a sizeable demand for aircraft maintenance and repair services. As a result, entry into this market is significantly difficult because of high-level safety standards and laws. MROs are attracted to this market due to the ease of deployment of advanced technologies. Further, the U.S. aircraft engine MRO market held the largest market share, and the Canada aircraft engine MRO market was the fastest growing market in the North American region

The Europe aircraft engine MRO market is expected to grow at the fastest CAGR from 2023 to 2030. Growth in air traffic will fuel regional growth in Europe in the coming years. The reliance on advanced technologies for repair practices and OEMs will contribute to the growth of the European industry. Other factors, such as growing international trade and the need for new aircraft, may also drive regional growth. Moreover, the Germany aircraft engine MRO market held the largest market share, and the UK aircraft engine MRO market was the fastest-growing market in the European region.

For instance, As of September 2022, Air China plans to establish a Joint Venture (JV) MRO facility in China. With a contract, Air China and Rolls-Royce own 50% of the joint venture shares, worth around 2.61 billion yuan (about USD 378.2 million). The new facility will provide MRO support for Rolls-Royce Trent 700, Trent XWB-84, and Trent 1000 engines.

Leading market players are participating heavily in research and development to expand their product lines, which will help the aircraft engine MRO market, grow even more. Market participants are also undertaking various strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The aircraft engine MRO industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the  aircraft engine MRO industry to benefit clients and increase the market sector. In recent years, the aircraft engine MRO industry has offered some of the most significant advantages to the aviation industry. Major players in the aircraft engine MRO market, including GE Aviation (U.S.), Rolls-Royce (U.K.), Pratt & Whitney (U.S.), Safran Aircraft Engines (Paris), ST Aerospace (Singapore), SIA Engineering Company (Singapore), Lufthansa Technik (Germany), Air France Industries KLM Engineering & Maintenance (France), MTU Aero Engines (Germany), , and Delta TechOps (U.S.).

MTU Aero Engines AG develops and manufactures engines and provides commercial engine maintenance and support services. The Company sells a wide range of engines and industrial gas turbines to manufacturers and operators around the world. As part of their partnership with Lufthansa Technik, MTU and Lufthansa Technik developed their overhaul shop for Pratt & Whitney PW1000G engines near Rzeszow. They focused on a modular architecture with optimal processes and material flows to avoid repeating past mistakes.

The SIA Engineering Co Ltd provides overhaul and technical ground handling services for airframes and components. The company also manufactures aircraft cabin equipment, aircraft galleys are renovated, and hydromechanical aircraft equipment is repaired and overhauled.