Global Aerospace Defense MRO Market Grows Steadily at a CAGR of 5.5%

Introduction

Maintenance, repair, and overhaul (MRO) are important to the lifecycle of an aircraft. It covers regular and unscheduled or unplanned maintenance due to damage, component and engine failures, necessary adjustments, and enhancements to the cabin interior, systems, and other components. Aerospace and defense MRO organizations that provide MRO Services can be characterized as airline or operator MROs, independent or third-party MROs, and OEM MRO firms.

Market Dynamics

Low-Cost Airlines' Fleet Expansions Due to Strong Demand from Developing Countries Drives the Global Market

A rise in worldwide air passenger traffic as a result of low-cost airlines has increased the demand for extremely effective flight safety procedures and security checks to ensure maximum passenger safety. In addition, as a result of enhanced global trade links between major economies, an increase in demand for cargo services is anticipated to fuel the expansion of the aircraft MRO market. The increase in worldwide airline passenger traffic due to a rise in per capita income and a positive gross domestic product (GDP) growth rate for the population is also driving market expansion. Emerging economies such as India and China experienced the most significant growth in air travel during the past decade. Further, IATA forecasts that demand for air travel will climb even higher in the future due to increased middle-class incomes and positive GDP growth rates.

Modification and Modernization of Commercial and Military Aircraft Creates Tremendous Opportunities

Modernization of aircraft entails modifying, upgrading, refurbishing, and replacing worn-out aircraft parts with new ones, as well as incorporating new technology to make older aircraft extremely efficient and similar to next-generation aircraft. The objective of aircraft modernization is to enhance the operational capability of aircraft by incorporating current and automated technologies. As governments of many nations continue to bolster their military posture, they are concentrating on updating and preserving their existing fleet of military aircraft. The aging of aircraft fleets, ongoing technological advances in the defense MRO sector, and joint ventures and strategic alliances formed by defense MRO companies to address the unique requirements of the modernization initiatives undertaken by the world's armed forces all contribute to the expansion of the defense MRO market.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global aerospace defense MRO market and is anticipated to grow at a CAGR of 9.0% during the forecast period. Asia-Pacific is one of the fastest-growing aerospace markets in the world, driven by ongoing economic expansion, increasing passenger traffic, and increased domestic aircraft demand due to Japan, China, and India's economic growth. Owing to the availability of a skilled labor force, competitive labor rates, the expansion of engineering services, and R&D expertise, the region is becoming a potential international hub for manufacturing aerospace components and MRO services. Increased internal and international traffic and rising demand for international freight are anticipated to propel the demand for MRO services.

Europe is projected to grow at a CAGR of 3.4% over the forecast period. Europe's aerospace and defense maintenance, repair, and overhaul (MRO) industry is more interconnected and governed by cross-border ownership and manufacturing networks. The demand for fuel-efficient, cost- and energy-saving aircraft will increase substantially as global air travel grows. In addition, Flightpath 2050 is a plan for the European aviation sector that aims to lessen the industry's environmental impact through measures including lowering fuel consumption and decibel levels. They necessitate innovation in the aerospace industry and investment in improved airplane MRO services. The average age of the aircraft fleets of some carriers, including Air France, British Airways, and Iberia, is greater than 14 years. The aging and aging fleet of aircraft provides a greater demand for aircraft MRO, driving market expansion throughout the forecast period.

Key Highlights

• The global aerospace defense MRO market was valued at USD 121.8 billion in 2022. It is estimated to reach USD 197.2 billion by 2031, growing at a CAGR of 5.5% during the forecast period (2023–2031).
• Based on product, the global aerospace defense MRO market is divided into engine, airframe, line, and component. The engine segment is responsible for the largest market share and is anticipated to grow at a CAGR of 5.5% over the forecast period.
• Based on application, the global aerospace defense MRO market is segmented into narrow-body aircraft, wide-body aircraft, regional aircraft, and others.The narrow-body aircraft segment owns the highest market share and is expected to grow at a CAGR of 5.4% during the forecast period.
• Based on end-user, the global aerospace defense MRO market is bifurcated into commercial aviation, business and general aviation, military aviation, and others. The commercial aviation segment is the highest contributor to the market and is projected to grow a CAGR of 5.8% over the forecast period.
• Asia-Pacific is the most significant shareholder in the global aerospace defense MRO market and is anticipated to grow at a CAGR of 9.0% during the forecast period.

Competitive Players

Competitive Players

The key players in the global aerospace defense MRO market are AAR Corporation, SIA Engineering Company Ltd., Boeing, Airbus, Embraer S.A., Air France KLM Group, Raytheon Technologies Corporation, Delta Air Lines, Inc., General Dynamics Corporation, MTU Aero Engines AG, Lufthansa Technik, Honeywell International Inc., Pratt & Whitney, and Spirit AeroSystems, Inc.

Recent Developments

Market News

• In January 2023, Spirit AeroSystems, Inc. announced that Jordan Aircraft Maintenance Company, Joramco, has agreed to become a Spirit Approved Maintenance, Repair, and Overhaul (MRO) center. Joramco, headquartered in Amman, Jordan, provides maintenance, repair, and overhaul services and the engineering division of Dubai Aerospace Company (DAE).

Segmentation

Global Aerospace Defense MRO Market: Segmentation

By Product

• Engine
• Airframe
• Line
• Component

By Applications

• Narrow Body Aircraft
• Wide Body Aircraft
• Regional Aircraft
• Others

By End-User

• Commercial Aviation
• Business and General Aviation
• Military Aviation
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• Central and South America
• The Middle East and Africa