1. Home
  2. > Aerospace and Defense
  3. > Aerospace
  4. > Aviation
  5. > Aircraft Market Trends
Aircraft Engine MRO Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Aircraft Engine MRO Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • September 2022
  • 166 pages
  • ID: 6325600
  • Format: PDF
  • Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

The aircraft engine MRO market is projected to grow from USD 30 billion in 2021 to USD 49 billion in 2027, registering a CAGR of around 1.58% during the forecast period.

The impact of the COVID-19 pandemic on the aircraft engine MRO market has been significant. As a result of a large number of stored aircraft and lower utilization, the aircraft engine MRO demand significantly dropped in 2020. However, in 2021, aviation began to witness gradual recovery, which has led to an increase in passenger traffic and aircraft movements. This has led to an increase in demand for aircraft maintenance, repair, and overhaul activities.

The rapid fleet expansion plans of the airlines and military forces are anticipated to boost further the growth of the aircraft engine MRO market during the forecast period.

The aging military aircraft fleet in some countries may generate significant demand, as some of these countries have plans to extend the service life of these aging aircraft due to a lack of defense funding.

The introduction of newer generation engines in new aircraft is anticipated to further increase the aircraft engine MRO demand. The new engines will have more expensive material requirements than the older generation aircraft.

The introduction of advanced technologies that will digitize and automate maintenance activities to increase overall maintenance process efficiency, reduce the overall turnaround time, and improve safety by the engine MRO players is anticipated to boost the growth of the market in the coming years.

Key Market Trends

The Commercial Aviation Segment Dominates the Market in Terms of Market Share

The commercial aviation segment currently has the highest market share, and it is expected to continue its dominance during the forecast period. This is majorly due to the large fleet of commercial aviation compared to military aviation and the high cost of engine maintenance cost compared to general aviation. In recent years, several new contracts have been signed for the maintenance of aircraft engines between airlines and MRO service providers. For instance, in November 2021, SR Technics signed a Memorandum of Understanding (MoU) with Vietjet Air to provide MRO services for CFM56-5B engines onboard Vietjet’s Airbus A320 and Airbus A321 aircraft fleet. The agreement was signed worth USD 150 million, and under the contract, the company will provide engine maintenance, component requirements, repair, technical and training services, and will set up a new Aviation training center as a joint venture between Vietjet and SR Technics.

Similarly, the MRO service providers are also expanding their presence in various countries to cater to the growing demand for commercial engine MRO services. In this regard, in September 2021, S7 Technics announced its plan to open a new engine maintenance facility at Sheremetyevo airport (Moscow) for the overhaul of CFM56-5B and -7B engines and Honeywell 131-9A/9B auxiliary power units (APU). The maintenance capacity of the new shop is expected to reach up to 100 APUs and up to 42 engines per year.

Multiple such service provider partnerships with commercial carriers are extending long into the forecast period for continued service of aircraft engines to be airworthy and safe for flight. It is due to these partnerships that the commercial segment of the market is expected to lead the market with highest market share during the forecast period.

Asia-Pacific is Expected to Generate the Highest Demand During the Forecast Period

Asia-Pacific has experienced significant growth in the total aircraft fleet over the past decade, which has increased the demand for engine MRO services and is expected to lead the market during the forecast period. This has resulted in several MRO service providers from the United States and Europe establishing their maintenance facilities in this region. Also, to reduce overseas maintenance costs, several airlines have partnered with engine MRO service providers to develop in-house capabilities. For instance,

Air China, in September 2022 announced that they are entering a Joint Venture (JV) maintenance, repair, and overhaul (MRO) facility in China. The new facility, Beijing Aero Engine Services Company Limited will provide MRO support on the Rolls-Royce Trent 700, Trent XWB-84, and Trent 1000 aero engines. Air China and Rolls-Royce each hold 50% of the shares in the joint venture with the contract amount of about 2.61 billion yuan (about USD 378.2 million).

Manufacturer investments in the region are also driving high revenues and consequenlty market growth in the region. Safran – a large international aircraft engine manufacturer, in February 2022 announced the opening of a new MRO facility in Suzhou China. The facility is being set up and is expected to be operational by the end of 2022. The company-owned 5,200 sq meter repair station helps it in strategic commitments, linking it to the company’s MRO facilities across the Middle-Eastern and Indian facilities, making the company an optimal choice for MRO services for major airlines across the world.

In July 2022, Safran, also announced that it will invest up to USD 200 Million to set up its biggest MRO facility in Hyderabad, India. The facility will be capable of handling up to 300 engine shop visits annually, especially catering to the CFM56, Leap 1A, and Leap 1B engines that dominate the Indian market. This large facility is also expected to be used as an MRO facility for Safran’s Asian engine customers. Due to several such investments, government incentivization, and potential increase in passenger influx, the market is expected to witness significant growth rates in the Asia Pacific region during the forecast period.

Competitive Landscape

The prominent players in the aircraft engine MRO market are Lufthansa Technik, Rolls-Royce Holding PLC, Raytheon Technologies Corporation, General Electric Company, and Safran SA. The major engine MRO providers are entering into long-term partnerships or forming joint ventures to grow their engine MRO customers. For instance, in June 2022, ST Engineering announced that their Commercial Aerospace business has signed a five-year agreement with Safran Aircraft Engines, a world-leading aerospace engine manufacturer, for ST Engineering to provide engine maintenance (shop visit) offload for the CFM56-5B and -7B engines. This multi-year agreement will allow ST Engineering and Safran Aircraft Engines to meet the forecasted rise of engine MRO activities as air travel gradually recovers from the pandemic. Despite being an immense advantage for the players within the market in terms of economic stability, the long-term contracts of the established players with the armed forces and commercial airlines may act as a barrier for new players to enter the market.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Grace helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

Commercial Aero Engine MRO Market: Trends, Opportunities and Competitive Analysis

  • $ 4850
  • August 2022
  • 84 pages

Trends, opportunities and forecast in the commercial aero engine MRO market to 2027 by MRO activities (maintenance, repair, and overhaul) and region (North America, Europe, Asia Pacific, and the Rest of ...

  • World
  • APAC
  • Aircraft MRO
  • Aircraft Engine
  • Industry analysis
  • Greenhouse Gas Emissions
  • Aircraft Fleet Size

ref:plp2022

Reportlinker.com © Copyright 2023. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on