is the description of maintenance repair and overhaul to aircraft, maintenance, repair and overhaul (MRO) is a key activity in the lifecycle of aircraft. Because of the typically long operational lifetimes expected from these costly assets, MRO is necessary to maintain these systems in a safe and functional condition, so that they can fulfill the operational role that they were designed for. This report mainly covers four market segments: Airframe, Engine, Component and Line.
The market size of aircraft MRO is related to downstream demand and global economy. As there will always be some uncertainties in the global economy in the following years, the growth rate of aircraft MRO market might not keep that fast. But it is surely forecasted that the market of aircraft is still promising.
The global revenue market of aircraft MRO was $ 118 billion dollars in 2017. It is estimated to reach $ 122 billion dollars by 2018 and $ 146 billion dollars by 2023, with the CAGR of 3.13% in terms of revenue over the period 2017-2023. North America `s revenue accounted for the highest market share (41%) in 2017, followed by Europe.
The global aircraft MRO industry markets mainly concentrate in North America, Europe and China, Singapore and Korea. And the market is supplied by a combination of large multinational firms and smaller local companies. The leading global firms include Lufthansa Technik, GE Aviation, AFI KLM E&M, ST Aerospace, MTU, AAR, SR Technics (Mubadala Aerospace), SIA Engineering, Delta TechOps and others. These companies tend to compete against each other globally to supply most of the largest aircraft MRO markets. In many markets, these leading global firms also face competition from local players.
The global market of aircraft MRO has mainly been driven by its downstream industry, the strong growth of the fleet in the last decade. Economic investment and national policies are also the main growth catalysts for the market.
Despite the presence of competition and brand effect problems, due to the awareness of end-users and their demand for high end products, investors are still optimistic about this area. There will be more new investors entering into this industry in the future. The manufacturers who want to occupy the market must depend on market mechanism reform, core technology improvement, manufacturing equipment innovation, and brand establishment.