Aviation Engine MRO Market Trends

Aviation Engine MRO Market Overview 

Aviation Engine MRO Market Size Anticipated to reach USD 26.52 Billion 2030 with CAGR 6.06% by 2020-2030

Aviation engine MRO includes maintenance, repair, and overhaul services for turbine engines and piston engines. Turbine engines include turboprop, turbofan, and turboshaft engines. Furthermore, these services are offered for fixed-wing aircraft and rotary-wing aircraft. Aviation engine MRO services are offered for both civil and military aviation.

The global aircraft engine MRO market is growing at a rapid rate due to the increasing MRO outsourcing activities and rapid fleet expansion. Additionally, the development of next-generation aircraft engines is also expected to drive the growth of the market. However, the high cost associated with aircraft engine MRO and their growing environmental hazards are likely to restrict the growth of the global aviation engine MRO market during the study period.

Moreover, the use of the new ultra-high bypass ratio (UHBR) turbofan engines in aircraft has also prompted the need for redesigning and improving the systems and equipment around the engine. Therefore, with the redesigning of aircraft engines and engine-related components, the requirement for advanced facilities and skilled workforce for its MRO will also grow.

North America accounted for 34.48% share of the global aviation engine MRO market in 2019, followed by Europe. Asia-Pacific accounted for the third-largest market share in 2019. Asia-Pacific is expected to be the fastest-growing market for aviation engine MRO during the review period.

Synopsis

The global aviation engine MRO market has been segmented based on engine type, aircraft type, application, and region. By engine type, the global market is divided into turbine engine and piston engine. On the basis of aircraft type, the global aviation engine MRO market has been classified into fixed-wing aircraft and rotary-wing aircraft. Based on application, the global global aviation engine MRO market has been bifurcated into civil aviation and military aviation.

Fixed-wing aircraft are equipped with wings as opposed to vertical lift rotors. These aircraft are controlled by control surfaces, namely, ailerons, rudders, and elevators, which have been integrated into the wing. This configuration offers several advantages such as endurance, large area coverage, flight speed, and a greater passenger carrying capacity than rotary-wing aircraft. Thus, these aircraft are primarily used for long-distance traveling by commercial airlines and military forces. Moreover, the demand for fixed-wing aircraft is increasing globally due to a rapid rise in air passenger traffic. Therefore, the increasing demand for fixed-wing aircraft is also expected to drive the growth of the fixed-wing aircraft segment in the global aircraft engine MRO market. The segment is projected to register a 5.96% CAGR during the forecast period. The fixed-wing aircraft segment accounted for the larger market share of 73.05% in 2019, with a market value of USD 26,532.5 million.

Regional Analysis

The aviation engine MRO market has been segmented, by region, into North America, Europe, Asia-Pacific, and the rest of the world.

North America accounted for the largest market share in 2019 and is expected to be the largest market for aviation engine MROs during the forecast period. The regional market growth is primarily driven by the high demand for services from the players based in the US and Canada. It is projected that approximately 10,000 aircraft would be operational in the region by 2035, which is expected to create additional opportunities for the market players operating in the North America aviation engine MRO market. Moreover, the rising revenues of airlines headquartered in the region are also projected to support the growth of the market. As per the International Air Transport Association (IATA), North American carriers were expected to generate USD 16.6 billion in net profits in 2019 as compared to USD 14.7 billion in 2018. However, the ongoing COVID-19 pandemic is expected to hamper the growth of the regional market. According to IATA, owing to travel restrictions and global economic recession due to the COVID-19 pandemic, the air transport revenue in North America is expected to fall by USD 50 million in 2020. Hence, the aviation engine market in North America is expected to register a 6.18% CAGR during the forecast period.

Recent News :

In July 2023, Hyderabad, India is scheduled to become the location of a major MRO (maintenance, repair, and overhaul) facility for aircraft engines, which would be run by the renowned French aerospace company, Safran. GMR Group plans to build a facility spanning 36,500 square feet on a 23.5-acre area in the SEZ sector of GMR Aerospace & Industrial Park by 2035.

The facility will have the capability to service 300 engines every year. Despite the commencement of construction in September, the MRO facility is projected to reach completion in December 2024. Operations are expected to begin in 2025, creating around one thousand jobs at full operational capacity. Safran Aircraft Engines Services India Pvt. Ltd. (SAESIPL) and GMR Hyderabad Aviation SEZ Limited (GHASL), a wholly owned subsidiary of GMR Hyderabad International Airport Ltd (GHIAL), have already entered into a land lease agreement for the establishment and management of engine maintenance, repair, and overhaul (MRO) facilities specifically for Safran's LEAP turbofan engines.

In March 2024, Korean Air began the construction of a significant aircraft engine maintenance facility in Unbuk, a location near Incheon International Airport. The airline has established a specific deadline of 2027 for the construction of the facility. The upcoming engine repair facility will be the largest in Asia, enhancing the airline's capabilities to service aircraft engines and solidifying its position in the aviation MRO market. The newly built engine repair facility consists of seven storeys and spans across an area of more than 140,000 square meters.

Kolon Global has been granted the contract to construct the 578 billion won facility near the airline's Engine Test Cell (ETC), which it has been using since 2016. Korean Air used to carry out engine maintenance at its Bucheon facility, while final performance testing was handled at the Unbuk ETC. The main goal of the new engine maintenance cluster is to streamline and merge this process, therefore enhancing operational efficiency by centralizing all maintenance phases at one location.

Companies Covered

The players profiled in the report on the global aviation engine MRO market are Air France Industries KLM Engineering & Maintenance (France), Singapore Technologies Engineering Ltd (Singapore), GE Aviation (US), Hong Kong Aircraft Engineering Company Limited (Hong Kong), Lufthansa Technik (Germany), MTU Aero Engines AG (Germany), Rolls-Royce PLC (UK), Safran (France), SIA Engineering Company Limited (Singapore), and Honeywell International Inc. (US).

Key Developments

• In May 2020, MTU Maintenance Canada Ltd, a subsidiary of MTU Aero Engines AG, signed a contract with the US Air Force to provide MRO services for the US Air Force’s F138 engines.

• In November 2019, Singapore Technologies Engineering Ltd signed a 15-year contract with Japan Transocean Air to provide engine MRO solutions for its Boeing 737NG fleet.

• In November 2018, CFM International, a joint venture between GE Aviation and Safran Aircraft Engines, signed an agreement with the Middle East airline, Gulf Air, to provide maintenance services for the airline's LEAP-1A engines.

Market Segmentation

• By Engine Type: Turbine Engine and Piston Engine


• By Aircraft Type: Fixed-Wing Aircraft and Rotary-Wing Aircraft


• By Application: Civil Aviation and Military Aviation


• By Region: North America, Europe, Asia-Pacific, and Rest of the World