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The aircraft engine MRO market is anticipated to register a CAGR of above 5% during the forecast period.
- The ageing fleet of aircraft in the military and commercial aviation industry is the major driving factor for the growth of the market during the forecast period.
- The growth of emission regulations for the airspace by various regulatory bodies, like FAA, EASA, IATA, and IACO, among others, are generating a demand for better engine maintenance for older aircraft (since their emissions are higher compared to the new generation aircraft).
- The rapid fleet expansion plans of the airlines and military forces are anticipated to further boost the growth of the aircraft engine MRO market during the forecast period.
- The long-term contracts of the aircraft operators (military, commercial, and general aviation) with the MRO providers can act as a barrier for the growth of new players in the market.
Key Market Trends
Turbine Engine Segment to Experience the Highest Growth During the Forecast Period
The turbine engine segment of the market is expected to register the highest CAGR during the forecast period. The demand for turboprop and turboshaft aircraft, as well as ageing fleet of turboprop aircraft, is propelling the growth of the market during the forecast period. To support the governments with the fleet sustainment programs, the engine manufacturers are forming joint ventures in collaboration with the local companies. For instance, Safran formed two new joint ventures in India in association with Max Aerospace and Hindustan Aeronautics Ltd for maintenance of military aircraft and helicopter engines. Moreover, the incorporation of advanced technology in the manufacturing of the engines by the OEMs is simplifying the process of maintenance services for turbine engines, which is effectively reducing the cost and time required for maintenance of the aircraft engine.
Asia-Pacific Region is Expected to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is expected to generate the highest demand for aircraft engine MRO during the forecast period. The growth of the market is primarily due to the increasing passenger traffic, which is propelling the growth in aircraft movements of the region. The aircraft operators are making plans for increasing their MRO network in the region. For instance, InterGlobe Aviation Ltd announced its plan for the construction of the second MRO center at Kempegowda International Airport in Bengaluru, to cater to the growing needs. This 13,000 sq.m facility, which is scheduled to open by 2020, will have a quick engine change (QEC) shop that can allow changing an aircraft engine with the least downtime, along with warehouse and engineering offices for repair and maintenance. Additionally, the increasing military budget of the emerging countries is fueling the growth of life extension plans of aircraft, which, in turn, will generate the demand for MRO in the years to come.
The prominent players in the aircraft engine MRO market are Lufthansa Technik, Rolls-Royce Holding PLC, United 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, Lufthansa Technik formed joint ventures with various engine manufacturers, like Rolls-Royce Holding PLC, General Electric Company, and MTU AERO ENGINES AG, for providing engine MRO operations for customers in the European Union. Moreover, the use of advanced technology for providing maintenance services may help these companies attract new customers by reducing their maintenance costs. However, the long-term contracts of the established players with the armed forces and airlines may act as a barrier for new players to enter the market.
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