The commercial aircraft MRO market is expected to showcase robust growth by 2027 primarily driven by the expansion of the commercial aviation sector across the globe. Additionally, booming consumer demand for air travel is likely to further fuel market growth through the forecast timeline.
MRO, which stands for maintenance, repair, and overhaul, refers to the specific inspection, repair, or service essential for an aircraft. MRO services encompass all maintenance activities performed to ensure the airworthiness and safety of an aircraft.
Recently, a key challenge faced by the airline industry is the need to reduce costs and prevent delays while maintaining and enhancing the operational efficiency of aircraft. To that effect, MROs and airlines have been leveraging technological advancements to better predict and handle maintenance operations through predictive maintenance, which has bolstered product uptake in recent years.
Notably, the COVID-19 outbreak severely impacted air travel, forcing airlines to halt operations in light of government-imposed lockdowns. With successful vaccination drives worldwide, the aviation industry is gradually regaining its pre-COVID momentum, which has been favorable for industry demand in key regions globally.
Furthermore, industry players have been augmenting their product offerings through technological integration to monetize emerging market trends, thereby positively impacting the global business landscape. For instance, in July 2021, Vallair, a key aircraft MRO services provider, improved its MRO capabilities with the launch of in-house NDT (Non-Destructive Testing). NDT, an extensive suite of inspection techniques, is a vital tool for determining the airworthiness of aircraft.
For comprehensive assessment, the commercial aircraft MRO market has been bifurcated on the basis of MRO services, aircraft, service provider, and region. In terms of MRO services, the market has been segregated into modifications, components, line, airframe, and engine.
The airframe sub-segment is calculated to grow at approximately 5.5% CAGR through the analysis time period to reach a notable valuation by the end of 2027. Prominent demand for refurbishments and proper maintenance of aircraft to comply with stringent regulatory norms and maintain optimum performance are set to support segmental growth over the following years.
With respect to service provider, the commercial aircraft MRO market has been divided into OEM, airline third party, operator/airline in-house, and independent. The airline third party sub-segment is projected to observe substantial growth at a CAGR of above 5.0% over the estimated timeline. Robust economic growth and rising passenger demand for airlines across the globe are attracting high investment towards new aircraft for smooth operations, which is foreseen to propel segmental adoption in the coming years.
Based on aircraft, the commercial aircraft MRO market has been segregated into widebody, regional jet, narrowbody, and turboprop. In 2020, the turboprop sub-segment held around 10% market share and is speculated to grow at a considerable pace over 2021-2027.
On the regional front, the Middle East & Africa commercial aircraft MRO market is anticipated to exhibit significant growth through the study timeframe, registering sizable revenue growth by the end of 2027. Increasing air passenger traffic in MEA is slated to foster regional market outlook in the future.