Aircraft Engine MRO Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 40.15 Billion |
| Market Size (2029) | USD 54.68 Billion |
| CAGR (2024 - 2029) | 6.37 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Aircraft Engine MRO Market Analysis
The Aircraft Engine MRO Market size is estimated at USD 40.15 billion in 2024, and is expected to reach USD 54.68 billion by 2029, growing at a CAGR of 6.37% during the forecast period (2024-2029).
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 a gradual recovery, leading to increased 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 aircraft engine MRO market growth during the forecast period.
The aging military aircraft fleet in some countries may generate significant demand, as some 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 increase the aircraft engine further MRO demand. The new engines will have more expensive material requirements than the older 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 market's growth in the coming years.
Aircraft Engine MRO Market Trends
This section covers the major market trends shaping the Aircraft Engine MRO Market according to our research experts:
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. Under the contract, the company is expected to provide engine maintenance, component requirements, repair, technical, and training services. It will set up a new Aviation training center as a joint venture between Vietjet and SR Technics.
Similarly, MRO service providers are 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) to overhaul 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. Due to these partnerships, the commercial segment of the market is expected to lead the market with the 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. Furthermore, several airlines have partnered with engine MRO service providers to reduce overseas maintenance costs 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 a contract, accounting for about 2.61 billion yuan (about USD 378.2 million).
Manufacturer investments in the region are also driving high revenues and, consequently, 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 globally.
In July 2022, Safran also announced that it would invest up to USD 200 Million to set up its biggest MRO facility in Hyderabad, India. The facility would 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 the potential increase in passenger influx, the market is expected to witness significant growth rates in the Asian-Pacific region during the forecast period.
Aircraft Engine MRO Industry Overview
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 had signed a five-year agreement with Safran Aircraft Engines, a global-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 may 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.
Aircraft Engine MRO Market Leaders
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Lufthansa Technik
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Rolls-Royce Holding PLC
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General Electric Company
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Safran SA
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Raytheon Technologies Corporation
*Disclaimer: Major Players sorted in no particular order
Aircraft Engine MRO Market News
In September 2022, Rolls Royce Holding Plc announced that they had entered into a fifty-fifty Joint venture with Air China to provide maintenance, repair, and overhaul at a new facility in Beijing, China. The new facility, BAESL (Beijing Aero Engine Services Company Limited), will provide MRO support on the Rolls-Royce Trent 700, Trent XWB-84, and Trent 1000 aero engines.
In July 2022, Delta TechOps, a division of airlines engaged in providing MRO services, announced they had signed a CFM Branded Service Agreement (CBSA) to support LEAP-1B engines. Under the terms of the CBSA, Delta could become part of CFM's maintenance, repair, and overhaul (MRO) network for LEAP-1B engines.
Aircraft Engine MRO Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
1.3 Currency Conversion Rates for USD
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2027)
5.1 By Engine Type
5.1.1 Turbine Engine
5.1.1.1 Turboprop
5.1.1.2 Turbofan
5.1.1.3 Turboshaft
5.1.2 Piston Engine
5.2 By Application
5.2.1 Commercial Aviation
5.2.2 Military Aviation
5.2.3 General Aviation
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 France
5.3.2.3 Germany
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Egypt
5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Lufthansa Technik
6.2.2 Rolls-Royce Holding PLC
6.2.3 Raytheon Technologies Corporation
6.2.4 General Electric Company
6.2.5 Safran SA
6.2.6 Singapore Technologies Engineering Ltd
6.2.7 Delta Air Lines Inc.
6.2.8 Hong Kong Aircraft Engineering Company Limited (HAECO)
6.2.9 MTU Aero Engines AG
6.2.10 Textron Inc.
6.2.11 Honeywell International Inc.
6.2.12 Israel Aerospace Industries Ltd
6.2.13 S7 Technics
6.2.14 SR Technics Switzerland Ltd
6.3 Other Players
6.3.1 Lockheed Martin Corporation
6.3.2 AFI KLM E&M
6.3.3 Magnetic MRO AS
6.3.4 Sanad Aerotech
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Aircraft Engine MRO Industry Segmentation
Engine maintenance, repair, and overhaul (MRO) involve the repair, service, or inspection of engines to ensure the safety and airworthiness of the aircraft by international standards. The market is segmented based on engine type into turbine and piston engines. The turbine engine is further segmented into turboprop, turbofan, and turboshaft engines. By application, the market is segmented into commercial aviation, military aviation, and general aviation. The report also covers the market sizes and forecasts in major countries across different regions. The market size and forecasts have been provided in value (USD billion).
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Aircraft Engine MRO Market Research FAQs
How big is the Aircraft Engine MRO Market?
The Aircraft Engine MRO Market size is expected to reach USD 40.15 billion in 2024 and grow at a CAGR of 6.37% to reach USD 54.68 billion by 2029.
What is the current Aircraft Engine MRO Market size?
In 2024, the Aircraft Engine MRO Market size is expected to reach USD 40.15 billion.
Who are the key players in Aircraft Engine MRO Market?
Lufthansa Technik, Rolls-Royce Holding PLC, General Electric Company, Safran SA and Raytheon Technologies Corporation are the major companies operating in the Aircraft Engine MRO Market.
Which is the fastest growing region in Aircraft Engine MRO Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Aircraft Engine MRO Market?
In 2024, the North America accounts for the largest market share in Aircraft Engine MRO Market.
What years does this Aircraft Engine MRO Market cover, and what was the market size in 2023?
In 2023, the Aircraft Engine MRO Market size was estimated at USD 37.75 billion. The report covers the Aircraft Engine MRO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Aircraft Engine MRO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the latest trends in Aircraft Engine MRO Market?
Key Trends in the Aircraft Engine MRO Market are: a) Adoption of predictive maintenance through big data and analytics b) Increased use of sustainable material c) Integration of advanced technologies like 3D printing
How is the Aircraft Engine MRO Market segmented?
The Aircraft Engine MRO Market is segmented by engine type (turbofan, turboprop, etc.), application (commercial aviation, military aviation), and geography (North America, Europe, Asia-Pacific, etc.).
Aircraft Engine MRO Industry Report
The Global Aircraft Maintenance, Repair, and Operations (MRO) Market is booming, driven by increased air travel, fleet expansion, and the need to maintain aging military aircraft. The introduction of new-generation engines necessitates specialized MRO services, with the commercial aviation segment and the Asia-Pacific region leading the growth. The market is evolving with digitization and automation to boost efficiency and safety, alongside strategic partnerships enhancing its expansion. This critical sector ensures airworthiness and safety in aviation. For detailed insights, Mordor Intelligenceā¢ provides comprehensive statistics, market share, size, revenue growth, and forecasts in their Aircraft Engine MRO industry analysis, available as a free report PDF download.
