Middle-East and Africa Aircraft MRO Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 9.56 Billion |
| Market Size (2029) | USD 12.24 Billion |
| CAGR (2024 - 2029) | 5.06 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Middle-East and Africa Aircraft MRO Market Analysis
The Middle-East And Africa Aircraft MRO Market size is estimated at USD 9.56 billion in 2024, and is expected to reach USD 12.24 billion by 2029, at a CAGR of 5.06% during the forecast period (2024-2029).
Over the years, global and regional MRO service providers, including Lufthansa Technik AG (part of the Lufthansa Group), AMAC Aerospace, AMMROC, and Joramco, have bolstered their MRO service networks through strategic partnerships and joint ventures. This collaborative approach has been a key driver behind the expansion of the regional aircraft MRO market.
Leading regional economic powerhouses, such as the UAE, Saudi Arabia, and Qatar, are investing substantially in new aircraft acquisitions. Additionally, several African nations are focusing on procuring refurbished aircraft and upgrading their existing military aircraft fleets. These initiatives are significantly fueling the growth of the military aircraft MRO market in the region.
A notable challenge when setting up MRO facilities in the region is recruiting and retaining skilled labor. Though prevalent globally, this challenge has become increasingly pronounced in the region. This is primarily due to a substantial rise in the aircraft fleet and the number of MRO players over the past two decades. Consequently, the demand for maintenance technicians is anticipated to outstrip the available supply in the near future.
Countries like the UAE and Saudi Arabia, pivotal aviation industry hubs are actively backing foreign MRO providers to bolster their regional footprint. This support often channeled through partnerships and joint ventures with local entities, is poised to underpin the growth of the aircraft MRO market in the Middle East and Africa during the forecast period.
Middle-East and Africa Aircraft MRO Market Trends
Engine MRO Segment to Occupy the Largest Market Share During the Forecast Period
The Middle East and Africa's aircraft engine MRO segment is poised for heightened demand, propelled by a booming commercial aviation sector. This surge is underpinned by escalating air passenger traffic, increased airline procurement of new aircraft, and bolstered economic conditions across several regional countries. Notably, between 2021 and 2022, the region's air passenger traffic rebounded, surpassing pre-pandemic levels, buoyed by robust vaccination drives and border re-openings. By 2040, Middle Eastern airports will handle around 1.1 billion passengers collectively.
As countries in the region gear up to meet this escalating air traffic, they award substantial aircraft contracts to major OEMs like Airbus and Boeing. A case in point, as of June 2024, Qatar Airways has a hefty order of approximately 120 Airbus and Boeing aircraft, with most slated for delivery within the forecast period. Furthermore, capitalizing on their strategic location, governments in the Middle East and Africa funnel significant investments into enhancing and expanding their airport infrastructures. For instance, in December 2023, Saudi Arabia's Public Investment Fund (PIF) inked a deal to bolster Saudia Technic, a Saudia Group subsidiary specializing in a spectrum of aviation MRO services, from line and base maintenance to component and engine overhauls.
Besides the commercial sector, the military aviation domain is also a significant driver of market demand. For instance, Qatar's ambitious air force expansion, highlighted by the procurement of Rafale aircraft, was set to boost its fighter numbers by over fivefold. In a move underscoring this expansion, in March 2024, Safran Aircraft Engines and the Qatar Armed Forces penned a Services Agreement focusing on the M88 engines powering Qatar's fleet of 36 Rafale fighters. This comprehensive agreement encompasses spares, repairs, overhauls, and on-site technical support, all aimed at streamlining maintenance operations and enhancing customer satisfaction. These dynamics underscore the rising demand for commercial aircraft engine MRO services in the region, set to persist through the forecast period.
United Arab Emirates to Occupy the Largest Market Share During the Forecast Period
Major airlines in the United Arab Emirates, including Etihad Airways and Emirates, have rapidly expanded and upgraded their passenger and cargo aircraft fleets, driving the demand for aircraft engine MRO services. This surge in demand is primarily fueled by the delivery of new aircraft to these airlines. Furthermore, these carriers are bolstering their presence in the Low-Cost Carrier (LCC) segment through strategic partnerships, leading to an increased need for narrowbody aircraft and MRO services. For example, in July 2020, Air Arabia Abu Dhabi, a joint venture between Etihad Aviation Group and Air Arabia, commenced operations, marking the UAE capital's first low-cost carrier. By November 2023, the airline had ordered 240 CFM Leap-1A engines to power its fleet, including the A321XLR.
While many UAE airlines boast significant MRO capabilities, they still rely on engine OEMs and third-party providers for maintenance. This trend has notably bolstered the market for engine MRO services in recent years. In a significant move, Sanad unveiled its LEAP Engine Maintenance, Repair, and Overhaul (MRO) Center in Abu Dhabi in November 2023, focusing on servicing LEAP-1A and 1B engines.
Conversely, the UAE is actively bolstering its defense capabilities by procuring new aircraft and upgrading existing ones. By December 2023, the country's fleet comprised 560 combat and non-combat aircraft and helicopters, which necessitate regular MRO post-missions, driving market demand. Moreover, the UAE is championing defense localization through collaborations with international defense OEMs, exemplified by Emirati EDGE's partnerships.
In a notable move, Sikorsky, a Lockheed Martin subsidiary, designated the Advanced Military Maintenance, Repair, and Overhaul Centre (AMMROC) as the authorized MRO center for Black Hawk helicopters in the UAE in November 2023. The government's vision is to establish itself as a military MRO center of excellence, offering a comprehensive range of aviation services, from 1st line to depot-level MRO. This strategic initiative aims to enhance fleet readiness and cater to the escalating demands of the UAE Armed Forces and the broader regional military landscape, thereby propelling the UAE's MRO market during the forecast period.
Middle-East and Africa Aircraft MRO Industry Overview
The Middle East and Africa aircraft MRO market is semi-consolidated. Some prominent players in the market are Emirates Engineering, General Electric Company, RTX Corporation, AMMROC (EDGE Group), and Joramco (Dubai Aerospace Enterprise).
Over the past few years, there has been an increase in foreign players' investments to increase their geographic footprint in the region. Foreign MRO service providers, such as Lufthansa Technik, AMAC Aerospace, and KLM Engineering & Maintenance (AFI KLM E&M), have expanded their MRO service networks through regional partnerships and joint ventures. Also, several local players are partnering with OEMs to gain the technical expertise and required MRO certification for performing on-site MRO services.
The profound market opportunities of the MRO sector in the region and the growing investments of players toward expanding their presence in the region are expected to rapidly increase the competition in the market in the coming years. At the same time, the local players are also enhancing the efficiency of their MRO processes, creating an increasingly competitive environment in the region's market.
Middle-East and Africa Aircraft MRO Market Leaders
-
Emirates Engineering
-
General Electric Company
-
AMMROC (EDGE Group)
-
Joramco (Dubai Aerospace Enterprise)
-
RTX Corporation
*Disclaimer: Major Players sorted in no particular order
Middle-East and Africa Aircraft MRO Market News
- March 2024: Saudia Technic rolled out its latest service, the Mobile MRO Base, catering to helicopters, military aircraft, and advanced air mobility vehicles. This innovative solution, a fully equipped mobile trailer, houses all essential tools, maintenance equipment, and spare parts for on-site repairs. Notably, it's the pioneering service of its kind in the Middle East and North Africa.
- November 2023: Emirates sealed a deal with GE Aerospace for a substantial order of 202 GE9X engines and spares. These engines are slated to power Emirates' forthcoming fleet of Boeing B777X aircraft, with the agreement also encompassing a long-term service commitment.
Middle-East And Africa Aircraft MRO Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
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
5.1 MRO Type
5.1.1 Airframe MRO
5.1.2 Engine MRO
5.1.3 Component and Modifications MRO
5.1.4 Line Maintenance
5.2 End-User
5.2.1 Commercial
5.2.2 Military
5.2.3 General Aviation
5.3 Geography
5.3.1 Saudi Arabia
5.3.2 United Arab Emirates
5.3.3 Turkey
5.3.4 South Africa
5.3.5 Egypt
5.3.6 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Etihad Airways Engineering LLC
6.1.2 Saudia Aerospace Engineering Industries
6.1.3 General Electric Company
6.1.4 Safran SA
6.1.5 RTX Corporation
6.1.6 Lufthansa Technik AG (Lufthansa Group)
6.1.7 Joramco (Dubai Aerospace Enterprise )
6.1.8 AMMROC (EDGE Grouo)
6.1.9 Emirates Engineering
6.1.10 Sanad (Sanad Group)
6.1.11 Ethiopian Airlines
6.1.12 Egyptair Maintenance & Engineering (EGYPTAIR HOLDING)
6.1.13 South African Airways Technical (SAAT) (South African Airways)
6.1.14 Turkish Airlines Technic Inc.
6.1.15 AIR FRANCE-KLM
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Middle-East and Africa Aircraft MRO Industry Segmentation
Aircraft MRO includes tasks performed to ensure the continuing airworthiness of an aircraft and its parts. MRO service providers perform overhaul, inspection, replacement, defect rectification, and the embodiment of modifications, in compliance with airworthiness directives and repair.
The market is segmented by MRO type, end user, and geography. By MRO type the market is segmented into airframe MRO, engine MRO, component and modifications MRO, and line maintenance. By application, the market is classified as commercial aviation, military aviation, and general aviation. The report also offers the market size and forecasts for five countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).
| MRO Type | |
| Airframe MRO | |
| Engine MRO | |
| Component and Modifications MRO | |
| Line Maintenance |
| End-User | |
| Commercial | |
| Military | |
| General Aviation |
| Geography | |
| Saudi Arabia | |
| United Arab Emirates | |
| Turkey | |
| South Africa | |
| Egypt | |
| Rest of Middle East and Africa |
Middle-East And Africa Aircraft MRO Market Research Faqs
How big is the Middle-East And Africa Aircraft MRO Market?
The Middle-East And Africa Aircraft MRO Market size is expected to reach USD 9.56 billion in 2024 and grow at a CAGR of 5.06% to reach USD 12.24 billion by 2029.
What is the current Middle-East And Africa Aircraft MRO Market size?
In 2024, the Middle-East And Africa Aircraft MRO Market size is expected to reach USD 9.56 billion.
Who are the key players in Middle-East And Africa Aircraft MRO Market?
Emirates Engineering, General Electric Company, AMMROC (EDGE Group), Joramco (Dubai Aerospace Enterprise) and RTX Corporation are the major companies operating in the Middle-East And Africa Aircraft MRO Market.
What years does this Middle-East And Africa Aircraft MRO Market cover, and what was the market size in 2023?
In 2023, the Middle-East And Africa Aircraft MRO Market size was estimated at USD 9.08 billion. The report covers the Middle-East And Africa Aircraft MRO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle-East And Africa Aircraft MRO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle-East And Africa Aircraft MRO Industry Report
Statistics for the 2024 Middle-East and Africa Aircraft MRO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle-East and Africa Aircraft MRO analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
