Market Trends of Military Aviation Maintenance, Repair, And Overhaul Industry
Fixed-Wing Aircraft Segment will Showcase the Highest Growth During the Forecast Period
Fixed-wing aircraft in the armed forces play critical roles during war or special missions. Their usage always necessitates proper maintenance of the aircraft and requires upgrades after a number of years of operation to extend their service life. Military aircraft encompass a wide array of aircraft, including fighter jets, bombers, transport planes, and surveillance aircraft.
Each category brings its unique set of maintenance challenges and requirements that contribute to the intricacies of the MRO sector. Military aircraft play a crucial role in modern warfare, providing essential capabilities such as air superiority, reconnaissance, surveillance, intelligence gathering, and close air support. To maintain these capabilities, military aircraft must be maintained at peak performance levels through regular maintenance, repairs, and overhauls.
The military aircraft MRO market operates within a dynamic ecosystem shaped by evolving geopolitical landscapes, technological advancements, and budgetary constraints. Government defense budgets, procurement strategies, and geopolitical tensions significantly influence MRO spending and market dynamics. For instance, in June 2023, the Norwegian Defense Materiel Agency (NDMA) signed an extension contract with Kongsberg Aviation Maintenance Services to overhaul and make ready-for-sale a total of 32 F-16 combat aircraft. The contract also includes technical assistance and support for training Romanian technical personnel. The value of the contract was over USD 63.61 million.
Thus, the growing spending on military aircraft modernization programs and rising MRO contracts with OEMs are expected to propel the growth of the segment during the forecast period.
North America will Hold the Highest Market Share During the Forecast Period
North America held the highest share in the market and is expected to continue its dominant position during the forecast period. This growth is due to the presence of the largest military aircraft fleet, growing spending on enhancing US Air Force (USAF) capabilities, and rising aircraft modernization programs. The US currently has the largest fleet of military aircraft in the world. As of 2023, the country operated a fleet of 2,757 combat aircraft, 731 special mission aircraft, 632 tanker aircraft, 962 transport aircraft, 5,584 combat helicopters, and 2,634 training aircraft/ helicopters.
The USAF is equipped with the latest technology to provide air support for land and naval forces and aid the troops on and around a battlefield. The USAF has continued the development and procurement of next-generation aircraft to meet the demands generated by the power conflicts with Russia and China. Currently, the USAF comprises a total of 13,247 aircraft that are part of an operational, reserve, and out-of-service fleet. A major chunk of the defense budget is channeled into the procurement of new aircraft and R&D of new technologies that can aid the military actions undertaken by the US. As part of this, major procurements have been carried out in the country over the past few years. For instance, in March 2024, the US Navy granted a contract to The Boeing Company to deliver 10 F/A-18F under lot 46 and two F/A-18F and five F/A-18E under lot 47 for USD 1.13 billion. The contract also includes the delivery of a technical data package for the sustainment and operational readiness of the aircraft. Thus, the increasing expenditure on procurement of advanced fighter jets and modernization of existing military aircraft fleets from the US and Canada drive market growth across North America.
