MRO in Southeast Asia Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 5.34 Billion |
| Market Size (2029) | USD 7.12 Billion |
| CAGR (2024 - 2029) | 5.94 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
MRO in Southeast Asia Market Analysis
The Southeast Asia Aircraft MRO Market size is estimated at USD 5.34 billion in 2024, and is expected to reach USD 7.12 billion by 2029, growing at a CAGR of 5.94% during the forecast period (2024-2029).
Over the last two decades, Southeast Asia has been making the most of its favorable geographic location by complementing it with state-of-the-art aviation infrastructure. The region's strategic position and the strong local supply chain have contributed to its position as a preferred location for many MRO companies. Maintenance constitutes a major portion of the financial business model of aircraft operators in the region.
Players from Singapore have established themselves as dominant players in the industry over the years. Following the success of Singapore in the industry, players from countries like Indonesia, Malaysia, and Thailand are trying to replicate the success of Singaporean players and developing their MRO capabilities, which is positioning Southeast Asia as an important hub for Aircraft MRO globally.
Technological advancement in additive manufacturing, predictive maintenance, aircraft health monitoring systems, composite repair capabilities, artificial intelligence, and big data will play a major role in the coming years, as most of the MRO players in the region will opt to streamline their operations through automation to generate higher revenue during the latter half of the forecast period.
MRO in Southeast Asia Market Trends
Commercial Aviation Segment Projected to Exhibit the Highest Growth Rate During the Forecast Period
The growth in air traffic in the region over the years has put pressure on airline operators to maintain their fleets in operational condition. Since Asia-Pacific overshadows the other regions in terms of new aircraft deliveries, and Southeast Asia, in particular, has become a focal point in terms of the commercial aviation industry growth, the operators in the region are ramping up their capabilities to cater to a growing aircraft fleet that is propelling the demand for aircraft maintenance.
For decades, the commercial aircraft Maintenance, Repair, and Overhaul (MRO) market in Southeast Asia has been dominated by established players in Singapore, providing maintenance services for airlines both in and outside the region. However, several players have entered the market in countries like Indonesia, Thailand, and Malaysia over the years and have challenged the dominance of established Singaporean players. The low labor costs in countries like Indonesia attract foreign players to set up their own MRO facilities in these countries.
Despite the considerable growth in competition in the market, several major airlines in the region have only minimal in-house maintenance capabilities and outsource most of the work to companies affiliated with rivals or independent service providers. In this regard, the airlines in the region are enhancing their maintenance capabilities to cut out cash outflow to third parties and rivals by developing their in-house maintenance businesses.
For instance, the Garuda Maintenance Facility (GMF) by AeroAsia is taking aggressive steps to expand its MRO business overseas while improving its in-house maintenance capacity in the country to cater to more airlines. In January 2021, Revima Group, which has set up a new landing gear maintenance facility for the A320 and the B737NG narrowbody aircraft in Thailand, announced that it has obtained Part-145 certification from three key agencies, namely CAAT (Civil Aviation Authority of Thailand), EASA, and FAA, and is ready to start its activities.
Singapore to Dominate Market Share During the Forecast Period
The aviation sector is the major contributor to the development of the Singaporean economy. Despite its relatively small size, Singapore has been one of the fastest-growing aviation markets in the region over the years, driven by the huge tourist inflow and growing business travel into the country. Singapore caters to about 1/4 of Asia's maintenance, repair, and overhaul (MRO) requirements and 1/10 of the global MRO output, and it possesses comprehensive nose-to-tail MRO capabilities.
Singapore's home-grown aviation companies, ST Aerospace and SIA Engineering, are among the top MRO companies globally, both in terms of revenues and capabilities. ST Engineering, one of the major players in the country, is looking to expand its aerospace MRO business, both locally and internationally. In September 2023, ST Engineering initiated the construction of its fourth airframe MRO facility in Singapore. The new 84,000 sq m (904,000 sq ft) hangar facility, on the northern end of the Changi airport compound, would feature three maintenance bays capable of handling widebody aircraft, as well as a fourth line with paint and maintenance capabilities.
In February 2022, the government of Singapore announced a defense budget of about USD 16.36 billion, a 6.5% increase over the 2021 defense budget. As most of Singapore's fleet is aging or due for a mid-life upgrade, the demand for military MRO is also expected to grow during the forecast period.
At the same time, driven by the positive outlook for general aviation demand in the country, several foreign players are entering the market in Singapore. In October 2020, Jetex, an executive aviation provider, announced the expansion of its global FBO network in the Asia-Pacific region with the addition of a fixed-base operator in Singapore. In collaboration with Bombardier, the new FBO expands the Singapore Service Centre at Seletar Aerospace Park beyond aircraft service and maintenance and now offers a full range of services to the business jet operators. Such developments are expected to drive the growth of the market in Singapore during the forecast period.
MRO in Southeast Asia Industry Overview
The market for aircraft MRO services in the Southeast Asia region is moderately consolidated. Singapore Technologies Engineering Ltd, GMF AeroAsia, Safran SA, StandardAero, and Sepang Aircraft Engineering Sdn Bhd are some of the prominent players in the market.
For a long time, the market was dominated by players based in Singapore, but the dynamics are now changing. Following the success of Singapore in the industry, players from countries like Indonesia, Malaysia, and Thailand are trying to replicate the success of Singaporean players and develop their MRO capabilities. The market is witnessing investments from players into countries like Thailand, Indonesia, etc., owing to the growing aircraft fleet and lower labor costs compared to Singapore. The market is witnessing a huge investment from key players in facility development, technological innovations, joint ventures, and partnerships.
Players are focusing on developing their MRO capabilities in the region, making the market more competitive with the entry of new players. Such developments are expected to make the market more competitive during the forecast period.
MRO in Southeast Asia Market Leaders
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Safran SA
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GMF AeroAsia
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Singapore Technologies Engineering Ltd
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StandardAero
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Sepang Aircraft Engineering Sdn Bhd
*Disclaimer: Major Players sorted in no particular order
MRO in Southeast Asia Market News
- In September 2023, ST Engineering initiated the construction of an 84,000 sq m (904,000 sq ft) hangar facility at the northern end of the Changi Airport compound. The company expects the first maintenance line to be operational in mid-2025, and the full facility by the end of 2026.
- In September 2023, Pratt & Whitney announced the expansion of its Singapore engine center, Eagle Services Asia (ESA). The 48,000-square-foot expansion will accommodate a two-thirds increase from current facility capacity.
MRO in Southeast Asia Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
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 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 Application
5.1.1 Commercial Aviation
5.1.2 Military Aviation
5.1.3 General Aviation
5.2 MRO Type
5.2.1 Airframe MRO
5.2.2 Engine MRO
5.2.3 Other MRO Types
5.3 Geography
5.3.1 Malaysia
5.3.2 Indonesia
5.3.3 Singapore
5.3.4 Thailand
5.3.5 Rest of South East Asia
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Singapore Technologies Engineering Ltd
6.1.2 AAR Corp.
6.1.3 MTU Maintenance (MTU Aero Engines AG)
6.1.4 StandardAero
6.1.5 Garuda Indonesia (GMF AeroAsia)
6.1.6 Guangzhou Aircraft Maintenance Engineering Co. Ltd (GAMECO)
6.1.7 General Dynamics Corporation (Jet Aviation)
6.1.8 Safran SA
6.1.9 Rolls Royce PLC
6.1.10 ExecuJet MRO Services
6.1.11 AVIA SOLUTIONS GROUP PLC
6.1.12 Textron Inc.
6.1.13 Lufthansa Technik AG
6.1.14 Sepang Aircraft Engineering Sdn Bhd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
MRO in Southeast Asia Industry Segmentation
Aircraft Maintenance, Repair, and Overhaul (commonly abbreviated as MRO) refers to overhaul, inspection, repair, or modification of an aircraft or any parts and components. The study includes the revenues sourced from the MRO activities of military, commercial, and general aviation aircraft fleets opting to undergo MRO operations in Southeast Asia.
The South East Asia aircraft MRO market is segmented by application, type, and geography. By application, the market is segmented into commercial aviation, military aviation, and general aviation. By MRO type, the market is segmented into airframe MRO, engine MRO, and other MRO Types. The other MRO types include line, modification, and component maintenance. The report also covers the market sizes and forecasts for the market in major countries across the region. For each segment, the market size is provided in terms of value (USD).
| Application | |
| Commercial Aviation | |
| Military Aviation | |
| General Aviation |
| MRO Type | |
| Airframe MRO | |
| Engine MRO | |
| Other MRO Types |
| Geography | |
| Malaysia | |
| Indonesia | |
| Singapore | |
| Thailand | |
| Rest of South East Asia |
MRO in Southeast Asia Market Research FAQs
How big is the Southeast Asia Aircraft MRO Market?
The Southeast Asia Aircraft MRO Market size is expected to reach USD 5.34 billion in 2024 and grow at a CAGR of 5.94% to reach USD 7.12 billion by 2029.
What is the current Southeast Asia Aircraft MRO Market size?
In 2024, the Southeast Asia Aircraft MRO Market size is expected to reach USD 5.34 billion.
Who are the key players in Southeast Asia Aircraft MRO Market?
Safran SA, GMF AeroAsia, Singapore Technologies Engineering Ltd, StandardAero and Sepang Aircraft Engineering Sdn Bhd are the major companies operating in the Southeast Asia Aircraft MRO Market.
What years does this Southeast Asia Aircraft MRO Market cover, and what was the market size in 2023?
In 2023, the Southeast Asia Aircraft MRO Market size was estimated at USD 5.02 billion. The report covers the Southeast Asia Aircraft MRO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Southeast Asia Aircraft MRO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
MRO in Asia Industry Report
Statistics for the 2024 MRO in Asia market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. MRO in Asia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
MRO Market in Asia Report Snapshots
