New York, Oct. 04, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Aircraft Engine MRO Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06325600/?utm_source=GNW
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 gradual recovery, which has led to an increase in 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 growth of the aircraft engine MRO market during the forecast period.
The aging military aircraft fleet in some countries may generate significant demand, as some of these countries 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 further increase the aircraft engine MRO demand. The new engines will have more expensive material requirements than the older generation 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 growth of the market in the coming years.
Key Market Trends
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, and under the contract, the company will provide engine maintenance, component requirements, repair, technical and training services, and will set up a new Aviation training center as a joint venture between Vietjet and SR Technics.
Similarly, the MRO service providers are also 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) for the overhaul of 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. It is due to these partnerships that the commercial segment of the market is expected to lead the market with 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. Also, to reduce overseas maintenance costs, several airlines have partnered with engine MRO service providers 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 the contract amount of about 2.61 billion yuan (about USD 378.2 million).
Manufacturer investments in the region are also driving high revenues and consequenlty 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 across the world.
In July 2022, Safran, also announced that it will invest up to USD 200 Million to set up its biggest MRO facility in Hyderabad, India. The facility will 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 potential increase in passenger influx, the market is expected to witness significant growth rates in the Asia Pacific region during the forecast period.
Competitive Landscape
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 has signed a five-year agreement with Safran Aircraft Engines, a world-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 will 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.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06325600/?utm_source=GNW
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