Expanding Air Travel Fleet with Growing Passenger to Boost Air Transport MRO Market
The aviation industry and businesses at its periphery are experiencing robust growth with the expansion of global population. Affordable air travel and rising disposable income of middle class is pushing the passenger travel at record level. This has influenced the demand for new fleet of aircrafts from airliners which in turn encouraged the growth of air transport MRO market. Moreover, new initiatives such as visa on arrival and open-sky agreement among countries like the U.S. and India, has further influenced the passenger travel among countries of the world. With increasing passenger number, the demand for new planes is also growing which has influenced the growth of air transport MRO market in the year 2021.
In the next decade, over 200 Mn more people are expected to move into middle class category. It will upswing aviation industry and air transport MRO market to show good growth is unquestionable. Additionally, market liberalization, improvement in service quality and competition among players will further influence the market growth. However, lack of skilled technicians and higher maintenance cost is expected to hinder the growth of the market during the forecast period of 2023 to 2030.
Emergence of e-commerce to Increase Cargo Share in End-user Segment
Based on end-user, passenger segment captured over 85% of market share in the year 2020. However, with the emergence of e-commerce, the percentage of cargo segment is estimated to increase in the near future. E-commerce giant Amazon has recently announced 15 more cargo planes with capacity of 79 ton each. With this addition, Amazon has a fleet of 65 cargo planes. With e-commerce market growing stupendously in the Asia Pacific, the cargo segment is expected to increase its share in the near future.
Asia Pacific is estimated to register the highest Market Share
Currently, Asia Pacific is trailing behind North America and Europe. However, with growing middle class population, aviation market is expected to grow in coming decade which in turn will influence the air transport MRO market in region. With the economic development of Asia Pacific, in particular China and India, are the major countries where middle class population is exploding. This large population with its growing inclination towards air travel is estimated to drive the market growth during the forecast period. In addition, lower labor rate and rapid development of infrastructure in China and India is expected to further boost the air transport MRO market. Recently, China announced its plan to add 74 new airports, totaling 260 airports nationally by 2020. Also, China’s neighbor and fastest growing economy of the world, India also has plan to add 100 more airports by 2024. With such major developments, the air transport MRO market is estimated to show good growth in Asia Pacific.
New Technological Development is keeping the Market Competitive
Major players profiled in the air transport MRO market include AAR Corp., Air France Industries KLM Engineering & Maintenance, Hong Kong Aircraft Engineering Company Limited, Delta TechOps, Lufthansa Technik, Airbus S.A.S., Singapore Technologies Engineering Ltd., Turkish Technic Inc., Sabena Technics and SR Technics among others.
The overall air transport MRO market is fragmented and companies are adopting strategies such as partnering with airlines and use of technology to improve its efficiency and thereby its market share. For instance, in October 2021, Airinmar Ltd., a subsidiary of AAR Corp. has signed a 3 year agreement with JetBlue Airways for providing component value engineering cost oversight servicing for its AirBus and Embraer fleets. With this agreement AAR Corp. has increased its client base and share in the overall air transport MRO market. Also, in October 2021, AirBus S.A.S. has partnered with Delta Air Lines, Inc. for developing predictive maintenance and health monitoring solutions for airlines worldwide by 2020. This can be accessible through AirBus Skywise platform. With predictive intelligence airlines can keep higher number of fleet availability. With this partnership, company is expecting to increase its share in global air transport MRO market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Air Transport MRO market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Aircraft
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Offering
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End-user
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
