Asia Pacific Aircraft MRO Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Component (Engine MRO, Avionics MRO, Airframe MRO, Cabin MRO, Landing Gear MRO, and Others), Aircraft Type (Fixed Wing Aircraft and Rotary Wing Aircraft), and End-User (Commercial and Military)
The APAC aircraft MRO market is expected to grow from US$ 15.61 billion in 2021 to US$ 23.07 billion by 2028; it is estimated to grow at a CAGR of 5.7% from 2021 to 2028. Rising adoption of blockchain technology escalates the market growth. The MRO services in aviation industry play an irreplaceable role in assuring durability, safety, and profitability of commercial and military airlines. To maintain their market position in the future, businesses should adopt flexibility toward adapting new and trending technologies, which would help digitalize their business processes, thereby ruling out the dependency on humans. Advanced technologies such as blockchain improve processes in MRO organizations. The technology has a massive potential in the MRO space. The adoption of blockchain technology has been low so far; however, soon, this technology would contribute a considerable share to the overall growth of the APAC aircraft MRO market. With the help of the blockchain technology, companies can record the configuration details of MRO components. This also makes the documentation process across component manufacturers and MRO service providers effortless. Additionally, the deployment of this technology also enables MRO service providers to offer verifiable documentation about the parts they have installed, thereby maintaining transparency in their operations. The aviation industry players such as aircraft manufacturers, aircraft MRO service providers, and aviation technology developers are highly emphasizing on adopting the blockchain technology with an objective to track their MRO processes. This factor is posing a prominent future of APAC aircraft MRO market and anticipated to stimulate the APAC aircraft MRO market in the coming years.
Countries in APAC, especially India, are highly affected due to the COVID-19 outbreak. Also, Japan and Southeast Asian countries are combating against the outbreak, which is a critical factor restraining the growth of the APAC aircraft MRO market. The aircraft maintenance service providers are observing noteworthy downfall in respective businesses, which is directly attributed to the lesser demand for the same among various end users, including airline operators. The outbreak has substantially disrupted the aircraft MRO services in the region, which had a negative impact on the market. The recovery period is expected to be faster than other regions, as several countries are anticipated to gain new airports in the coming years and governments of various countries, including China, are taking various initiatives to reduce the losses from the aviation industry. Several airlines in the region have retired their wide-body jets and narrow-body jets, which were prime customers of aftermarket products and services. This factor is anticipated to inhibit the aircraft MRO market for the next few months. For instance, Qantas retired its Boeing B747 in mid-2020 to cope with the COVID-19 pandemic's financial pressure. Similarly, Singapore Airlines sent a few of the Airbus A380 fleet for long-term storage for a similar reason. Thus, the retirement and long-term storage of wide-body jets is creating tremors in the aircraft MRO market.
Based on end-user, the commercial segment led the APAC aircraft MRO market in 2020. The commercial aviation industry consists of airline companies that offer transportation services for passengers and cargo. Growing air travel and cargo is propelling the demand for new aircraft in the commercial aviation industry. Aircraft manufacturers are focusing on investing in their manufacturing facilities to meet the increasing demand for new aircraft and clear the backlogs. The increasing fleet size across the commercial aviation industry is expected to drive the demand for maintenance and repair services, which would further support the growth of the APAC aircraft MRO market during the forecast period. The commercial aviation sector companies undertake significant initiatives to maintain their aircraft fleet owing to the demand for fuel efficiency and passenger and aircraft safety. Pertaining to this, the number of individual MRO service providers is at a constant rise, and the revenues generated by these MRO service providers are also upsurging. The continuous growth in the number of low-cost carriers is creating lucrative business opportunities for the MRO service providers to offer new customers through attractive service portfolio. Additionally, several commercial airlines are expanding their business lines from aircraft operations to aircraft maintenance. This is also a prominent catalyzer to the APAC aircraft MRO market. Growth in commercial aviation industry is expected to increase the demand for aircrafts, which would further drive the APAC aircraft MRO market growth in coming years.
The overall APAC aircraft MRO market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC aircraft MRO market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the APAC aircraft MRO market. AAR; Barnes Group Inc.; Collins Aerospace; Delta TechOps; FLTechnics, UAB.; GE Aviation; Lufthansa Technik; Rolls-Royce plc.; and Singapore Technologies Engineering Ltd are among the players operating in the market.
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