Market Highlights
Maintenance, Repair, and Overhaul (MRO) operations are crucial for maintaining the safety and efficiency of aircraft operations. These activities encompass routine inspections, preventive maintenance, troubleshooting, component repair, and major overhauls, all intending to ensure airworthiness and safety standards are upheld. Specialized organizations conduct these services, playing an essential role in maintaining the requisite safety standards for aircraft operations.
The COVID-19 pandemic's sudden onset had a profound impact on the entire aviation industry, affecting both production and services. This disruption led to a significant decrease in air travel demand, resulting in grounded fleets and reduced MRO activities. The industry faced unprecedented challenges as it grappled with navigating through these turbulent times.
Despite its status as a substantial market, the aerospace MRO business was inevitably affected by the repercussions of the COVID-19 pandemic. However, the North American market notably demonstrated resilience, experiencing a robust recovery from the pandemic's effects. By the year 2022, the region's civil aviation business had rebounded significantly, returning to profitability. Furthermore, an incessant shift to air travel and rising geopolitical tensions are likely to give impetus to the demand for MRO activities. Overall, the North American aerospace MRO market is likely to grow at a decent CAGR of 1.6% in the long run to reach US$ 65.3 Billion in 2032.
Recent Market JVs and Acquisitions: A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:
- In February 2024, AAR and Air Canada entered a letter of intent for a ten-year, renewable agreement for airframe maintenance.
- In January 2024, AAR Corp. announced a new multi-year agreement with Ontic, granting AAR distribution rights to supply a strategic selection of military products to the U.S. government, with exclusivity on specified parts.
- In November 2023, the Defense Logistics Agency awarded Pratt & Whitney a US$ 870 million long-term contract to provide comprehensive services to a fleet of almost 1,000 engines powering B-52s and E-3s.
- In November 2023, Triumph Group, Inc. was selected by Honeywell Aerospace to provide the next-generation Electronic Control Unit (ECU) for future Auxiliary Power Unit (APU) models for both commercial and non-commercial aircraft.
Market Segment Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Aircraft-Type Analysis
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Commercial Aircraft, Turboprops, Regional Aircraft, Military Aircraft, and Helicopters
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Military aircraft are expected to be the demand generator for MRO in North America, whereas commercial aircraft are likely to grow at the fastest rate in the coming years.
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MRO-Type Analysis
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Airframe MRO, Engine MRO, Component MRO, and Line MRO
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Engine MRO is anticipated to contribute the largest share of the North American MRO spending.
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Country Analysis
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The USA, Canada, and Mexico
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The USA is expected to maintain its reign over the forecast period, whereas Mexico is likely to grow at the fastest rate.
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Based on the aircraft type, the North American aerospace MRO market is segmented into commercial aircraft, turboprops, regional aircraft, military aircraft, and helicopters. Military aircraft are expected to remain dominant whereas commercial aircraft will be the fastest-growing aircraft type in the market during the forecast period. North America's military aircraft fleet is the world's largest, with 14,096 aircraft across the Army, Navy, and Air Force. In addition to that, governments allocate substantial budgets for defense operations in North America. As a result, there is a consistent demand for maintenance, repair, and overhaul services for military aircraft to ensure operational readiness and safety. The fastest growth for the MRO needs of commercial aircraft is primarily due to the expanding commercial aircraft fleet, increasing domestic and international air travel demand, growing aging aircraft fleet size, and investment in new aircraft.
Based on the MRO type, the market is segmented into airframe MRO, engine MRO, component MRO, and line MRO. Engine MRO is expected to remain the dominant and fastest-growing MRO type in the market during the forecast period. The demand for engine MRO is propelled during the forecast period by the concurrent development of new engine technologies, fleet expansion initiatives, and the implementation of stringent safety regulations. In addition to that, it is projected that the North American engine fleet will increase from 19,300 active engines in 2023 to 22,200 active engines in 2032. This will further strengthen the demand for engine MRO during the forecast period.
In terms of countries, the USA is expected to remain the largest market for North American aerospace MRO during the forecast period. The USA's dominant position in the aviation industry is significantly bolstered by several key factors, including its expansive fleet size, robust aviation infrastructure, extensive network of airports, well-established maintenance facilities, and highly efficient logistics infrastructure. In addition to that, the presence of a huge number of MRO providers and airlines in the country is expected to fuel the market during the forecast period. Mexico, particularly driven by Growing investment projects by multinational aerospace companies, is expected to grow at the fastest rate during the forecast period.
Key Players
The market is highly fragmented with the presence of over 500 players across the region. Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc. The following are the key players in the North American aerospace MRO market. Some of the major players are providing a complete range of services including engine and airframe.
- AAR Corp.
- Ametek MRO
- Airbus
- Aviation Technical Services, Inc.
- The Boeing Company
- Delta TechOps (Delta Air Lines, Inc.)
- General Electric Company (GE)
- Honeywell Aerospace
- RTX Corporation
- Safran Group
Research Methodology
This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s North American aerospace MRO market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The North American aerospace MRO market is segmented into the following categories.
North American Aerospace MRO Market, by Aircraft Type
- Commercial Aircraft
- Turboprops
- Regional Aircraft
- Military Aircraft
- Helicopters
North American Aerospace MRO Market, by MRO Type
- Airframe MRO
- Engine MRO
- Component MRO (Power Generation, Hydraulic, Safety, and Others)
- Line MRO
North American Aerospace MRO Market, by Country
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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