Aircraft Engine MRO Market Research Report and Outlook by 2028

The Aircraft Engine Maintenance, Repair, and Overhaul (MRO) market is projected to reach a valuation of US$ 32.04 million by 2028, up from US$ 22.15 million in 2021, reflecting a compound annual growth rate (CAGR) of 5.7% from 2022 to 2028.

Aircraft engine MRO service providers deliver a variety of essential services, including the routine upkeep of aircraft engines. While some companies specialize in the production of a limited number of engine types, others provide a broader selection of engines tailored for diverse applications. The retirement of older aircraft significantly influences the aircraft engine MRO market, as all engines necessitate regular maintenance and thorough inspections before flights.

The demand for narrow-body aircraft has surged, particularly following the recertification of the Boeing 737 MAX for commercial operations by the European Union Aviation Safety Agency and the Federal Aviation Administration in 2021. In that year, narrow-body aircraft represented a substantial portion of the global aircraft engine MRO market, with over 14,000 of the more than 23,700 aircraft in service being narrow-body models.

The ecosystem of the aircraft engine MRO market is in a state of constant evolution, with leading companies positioned at the forefront. Engine manufacturers and MRO service providers collaborate to deliver maintenance, repair, and overhaul services to commercial airlines, military organizations, and general aviation operators.

Key players in the aircraft engine MRO market include prominent manufacturers such as Delta Airlines, Inc., GE Aviation, CFM International, Lufthansa Technik, MTU Aero Engines AG, SIA Engineering Company, Sigma Aerospace, Safran S.A., Raytheon Technologies Corporation, and Rolls-Royce PLC. These firms provide a wide array of MRO services to various end-users, encompassing commercial airlines, military entities, general aviation operators, and other stakeholders.

In February 2022, Safran Helicopter Engines announced a memorandum of understanding (MoU) with Engineering to explore the integration of Sustainable Aviation Fuel (SAF) in helicopter engines, aiming to support operators in their transition to SAF.

Additionally, in March 2022, Safran entered into another MoU with Hindustan Aeronautics Limited (HAL) to enhance their partnership and investigate new opportunities for helicopter engines in both military and civilian sectors. This initiative underscores their dedication to the Indian Government's "Atmanirbhar Bharat" initiative, which seeks to promote self-reliance in defense technologies and MRO.

The aircraft engine MRO market is categorized based on engine type, application, and aircraft classification. The engine segment is divided into turbine engines and piston engines, with turbine engines dominating the market share in 2020. The application segment includes commercial aviation, general aviation, and military aviation, with the commercial aviation sector holding the largest share in the global aircraft engine MRO market in 2020. Furthermore, the market is segmented by aircraft type into fixed-wing and rotary-wing aircraft, with fixed-wing aircraft engines commanding a larger share in 2020.

Geographically, the market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with Asia Pacific capturing a significant market share in 2020. Major players in the aircraft engine MRO market include Delta Airlines, Inc., GE Aviation, CFM International, Lufthansa Technik, MTU Aero Engines AG, SIA Engineering Company, Sigma Aerospace, Safran S.A., Raytheon Technologies Corporation, and Rolls-Royce PLC.

The global COVID-19 pandemic severely impacted economies worldwide, leading to significant disruptions in various sectors, including aviation. The demand for MRO services plummeted in the MEA region due to the pandemic's effects, resulting in grounded flights and a consequent loss of business for MRO service providers catering to airlines in that area. The International Air Transport Association reported a decline in airline revenues due to the temporary halt of flights. Saudi Arabia experienced the most significant downturn in the MEA aviation market, followed by the UAE, with over 16,000 cancellations of general aviation aircraft in 2020. The reduced flight operations during the pandemic stunted market growth in that year.

The emergence of the Omicron variant of COVID-19 in South Africa raised global concerns due to its rapid spread, leading to border closures and flight suspensions from African nations, further affecting the aircraft engine MRO market in the region. Nevertheless, projections for 2022 indicate that the MEA region will see a substantial influx of new aircraft, with even more deliveries anticipated by 2031. Despite a limited number of MRO providers in the area, international MRO companies are expanding their operations to capture a larger market share, which is expected to stimulate growth in the aircraft engine MRO market in the MEA during the forecast period.

In 2021, Rolls-Royce and MNG Airlines entered into a Total Care agreement for the Trent 700 engines, which power two new Airbus A330-300 P2F freighter aircraft.

Furthermore, in 2021, flynas, the budget airline of Saudi Arabia, established a multi-year RPFH contract with CFM International for their fleet of 80 Airbus A320neo aircraft, equipped with LEAP-1A engines.

The assessment of the aircraft engine MRO market was conducted through a combination of primary and secondary research methodologies. Initially, extensive secondary research was performed using both internal and external sources to gather qualitative and quantitative data about the market. This foundational research provided an overview and forecast for all market segments. Subsequently, numerous primary interviews were conducted with key industry figures, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and industry leaders specializing in the aircraft engine MRO sector. These interviews aimed to validate the collected data and provide deeper analytical insights into the market.