Digital MRO Market Predictions: USD 2,856.2 Million by 2032
Global Digital MRO Market Outlook
The global digital MRO market is growing at a rapid rate due to the rising investments in connected aircraft and the adoption of advanced technologies by MRO service providers. Additionally, the growth in outsourcing of MRO services is also expected to drive the market's growth. However, inconsistency & replacement of traditional data connection and high costs Of MRO software suites are expected to hamper the growth of the market during the forecast period
Market Highlights
The global Digital MRO market is accounted for to register a CAGR of 12.1% during the forecast period and is estimated to reach USD 2,856.20 million by 2032.
Reducing operational turnaround times and aircraft-on-ground time through predictive maintenance is a key priority for airlines. In July 2018, a research paper published by the London School of Economics and Political Science in association with Inmarsat (UK) concluded that connected aircraft, driven by satellite communications, have the potential to save airlines USD 15 billion annually in operation costs and reduce CO2 emissions by 21.3 million tonnes by 2035. The study also stated that spending by airlines on maintenance, repair, and operations is expected to increase to USD 90 billion by 2024. Connected aircraft utilize real-time data to create live data records.
aircraft MRO providers have been using new technologies such as 3D printing to manufacture complex aircraft parts. Additive manufacturing or 3D printing is a developing technology that assists users in creating and designing innovative objects, surpassing conventional methods such as computerized numerical control (CNC) cutting, canvas printing, or mold manufacturing. Companies are using 3D printed parts as they are economical and allow quick design and rapid changes of internal features in engine and components, which is not possible in conventional manufacturing methods. This has helped reduce the size and weight of the entire aircraft while increasing customization and overall maintenance efficiency. Thus, 3D printed aircraft parts would reduce the overall MRO costs and act as substitutes for conventionally manufactured aircraft parts. Key companies, such as Honeywell International Inc. and Airbus SAS, are implementing 3D printed components for aircraft MRO services.
With the increase in MRO outsourcing due to the growing awareness of the benefits such as low labor rates and the availability of adequate spare parts. For instance, in March 2023, Emirates and Lufthansa Technik signed two significant contracts for Maintenance, Repair, and Overhaul (MRO) services. Lufthansa Technik will overhaul main landing gears for Emirates' Airbus A380 aircraft over the next 13 years. The outsourcing of inventory and infrastructure required to carry out maintenance reduces the overall cost for the MRO service providers. Digital MRO helps in efficiently managing this outsourcing of aircraft MRO and reduces the overall cost of maintenance. These factors expected to drive the growth of the global digital MRO market during the forecast period.
Segment Analysis
The global Digital MRO market outlook has been segmented based on Component, Deployment Model, Organization Size, and Vertical.
Based on Technology, the global Digital MRO market segmentation includes Predictive Analysis, AR/VR, 3d Printing, Blockchain, Internet Of Things (IoT), Artificial Intelligence, Data Analytics, Robotics and Digital Twin. The Predictive Analysis segment held the majority share in 2022, contributing around ~25.6% to the market revenue. The aviation MRO industry is experiencing the shrinking of traditional IT. Many players move from custom legacy software to a modern, new generation of MRO applications, which help move to digital. The usage of big data helps in creating dashboards to analyze inventory and the need for maintenance. For instance, HCL (India) has created an application built on the SAP Cloud platform that supports the maintenance of engines by integrating IoT devices to address specific technical problems related to engine maintenance and repair operations. Its aircraft predictive analytics measures key parameters such as temperature, pressure, physical fan speed, and bypass ratio to predict the remaining usable life of an aircraft engine and therefore plan maintenance accordingly. The availability of offerings such as Skywise Health Monitoring by Airbus, Prognos by Air France Industries KLM Engineering & Maintenance and FlightSense and Ascentia by Collins Aerospace for predictive analysis is anticipated to drive the growth of this segment.
Based on Application, the global Digital MRO market segmentation includes Predictive Maintenance, Inspection, Performance Monitoring, Part Replacement and Mobility & Functionality. The Predictive Maintenance segment held the majority share in 2022 contributing around ~28.5% to the market revenue. Predictive maintenance is first to predict when a component failure might occur, and secondly, to prevent the occurrence of the failure by performing maintenance. The rising use of big data analytics tools to make maintenance processes more efficient and significantly reduce operating costs drives this segment's growth. Due to rising number of collaborative development activities and the increasing number of airlines expected to adopt predictive maintenance are anticipated to drive the growth of this segment in the global market.
Based on the End User, the global Digital MRO market segmentation includes Airlines, MRO Providers and OEMS. By End User, Airline segment hold the majority market share in 2022 contributing 44.5% of the market share. Maintenance, repair, and overhaul (MRO) in aviation is the repair, service, or inspection of an aircraft or aircraft component. It is essentially all of the maintenance activities that take place to ensure the safety and airworthiness of all aircraft by international standards. The International Air Transport Association forecasted in 2018 that the number of passengers transported by airlines would reach 8.2 billion in 2037, up from 7.8 billion in 2036. As per statistics from the International Civil Aviation Organization, the aviation industry has seen dramatic growth over the past 20 years, with the passenger numbers rising from 1.4 billion in 1998 to 3.9 billion in 2017. As of 2022, India had 141 operational airports and the number is expected to increase to 220 by 2024-25. Further, the sector operates a fleet of around 700 aircraft, which is expected to increase to around 1,000 in the coming years. The growing number of air passengers and an increasing number of airports are anticipated to grow this segment.
Regional Analysis
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 34.7% in the Digital MRO market in 2022 and is expected to maintain its dominance during the forecast period. North America is the largest market for Digital MRO. Owing to the increasing aircraft deliveries in the region. Several large and medium MROs and airlines are present in this region. Additionally, an increase in the MRO service providers and growing need for digital transformation of MROs are expected to drive the demand for digital MRO in North America. Furthermore, the regional market growth is driven by increasing aircraft from the players based in the US and Canada. It is expected that approximately 10,000 aircraft would be in service in the region by 2035, which is expected to create additional opportunities for the players operating in the North America digital MRO market. Furthermore, the US air passenger traffic is expected to increase by 484 million passengers and reach over 1 billion passengers over the next 20 years, which is estimated to drive the growth of the digital MRO market in the US.
In Europe, regional market growth is primarily driven by the UK, Germany, France, and Italy. The rapid technological advancements in MROs and the increasing adoption of digital predictive analysis solutions by regional airlines propel the digital MRO market's growth in the region. Furthermore, initiatives are being taken by the regional government agencies to aid research activities and rise in collaborative strategies in the region, propelling regional growth. Moreover, increases in aircraft in the region created a huge demand for digital MRO. For instance, in 2017, there were approximately 5,000 aircraft in the region; the number is expected to reach over 8,000 fleets by 2035. According to the UK Civil Aviation Authority (CAA), UK airports handled 221.8 million roundtrip passengers in 2022. The availability of sophisticated technology is expected to attract investments in the market.
Asia-Pacific is gaining prominence in the global aviation industry and is projected to become the world’s leading market for air travel. Emerging economies such as India, China, and Japan is present in this region. Moreover, the presence of key players such as HCL Technologies and Ramco Systems Limited and increasing inorganic growth by these players are propelling the regional market's growth. For instance, HCL Technologies announced that it signed a global reseller agreement with NYSE listed software giant SAP SE. As per the agreement, SAP will resell the HCL maintenance, repair, and overhaul (MRO) solution under the brand name SAP Enterprise Asset Management.
The Middle East is forecast to see a total demand of 6,828 engine overhauls and 5,456 C checks shop visits for the period of 2023-32, according to Aviation Week Network. The presence of large corporations in the region such as Etihad Airways Engineering, Lufthansa Technik Middle East, and Executed MRO Services is expected to increase the need for digital MRO services. The Middle East & Africa is projected to witness noticeable growth over the forecast duration, primarily because of increasing air traffic resulting in a rise in the number of aircraft deliveries and burgeoning military spending. According to Airbus, commercial air traffic in the Middle East is anticipated to grow by 6%, while in Africa, it is projected to increase by 5.6%. Rising air traffic is expected to bolster the demand for new aircraft, which, in turn, is likely to supplement the digital MRO market.
MRFR recognizes the following companies as the key players in the global Digital MRO market - Boeing Company, IBM Corporation, HCL Technologies Limited, SAP Se, Ramco Systems Limited, Oracle, IFS AB, Traxxall Technologies, General Electric Company, Honeywell International, Inc., Swiss Aviation software Ltd., Ansys, Inc., Winair, Microsoft Corporation, Capgemini, IBS Software, Lufthansa Group, Rusada, Raytheon Technologies, Dassault Systèmes, Airbus SAS, and Others.
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