Global Aviation MRO Logistics Markets, 2020-2022 & 2026 - Emphasis on Condition-based Maintenance Improves Prospects for MRO Logistics Market

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Jun 29, 2022, 12:00 ET

DUBLIN, June 29, 2022 /PRNewswire/ -- The "Aviation MRO Logistics - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Aviation MRO Logistics Market to Reach $12.5 Billion by 2026

Amid the COVID-19 crisis, the global market for Aviation MRO Logistics estimated at US$9.8 Billion in the year 2020, is projected to reach a revised size of US$12.5 Billion by 2026, growing at a CAGR of 4.2% over the analysis period.

The Aviation Maintenance, Repair, Overhaul and Logistics (Aviation MRO Logistics) forms an important part of the MRO industry, representing those companies engaged in MRO of aircraft and related systems and components.

The presence of MRO logistics is imperative all through the lifecycle of an aircraft, right from their introduction into service till its final disposal. The main activities of the MRO logistics sector include maintenance, repair or replacement, overhaul and logistics. The maintenance work includes the routine process of keeping the aircraft in airworthy condition. The repair and replacement activities require MRO logistics to continue repairing or replacing the damaged parts or components.

The overhaul activities focus on reconditioning the aircraft systems, which may have deteriorated owing to performance degradation, wearing off or weakening of original strength of parts and components. The aerospace industry is anticipated to remain soft despite attempts to re-open the borders & economy.

Airlines are unlikely to touch the pre-crisis levels in terms of passenger traffic and overall revenues. The spreading of fixed costs to more travelers is likely to reduce unit costs. However, measures to control the virus amid multiple waves of infections are anticipated to impede these gains and affect aircraft utilization rates.

Civil Aviation, one of the segments analyzed in the report, is projected to grow at a 4.5% CAGR to reach US$7.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Military Aviation segment is readjusted to a revised 3.6% CAGR for the next 7-year period. This segment currently accounts for a 29.5% share of the global Aviation MRO Logistics market.

The U.S. Market is Estimated at $1.7 Billion 2021, While China is Forecast to Reach $1.3 Billion by 2026

The Aviation MRO Logistics market in the U.S. is estimated at US$1.7 Billion in the year 2021. The country currently accounts for a 17.81% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$1.3 Billion in the year 2026 trailing a CAGR of 5.9% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.5% and 3.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.5% CAGR while Rest of European market (as defined in the study) will reach US$1.4 Billion by the close of the analysis period.

In the post COVID-19 period, aviation MRO will witness greater use of Blockchain. The use of Blockchain systems will help eliminate the need to maintain a central authority by using a chain of cryptographically protected records. The addition of the technology to existing MRO operations not only adds cost-effectiveness but also improves efficiency of the business processes.

With a number of leading MRO organizations already forming alliances to provide blockchain services, and many more expected to follow their footsteps, the aircraft MRO logistics market stands to benefit in the coming years.

Business Aviation Segment to Reach $1.4 Billion by 2026

In the global Business Aviation segment, USA, Canada, Japan, China and Europe will drive the 3.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$744.9 Million in the year 2020 will reach a projected size of US$949.7 Million by the close of the analysis period.

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

Influencer Market Insights
World Market Trajectories
Impact of Covid-19 and a Looming Global Recession
A Severely Battered Global Aviation Industry Struggles to Revive
An Insight into Aviation MRO Logistics
Operator Bottlenecks and Importance of MRO Logistics Companies
Market Prospects and Outlook
End-Use Segment Analysis
Unprecedented Losses Sustained in the Supply Chain Bodes Well for Integration of Emerging Technologies like Blockchain in MRO to Enhance Resilience & Reliability
Geographic Analysis: North America and Europe Take the Lead
Competitive Scenario
Recent Market Activity
Aviation MRO Logistics - Global Key Competitors Percentage Market Share in 2022 (E)

2. FOCUS ON SELECT PLAYERS (Total 44 Featured)

CMA CGM S.A.
Deutsche Post AG
DSV Panalpina A/S
Expeditors International of Washington, Inc.
FedEx Corporation
Kuehne + Nagel International AG
Nippon Express Co., Ltd.
SEKO Worldwide, LLC
United Parcel Service, Inc.

3. MARKET TRENDS & DRIVERS

MRO & MRO Logistics Markets Strongly Influenced by Trends in Commercial Aviation Activity
Stiff Defense Budgets to Impact Military MRO Logistics Market
Escalating Maintenance Costs Offer Critical Pivot to Technology Trends Linked with MRO Logistics
Intriguing Benefits Make Blockchain to Carve Space in Aviation MRO Domain
Aviation Players Embrace Strategies to Ensure Well-Oiled Supply Chain
Image of MRO as OPEX Reducing Strategy Stresses the Relevance of MRO Logistics
Importance of MRO Services for Aging Aircraft Fleet: Major Driver
Emphasis on Condition-based Maintenance Improves Prospects for MRO Logistics Market
Unique Requirements of Engine MRO Extend Opportunities
Increased Relevance of Avionics MRO Augurs Well
Critical Importance of MRO in Aircraft Safety Reinforces MRO Logistics Market
Dynamic Aviation Landscape Throws Various Challenges for MRO Supply Chain

4. GLOBAL MARKET PERSPECTIVE

III. REGIONAL MARKET ANALYSIS

IV. COMPETITION

For more information about this report visit https://www.researchandmarkets.com/r/uuk5d5

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SOURCE Research and Markets