The commercial aircraft maintenance, repair and overhaul (MRO) market is estimated to register a CAGR of 4.35 percent during the forecast period, 2019-2024, according to a report released by Research and Markets.
With the growing air traffic, carriers are more inclined toward maintaining the health of their current fleet, going for new aircraft only if they have no other option, since the cost of buying a new aircraft is considerably higher than the cost for the maintenance of the current fleet. Different airports have introduced improvement processes to enhance efficiency, and several are using new technological systems to gain additional upgrades and prepare for the bigger data requirements of next-generation aircraft, and this shall lead to the growth of the market in the near future.
Asia Pacific is expected to see the highest growth in the MRO market. At present, Asia Pacific is generating the highest revenue in the commercial aircraft MRO market, with Singapore dominating the market in the region. In the recent years, several other Asian countries have also increased their investment in MRO facilities. The market for aircraft maintenance is also changing, as companies in countries like Indonesia and Thailand are also entering the market to challenge the dominance of established Singaporean players.
Government policy also plays a key role, and the Singaporean government has been very forward-looking in supporting the aerospace industry. With the growing frequency of flights to and from the Asian countries, the demand for MRO centres is expected to rise in this region in the coming years. Moreover, due to the huge potential of the Asia-Pacific aviation market, several global players are establishing new centres in the region to cater to the growing demand.
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