Aircraft Maintenance & Repair
Companies in this industry provide aircraft maintenance and repair, as well as inspection and testing services. Major companies include AAR (based in the US), Hong Kong Aircraft Engineering Company, Lufthansa Technik (Germany), SR Technics (Switzerland), and ST Engineering Aerospace (Singapore).
Global revenue for commercial aviation maintenance, repair, and overhaul (MRO) services is forecast to be over $55 billion by 2031, according to Statista. Economic expansion in emerging markets in Southeast Asia is expected to drive industry growth. Countries in the Middle East and Africa are also being targeted for industry expansion.
The US aircraft maintenance and repair industry includes about 3,900 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $17 billion.
Competitive Landscape
Demand for maintenance and repair services is driven by air transportation activity and the size and age of aircraft fleets. The profitability of individual companies depends on efficient operations. Large companies have an advantage in their ability to serve major customers and enjoy economies of scale in parts purchasing. Small companies can compete effectively by serving local markets and smaller customers. The US industry is concentrated: the 50 largest firms generate about 65% of industry revenue.
Dedicated third-party providers of aircraft maintenance, repair, and overhaul (MRO) services compete against original equipment manufacturers (OEMs) and airlines. Engine makers and other equipment manufacturers often generate a significant percentage of their revenues from MRO services, and airlines typically handle some portion of their own MRO requirements. Some MRO companies began as in-house airline departments and later evolved into third-party providers.
Products, Operations & Technology
Primary segments of the aircraft maintenance, repair, and overhaul (MRO) market include engine overhaul, airframe maintenance, line maintenance, modifications,
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