According to the latest research report titled "Aircraft Engine MRO Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to grow from US$ 22.15 billion in 2021 to reach US$ 32.04 billion by 2028; it is estimated to grow at a CAGR of 5.7% from 2022 to 2028.

The Increasing Demand for Fuel-Efficient Aircraft to Drive the Market Growth

The rising cost of oil has made it crucial for airlines to use fuel-efficient aircraft, as they can significantly reduce their fuel consumption and associated costs. Furthermore, by consuming less fuel, these aircraft can minimize CO2 emissions, which is an important environmental concern. In response to this, aircraft manufacturers such as Airbus and Boeing are increasingly developing and promoting fuel-efficient aircraft, while also working to retire older, less fuel-efficient models. According to Airbus, there will be a growing demand for more than 39,000 new commercial and freighter aircraft over the next few years, with most of the passenger aircraft being technologically advanced and environmentally friendly. This shift towards more fuel-efficient aircraft is expected to drive the growth of the aircraft engine MRO market, as more advanced engines will require more maintenance and repair services. Furthermore, industry organizations like the International Air Transport Association (IATA) are also taking steps to reduce carbon emissions, such as by optimizing flight routes, which will further increase the demand for aircraft engine MRO services.

The aircraft engine MRO market in North America is being driven by two key factors: the early adoption of new technologies in developed countries like the US and Canada, and a strong focus on the aerospace and defense sector. Meanwhile, in the Asia Pacific region, which includes countries like China, India, Japan, Australia, and others, there is a high demand for commercial and military aircraft, leading to a surge in aircraft manufacturing and MRO services. This region is expected to experience the highest growth during the forecast period, fueled by the growth of the commercial and general aviation sectors. Additionally, well-established aircraft manufacturers in countries like China, India, and Japan, including Glasair Aviation, Aircraft Corporation of China, Ltd., Hindustan Aeronautics Limited, and Honda Aircraft Company, are playing a significant role in driving the growth of the aircraft engine MRO market.

The COVID-19 pandemic has caused a reduction in demand for aircraft engine MRO due to a decline in commercial and general aviation deliveries. The European aerospace sector has been severely impacted by this crisis, with airspace inefficiencies, activity delays, and a reduction in flights. The global passenger volume and infrastructure costs have also significantly declined, leading to a decline in the airlines' market and hindering the business of aircraft engine MRO providers. However, the European aviation market is expected to recover in the coming years, with Airbus predicting a faster recovery of the aviation industry and aircraft manufacturing. The retirement of about 2,000 aircraft older than 20 years, which remained grounded for months, could hinder the aircraft engine MRO market. Despite these challenges, the aircraft engine MRO market is expected to recover and grow during the forecast period as the aircraft fleet resumes operation. Overall, the study's key findings suggest that the European aircraft engine MRO market will surpass its pre-COVID levels during the forecast period.

The aircraft engine MRO market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with Asia Pacific holding a significant market share. Substantial military expenditure, defense R&D investments, and favorable government initiatives fuel the growth of the defense sector across emerging nations in the region. According to Boeing, the area is projected to receive approximately 17,390 deliveries between 2019 and 2038, with the total fleet expected to increase to around 19,420 aircraft by 2038. In 2020, China, Japan, India, South Korea, and Australia were among the most significant military spending countries in the Asia Pacific, with military expenditures of US$ 252 billion, US$ 55 billion, US$ 65.86 billion, US$ 44 billion, and US$ 27 billion, respectively. This is driving the growth of the aircraft engine MRO market as these countries engage in signing contracts with major military aircraft manufacturers to increase their military aircraft capability.  

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