Aircraft MRO stands for maintenance, repair, and overhaul. This connotation covers the aftermarket expenditure incurred within the aviation industry. Services ranging from retrofitting, component replacement, and maintenance activities related to the design of aircraft are a part of this market. The expanding aftermarket trends for the aviation sector are one of the key factors that drive the MRO segment. The increasing emphasis on safety protocols to be followed during the flight is expected to be one of the key parameters that drive the growth dynamics for the MRO vertical.
One of the key factors that drive the growth associated with the Global MRO market is the expansion of the commercial aviation sector. As of 2018, the global commercial aviation market was valued at USD 191 Billion. The market is presently expected to grow with a CAGR of 3% during the forecast period 2020-2030. The growth in passenger demand across the commercial aviation domain is another key driver for this market. The annual passenger demand exceeded a value of 4.3 Billion towards the end of the year 2018.
As of 2019, the propensity to travel via air for a passenger was noted to be once in 21 months. This value has rapidly increased in the past decade owing to the rising disposable income of the population. The increasing purchasing power of the middle-class population is another factor that contributes to the growth of the commercial aviation domain. As the market for commercial aviation expands, the opportunities for the MRO sector also increase since it stands to gain more business.
To study the overall market for MRO, the vertical has been segmented by Type and by Region. The regional competitive landscape provides a purview of the market within North America, Europe, APAC, the Middle East, and the RoW. The Type segment includes Electrical MRO, Facility MRO, as well as Industrial MRO. The MRO segment can be further bifurcated based on the system into Hardware and Software. The software segment is poised to gain momentum owing to the inclusion of automation-based technologies, growing digitalization, as well as upgrade of legacy Management Integration Systems.
In terms of hardware, one of the key technological advances which are poised to support the MRO market is 3D Printing. The technology is used for the production of aircraft components via the use of metal and non-metallic compounds. Large Scale Additive Manufacturing is another technology that has gained rampant momentum within the OEM and aftermarket verticals for the aviation domain. This technology is used for the mass fabrication of aircraft components.
In terms of the Systemic segment of the MRO vertical, the software market is expected to be the fastest-growing vertical owing to an increased investment within this domain. The integration of ICT-based technologies like IoT and Artificial Intelligence is anticipated to steadfast the growth associated with this market. The adoption of wearables and robotics is another derivative of IoT within the MRO vertical. The use of technologies to monitor the present structural frame of an aircraft is expected to drive efficiency and safety within the MRO segment.