North America and Western Europe are the world’s most mature and established MRO segments, home to a large volume of airline fleets with a high concentration of technical expertise to support them.
Data from Aviation Week’s 2019 MRO Fleet & Forecast suggests that the traditional order won’t change too much over the next 10 years, however it will be Western Europe set to generate the highest level of demand.
From 2019 to 2028, Western Europe will generate an estimated MRO demand of $189.1 billion, the most of any global region, despite a relatively moderate growth rate over a 10-year period of 1.7%.
Second place North America, the world’s largest MRO region valued at $18.4 billion in 2019 and home to its largest fleet (9,371 aircraft, will produce a slightly smaller spend of $187.6 billion and see its MRO growth rate decline over the decade to the tune of -0.3%.
Despite the world’s top two mature regions being home to the most MRO spend, the emerging growth regions will nevertheless continue to expand at impressive rates.
Asia-Pacific, which has become a hotbed of western companies forming engine repair joint ventures in locations such as Singapore, will see a surge of $164.5 billion over the next 10 years making it the world’s third largest region.
Neighbouring China, a country with ambitions to grow many of its industry segments including ambitious plans to be the world’s largest aviation lessor over the next 20 years, will see a sharp upturn in its MRO demand. This year, Aviation Week measures its annual spend of$6.9 billion to nearly double to $11.4 billion by 2028.
Another emerging player India, home to the largest aircraft fleet growth rate of any region in the world at a projected 10.38% CAGR from now until 2028, will see aftermarket demand of $23.8 billion over the next decade. According to Aviation Week data, approximately 37% of spend in India will be centered on engine maintenance across a 90%-10% split between turbofans and turboprops respectively.
An in-depth look at the latest Aviation Week Fleet & MRO Forecast data will be featured in the upcoming Engine Yearbook.