SINGAPORE TECHNOLOGIES ENGINEERING LTD., LUFTHANSA TECHNIK, AAR CORP. - PROMINENT MARKET PARTICIPANTS IN AIRCRAFT MRO MARKET

The maintenance, repair, and overhaul (MRO) processes are essential and unavoidable aspect of every business. A proper MRO of an aircraft or its component can help businesses to avoid significant risks to their survival. Thus, aviation industry players majorly focus on creating appropriate business processes and infrastructure to support. The growth of the commercial as well as military segments in the aviation industry is likely to fuel the MRO market growth during the forecast period. Further, due to growth in the global population that can afford air travel is one of the factors boosting the growth of the aviation MRO market.

Considering the growing competition worldwide, the implementation of digital technologies is a necessary step toward the growth of MRO companies; this helps them create a continuous stream of data flowing through different levels of the supply chain, further streamlining the communication between the stakeholders and accelerating innovation in various operations. The digital transformation in the aviation industry substantially impacts all areas of the supply chain of the aviation industry, including air traffic management, aircraft operations, and aircraft and component manufacturing and servicing. The data-driven technologies such as data analytics which helps in tracking aircraft MRO activities in real-time would also optimize the air travel experience of crew and passengers. In addition, other advanced technologies such as AI and machine learning facilitates the airline crew and management to understand the airworthiness of the aircraft. This enable the airline to opt for MRO services.

The top five market leaders in this market include Singapore Technologies Engineering Ltd., Lufthansa Technik, AAR Corp., Collins Aerospace, and GE Aviation. The above listing of top players is based on multiple factors such as overall sales, current MRO service portfolio, investment in technology up-gradation, and industry activities. Companies have taken several market initiatives to expand their footprint, service portfolio across the world and to fulfill the growing demand of the market. In 2019, ST Engineering secured a 15-year engine Maintenance-By-the-Hour contract from Japan Transocean Air. AS per the contract, ST Engineering would offer integrated suite of engine MRO solutions to the airline’s Boeing 737NG fleet. In 2018, AAR Announced Joint Venture with Indamer for New MRO Facility in India, for the development of new airframe maintenance, repair and overhaul (MRO) facility in Nagpur, India.

The players present in the aircraft MRO market mainly concentrate on the contracts, partnerships, and collaboration, and product developments. Activities for the deployment of new technological solutions across the world is permitting these companies to maintain their brand name globally. Few of the important market initiatives from the industry are mentioned below: