Middle East Aircraft MRO - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Middle-East Aircraft MRO Market size is estimated at USD 6.18 billion in 2024, and is expected to reach USD 7.14 billion by 2029, growing at a CAGR of 2.91% during the forecast period (2024-2029).
Key Highlights
The Middle East Aircraft MRO market is driven by the increasing demand for new aircraft as part of the fleet expansion and modernization programs initiated by airlines operating in the region. Besides, the increasing partnership between aircraft MRO providers is also expected to drive their technical capabilities, enabling them to service new-generation aircraft that are being procured by airlines. The construction of new airports in the major cities of the Gulf countries is one of the primary drivers for growth in the number of aircraft fleets in the Middle East and Africa (MEA) region, which further drives the demand for MRO services for aircraft fleets.
Moreover, the shortage of aviation maintenance technicians has been a growing problem for years and the technological changes in aircraft manufacturing further heighten the demand for qualified technicians.
With the addition of newer generation aircraft platforms, there is expected to be an increase in demand for a newer, wider range of skillsets for aircraft maintenance technicians, further complicating the expected labor shortage. In addition, other advanced technologies such as AI and machine learning facilitate the airline crew and management to understand the airworthiness of the aircraft.
Middle-East Aircraft MRO Market Trends
Engine MRO to Witness Higher Growth During the Forecast Period
The engine is one of the few components in an aircraft that requires continuous maintenance irrespective of the usage of the aircraft. The increasing complexity of new-generation engines has rendered engine MRO one of the most expensive MRO sectors. An increasing number of engine failures due to improper MRO has made aircraft operators focus on engine health.
In the engine MRO sector, original equipment manufacturers (OEMs) control approximately half of the market, with the other half roughly split between independent and airline overhaul shops. For new powerplant generations specifically, operators frequently outsource engine maintenance and use full MRO-support programs. Hence, most projects in the Middle East are partnerships of airlines or third-party providers with engine OEMs. Also, foreign MRO groups, such as Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) and Lufthansa Technik (LHT), have scaled up their MRO activities in the region through partnerships and collaborations in recent years.
In April 2022, Morocco signed a strategic partnership with Belgian firms Sabca and Sabena Aerospace, alongside American giant Lockheed Martin, for the maintenance and support of F-16 and C-130 Hercules aircraft. The partnership will lead to the creation of Maintenance Aero Maroc (MAM), an aircraft maintenance facility at Benslimane military airport for the Royal Moroccan Air Force.
In July 2022, Turkish Technic, the maintenance, repair, and overhaul (MRO) arm of Turkish Airlines group companies, signed a contract with ST Engineering commercial aerospace business, to provide multi-year MRO service. Since August 2022, ST Engineering has provided component support to Turkish Airlines’ fleet of Boeing B787. Such developments are envisioned to increase the competition in the region and, thereby, drive the engine MRO segment during the forecast period.
United Arab Emirates to Dominate the Market During the Forecast Period
Although the United Arab Emirates boasts of robust aviation infrastructure, the country's MRO operators lack price competitiveness, primarily due to the lack of a home-grown workforce, which has resulted in higher labor costs. Nevertheless, with the COVID-19 pandemic having deleteriously affected the country's aviation sector, a steady rise in business opportunities was envisioned as airlines sought MRO services to maintain the airworthiness of their grounded fleet.
The United Arab Emirates consists of major international airports like Dubai and Abu Dhabi. Dubai Airport is a central global hub for international air travelers between the eastern and western regions.
Emirates and Etihad are the major airlines operating in this country and offer many aircraft to transport passengers across various regions from Dubai and Abu Dhabi. The Dubai airport is set to reach a capacity of 160 million passengers and 12 million tonnes of cargo per year, offering many possibilities for the aircraft MRO market, owing to the high number of aircraft operated in this country.
Third-party MRO service providers are also collaborating with the MRO wings of major airlines to enhance their target audience. The Dubai Civil Aviation Authority, in February 2022, launched the new MRO Middle East & Aircraft Interiors Middle East (AIME) show that brings together industry leaders, buyers, and specialists to showcase various new technologies happening in the industry. As part of this, Dubai carrier FlyDubai signed a multi-year contract agreement with Boeing for parts provisioning and Quick Engine Change (QEC) kits to support the all-Boeing flydubai fleet operating in the country. This new contract will enable Flydubai to support more efficient maintenance processes and control inventory costs.
Similarly, technological companies operating in the country are also partnering with engine manufacturers that offer engines to the aircraft operating in the country. Sanad Aerotech plans to expand its existing maintenance and repair services to include the full overhaul of 315 GEnx engines until 2035. Such developments will propel the growth of the aircraft MRO market in the UAE.
Middle-East Aircraft MRO Industry Overview
The Middle East Aircraft MRO Market is semi-consolidated. Saudia Aerospace Engineering Industries and Emirates Engineering are the prominent market players, followed by Rolls-Royce plc, RTX Corporation, and Etihad Airways Engineering LLC, among others. MRO service providers in the region are expanding their offerings and collaborating with domestic airlines as well as international airlines.
In May 2022, Sanad, a global aerospace engineering and leasing company wholly owned by Abu Dhabi's Mubadala Investment Company PJSC (Mubadala), and Triumph Group, Inc., a US-based aerospace manufacturer and MRO provider with significant engine component repair experience, announced the signing of a memorandum of understanding (MOU) outlining their plans to collaborate on the provision of next-generation engine MRO capabilities in the UAE. With the growing support from the government to boost the aviation industry in the Middle East countries, it is anticipated that the MRO market in this region will be more competitive by the end of the forecast period.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The Middle East Aircraft MRO market is driven by the increasing demand for new aircraft as part of the fleet expansion and modernization programs initiated by airlines operating in the region. Besides, the increasing partnership between aircraft MRO providers is also expected to drive their technical capabilities, enabling them to service new-generation aircraft that are being procured by airlines. The construction of new airports in the major cities of the Gulf countries is one of the primary drivers for growth in the number of aircraft fleets in the Middle East and Africa (MEA) region, which further drives the demand for MRO services for aircraft fleets.
Moreover, the shortage of aviation maintenance technicians has been a growing problem for years and the technological changes in aircraft manufacturing further heighten the demand for qualified technicians.
With the addition of newer generation aircraft platforms, there is expected to be an increase in demand for a newer, wider range of skillsets for aircraft maintenance technicians, further complicating the expected labor shortage. In addition, other advanced technologies such as AI and machine learning facilitate the airline crew and management to understand the airworthiness of the aircraft.
Middle-East Aircraft MRO Market Trends
Engine MRO to Witness Higher Growth During the Forecast Period
The engine is one of the few components in an aircraft that requires continuous maintenance irrespective of the usage of the aircraft. The increasing complexity of new-generation engines has rendered engine MRO one of the most expensive MRO sectors. An increasing number of engine failures due to improper MRO has made aircraft operators focus on engine health.
In the engine MRO sector, original equipment manufacturers (OEMs) control approximately half of the market, with the other half roughly split between independent and airline overhaul shops. For new powerplant generations specifically, operators frequently outsource engine maintenance and use full MRO-support programs. Hence, most projects in the Middle East are partnerships of airlines or third-party providers with engine OEMs. Also, foreign MRO groups, such as Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) and Lufthansa Technik (LHT), have scaled up their MRO activities in the region through partnerships and collaborations in recent years.
In April 2022, Morocco signed a strategic partnership with Belgian firms Sabca and Sabena Aerospace, alongside American giant Lockheed Martin, for the maintenance and support of F-16 and C-130 Hercules aircraft. The partnership will lead to the creation of Maintenance Aero Maroc (MAM), an aircraft maintenance facility at Benslimane military airport for the Royal Moroccan Air Force.
In July 2022, Turkish Technic, the maintenance, repair, and overhaul (MRO) arm of Turkish Airlines group companies, signed a contract with ST Engineering commercial aerospace business, to provide multi-year MRO service. Since August 2022, ST Engineering has provided component support to Turkish Airlines’ fleet of Boeing B787. Such developments are envisioned to increase the competition in the region and, thereby, drive the engine MRO segment during the forecast period.
United Arab Emirates to Dominate the Market During the Forecast Period
Although the United Arab Emirates boasts of robust aviation infrastructure, the country's MRO operators lack price competitiveness, primarily due to the lack of a home-grown workforce, which has resulted in higher labor costs. Nevertheless, with the COVID-19 pandemic having deleteriously affected the country's aviation sector, a steady rise in business opportunities was envisioned as airlines sought MRO services to maintain the airworthiness of their grounded fleet.
The United Arab Emirates consists of major international airports like Dubai and Abu Dhabi. Dubai Airport is a central global hub for international air travelers between the eastern and western regions.
Emirates and Etihad are the major airlines operating in this country and offer many aircraft to transport passengers across various regions from Dubai and Abu Dhabi. The Dubai airport is set to reach a capacity of 160 million passengers and 12 million tonnes of cargo per year, offering many possibilities for the aircraft MRO market, owing to the high number of aircraft operated in this country.
Third-party MRO service providers are also collaborating with the MRO wings of major airlines to enhance their target audience. The Dubai Civil Aviation Authority, in February 2022, launched the new MRO Middle East & Aircraft Interiors Middle East (AIME) show that brings together industry leaders, buyers, and specialists to showcase various new technologies happening in the industry. As part of this, Dubai carrier FlyDubai signed a multi-year contract agreement with Boeing for parts provisioning and Quick Engine Change (QEC) kits to support the all-Boeing flydubai fleet operating in the country. This new contract will enable Flydubai to support more efficient maintenance processes and control inventory costs.
Similarly, technological companies operating in the country are also partnering with engine manufacturers that offer engines to the aircraft operating in the country. Sanad Aerotech plans to expand its existing maintenance and repair services to include the full overhaul of 315 GEnx engines until 2035. Such developments will propel the growth of the aircraft MRO market in the UAE.
Middle-East Aircraft MRO Industry Overview
The Middle East Aircraft MRO Market is semi-consolidated. Saudia Aerospace Engineering Industries and Emirates Engineering are the prominent market players, followed by Rolls-Royce plc, RTX Corporation, and Etihad Airways Engineering LLC, among others. MRO service providers in the region are expanding their offerings and collaborating with domestic airlines as well as international airlines.
In May 2022, Sanad, a global aerospace engineering and leasing company wholly owned by Abu Dhabi's Mubadala Investment Company PJSC (Mubadala), and Triumph Group, Inc., a US-based aerospace manufacturer and MRO provider with significant engine component repair experience, announced the signing of a memorandum of understanding (MOU) outlining their plans to collaborate on the provision of next-generation engine MRO capabilities in the UAE. With the growing support from the government to boost the aviation industry in the Middle East countries, it is anticipated that the MRO market in this region will be more competitive by the end of the forecast period.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 MRO Type
5.1.1 Airframe
5.1.2 Engine
5.1.3 Component and Interior
5.1.4 Line
5.2 Geography
5.2.1 United Arab Emirates
5.2.2 Saudi Arabia
5.2.3 Qatar
5.2.4 Oman
5.2.5 Bahrain
5.2.6 Turkey
5.2.7 Kuwait
5.2.8 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Safran SA
6.2.2 General Electric Company
6.2.3 Rolls-Royce plc
6.2.4 RTX Corporation
6.2.5 Lufthansa Technik AG
6.2.6 Jordan Aircraft Maintenance Limited
6.2.7 Etihad Airways Engineering LLC
6.2.8 Saudia Aerospace Engineering Industries
6.2.9 Qatar Airways
6.2.10 ExecuJet MRO Services
6.2.11 Emirates Engineering (Emirates Group)
6.2.12 Mamoura Diversified Global Holding PJSC
6.2.13 Oman Air
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 MRO Type
5.1.1 Airframe
5.1.2 Engine
5.1.3 Component and Interior
5.1.4 Line
5.2 Geography
5.2.1 United Arab Emirates
5.2.2 Saudi Arabia
5.2.3 Qatar
5.2.4 Oman
5.2.5 Bahrain
5.2.6 Turkey
5.2.7 Kuwait
5.2.8 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Safran SA
6.2.2 General Electric Company
6.2.3 Rolls-Royce plc
6.2.4 RTX Corporation
6.2.5 Lufthansa Technik AG
6.2.6 Jordan Aircraft Maintenance Limited
6.2.7 Etihad Airways Engineering LLC
6.2.8 Saudia Aerospace Engineering Industries
6.2.9 Qatar Airways
6.2.10 ExecuJet MRO Services
6.2.11 Emirates Engineering (Emirates Group)
6.2.12 Mamoura Diversified Global Holding PJSC
6.2.13 Oman Air
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
