Military Aviation Maintenance, Repair, And Overhaul - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Military Aviation Maintenance, Repair, And Overhaul Market size is estimated at USD 41.33 billion in 2024, and is expected to reach USD 47.48 billion by 2029, growing at a CAGR of 2.81% during the forecast period (2024-2029).
The military aviation MRO market is experiencing steady growth due to the increasing demand for maintenance, repair, and overhaul services for military aircraft. The demand is driven by factors such as expanding military fleets, the need for lifecycle extension of existing aircraft, and the rising complexity of aircraft systems.
The age of military aircraft tends to last longer than commercial planes. They have often been used for over 3 to 4 decades, and a few aircraft programs have been running for almost 50 years. A substantial portion of defense budgets worldwide is allocated to the meticulous upkeep of these fleets. The evolving landscape of aerial combat and support necessitates a diverse array of aircraft, blending the reliability of time-tested models with the advanced features of modern fighters. The upkeep and modernization of aging aircraft are critical, involving considerable investment in life extension initiatives to preserve airworthiness and incorporate contemporary upgrades.
Defense organizations seek to maximize the value and longevity of their aircraft assets. The market for MRO services is experiencing growth, driven by the need for structural repairs, avionics upgrades, engine overhauls, and system modifications. The evolution of technology in military aircraft, such as advanced materials, avionics, and mission systems, contributes to the growth of the MRO market. As aircraft become more sophisticated, specialized expertise and advanced diagnostics tools are required to maintain and repair these complex systems effectively.
On the other hand, strict regulations posed by regulatory bodies and government agencies ensure the safety and reliability of the aircraft components hinders market growth.
Military Aircraft MRO Market Trends
Fixed-Wing Aircraft Segment will Showcase the Highest Growth During the Forecast Period
Fixed-wing aircraft in the armed forces play critical roles during war or special missions. Their usage always necessitates proper maintenance of the aircraft and requires upgrades after a number of years of operation to extend their service life. Military aircraft encompass a wide array of aircraft, including fighter jets, bombers, transport planes, and surveillance aircraft.
Each category brings its unique set of maintenance challenges and requirements that contribute to the intricacies of the MRO sector. Military aircraft play a crucial role in modern warfare, providing essential capabilities such as air superiority, reconnaissance, surveillance, intelligence gathering, and close air support. To maintain these capabilities, military aircraft must be maintained at peak performance levels through regular maintenance, repairs, and overhauls.
The military aircraft MRO market operates within a dynamic ecosystem shaped by evolving geopolitical landscapes, technological advancements, and budgetary constraints. Government defense budgets, procurement strategies, and geopolitical tensions significantly influence MRO spending and market dynamics. For instance, in June 2023, the Norwegian Defense Materiel Agency (NDMA) signed an extension contract with Kongsberg Aviation Maintenance Services to overhaul and make ready-for-sale a total of 32 F-16 combat aircraft. The contract also includes technical assistance and support for training Romanian technical personnel. The value of the contract was over USD 63.61 million.
Thus, the growing spending on military aircraft modernization programs and rising MRO contracts with OEMs are expected to propel the growth of the segment during the forecast period.
North America will Hold the Highest Market Share During the Forecast Period
North America held the highest share in the market and is expected to continue its dominant position during the forecast period. This growth is due to the presence of the largest military aircraft fleet, growing spending on enhancing US Air Force (USAF) capabilities, and rising aircraft modernization programs. The US currently has the largest fleet of military aircraft in the world. As of 2023, the country operated a fleet of 2,757 combat aircraft, 731 special mission aircraft, 632 tanker aircraft, 962 transport aircraft, 5,584 combat helicopters, and 2,634 training aircraft/ helicopters.
The USAF is equipped with the latest technology to provide air support for land and naval forces and aid the troops on and around a battlefield. The USAF has continued the development and procurement of next-generation aircraft to meet the demands generated by the power conflicts with Russia and China. Currently, the USAF comprises a total of 13,247 aircraft that are part of an operational, reserve, and out-of-service fleet. A major chunk of the defense budget is channeled into the procurement of new aircraft and R&D of new technologies that can aid the military actions undertaken by the US. As part of this, major procurements have been carried out in the country over the past few years. For instance, in March 2024, the US Navy granted a contract to The Boeing Company to deliver 10 F/A-18F under lot 46 and two F/A-18F and five F/A-18E under lot 47 for USD 1.13 billion. The contract also includes the delivery of a technical data package for the sustainment and operational readiness of the aircraft. Thus, the increasing expenditure on procurement of advanced fighter jets and modernization of existing military aircraft fleets from the US and Canada drive market growth across North America.
Military Aircraft MRO Industry Overview
The military aviation MRO market is fragmented. Numerous local and international players provide MRO services to the existing military aircraft fleet. Major market players include Lockheed Martin Corporation, Safran, The Boeing Company, RTX Corporation, and Rolls-Royce plc. Strategies like partnerships between players are expected to help them gain more contracts and expand into untapped markets in the long run. As most MRO contracts are for the long term, for new players, it is a time-consuming process to establish themselves in the market with the existing competition.
Artificial intelligence (AI) -based predictive maintenance technologies are expected to experience mass adoption during the forecast period. Potential investments are required to enhance the IT capabilities of MRO operators for maintenance execution, supply chain management, enhancing mobility, and e-signature adoption. Advanced data analytics are used by MROs for inventory optimization purposes, which include planning, stocking, and optimizing spares as and when required at minimal procurement costs. These tools enable operators to function efficiently, derive maximum profits, and support the digitization of global aircraft MRO operations.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The military aviation MRO market is experiencing steady growth due to the increasing demand for maintenance, repair, and overhaul services for military aircraft. The demand is driven by factors such as expanding military fleets, the need for lifecycle extension of existing aircraft, and the rising complexity of aircraft systems.
The age of military aircraft tends to last longer than commercial planes. They have often been used for over 3 to 4 decades, and a few aircraft programs have been running for almost 50 years. A substantial portion of defense budgets worldwide is allocated to the meticulous upkeep of these fleets. The evolving landscape of aerial combat and support necessitates a diverse array of aircraft, blending the reliability of time-tested models with the advanced features of modern fighters. The upkeep and modernization of aging aircraft are critical, involving considerable investment in life extension initiatives to preserve airworthiness and incorporate contemporary upgrades.
Defense organizations seek to maximize the value and longevity of their aircraft assets. The market for MRO services is experiencing growth, driven by the need for structural repairs, avionics upgrades, engine overhauls, and system modifications. The evolution of technology in military aircraft, such as advanced materials, avionics, and mission systems, contributes to the growth of the MRO market. As aircraft become more sophisticated, specialized expertise and advanced diagnostics tools are required to maintain and repair these complex systems effectively.
On the other hand, strict regulations posed by regulatory bodies and government agencies ensure the safety and reliability of the aircraft components hinders market growth.
Military Aircraft MRO Market Trends
Fixed-Wing Aircraft Segment will Showcase the Highest Growth During the Forecast Period
Fixed-wing aircraft in the armed forces play critical roles during war or special missions. Their usage always necessitates proper maintenance of the aircraft and requires upgrades after a number of years of operation to extend their service life. Military aircraft encompass a wide array of aircraft, including fighter jets, bombers, transport planes, and surveillance aircraft.
Each category brings its unique set of maintenance challenges and requirements that contribute to the intricacies of the MRO sector. Military aircraft play a crucial role in modern warfare, providing essential capabilities such as air superiority, reconnaissance, surveillance, intelligence gathering, and close air support. To maintain these capabilities, military aircraft must be maintained at peak performance levels through regular maintenance, repairs, and overhauls.
The military aircraft MRO market operates within a dynamic ecosystem shaped by evolving geopolitical landscapes, technological advancements, and budgetary constraints. Government defense budgets, procurement strategies, and geopolitical tensions significantly influence MRO spending and market dynamics. For instance, in June 2023, the Norwegian Defense Materiel Agency (NDMA) signed an extension contract with Kongsberg Aviation Maintenance Services to overhaul and make ready-for-sale a total of 32 F-16 combat aircraft. The contract also includes technical assistance and support for training Romanian technical personnel. The value of the contract was over USD 63.61 million.
Thus, the growing spending on military aircraft modernization programs and rising MRO contracts with OEMs are expected to propel the growth of the segment during the forecast period.
North America will Hold the Highest Market Share During the Forecast Period
North America held the highest share in the market and is expected to continue its dominant position during the forecast period. This growth is due to the presence of the largest military aircraft fleet, growing spending on enhancing US Air Force (USAF) capabilities, and rising aircraft modernization programs. The US currently has the largest fleet of military aircraft in the world. As of 2023, the country operated a fleet of 2,757 combat aircraft, 731 special mission aircraft, 632 tanker aircraft, 962 transport aircraft, 5,584 combat helicopters, and 2,634 training aircraft/ helicopters.
The USAF is equipped with the latest technology to provide air support for land and naval forces and aid the troops on and around a battlefield. The USAF has continued the development and procurement of next-generation aircraft to meet the demands generated by the power conflicts with Russia and China. Currently, the USAF comprises a total of 13,247 aircraft that are part of an operational, reserve, and out-of-service fleet. A major chunk of the defense budget is channeled into the procurement of new aircraft and R&D of new technologies that can aid the military actions undertaken by the US. As part of this, major procurements have been carried out in the country over the past few years. For instance, in March 2024, the US Navy granted a contract to The Boeing Company to deliver 10 F/A-18F under lot 46 and two F/A-18F and five F/A-18E under lot 47 for USD 1.13 billion. The contract also includes the delivery of a technical data package for the sustainment and operational readiness of the aircraft. Thus, the increasing expenditure on procurement of advanced fighter jets and modernization of existing military aircraft fleets from the US and Canada drive market growth across North America.
Military Aircraft MRO Industry Overview
The military aviation MRO market is fragmented. Numerous local and international players provide MRO services to the existing military aircraft fleet. Major market players include Lockheed Martin Corporation, Safran, The Boeing Company, RTX Corporation, and Rolls-Royce plc. Strategies like partnerships between players are expected to help them gain more contracts and expand into untapped markets in the long run. As most MRO contracts are for the long term, for new players, it is a time-consuming process to establish themselves in the market with the existing competition.
Artificial intelligence (AI) -based predictive maintenance technologies are expected to experience mass adoption during the forecast period. Potential investments are required to enhance the IT capabilities of MRO operators for maintenance execution, supply chain management, enhancing mobility, and e-signature adoption. Advanced data analytics are used by MROs for inventory optimization purposes, which include planning, stocking, and optimizing spares as and when required at minimal procurement costs. These tools enable operators to function efficiently, derive maximum profits, and support the digitization of global aircraft MRO operations.
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 Industry Attractiveness - 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 By Aircraft Type
5.1.1 Fixed-wing
5.1.2 Rotary-wing
5.2 By MRO Type
5.2.1 Engine MRO
5.2.2 Components and Modifications MRO
5.2.3 Airframe MRO
5.2.4 Field Maintenance
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 France
5.3.2.3 Germany
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Qatar
5.3.5.4 Egypt
5.3.5.5 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Boeing Company
6.2.2 BAE Systems plc
6.2.3 Elbit Systems Ltd.
6.2.4 Saab AB
6.2.5 Lockheed Martin Corporation
6.2.6 General Atomics
6.2.7 Northrop Grumman Corporation
6.2.8 RTX Corporation
6.2.9 Rolls-Royce plc
6.2.10 Safran
6.2.11 MTU Aero Engines AG
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 Industry Attractiveness - 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 By Aircraft Type
5.1.1 Fixed-wing
5.1.2 Rotary-wing
5.2 By MRO Type
5.2.1 Engine MRO
5.2.2 Components and Modifications MRO
5.2.3 Airframe MRO
5.2.4 Field Maintenance
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 France
5.3.2.3 Germany
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Qatar
5.3.5.4 Egypt
5.3.5.5 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Boeing Company
6.2.2 BAE Systems plc
6.2.3 Elbit Systems Ltd.
6.2.4 Saab AB
6.2.5 Lockheed Martin Corporation
6.2.6 General Atomics
6.2.7 Northrop Grumman Corporation
6.2.8 RTX Corporation
6.2.9 Rolls-Royce plc
6.2.10 Safran
6.2.11 MTU Aero Engines AG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
