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(26/09/23)
 According to a report from Alton Aviation
Consultancy, global maintenance, repair and overhaul (MRO) spend
will grow 2.2% annually over the next 10 years, from $112 billion
to $138 billion, in response to faster than expected traffic
recovery and fewer aircraft retirements.

Alton’s annual Global MRO Demand Forecast provides
in-depth insight into the trends driving the growth of MRO spend
around the world.

The report shows that higher material costs and labor cost
inflation, alongside traffic recovery and retirement trends, will
contribute to significant year-on-year MRO demand growth
compared to historical rates.

Modification Spend by Category ($b) from Alton Aviation Consultancy’s 2023-2033 Global MRO Demand Forecast

“Supply chain
challenges and a lack of skilled workers are causing airlines to
delay aircraft retirements, which in turn is boosting MRO spend,
with older aircraft requiring more maintenance intensive
overhauls,” said Adam Guthorn, report co-author and managing
director in Alton’s New York office. “Likewise, the rapid recovery of air traffic has
resulted in greater demand for MRO because airlines are increasing
aircraft utilization to better meet passenger demand. MRO growth
is being driven by strong demand in Asia Pacific in particular,
which accounts for 35% of global MRO demand globally, with North
America and Europe each representing around 20% of global demand. There’s also uneven demand in terms of MRO
segments – with engines the largest contributor, accounting for
52% of spend in 2022. With new generation engines gradually
replacing mature generation engines, we can anticipate that
overhaul events of new generation engines will increase from 25%
of total events in 2023 to 69% by 2033. Poor reliability of new
generation engines are also impacting the MRO market, with many
new generation engines having shop visits at intervals much sooner
than their predecessor engines.”

Alton’s report also highlights the uncertainty
surrounding the airline industry and passenger demand recovery,
and explores the potential impact of workplace shortages, supply
chain disruptions and macroeconomic challenges to include
inflation, interest rates, and the Russia-Ukraine war, which are
all driving increased levels of uncertainty.

Joshua Ng, report co-author and director in
Alton’s Singapore office, said, “An additional contributor to MRO
growth will be the modifications sector, which continues to grow
faster than the overall rate of the industry. Airlines are seeking
to optimize their aircraft configurations to improve
profitability, which means implementing cabin modifications more
frequently as they compete on product quality.”

To download the free 15-page, 7.11MB .pdf of
Alton’s 2023 Global MRO Demand Forecast please click

here. Registration / login is required.

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