The Latest Mro Industry Statistics Explained
The aircraft MRO market alone is predicted to grow at a CAGR of 4.35% in the 2020–2025 period.
The statement indicates that the Aircraft Maintenance, Repair, and Overhaul (MRO) market is expected to experience a Compound Annual Growth Rate (CAGR) of 4.35% during the period of 2020 to 2025. This growth rate projects a steady increase in the size of the MRO market over the specified five-year period. A CAGR is a useful metric for understanding the average annual growth rate of an investment or market and helps forecast future performance. The predicted growth in the aircraft MRO market suggests ongoing demand for maintenance services for aircraft in the coming years, potentially driven by factors such as increasing air traffic, aging aircraft fleets, and technological advancements in aviation.
In 2019, the Asia-Pacific region valued for the major share of the global MRO market.
In 2019, the Asia-Pacific region represented the largest portion of the global Maintenance, Repair, and Overhaul (MRO) market. This statistic indicates that the Asia-Pacific region had the highest market value compared to other regions worldwide in terms of MRO services, which are crucial for maintaining and servicing machinery, equipment, and infrastructure in various industries. The dominance of the Asia-Pacific region in the global MRO market suggests a significant demand for maintenance and repair services within the region’s industries and highlights its importance as a key player in the global industrial and manufacturing landscape.
The largest MRO market, North America, accounts for 32.0% of the global total.
The statistic stating that North America is the largest Maintenance, Repair, and Operations (MRO) market and accounts for 32.0% of the global total highlights the significant role that the North American region plays in the global MRO industry. This figure indicates that nearly one-third of all MRO activities worldwide take place in North America, demonstrating the region’s dominance in this sector. This information is crucial for companies operating in the MRO industry as it underscores the importance of North America as a key market for their business strategies and operations. Understanding the market share of North America allows businesses to effectively plan and allocate resources to capitalize on the opportunities present in this region and maintain a competitive edge in the global MRO market.
Engine overhaul is forecasted to generate $160 billion in MRO sales from 2020 to 2029.
The statistic that engine overhaul is forecasted to generate $160 billion in Maintenance, Repair, and Overhaul (MRO) sales from 2020 to 2029 signifies a significant economic impact within the aviation industry. This figure represents the projected total revenue generated from maintenance activities specifically related to engine overhauls over the course of a decade. This data suggests a high demand for engine maintenance services, highlighting the importance of ensuring the safe and efficient operation of aircraft engines during this period. The substantial revenue forecast underscores the critical role that engine overhauls play in supporting the reliability and performance of aircraft, as well as the potential for growth and innovation in the MRO sector.
In 2019, 23% of commercial aircraft MRO was outsourced.
This statistic indicates that in 2019, 23% of commercial aircraft Maintenance, Repair, and Overhaul (MRO) services were outsourced to third-party service providers rather than being conducted in-house. Outsourcing MRO services can provide companies with cost savings, specialization, and increased efficiency in their operations. The high percentage of outsourcing in the commercial aircraft industry suggests that many companies are opting to delegate MRO tasks to external experts to benefit from their expertise and resources. This trend reflects the industry’s ongoing efforts to streamline operations and remain competitive in a rapidly evolving marketplace.
There is a projected average growth rate of 3.5% annually in aircraft MRO market till 2030.
The statistic indicates that the aircraft Maintenance, Repair, and Overhaul (MRO) market is expected to experience an average annual growth rate of 3.5% until the year 2030. This projection suggests that the demand for MRO services in the aviation industry is anticipated to steadily increase over the next decade. Factors contributing to this growth could include an expanding global fleet of aircraft, technological advancements necessitating more frequent maintenance, and an increasing focus on safety and regulatory compliance. This data can be crucial for stakeholders in the aviation MRO sector for strategic planning, investment decisions, and assessing market opportunities in the coming years.
Asia’s MRO expenditure is expected to reach $118 billion by 2030.
This statistic indicates that the maintenance, repair, and overhaul (MRO) expenditure in Asia is forecasted to increase to $118 billion by the year 2030. This highlights a growing trend in the aviation industry where companies are expected to spend significantly more on MRO activities to maintain their aircraft fleets in optimal condition. The increasing demand for air travel in the region is driving this trend, leading to higher investments in maintenance services and spare parts. This statistic suggests a positive outlook for MRO service providers and suppliers in Asia, indicating potential opportunities for growth and expansion in the coming years.
As of 2020, the commercial air transport MRO market value was at 62.1 billion U.S. dollars.
The statistic indicates that in the year 2020, the market value of the commercial air transport Maintenance, Repair, and Overhaul (MRO) industry amounted to 62.1 billion U.S. dollars. MRO services are essential for ensuring the safety, reliability, and efficiency of commercial aircraft, encompassing maintenance tasks such as inspections, repairs, and component replacements. The market value figure suggests the substantial size and economic significance of the commercial air transport MRO sector, highlighting the ongoing demand for maintenance services within the global aviation industry as of 2020.
The narrow-body aircraft segment dominated the MRO market in 2020 with a market share of over 44.5%.
The statistic “The narrow-body aircraft segment dominated the MRO market in 2020 with a market share of over 44.5%” indicates that in 2020, the maintenance, repair, and overhaul (MRO) market for narrow-body aircrafts was the largest in comparison to other aircraft segments. This suggests that a significant portion of the MRO services provided that year were focused on narrow-body aircrafts such as the Boeing 737 or Airbus A320, securing a market share of more than 44.5%. This statistic highlights the importance and demand for MRO services for narrow-body aircrafts within the aviation industry during the specified time period.
Aircraft maintenance labor costs are expected to rise by 4.1% annually till 2030.
The statistic stating that aircraft maintenance labor costs are expected to increase by 4.1% annually until 2030 implies that the expenses associated with maintaining aircraft are projected to grow steadily over the next decade. This suggests that the aviation industry anticipates higher costs in terms of labor required to service and repair aircraft, likely due to factors such as rising wages, increasing regulatory requirements, and advancements in technology that require specialized skills. This forecast could have significant implications for airlines and other aviation stakeholders, as they will need to budget for and adapt to these escalating maintenance expenses to ensure the continued safety and efficiency of their fleets.
Europe’s MRO market is predicted to grow at a CAGR of over 2.5% during the forecast period 2021 – 2026.
The statistic highlights the forecasted Compound Annual Growth Rate (CAGR) of Europe’s Maintenance, Repair, and Operations (MRO) market from 2021 to 2026, indicating a projected growth rate of over 2.5% annually during this period. This growth suggests an increasing demand for MRO services within Europe, which could be driven by factors such as technological advancements, infrastructure development, and the need for efficiency and cost-effectiveness in maintenance operations. The forecasted CAGR serves as a crucial metric for assessing the potential expansion and opportunities within the MRO market in Europe over the next five years.
The global defense sector spent more than $42.9 billion on MRO in 2020.
The statistic that the global defense sector spent more than $42.9 billion on Maintenance, Repair, and Operations (MRO) in 2020 highlights the significant investment made in ensuring the upkeep and efficient functioning of defense equipment and facilities worldwide. MRO activities are essential for preserving assets, extending their lifespan, and ensuring operational readiness of defense systems, which are crucial for national security and defense capabilities. This substantial expenditure demonstrates the emphasis placed by defense organizations on maintaining and optimizing their equipment and infrastructure to meet operational requirements and address potential threats effectively.
The global MRO market size was valued at USD 75.71 billion in 2018.
The statistic ‘The global MRO market size was valued at USD 75.71 billion in 2018’ represents the total economic worth of the Maintenance, Repair, and Operations (MRO) market worldwide in the year 2018. This figure includes the collective spending on maintenance, repair, and operational activities across various industries such as manufacturing, transportation, energy, and more. The USD 75.71 billion valuation serves as a key indicator of the scale and significance of the MRO industry globally, highlighting the substantial investment and demand for maintenance and repair services to ensure the efficient functioning of equipment, machinery, and infrastructure on a global scale.
Around 15% of global airlines outsource over 80% of their MRO work.
The statistic suggests that approximately 15% of airlines worldwide entrust external third-party maintenance, repair, and overhaul (MRO) service providers with more than 80% of their aircraft maintenance work. This outsourcing trend reflects a strategic decision by some airlines to leverage the expertise and resources of specialized MRO companies for cost-efficiency, improved service quality, and operational flexibility. By outsourcing a significant portion of their MRO activities, these airlines can focus on core operational aspects and potentially benefit from economies of scale, increased aircraft uptime, and enhanced maintenance capabilities, ultimately contributing to the overall efficiency and competitiveness of their businesses in the global aviation industry.
The aircraft engine MRO segment captured 40% share of the total market in 2019.
The statistic indicates that in 2019, the aircraft engine Maintenance, Repair, and Overhaul (MRO) segment accounted for 40% of the total market share. This suggests that a significant portion of the market activity and revenue in the aviation industry was driven by MRO services for aircraft engines specifically. The high market share captured by the aircraft engine MRO segment emphasizes the importance of maintenance and repair services for the functioning and safety of aircraft engines. This statistic can be valuable for industry stakeholders to understand the distribution of market activity and focus their strategies and investments accordingly within the aviation sector.
By 2025, the annual MRO market spending is estimated to reach around $115 billion.
The statistic stating that by 2025, the annual Maintenance, Repair, and Operations (MRO) market spending is estimated to reach around $115 billion represents a projection of the total expenditure expected to be incurred by industries and organizations for the maintenance, repair, and operations of their equipment and facilities in the year 2025. This significant figure indicates the substantial investment that is anticipated to be channeled towards ensuring the smooth functioning and efficiency of various mechanical and operational systems essential for daily operations across different sectors. The estimation underscores the importance of MRO services and the ongoing commitment of businesses to allocate financial resources towards the upkeep and management of their assets in order to sustain productivity and operational effectiveness in the coming years.
Conclusion
The statistics presented in this blog post shed light on the current state of the MRO industry, highlighting key trends and insights that professionals in the field should take note of. By paying attention to these statistics, businesses can make informed decisions to drive growth and success in this rapidly evolving sector.
References
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