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Air Transport MRO Market To Reach $61B and Restructure Significantly By 2017

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: 12 May, 2008  (Company News)
The commercial air transport maintenance, repair and overhaul (MRO) market in 2007 was worth US$45B according to the latest update of the AeroStrategy/OAGback MRO market model.
This reflects a 10% increase over the 2006 market spend of about $41B. Growth of MRO spend over the next decade is expected to be 3.1% per annum, resulting in a market of US$61.3B in 2017 (in constant $).

AeroStrategy also predicts several structural changes to take place in the next 10 years:

• AeroStrategy predicts that outsourcing of maintenance will increase from 52% in 2007 to 73% in 2017;
• The amount of Airframe heavy maintenance being outsourced to independent Airframe MRO suppliers is predicted to increase from 20% in 2007 to 50% in 2017;
• The amount of component maintenance done in-house by the airlines is predicted to decrease from 30% in 2007 to 15% in 2017…with over 50% of all component MRO being performed by airline third party suppliers;
• PMA parts penetration will increase from 2.5% in 2007 to 8% in 2017;
• Aircraft OEMs will become important suppliers of integrated MRO contracts on the next generation single aisle aircraft

A copy of AeroStrategy’s latest Conference speech on the air transport MRO market can be downloaded from there website.
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