Touching down: Growth is expected to slow as economic uncertainty limits demand

The main markets for the Aircraft Repair, Maintenance and Overhaul industry are commercial airlines and the armed forces. However, airlines are more important to the industry, being expected to generate 69.2% of revenue in 2018-19. The industry has expanded over the past five years. Rising passenger numbers have supported revenue growth as increased activity propelled demand for maintenance, repair and overhaul (MRO) services. A rise in the average age of the aircraft fleet operated by commercial airlines, as several airlines delayed or reduced new orders in preference for repair and maintenance work, also positively influenced demand, because older aircraft typically require more MRO more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • The weak pound has made the industry more price competitive, supporting revenue growth
  • The industry faces strong competition from MRO providers in cheaper foreign aircraft hubs
  • Low imports are expected to negatively affect air freight transport levels and limit industry demand
  • Industry Report - Industry Products Chapter

    Engine maintenance and repairThe main industry service is engine maintenance and repair, which is expected to account for 41% of revenue in the current year. The two major original equipment manufacturers (OEMs), Rolls-Royce and GE Aircraft Engine Services, dominate this segment. These companies have a key advantage in engine maintenance, repair and overhaul because they produce parts and licences so they can restrict supplies of them. This also means that they can perform services cheaply because they do not have to buy parts from another company. Reputation and service quality are also important factors. This segment's share of industry revenue is expected to increase over the five years through 2018-19...purchase to read more.

    Additional Insights for the Aircraft Repair, Maintenance & Overhaul Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft Repair, Maintenance & Overhaul Industry are

  • Access to highly skilled workforce
  • Ability to compete on tender
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Demand from scheduled passenger air transport and Demand from freight air transport in the Aircraft Repair, Maintenance & Overhaul industry impact industry performance..

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    What's in this report

    What is the Aircraft Repair, Maintenance & Overhaul Industry?

    Companies in this industry repair, maintain and overhaul aircraft, aircraft engines and other components.

    Industry Products
  • Heavy maintenance and overhaul
  • Engine maintenance and repair
  • Component maintenance and repair
  • Line maintenance
  • Industry Activities
  • Engine repair and maintenance
  • Heavy maintenance and overhaul
  • Line maintenance
  • Component repair and maintenance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from scheduled passenger air transport
  • Demand from freight air transport
  • Government spending on defence
  • Real effective exchange rate

  • Current Performance
  • Limiting growth
  • Taking flight
  • Overhauling demand
  • Regulatory influences
  • Profit flies high
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions
  • Heightened uncertainties
  • Profit performance
  • Table: Aircraft Repair, Maintenance & Overhaul Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft Repair, Maintenance & Overhaul Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Scheduled Passenger Air Transport
  • Non-Scheduled Passenger Air Transport
  • Freight Air Transport

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing
  • Electronic Component Manufacturing

  • Products & Services
  • Engine maintenance and repair
  • Line maintenance
  • Component maintenance and repair
  • Heavy maintenance and overhaul
  • Chart: Aircraft Repair, Maintenance & Overhaul Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Airlines
  • Governments
  • Other
  • Chart: Major Market Segmentation for the Aircraft Repair, Maintenance & Overhaul Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft Repair, Maintenance & Overhaul

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft Repair, Maintenance & Overhaul Industry

  • Industry Globalization
    Rolls-Royce plc,
  • Table: Rolls-Royce plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft Repair, Maintenance & Overhaul Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aircraft Repair, Maintenance & Overhaul Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Heavy Maintenance
  • The most comprehensive type of service offered by industry operators. It includes the maintenance of airframes and the modification or overhaul of aircraft and parts.
  • Line Maintenance
  • A range of regular maintenance and inspections on aircraft.
  • Original Equipment Manufacturer (Oem)
  • An OEM produces components or parts that are purchased by another company and retailed under that company's brand name.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aircraft Repair, Maintenance & Overhaul market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Aircraft Repair, Maintenance & Overhaul:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aircraft Repair, Maintenance & Overhaul market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aircraft Repair, Maintenance & Overhaul, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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