For anyone paying attention to the aviation Maintenance, Repair, and Overhaul (MRO) sector, the trends are crystal clear. MRO spending is projected to eclipse $115 billion in the next decade. From now through 2028, North American aftermarket MRO spending is expected to surpass $187 billion, with the increase driven, in part, by more expensive components and technologies. Oliver Wyman pegs the average MRO growth rate between now and 2029 at a strong 3.5%. And among the nation’s biggest passenger airlines, MRO outsourcing has increased by 1% since 2017. (If that doesn’t sound significant, consider this: Outsourcing now accounts for 48% of all MRO spending among the Top 10 airlines.)
But as the aviation industry evolves, so do the MRO strategies responsible for keeping aircraft in the air delivering revenue. As more OEMs enter the aftermarket with turnkey programs, MRO providers are upgrading their capabilities to deliver new levels of value for customers.
Like any business, airframe OEMs are seeking new revenue streams to drive profitability. With the rise of aftermarket MRO, more OEMs are setting their sights on maintenance and repair for the components they manufacture. According to MRO-Network, one of the most mature OEM offerings in the arena is airframe component MRO, with systems MRO spanning hydraulics and actuators also gaining traction.
According to market research firm Oliver Wyman, airframe MRO is expected to be the slowest-growing segment through 2029, with an annual growth rate of 1.7% compared to an overall 3.5% projected growth for aviation MRO. The increased use of composites, titanium, and other proven design materials will reduce the need for maintenance checks for corrosion and fatigue. The same study cites long-term service packages and shifts in the PMA segment as key areas for increased OEM activity in the component MRO market in the decade to come.
What does rising OEM prominence in the MRO sector mean for aviation customers? Fueled by increased competition and a desire to maximize value for their customers, MRO providers are delivering new capabilities that extend beyond OEM offerings.
Aftermarket MROs are key value drivers in the dynamic aviation market. The best MRO partners deliver specialized regional expertise, robust customizations, and a full-service approach that extend beyond OEM turnkey packages. At AerSale®, we continually invest in our people, infrastructure, and capabilities to deliver new levels of value for our commercial aviation customers.
As the MRO market continues to expand and evolve, choosing the right partner will be critical to the success of commercial aviation businesses. Explore AerSale’s comprehensive MRO capabilities, including our dedicated structural component MRO and systems component MRO divisions. Then, contact us to see how our integrated approach can help you maximize your assets across the aircraft life cycle.