Market Trends of Europe Aircraft MRO Industry
The Engine MRO Segment is Expected to Witness the Highest CAGR
Engine MRO encompasses both field and depot maintenance. Depot maintenance involves extensive tasks like material upkeep, major repairs, overhauls, and even complete rebuilds of engines, parts, and assemblies. It also covers part manufacturing, technical support, and testing. Moreover, field maintenance focuses on on-equipment activities, excluding the more comprehensive depot-level tasks. This includes limited repairs, software maintenance, and the fabrication of repair parts. Major players in the engine MRO sector, such as Safran, Rolls Royce, and MTU Aero Engines, cater to a diverse clientele spanning commercial, military, and general aviation. While OEMs dominate around half of the engine maintenance market, the rest is divided between independent shops and airline overhaul facilities.
Airlines, especially with newer engine generations, often opt for outsourced maintenance, sometimes opting for complete MRO-support programs. For instance, in June 2023, Pratt & Whitney, a subsidiary of RTX Corporation, inked significant engine and aftermarket deals with Croatia Airlines. These agreements revolve around Pratt & Whitney's cutting-edge Geared Turbofan (GTF) engines, which are slated to power Croatia Airlines' sizable fleet of 15 A220-100 and A220-300 aircraft. Such collaborations are poised to drive market growth in the coming years.
The United Kingdom is Expected to Lead the Market
The United Kingdom boasts one of the largest aircraft fleets globally, spanning commercial, military, and general aviation. Major carriers, including Jet2, British Airways, Eastern Airways, and Loganair, operate commercial fleets with average ages of 13.5, 13.6, 18, and 23.4 years. This aging fleet is fueling demand for new aircraft maintenance contracts. In a recent move, in May 2024, STS Aviation Services (STS), a global aircraft maintenance leader STS Aviation Group division, acquired GT Engine Services (GTES), a UK-based engine MRO.
Alongside modernizing its fleet, the UK Ministry of Defense (MoD) is prioritizing enhancing its existing aerial assets. The government has forged joint ventures to bolster this, notably with Singapore, focusing on F-35 aircraft and aviation technology exchange. These initiatives are poised to propel the UK military aviation MRO market in the coming years.
