Market Trends of Middle-East And Africa Aircraft MRO Industry
Engine MRO Segment to Occupy the Largest Market Share During the Forecast Period
The Middle East and Africa's aircraft engine MRO segment is poised for heightened demand, propelled by a booming commercial aviation sector. This surge is underpinned by escalating air passenger traffic, increased airline procurement of new aircraft, and bolstered economic conditions across several regional countries. Notably, between 2021 and 2022, the region's air passenger traffic rebounded, surpassing pre-pandemic levels, buoyed by robust vaccination drives and border re-openings. By 2040, Middle Eastern airports will handle around 1.1 billion passengers collectively.
As countries in the region gear up to meet this escalating air traffic, they award substantial aircraft contracts to major OEMs like Airbus and Boeing. A case in point, as of June 2024, Qatar Airways has a hefty order of approximately 120 Airbus and Boeing aircraft, with most slated for delivery within the forecast period. Furthermore, capitalizing on their strategic location, governments in the Middle East and Africa funnel significant investments into enhancing and expanding their airport infrastructures. For instance, in December 2023, Saudi Arabia's Public Investment Fund (PIF) inked a deal to bolster Saudia Technic, a Saudia Group subsidiary specializing in a spectrum of aviation MRO services, from line and base maintenance to component and engine overhauls.
Besides the commercial sector, the military aviation domain is also a significant driver of market demand. For instance, Qatar's ambitious air force expansion, highlighted by the procurement of Rafale aircraft, was set to boost its fighter numbers by over fivefold. In a move underscoring this expansion, in March 2024, Safran Aircraft Engines and the Qatar Armed Forces penned a Services Agreement focusing on the M88 engines powering Qatar's fleet of 36 Rafale fighters. This comprehensive agreement encompasses spares, repairs, overhauls, and on-site technical support, all aimed at streamlining maintenance operations and enhancing customer satisfaction. These dynamics underscore the rising demand for commercial aircraft engine MRO services in the region, set to persist through the forecast period.
United Arab Emirates to Occupy the Largest Market Share During the Forecast Period
Major airlines in the United Arab Emirates, including Etihad Airways and Emirates, have rapidly expanded and upgraded their passenger and cargo aircraft fleets, driving the demand for aircraft engine MRO services. This surge in demand is primarily fueled by the delivery of new aircraft to these airlines. Furthermore, these carriers are bolstering their presence in the Low-Cost Carrier (LCC) segment through strategic partnerships, leading to an increased need for narrowbody aircraft and MRO services. For example, in July 2020, Air Arabia Abu Dhabi, a joint venture between Etihad Aviation Group and Air Arabia, commenced operations, marking the UAE capital's first low-cost carrier. By November 2023, the airline had ordered 240 CFM Leap-1A engines to power its fleet, including the A321XLR.
While many UAE airlines boast significant MRO capabilities, they still rely on engine OEMs and third-party providers for maintenance. This trend has notably bolstered the market for engine MRO services in recent years. In a significant move, Sanad unveiled its LEAP Engine Maintenance, Repair, and Overhaul (MRO) Center in Abu Dhabi in November 2023, focusing on servicing LEAP-1A and 1B engines.
Conversely, the UAE is actively bolstering its defense capabilities by procuring new aircraft and upgrading existing ones. By December 2023, the country's fleet comprised 560 combat and non-combat aircraft and helicopters, which necessitate regular MRO post-missions, driving market demand. Moreover, the UAE is championing defense localization through collaborations with international defense OEMs, exemplified by Emirati EDGE's partnerships.
In a notable move, Sikorsky, a Lockheed Martin subsidiary, designated the Advanced Military Maintenance, Repair, and Overhaul Centre (AMMROC) as the authorized MRO center for Black Hawk helicopters in the UAE in November 2023. The government's vision is to establish itself as a military MRO center of excellence, offering a comprehensive range of aviation services, from 1st line to depot-level MRO. This strategic initiative aims to enhance fleet readiness and cater to the escalating demands of the UAE Armed Forces and the broader regional military landscape, thereby propelling the UAE's MRO market during the forecast period.
