The Southeast Asia Maintenance, Repair, and Operations (MRO) market for air transport is projected to grow from $5,259.1 million in 2021 to $13,481.3 million by 2032, marking a compound annual growth rate (CAGR) of 7.8% from 2022 to 2032. This expansion is driven by factors such as increased air traffic, demand for new aircraft, investment in the MRO industry, the rise of low-cost carriers, supportive government policies, and technological advancements.
Despite the challenges posed by the COVID-19 pandemic, recovery has been observed with MRO companies adapting strategies and focusing on digitalization. Leading this market is the narrow body aircraft segment due to its popularity for shorter hauls and domestic routes. The commercial aviation segment also holds a significant market share due to increased passenger traffic and fleet expansion.
The independent MRO segment dominates the market due to growing demand for efficient services. Meanwhile, the airline segment is projected to manifest high growth as Southeast Asian countries focus on enhancing regional connectivity. The engine overhaul service type holds a large market share due to airlines' focus on environmental sustainability.
The region has numerous aging aircraft that require regular maintenance and repairs, presenting significant opportunities for MRO providers specializing in aircraft modernization and structural repairs. Singapore leads the market in terms of revenue, while Thailand is expected to witness the fastest growth due to factors such as a growing aviation industry, increasing air traffic, and the government's focus on infrastructure development.
In parallel with Southeast Asia's growth, the global Aircraft MRO market is set to expand from $91.15 billion in 2022 to $134.07 billion by 2030. This growth is fueled by increasing middle-class travelers and the rise of MRO service providers in emerging economies like China, Singapore, and India. Major players include AAR (NYSE:AIR), Barnes Group (NYSE:B) Inc, Collins Aerospace, Delta TechOps, ST Engineering, Safran (EPA:SAF) Nacelles, Boeing (NYSE:BA), and Honeywell (NASDAQ:HON).
Contracts have been secured with Japan Airlines and Airbus for MRO services while Boeing and Honeywell won contracts for advanced technology integration on Boeing 777 aircraft and MRO of UH-60 Black Hawk starters respectively. The Indian government's $12 billion airport infrastructure investment will further boost the market that caters to commercial and military end users. Major businesses include Guangzhou Aircraft Maintenance Engineering Co., Ltd (GAMECO) in China and Singapore's established MRO hubs, where Airbus and Rolls-Royce (OTC:RYCEY) have a significant footprint.
The rising global security threats fuel defense aircraft production and their in-house MRO activities, supplemented by private MRO companies. This global expansion is further reinforced by factors such as increased defense spending in APAC and MEA, the construction of new "greenfield" airports in India, the rising number of global passengers, and Singapore's contribution to one-quarter of APAC's aircraft MRO market with its 120 aerospace companies.
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