DUBLIN–(BUSINESS WIRE)–The “Middle-East Aircraft MRO Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
The Middle-East aircraft MRO market is forecasted to grow at a CAGR of more than 17.6% during the forecast period (2021-2026).
Middle-East has been a transit gateway for international flights. The COVID-19 pandemic has disrupted several vital and profitable routes due to the imposition of travel restrictions. As per Airports Council International, the pre-COVID baseline for passenger traffic in the Middle-East was 431 million in 2020 and 453 million in 2021. However, the devastating impact of COVID-19 can be seen in the revised forecast which depreciates the annual passenger traffic by 68.5% and 59.4% in 2020 and 2021, respectively.
- Safran SA
- General Electric Company
- Rolls Royce Holding PLC
- Raytheon Technologies Corporation
- Lufthansa Technik AG
- Jordan Aircraft Maintenance Limited
- Etihad Airways Engineering LLC
- Saudia Aerospace Engineering Industries
- Qatar Airways
- ExecuJet MRO Services
- Emirates Engineering (Emirates Group)
- Mamoura Diversified Global Holding PJSC
- Oman Air
Key Market Trends
Engine MRO to Witness Higher Growth During the Forecast Period
The engine is one of the few components in an aircraft that requires continuous maintenance irrespective of the usage of aircraft. The increasing complexity of new generation engines has rendered engine MRO as one of the most expensive MRO sectors as an increasing number of engine failures due to improper MRO has made aircraft operators focus on engine health.
In the engine MRO sector, OEMs control approximately half of the market, with the other half roughly split between independent and airline overhaul shops. For new powerplant generations specifically, operators frequently outsource engine maintenance and use full MRO-support programs. Hence, most expansion projects in the Middle-East are partnerships of airlines or third-party providers with engine OEMs.
Also, foreign MRO groups, such as Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) and Lufthansa Technik (LHT), have also scaled up their MRO activities in the region through partnerships and collaborations in recent years. For instance, in 2019, Rolls Royce expanded its global service network with a new independent Trent 700 authorized maintenance center (AMC) at Abu Dhabi International Airport. Under the USD 6.5 billion agreement spanning nine years, Sanad Aerotech (formerly Mubadala Aerospace Turbine Services & Solutions) has been certified to provide engine-overhaul and component-repair services to global operators.
Moreover, Sanad Aerotech was the first MRO partner within GE Aviation’s global services network to obtain MRO certification for the GEnx engine and remains the only certified GEnx MRO partner in the Middle East and North Africa (MENA) region. The provider plans to expand its existing maintenance and repair services to include the full overhaul of 315 GEnx engines until 2035. Such developments are envisioned to increase the competition in the region, and thereby, drive the engine MRO segment during the forecast period.
United Arab Emirates to Dominate the Market During the Forecast Period
Although the United Arab Emirates boasts of robust aviation infrastructure, the country’s MRO operators lack price competitiveness, primarily due to the lack of a home-grown workforce, which has resulted in higher labor costs. Nevertheless, with the COVID-19 pandemic deleteriously affecting the country’s aviation sector, a steady rise in business opportunities is envisioned as airlines seek MRO services to maintain the airworthiness of their grounded fleet. On this note, in June 2020, Etihad Engineering, the MRO arm of Etihad Aviation Group, expanded its operations in aircraft maintenance and parking, to meet the new requirements of airline operators, as fleets have been grounded due to the COVID-19 pandemic.
Third-party MRO service providers are also collaborating with the MRO wings of major airlines to enhance their target audience. For instance, in November 2019, Sanad, a merged entity comprising three companies, Sanad Aerotech, Sanad Powertech, and Sanad Capital, signed a cooperation agreement with the Emirates Engine Maintenance Center (EEMC) to foster collaboration and knowledge sharing and create new business opportunities via the development of dedicated repair and training facilities in the country. Sanad also plans to expand its existing maintenance and repair services to include the full overhaul of 315 GEnx engines until 2035.
Key Topics Covered:
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter’s Five Forces Analysis
5 MARKET SEGMENTATION (Market Size by Value – USD million)
5.1 MRO Type
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/lob4mj
Laura Wood, Senior Press Manager
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