Global MRO spend by 2029 predicted to be USD 116 billion

The 3rd MRO South Asia Summit will be held on the 6th & 7th February 2020 in New Delhi, India. This summit is an attempt to bring the elite aerospace clan under one roof to share and exchange knowledge, technology and business.

In the last few years the aviation industry and related business are experiencing an unparalleled growth thanks to the ever expanding global population with a strong inclination towards air-travel. The sprouting of Low Cost Carriers (LCCs) acted as catalyst in boosting the flight demands of bulging population slowly turning the desire to fly from fascination to basic necessity.

As per Oliver Wyman’s predictions, about 200 million people will enter the middle class segment across the globe. This population shows a trend of rising income and a willingness to spend on air travel.

Naturally to fulfil this demand the global fleet size will show a proportional growth. Boeing predicts the need of 42,700 plus new aircraft over next 20 years.

The rise of global fleet will bring a boost to the maintenance repair and overhaul sector. The total MRO spend in 2019 is USD 81.9 billion which is expected to rise to USD 116 billion in a decade. As per the Oliver Wyman forecast the growth rate in first five years (i.e – 2019 to 2024) is slower due to the incorporation of new Next-Gen aircraft which will have long maintenance intervals and replacement of life-limited parts than their older counterparts.

The next five years (from 2024 -2029) will show a spurt in MRO spend to USD 19 billion.

This growth is mostly concentrated in Asia, particularly China and India. By the end of the decade South Asia will be the new global MRO hub.

IATA forecasts India to be the third largest aviation market globally by 2024 from its current seventh position and expected to add 414 million passengers to its existing 572 million passengers.

Apart from India, the other south Asian countries also show a positive growth graph. Indonesia is likely to be the fourth largest by 2030 from its current ranking of 10th largest aviation market. Thailand will make an entry into the top 10 slot.

Looking at the above trend, South Asian markets in general and India in particular shows a robust growth in the aerospace MRO market. Keeping this as the prime focus, we bring you the 3rd edition of the MRO South Asia summit.