Flying high: Strong aircraft utilisation rates and economic uncertainty support revenue growth

Industry operators provide maintenance, repair and overhaul (MRO) services for civil and defence aircraft, and industry performance is therefore dependent on activity in these markets. Commercial airlines are the main users of industry services, and rising passenger numbers in this market has increased aircraft utilisation and propelled industry demand over the past five years. The industry has also derived benefits from uncertain economic conditions, with several airlines delaying or reducing new orders in preference for repair and maintenance work. However, public spending pressures have reduced demand from the armed forces, whilst declining air freight transport levels have limited revenue more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The weak pound has made UK operators more price competitive, supporting revenue growth
  • Rising aircraft utilisation has shortened service intervals, supporting industry demand
  • Challenging conditions are expected to encourage more airlines to undertake MRO services
  • Industry Report - Industry SWOT Analysis Chapter

    The Aircraft Repair, Maintenance and Overhaul industry is in the mature stage of its life cycle. Over the 10 years through 2023-24, industry value added (IVA), which measures the industry's contribution to GDP, is expected to increase at a compound annual rate of 3.6%. Meanwhile, the economy is forecast to grow at a compound annual rate of 1.7% over the same period. Whilst this indicates that the industry will account for a growing share of the overall economy, the industry is not in a growth stage. Strong IVA growth is largely the result of IVA being depressed in the base year of the period.In recent years, a number of large operators have rationalised their operations, focusing on a smaller number of core services in an attempt to improve cost efficiency. The...purchase to read more.

    Additional Insights for the Aircraft Repair, Maintenance & Overhaul Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft Repair, Maintenance & Overhaul Industry are

  • Access to highly skilled workforce
  • Ability to compete on tender
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Demand from scheduled passenger air transport and Demand from freight air transport in the Aircraft Repair, Maintenance & Overhaul industry impact industry performance..

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    What's in this report

    What is the Aircraft Repair, Maintenance & Overhaul Industry?

    Companies in this industry repair, maintain and overhaul aircraft, aircraft engines and other components.

    Industry Products
  • Heavy maintenance and overhaul
  • Engine maintenance and repair
  • Component maintenance and repair
  • Line maintenance
  • Industry Activities
  • Engine repair and maintenance
  • Heavy maintenance and overhaul
  • Line maintenance
  • Component repair and maintenance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from scheduled passenger air transport
  • Demand from freight air transport
  • Government spending on defence
  • Real effective exchange rate

  • Current Performance
  • Dealing with turbulence
  • Taking off
  • Growth limitations
  • International competition
  • Regulatory influences
  • Profit performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Heightened uncertainties
  • Profit performance
  • Table: Aircraft Repair, Maintenance & Overhaul Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft Repair, Maintenance & Overhaul Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Scheduled Passenger Air Transport
  • Non-Scheduled Passenger Air Transport
  • Freight Air Transport

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing
  • Electronic Component Manufacturing

  • Products & Services
  • Engine maintenance and repair
  • Line maintenance
  • Component maintenance and repair
  • Heavy maintenance and overhaul
  • Chart: Aircraft Repair, Maintenance & Overhaul Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Airlines
  • Governments
  • Other
  • Chart: Major Market Segmentation for the Aircraft Repair, Maintenance & Overhaul Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft Repair, Maintenance & Overhaul

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft Repair, Maintenance & Overhaul Industry

  • Industry Globalization
    Rolls-Royce plc, GE Aircraft Engine Services Ltd,
  • Table: Rolls-Royce plc - financial performance
  • Table: GE Aircraft Engine Services Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft Repair, Maintenance & Overhaul Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aircraft Repair, Maintenance & Overhaul Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Heavy Maintenance
  • The most comprehensive type of service offered by industry operators. It includes the maintenance of airframes and the modification or overhaul of aircraft and parts.
  • Line Maintenance
  • A range of regular maintenance and inspections on aircraft.
  • Original Equipment Manufacturer (Oem)
  • An OEM produces components or parts that are purchased by another company and retailed under that company's brand name.
  • What Our Customers Say

    Why buy this report?

    The Aircraft Repair, Maintenance & Overhaul market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Aircraft Repair, Maintenance & Overhaul:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aircraft Repair, Maintenance & Overhaul market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aircraft Repair, Maintenance & Overhaul, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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