Market Trends of Asia-Pacific Aircraft Engine MRO Industry
Turbine Engine Segment Held the Highest Shares in the Market
The turbine engine segment held the highest shares in the market and continued its dominance during the forecast period. Growing air traffic leads to increased aircraft deliveries, rising air cargo transportation, and an increasing military aircraft fleets, all of which drive market growth. The turbine engine is a rotary engine that converts the kinetic energy of a moving fluid (water, steam, air, or combustion products from a fuel) into mechanical energy. Turboprop, turbofan, and turboshaft are various types of turbine engines. Asia-Pacific is witnessing several strategic collaborations to cater to the diverse requirements of the different aviation platforms.
For instance, in February 2023, Hindustan Aeronautics Limited (HAL) and General Atomics Aeronautical Systems Incorporated (GA-ASI) announced that the HAL Engine Division in Bengaluru will support the turboprop engines that power the MQ-9B Guardian High Altitude Long Endurance (HALE) Remotely Piloted Aircraft System (RPAS). Furthermore, in September 2022, Air China and Rolls-Royce entered a new joint venture for engine maintenance, repair, and overhaul (MRO). Beijing Aero Engine Services Company Ltd. (BAESL), a new joint venture, will provide MRO service for Rolls-Royce Trent 700, Trent XWB-84, and Trent 1000 aviation engines. Air China and Rolls-Royce each own 50% of the joint venture, which has a contract worth around USD 378.2 million. Thus, increasing aircraft engine MRO contracts and growing spending on aircraft modernization programs drove market growth during the forecast period.
China is Expected to Show the Highest Growth During the Forecast Period
China had the biggest share of the market, and it is also expected to grow the most in the region over the next few years.Market growth happens all over the country because more people are flying, more money is being spent on the aviation industry, and more airlines are updating their planes.China became the largest aviation market in terms of passenger capacity in 2020. According to the Civil Aviation Authority of China, during the Lunar New Year 2023, from Jan 7 to Feb 15, a total of 9 million passengers traveled via air, an increase of 39% compared to 2022's Lunar New Year.
Because the market has a lot of room to grow, MRO service providers and airlines are working together to keep planes safe to fly.For instance, Air China announced in September 2022 that they were entering a joint venture (JV) maintenance, repair, and overhaul (MRO) facility in China. The new facility, Beijing Aero Engine Services Company Limited, will provide MRO support on the Rolls-Royce Trent 700, Trent XWB-84, and Trent 1000 aero engines. Air China and Rolls-Royce each hold 50% of the shares in the joint venture, with a contract amount of about 2.61 billion yuan (about USD 378.2 million).
Furthermore, in February 2022, Safran SA, a major aircraft engine manufacturer based in France, announced the opening of a new MRO facility in Suzhou, China. The facility was being set up and was expected to be operational by the end of 2022. The company-owned 5,200-square-meter repair station helps it meet strategic commitments by linking it to its MRO facilities across Middle Eastern and Indian facilities, making the company an optimal choice for MRO services for major airlines across the world. Thus, increasing aircraft engine MRO contracts and growing spending on the aviation sector drive market growth across the country.
