Market Trends of Middle East And Africa Aircraft Engine MRO Industry
Commercial Aviation Segment to Exhibit the Highest Growth Rate During the Forecast Period
The aircraft engine MRO market in the region is expected to experience high demand due to the rise of the commercial aviation sector. Commercial aviation in the region is driven by increasing air passenger traffic, increasing procurement of new aircraft by airlines, and improved economic conditions in several countries across the Middle East & Africa. For instance, in 2022, the region’s air passenger traffic was 596.9 million, which was a growth of 15% compared to 2021, and it was a growth of 15% compared to 2020, respectively. Also, the presence of major global aviation hubs such as Dubai has aided the utilization of widebody aircraft in Middle Eastern countries. Hence, there is a larger demand for aircraft engine MRO for widebody aircraft. Additionally, in the region, the demand for aircraft engine MRO is driven by various airlines that are placing huge orders for aircraft and aircraft engines, and this factor is expected to create a demand for the engine MRO segment in the forecast period. For instance, as of March 2023, Qatar Airways has approximately 250 aircraft on order worth USD 72 billion.
Additionally, airlines in Africa are awaiting government response regarding financial aid to help them recover from the pandemic. A significant portion of these airlines' aircraft fleets remain in storage. These aircraft are expected to generate significant demand for engine MRO before flying again. During the forecast period, Africa is also expected to continue its reliance on migrations for fleet growth, especially from the Middle East and Europe. Airlines in the regions are also expected to opt for green-time engines instead of procuring new engines to reduce costs. However, this factor is expected to increase the need for MRO for these engines in the coming years. For instance, in July 2022, Qatar Airways awarded a contract to CFM International to install LEAP-1B engines to power the airline’s new fleet of 25 firm 737-10 aircraft. These engines provide 15-20% better fuel efficiency and lower CO2 emissions. Such factors are expected to drive the demand for commercial aircraft engine MRO services in the region during the forecast period.
United Arab Emirates to Exhibit the Highest Growth Rate During the Forecast Period
The United Arab Emirates is home to major airlines, such as Etihad Airways and Emirates, which are rapidly expanding and upgrading their fleet of passenger and cargo aircraft as part of fleet modernization. Hence, the demand for aircraft engines in the MRO market is driven by the aircraft that are being delivered to the airlines in the region. Additionally, these airlines are focusing on increasing their presence in the LCC sector through partnerships with other airlines. As a result, there is also a demand for narrowbody aircraft and its engines in the region. For instance, in November 2023, Air Arabia Abu Dhabi placed an order for 240 CFM Leap-1A engines to power its 120 Airbus A320neo family aircraft, including the A321XLR. Although various airlines in the country possess significant MRO capabilities, they still depend on engine OEMs and third-party providers for engine maintenance, which has helped engine MRO providers increase their market in the country in recent years. For instance, in November 2023, Sanad launched its new LEAP Engine Maintenance, Repair, and Overhaul (MRO) Center in Abu Dhabi. The OEM’s new facility can provide MRO for LEAP-1A and 1B engines.
Furthermore, the country aims to enhance its defense capabilities by procuring new aircraft and developing inherent MRO capabilities. The country has expanded its military aircraft fleet by procuring several new fighter jets and transport/tanker aircraft. For instance, in November 2021, GAL, part of the EDGE Group, announced signing an agreement to provide MRO services for Rolls Royce Trent 700 engines that power the UAE’s Airbus A330 Multi Role Tanker Transport (MRTT) fleet. The UAE is increasing its spending on developing the tourism and business ecosystem, which is propelling the demand for general aviation aircraft and general aviation aircraft engine MRO in the country.
