Market Trends of Middle-East and Africa Aircraft MRO Industry
This section covers the major market trends shaping the MEA Aircraft MRO Market according to our research experts:
Engine MRO Segment Held the Largest Market Share in 2021
The increasing complexity of the engine parts and the increased number of aircraft crashes, due to engine failures, have made operators focus on frequent engine maintenance and periodic checks. Moreover, due to the harsh operating conditions in the Middle-East and Africa, the engines of the aircraft, have to be maintained regularly irrespective of whether they are flying or on the ground. In the engine MRO segment in the region, OEMs possess a significant share of the market, while independent MROs and airline overhaul shops also control the market to some extent. In Middle-east, while the commercial airlines have their own engine MRO capabilities, they also rely on engine OEMs and third-party providers for their MRO services. 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 Middle-East through partnerships and collaborations in recent years. On the other hand, in Africa, most of the commercial, military, and general aviation operators do not have their own Engine MRO capabilities and rely on global players for engine MRO services. For instance, in 2022, Czech state-run aero engine MRO company Lom Praha started overhauling eight Avia M337AK piston engines that power Zlin Z-43 and Z-142 single-engine propeller trainer aircraft operated by the Algerian Air Force. This trend of outsourcing engine MRO is expected to continue in Africa, while players in Middle-East are expected to enhance their capabilities with the help of strategic partnerships in the years to come.
United Arab Emirates Held the Largest Market Share in 2021
The United Arab Emirates currently dominates the market and is expected to continue its dominance during the forecast period. This is majorly due to the large fleet of commercial aircraft (majorly wide-body aircraft) and business jets (whose fleet is dominated by large-sized jets) in the country. Emirates and Etihad are the two major airlines in the country. As of May 2022, Emirates had a fleet of 254 aircraft with 195 aircraft on order. Among the aircraft on order are Boeing 777X, A350-900, A380, and Boeing 787-9 aircraft. Similarly, Etihad had a fleet size of 85 aircraft with 79 aircraft on order. The aircraft on order includes A321neo, A350, B777 and B787 aircraft. Due to the large operational fleet, there is a steady rise in business opportunities as airlines seek MRO services to maintain the airworthiness of their grounded fleet. On this note, in November 2021, Collins Aerospace has been awarded a contract by Emirates Airline to upgrade its fleet of 101 B777 and 107 A380 aircraft with the company's latest GLU-2100 multi-mode receiver (MMR). In addition, Collins is providing a full suite of avionics and satcom capabilities to Emirates' 777X aircraft. Furthermore, to support the local MRO industry, third-party MRO service providers are also collaborating with the MRO wings of major airlines to enhance their target audience. In the military segment, the growing push towards the localisation of MRO capabilities is driving the market growth. In November 2021, the local player and the Edge Group subsidiary GAL has won a USD 3 billion contract for supplying the United Arab Emirates' Air Force and air defense units with maintenance, repair and overhaul, or MRO, services. Such developments are expected to bolster the market prospacts in the United Arab Emirates during the forecast period.
