[ 英語タイトル ] Europe Aircraft Engine MRO Market - Growth, Trends, and Forecasts (2020 - 2025)

Product Code : MDAD0086323

Survey : Mordor Intelligence

Publish On : November, 2020

Category : Aerospace and Defence

Report format : PDF

Sales price option (consumption tax not included)

[Report Description]

Europe aircraft engine MRO market is expected to register a CAGR of above 4% during the forecast period.

- Airlines in Europe have one of the oldest aircraft fleets in the world. In addition, the aging military aircraft fleet of several countries in Europe is also generating the demand for engine MRO.
- In the military sector, several countries in the region are expanding their aircraft fleets, which is anticipated to further boost the growth of the aircraft engine MRO market during the forecast period.
- However, with Europe being one of the worst-hit regions due to the COVID-19 pandemic, lower aircraft utilization and anticipated reductions in several airline fleets are expected to hamper the growth of the aircraft engine MRO market in the region.

Key Market Trends

Commercial Aviation Segment is Projected to Dominate the Market During the Forecast Period

In 2019, the commercial aviation segment held the largest share in the market and is expected to continue its domination during the forecast period. The number of commercial aircraft in the region is higher than that of the military aviation and the average cost of maintaining the larger commercial aviation engines is more than that of the general aviation engines. Due to these factors, the commercial aviation segment held a higher share in the market. Airlines like Austrian Airlines, TAP Air Portugal, British Airways, Air France, Alitalia, Lufthansa, and KLM Royal Dutch Airlines are some of the airlines in the region that have aircraft fleet with an average age of more than 11 years, demanding higher aircraft engine MRO. Several airlines in Europe are adding newer aircraft to their fleets, which will further generate demand for the engine MRO over the next decade. For instance, in November 2019, Nova Airlines AB (Novair) signed a long-term exclusive engine maintenance services contract with Lufthansa Technik for the CFM International LEAP-1A engines of Novair's Airbus A321neo aircraft. Thus becoming the launch customer of Lufthansa Technik's technical services for this new engine type. Such contracts are expected to increase the revenue for the segment during the forecast period.

United Kingdom will Experience Significant Growth During the Forecast Period

In 2019, the United Kingdom held the largest market share in the Europe aircraft engine MRO market. The UK military has more than 30 different aircraft models, that are in service for decades. Though the country is modernizing its aircraft fleet, several aircraft with the armed forces have an age of more than 30 years. Rolls-Royce, one of the prominent players in the Europe aircraft engine MRO market is based in the UK and is also a dominant player in the global aircraft engine MRO market. In August 2019, Rolls-Royce signed a USD 420 million engine support contract (EJISS) with the UK Ministry of Defence (MoD) to provide maintenance and repair support for the EJ200 engines of the Typhoon fighter aircraft fleet with the Royal Air Force’s (RAF) until 2024. On the other hand, British Airways, the flag carrier of the UK, has an aircraft fleet with an average age of more than 13 years as of 2019. The airline is further adding new aircraft to its fleet, which is expected to increase the demand for engine MRO in the country. In February, MTU Maintenance announced that it has extended the CF34-8E and -10E engines MRO contract with BA CityFlyer till the year-end 2023. Such contracts are expected to help the growth of revenues from the country during the forecast period. In addition, the United Kingdom recorded the highest general aviation activity in the region, with business jet aviation, and helicopter flying being the top activities in 2019. Higher general aviation flight activity in the region is anticipated to generate a higher demand for engine MRO. All these factors are expected to bolster the market prospects of the UK in the years to come.

Competitive Landscape

Safran S.A, Rolls-Royce Holding PLC, Lufthansa Technik, MTU Aero Engines AG, and TAP Maintenance and Engineering are some of the prominent players in the market. The major engine MRO providers are entering into long-term partnerships or forming joint ventures to grow their business presence and customer base. For instance, Lufthansa Technik formed joint ventures with various engine manufacturers, like Rolls-Royce Holding PLC, General Electric Company, and MTU AERO ENGINES AG, for providing engine MRO operations for customers in the European region. Forming partnerships also ensures that the maintenance for specific components is done with the right expertise by certain players. For instance, in June 2019, Safran Electrical & Power signed a contract with Lufthansa Technik, one of Europe's leading engine MRO providers, to provide electrical harness maintenance for the CFM56 engines powering the Airbus A320 and the Boeing 737 commercial aircraft families. Players are focusing on the utilization of advanced technologies like automation and artificial intelligence in their maintenance units, which help them increase productivity while reducing their maintenance costs, thereby boosting their profits in the long run.

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