In the Business Jet MRO Market, the major four companies accounted for over 80% of the market revenue in 2019
NEW YORK, March 3, 2020 /PRNewswire/ --
The Business Jet MRO Market is anticipated to register a CAGR of over 4% during the forecast period, (2020 - 2025).
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- Inventory for sale, which is a key business measure for aircraft sales, has been declining steadily for the business jets for the past 10 years. This means that the market for used aircraft is growing. In most cases, the new customers for the used aircraft would like to customize the cabin, based on their preferences. This may also generate demand for the retrofits of the cabins. Additionally, engines and propulsion systems are serviced before handing the aircraft to the customers.
- With ADS-B becoming mandatory in the United States by 2020, cockpit upgrades are projected to be driven during the forecast period.
- With many new models of business jets entering service and with the aftermarket activity of business jets strengthening, refurbishment providers are experiencing strong demand for their services. Moreover, customers, these days are preferring to change their interiors, with attractive materials, furnishings, and colors, and other custom touches to make their aircraft cabins unique. This trend is also driving the market studied.
Key Market Trends
The Engine MRO Segment is Expected to Continue to Dominate the Business Jet MRO Market
In 2019, the engine MRO segment constituted a major share of the market studied. Engine MRO is an extremely important category of all MRO. Presently, the engine MRO market is witnessing numerous activities in the Middle Eastern region with MRO facilities, like Abu Dhabi Aircraft Technologies (ADAT), which can service up to 70 large engines in a year. However, the interior MRO segment is expected to register the highest CAGR during the forecast period. Business jet cabin interior generally consists of lights, seats, windows, IFEC, galley, and lavatories. The design of the lights and seats, color combinations, and other value add-ons boost the overall look of an aircraft's interior. The interior design of a business jet is primarily dependent on the customer's requirement and varies from aircraft to aircraft. The need for cabin refurbishment, mainly on used jets, and cabin retrofit contracts may drive the growth of the interior MRO segment of the market studied during the forecast period.
The Asia-Pacific Region is Expected to Register the Highest CAGR During the Forecast Period
In 2019, North America had the highest market share in the business jet MRO market. The large fleet of business jets in North America, along with increasing charter services in this region, is helping the MRO services providers and OEMs to provide extensive maintenance, repair, and overhaul activities in the region. However, Asia-Pacific is expected to have the highest growth rate during the forecast period. The projected growth in pre-owned business jet sales in this region, along with the requirement of the advanced cockpit and new cabin interior retrofits, is expected to increase the need for maintenance, repair, and overhaul services in the region.
Competitive Landscape
In the Business Jet MRO Market, the major four companies accounted for over 80% of the market revenue in 2019. The year 2019 was a year for consolidation with major aircraft OEMs buying smaller MRO providers, as well as charter service providers. Even aircraft manufacturers have been entering the aircraft MRO market by acquiring certified local players in each country, which has allowed them to gain a lot of control over the aftersales and services market. This move has also restricted access to smaller parts and components manufacturers who till now were able to provide many of the products at a much cheaper price than the OEMs. The effect of the consolidation till now has been very positive but the high burden on the pocket of owners and operators may outweigh the benefits, if prices are not regulated well.
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