European Avionics MRO Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth Opportunity: 2023-2028

In the year 2020, the sudden outburst of the pandemic affected the entire aviation industry in terms of both, production, and services. Avionics MRO relies on the global supply chain and the disruption due to COVID-19 pandemic, leading to delays in parts availability and logistics challenges. In addition to that, changing geopolitical conditions also impacted the recovery trajectory of the overall commercial aerospace industry, which, in turn, has impacted the recovery of its stakeholders including MRO providers in the year 2021.

Avionics MRO, a sizeable market, could not escape from such trends and witnessed a colossal decline of over 40% in 2020 amid the pandemic. However, the industry gradually rebounded in 2021 and it is estimated that the MRO industry is likely to regain its pre-covid stage by 2024. Later at the beginning of 2023, the Russo-Ukraine war affected the avionics MRO market in Europe, especially Eastern Europe in terms of supply chain, and OEM sanctions resulted in major players backing off from the country. Furthermore, an incessant shift from Russia to other European countries is likely to give impetus to the demand for MRO services. Overall, the European avionics MRO market is likely to grow at a promising CAGR of 2.1% in the long run to reach US$ 945 Million in 2028.

Recent Market JVs and Acquisitions

A fair number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:

• In November 2023, Panasonic Avionics Corporation entered into a strategic partnership with Sky Perfect JSAT (JSAT) to bolster their in-flight connectivity (IFC) capabilities and partnered with Airbus on a high-bandwidth connectivity solution.
• In October 2023, Ametek MRO merged Avtech Avionics & Instruments with Muirhead Avionics to form a top-tier European facility.
• In April 2023, Honeywell Aerospace expanded its partnership with AJW Group, making them their sole aftermarket distributor for all Honeywell B787 mechanical and avionics line replacement units.

Based on the aircraft type, the European avionics MRO market is segmented into narrow-body aircraft, wide-body aircraft, regional jets, and turboprops. Narrow-body aircraft is expected to remain the largest and the fastest-growing aircraft in the market during the forecast period. Narrow-body aircraft constitute the majority of the commercial aircraft fleet in Europe. Airlines operating in the region rely heavily on these aircraft for their short-haul and regional flight operations. It is anticipated that the production rates of various narrow-body aircraft will witness an upsurge, consequently, leading to a substantial increase in market demand in the forthcoming years, for instance, during the first quarter of 2023, a total of 67 single-aisle aircraft were delivered in the European region.

Based on the application type, the market is segmented into navigation/communication, weather/mission radar, flight recorders, electronic flight displays, flight management systems, and others. Navigation/communication is expected to remain the dominant application in the market during the forecast period fuelled by rapidly evolving advancements in communication, navigation, and surveillance (CNS) technologies. In addition to that, Aging aircraft, system upgrades, and strict regulatory requirements are expected to increase the demand for MRO of these components. Electronic flight displays are anticipated to experience rapid growth, primarily due to the growing demand for advanced and high-resolution displays, which enhance readability and reduce pilot workload.

In terms of sub-regions, Western Europe is expected to remain the biggest demand generator for avionics MRO in Europe during the forecast period driven by the presence of a huge number of MRO providers and airlines in the region (more than 30 avionics MRO providers in the UK including big players such as STG Aerospace, Ametek MRO, and Air Atlanta Aviaservices). The Russia-Ukraine war played a major role in the dominance of Western Europe as most of the global players and OEMs backed off from Russia, the biggest market in Eastern Europe to other Eastern and Western European countries.

Key Players

The following are the key players in the European avionics MRO market:

• Thales Group
• Honeywell International
• Collins Aerospace
• Lufthansa Technik AG
• Panasonic Avionics Corporation
• Ametek MRO
• Cobham Aerospace Communications
• Diehl Aviation

Research Methodology

This strategic assessment report provides a comprehensive analysis that reflects today’s European avionics MRO market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with the analyst's internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. The analyst conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis
• Market segment trend and forecast
• Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for existing and new players
• Key success factors

The European avionics MRO market is segmented into the following categories:

European Avionics MRO Market, by Aircraft Type

• Narrow-Body Aircraft (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Wide-Body Aircraft (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Regional Jets (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Turboprop (Sub-Regional Analysis: Eastern Europe and Western Europe)

European Avionics MRO Market, by Application Type

• Navigation/Communication (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Weather/Mission Radar (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Flight Recorders (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Electronic Flight Displays (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Flight Management System (Sub-Regional Analysis: Eastern Europe and Western Europe)
• Others (Sub-Regional Analysis: Eastern Europe and Western Europe)

European Avionics MRO Market, by Sub-Region

• Eastern Europe (Country Analysis: Russia and Others)
• Western Europe (Country Analysis: Germany, France, The UK, and Others)