Middle East & Africa Aircraft MRO Market Forecast to 2030 - Regional Analysis - by Components, Aircraft Type, and End Users

The Middle East & Africa aircraft MRO market was valued at US$ 12.52 billion in 2022 and is expected to reach US$ 16.54 billion by 2030; it is estimated to register a CAGR of 3.5% from 2022 to 2030.

Blockchain Technology Changing MRO Landscape Bolsters Middle East & Africa Aircraft MRO Market

MRO services in the aviation industry play an irreplaceable role in assuring the durability, safety, and profitability of commercial and military airlines. To maintain their market position in the future, businesses should adopt flexibility toward adapting new and trending technologies, which would help digitalize their business processes, thereby ruling out the dependency on humans. Advanced technologies such as blockchain improve processes in MRO organizations.

The technology has massive potential in the MRO space. The adoption of blockchain technology has been low so far; however, soon, this technology will contribute a considerable share to the overall growth of the aircraft MRO market. With the help of blockchain technology, companies can record the configuration details of MRO components. This also makes the documentation process across component manufacturers and MRO service providers effortless.

Additionally, the deployment of this technology also enables MRO service providers to offer verifiable documentation about the parts they have installed, thereby maintaining transparency in their operations. A few instances of various aircraft MRO market players opting for blockchain technology are given below.

• In March 2021, the Government Blockchain Association and Digital Innovation Group formed a joint venture named GBA Aviation & Aerospace Working Group. This joint venture is formed to explore the use of blockchain in the aerospace and aviation sectors for MRO services, supply chains, and airports.
• In February 2020, Safran S.A., an aerospace manufacturer; SITA, a technology company; and the Sky Republic, a blockchain platform provider company, declared plans to create the MRO Blockchain Alliance.
• In October 2023, Lufthansa Industry Solutions has also announced the initiative Blockchain for increasing adoption of blockchain in the aviation industry.

Thus, aviation industry players such as aircraft manufacturers, aircraft MRO service providers, and aviation technology developers are highly emphasizing on adopting blockchain technology with the objective of tracking their MRO processes. This factor is anticipated to stimulate the aircraft MRO market growth in the coming years.

Middle East & Africa Aircraft MRO Market Overview

The MEA includes countries such as South Africa, Saudi Arabia, and the UAE. For the coming years, the region is expected to exhibit moderate growth patterns. However, the MEA has recorded higher air traffic capacity, resulting in a significant supply of capacity offered by almost all major operators in the region. Yet, the limited economic activity in the region might adversely impact the growth of the airline industry in the coming years. Further, the Gulf countries are economically developed countries, whereas the African countries are yet to match up to the economic conditions of the Gulf countries and lag far behind.

The construction of new airports in the major cities of the Gulf countries is one of the primary drivers for growth in the number of aircraft fleets in the MEA, which further drives the demand for MRO services for aircraft fleets. The countries in the Middle East, such as UAE, Saudi Arabia, and Turkey, spend significantly higher amounts on the procurement of new defense aircraft and MRO activities of the existing aircraft fleet. The increasing number of airports and aircraft with tremendous growth in the aviation industry is spurring the market growth. For instance, according to the Federal Aviation Administration, the aviation industry in the Middle East is experiencing significant growth with an annual rate of 10% a year. The growing aviation industry is creating a surge in the demand for aircraft MRO solutions to ensure and manage air traffic efficiently.

According to the publisher analysis, in 2023, Africa had a fleet of more than 1,000 operational commercial aircraft, which is expected to reach around 1,500 by the end of 2033. This will further generate the demand for MRO services in the region. Moreover, such an increase in the number of aircraft fleets across Africa is expected to catalyze the requirement of MRO for major aircraft components such as engines and airframes.

Furthermore, economic and political issues affect airline traffic in Africa, and the local traffic growth has remained mostly flat, which has limited opportunities for MRO growth in Africa. South African Airways Technical (SAAT) is one of the top MRO service providers in the region and has a strong focus on building its third-party business. However, aircraft component services are still dominated by the OEM, which are fast becoming a threat to MROs as they enter the aftermarket. Moreover, the government in the region is focused on improving the processes of airports to optimize efficiency, and many are using new technological systems to gain additional upgrades of next-generation aircraft, and this shall lead to the growth of the market in the near future. New technologies such as blockchain continue to attract interest from MROs in the Middle East & Africa.

Middle East & Africa Aircraft MRO Market Revenue and Forecast to 2030 (US$ Million)

Middle East & Africa Aircraft MRO Market Segmentation

The Middle East & Africa aircraft MRO market is categorized into components, aircraft type, end users, and country.

Based on components, the Middle East & Africa aircraft MRO market is segmented into engine MRO, avionics MRO, airframe MRO, cabin MRO, landing gear MRO, and others. The engine MRO segment held the largest market share in 2022.

In terms of aircraft type, the Middle East & Africa aircraft MRO market is bifurcated into fixed wing aircraft and rotary wing aircraft. The fixed wing aircraft segment held a larger market share in 2022.

By end users, the Middle East & Africa aircraft MRO market is bifurcated into commercial and military. The commercial segment held a larger market share in 2022.

By country, the Middle East & Africa aircraft MRO market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The UAE dominated the Middle East & Africa aircraft MRO market share in 2022.

AAR CORP, Collins Aerospace, Delta TechOps, GE Aviation, Lufthansa Technik, Rolls-Royce plc, Singapore Technologies Engineering Ltd, and Turkish Technic Inc are among the leading companies operating in the Middle East & Africa aircraft MRO market.

Reasons to Buy:

• Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the Middle East & Africa aircraft MRO market.
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