Digital MRO Market by Application (Inspection, Predictive Maintenace, Parts Replacement, Performance Monitoring, Training, Inventory Management, Mobility), Technology (AR/VR, 3D Printing, Blockchain, Others), End User, and Region - Global Forecast to 2030
The Digital MRO Market size is estimated to be USD 0.9 billion in 2023 to USD 2.0 billion by 2030, at a CAGR of 13.0% from 2023 to 2030. The market is driven by factors such as increasing adoption of digital technologies like internet of things (IoT),augmented reality (AR), artificial intelligence (AI) and big data analytics by MROs and increasing need for replacing legacy aviation management information systems.
Digital MRO Market Forecast to 2028
To know about the assumptions considered for the study, Request for Free Sample Report
Digital MRO Market Dynamics
Drivers: Growing adoption of software-as-a-service (SaaS)
Traditionally, on-premises field services were costly, involving a lot of paperwork and the availability of old data rather than updated information, which subsequently led to disappointed customers, low growth, and low revenues. In recent years, the demand for SaaS-based solutions has been increasing. SaaS is a customizable platform for enterprises that provides customers with tailored services according to their requirements. This, in turn, is expected to create new opportunities for the developers of cloud-based aviation MRO software. Cloud-based MRO software services and solutions benefit tier 2 and tier 3 MRO due to the introduction of the pay-as-you-use model, which reduces expenses. Other advantages of using SaaS-based solutions include the huge availability of storage space and updated information, increased flexibility, on-demand software upgrades, and systematic scheduling and dispatch functions. The advantages of SaaS-based solutions are helping enterprises transform and expand their businesses, which, in turn, is projected to drive the market for cloud-based MRO software.
Cloud-based maintenance systems capture data digitally and maintain records in the form of manuals, maintenance logs, flight plans, aircraft maintenance tracking reports, record books for adherence to airworthiness regulations, and service bulletins. These systems enable fast and inexpensive management of different types of maintenance data by offering real-time access to spare part inventories.
Cloud-based maintenance systems offer the following benefits:
- Reduce maintenance costs of IT systems
- Eliminate hardware, software, database, and server costs
- Enable warehouse management
- Aid in planning the consumption of spare parts
- Aid in material planning
- Help in workforce scheduling
- Enable allocation of MRO tools
- Aid in line maintenance planning
Restraints: Lack of common data standard
The aviation industry is highly fragmented. Data received from multiple data centers, such as airports, airlines, aircraft OEMs, engine OEMs, and component OEMs, is not standardized and difficult to analyze, thus impacting multiple algorithms of MRO software analysis. Additionally, MRO functionalities are based on different types of MRO, such as line, component, and engine MRO. Hence, data generated from these MRO is disparate. MRO software focuses on the integration of maintenance, materials, engineering, and accounts and financial data. The integrated information is based on the core functionalities and activities of different MRO service providers. The lack of common data standards adds to the cost of the software, as the process of data integration becomes complex owing to the disparate nature of data.
The integration of analytical data of airlines and MRO operations is a critical procedure that involves the computerization of activities at each level. It involves the integration of ERP systems, maintenance, planning, and execution systems, and workforce management systems with dashboards and reporting tools that are used at mid-management and senior management levels. This data needs to be analyzed, segmented, and bifurcated using advanced data modeling tools. Data generated by data centers is required frequently, which results in an additional load on IT servers and IT infrastructure. Thus, the lack of common data standards is restraining the growth of the Digital MRO Industry.
Opportunities: Growing demand for 3D-printed parts and robotic inspection
3D printing of parts offers numerous benefits, including reduced inventory, fuel consumption, and cost; part consolidation; and on-demand manufacturing. Aircraft parts can be 3D printed in-house as and when required, thus helping in reducing inventory stockpiling and the lead time between procuring the part from the vendor. MRO companies can either outsource 3D printing of parts to a 3D printing company or purchase a 3D printer and print the parts on their own. Since 3D-printed parts need to adhere to certain standards and stringent regulations, only vendor-manufactured parts are accepted. MRO companies are using 3D printing for non-critical flight components, but it is expected that with the advancements in 3D printing technologies and materials, critical flight parts will also be 3D printed in the future.
Airlines are turning toward robotics to inspect aircraft. Robotic inspection is expected to increase in the future to increase the agility and accuracy in the inspection of aircraft. Drone-based inspection is gaining traction in the MRO industry. It is expected to not only improve safety but reduce inspection time as well. In October 2021, Proponent (US), a distributor of aircraft parts, and Materialise (Belgium) have joined together to investigate how 3D printing might benefit aerospace OEMs. According to the companies, on-demand manufacturing will be made possible through a digitized supply chain, and 3D printing will be "brought into the procurement domain" to make it easier for MROs to source 3D printed parts.
Challenges: Increasing cybersecurity concerns
As processes get digitalized, concerns regarding their security arise. Software companies are continuously upgrading their solutions to make them unhackable. Airlines and MROs have large pools of sensitive information stored in their IT platforms, including aircraft and parts information, which may get into the wrong hands. Hence, these companies will be at a high risk of cyberattacks, which can cause heavy losses. Lufthansa Technik has access to data from multiple airlines through its Aviator platform. This data can be kept available or hidden, depending on what the host airline is willing to share. Increasing adoption of digitalization would result in a rising rise in cyber-threats and cybercrimes by professional attackers on aerospace organizations to steal crucial aircraft operational data, hence creating a threat to national security. To counter such attacks, sophisticated solutions will be required. Developing such solutions would call for increased investments by software companies.
Digital Mro Market Ecosystem
Based on end user, the OEMs segment of the market is projected to grow at the second highest CAGR from 2023 to 2030.
Based on end user, the digital MRO market has been segmented into OEMs, MROs and airlines. The increased need to facilitate real-time data sharing with airlines and MROs is driving the OEM segment of digital MRO market.
Based on technology, the AR/VR segment is projected to grow at the second highest CAGR from 2023 to 2030.
Based on technology, the digital MRO market has been segmented into AR/VR, cloud computing, blockchain, artificial intelligence and big data analytics, robotic, digital twin and simulation, internet of things and 3D printing. The demand for use of AR/VR to train engineers to reduce human errors and need to optimize aviation manufacturing and design process is expected to drive the growth of the AR/VR technology segment in the digital MRO market.
Asia Pacific is expected to account for the highest CAGR in the forecasted period and second largest share in 2023.
Asia Pacific is estimated to account for the highest CAGR in forecasted period and second largest share in 2023. The countries in Asia pacific region offer significant opportunities for digitalization of MRO operations as this region has been heavily investing in the digital technologies. Increased MRO services in this region is expected to drive the digital MRO market.
Digital MRO Market by Region
To know about the assumptions considered for the study, download the pdf brochure
Key Market Players
The Digital MRO Companies are dominated by a few globally established players such as Airbus (France), Jet Support Servces, Inc. (US), Rusada (Switzerland), Ansys Inc. (US) and Capegemini (France). The report covers various industry trends and new technological innovations in the digital MRO market for the period, 2020-2030.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metric |
Details |
|
Growth Rate |
13.0% |
|
Estimated Market Size in 2023 |
USD 0.9 Billion |
|
Projected Market Size in 2030 |
USD 2.0 Billion |
|
Market size available for years |
2020–2030 |
|
Base year considered |
2022 |
|
Forecast period |
2023-2030 |
|
Forecast units |
Value (USD Million/Billion) |
|
Segments covered |
By Technology, Application, End User |
|
Geographies covered |
North America, Europe, Asia Pacific and RoW |
|
Companies covered |
SAP (Germany), The Boeing Company (US), Ramco Systems (India), IBM (US), Lufthansa Technik (Germany) and others. Total 25 Market Players |
Digital MRO Market Highlights
The study categorizes the Digital MRO market based on technology, application, end user and region.
|
Segment |
Subsegment |
|
By Technology |
|
|
By Application |
|
|
By End User |
|
|
By Region |
|
Recent Developments
- In April 2023, ATR and Swiss-AS have partnered to improve the digitalization of airline maintenance management further. Through this collaboration - a first between an aircraft manufacturer and an MRO software company - the two partners are working hand in hand to improve and customize the integration of ATR maintenance data into the AMOS software provided by Swiss-AS to ATR operators. The aim is to enable airlines to digitalize their maintenance management most efficiently with software tailored to their needs and operational constraints.
- In March 2023, Lufthansa Technik signed two major contracts with Emirates for the MRO of its Airbus A380 fleet. Lufthansa Technik will overhaul the main landing gears of the aircraft and will provide the airline with highly flexible extra capacity for base maintenance such as c-checks, the first time the carrier has outsourced such work from its in-house maintenance team.
- In March 2023, Honeywell International Inc. and Lufthansa Technik are increasing their collaboration in aviation analytics. Honeywell Connected Maintenance analytics are fully integrated into the Predictive Health Analytics (PHA) suite of Lufthansa Technik’s digital platform AVIATAR. This will grow to more than 100 predictors for multiple Airbus and Boeing aircraft types.
- In March 2023, Lufthansa Technik signed two major contracts with Emirates for the MRO of its Airbus A380 fleet. Lufthansa Technik will overhaul the main landing gears of the aircraft and will provide the airline with highly flexible extra capacity for base maintenance such as c-checks, the first time the carrier has outsourced such work from its in-house maintenance team.
- In February 2023, Philippine Airlines, Inc. signed an agreement with Ramco Systems to deploy its state-of-the-art Aviation Suite V5.9. The solution will replace standalone legacy systems, integrating, automating, and enhancing business performances across PAL and its affiliate PAL Express..
Frequently Asked Questions (FAQ):
What is the current size of the digital MRO market?
Response: The digital MRO market is expected to grow from an estimated USD 0.9 billion in 2023 to USD 2.0 billion by 2030 at a CAGR of 13.0% from 2023 to 2030.
Who are the winners in the digital MRO market?
Response: IBM (US), SAP (Germany), Lufthansa Technik (Germany), General Electric (US), and The Boeing Company (US) are some of the winners in the market.
What are some of the opportunities of the digital MRO market?
Response: Growing demand for 3D-printed parts and robotic inspection and Increasing adoption of Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Augmented Reality (AR) and Big data analytics by MROs are few of the opportunities of the digital MRO market.
What are some of the technological advancements in the market?
Response: Blockchain, Aviation cloud, prescriptive maintainance among others are few technological advancements in the digital MRO market.
What are the factors driving the growth of the digital MRO market?
Rising need for replacing legacy aviation management information systems and growing adoption of software-as-a-service (SaaS) are some of the key factors driving the growth in the market.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
This research study on the digital MRO market involved the extensive use of secondary sources, directories, and databases, such as Hoovers, Bloomberg BusinessWeek, and Factiva, to identify and collect information relevant to the market. The primary sources included industry experts, service providers, manufacturers, solution providers, technology developers, alliances, and organizations related to all segments of the value chain in this industry. In-depth interviews with various primary respondents, including key industry participants, industry consultants, and C-level executives, were conducted to obtain and verify critical qualitative and quantitative information pertaining to the digital MRO market and to assess its growth prospects.
Secondary Research
The ranking analysis of companies in the digital MRO market was determined using secondary data from paid and unpaid sources and by analyzing the product portfolios of major companies. These companies were rated based on the performance and quality of their products. These data points were further validated by primary sources.
Secondary sources referred for this research study included financial statements of companies offering advanced MRO solutions and robotics and various trade, business, and professional associations, among others. The secondary data was collected and analyzed to arrive at the overall size of the market, which was validated by primary respondents.
Primary Research
Extensive primary research was conducted after obtaining information about the current scenario of the digital MRO market through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across regions, namely, North America, Europe, Asia Pacific, and Rest of the World. This data was collected through questionnaires, emails, and telephonic interviews. In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as chief experience officers (CXOs), vice presidents (VPs), and directors, from business development, marketing, and product development/innovation teams, and related key executives from digital MRO vendors.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Digital MRO is an upcoming and emerging market that has been enabled due to advancements in technologies and innovations to simplify complex processes. Both top-down and bottom-up approaches were used to estimate and validate the market size. The research methodology used to estimate the market size also includes the following.
- Key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of annual and financial reports of the top market players and extensive interviews of leaders, including CEOs, directors, and marketing executives.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, analyzed by MarketsandMarkets, and presented in this report.
Research Approach and Methodology Bottom-Up Approach
The bottom-up approach was employed to arrive at the overall size of the digital MRO market by estimating the revenues of key players and their shares in the market. The average selling price for different types of advanced digital technologies was derived for key countries. This price was multiplied by the total numbers of MROs, airlines, and OEMs and the adoption rate of digital technologies to arrive at the market size at the country level. Values obtained for multiple countries were summed up to arrive at the regional market size and the global market size.
Top Down Approach
segments through percentage splits obtained from primary and secondary research. For the calculation of the size of specific market segments, the size of the immediate parent market was used to implement the top-down approach. The bottom-up approach was also implemented to validate the revenues obtained for various segments.
Market share was estimated for each company to verify revenue shares used in the bottom-up approach. With the data triangulation procedure and validation of data through primaries, the sizes of the parent market and each individual segment were determined and confirmed in this study.
Market Definition
Digital Maintenance, Repair, And Overhaul (MRO) is the implementation of digital technologies in the maintenance, repair, and overhaul procedures of the aviation sector. Data analytics, artificial intelligence, and other cutting-edge technologies are integrated to streamline aviation maintenance and repair processes, cut downtime, and boost safety and reliability. The implementation of digital MRO is anticipated to revolutionize the aviation sector by raising standards for reliability, efficiency, and safety while lowering expenses and downtime.
Key Stakeholders
- Aircraft MROs
- Airlines and Aircraft Operators
- Aircraft Manufacturers
- Aircraft Engine Manufacturers
- Regulatory Bodies
- Research Institutes and Organizations
- Wholesalers, Retailers, and Distributors of MRO Software and Services
Objectives of the Report
- To define, describe, segment, and forecast the size of the digital maintenance, repair, and overhaul (MRO) market based on end user, technology, application, and region for the forecast period from 2023 to 2030
- To forecast the size of various segments of the digital MRO market with respect to 4 major regions, namely, North America, Europe, Asia Pacific, and Rest of the World (RoW), along with the major countries in each of these regions
- To identify and analyze the key drivers, restraints, opportunities, and challenges influencing the growth of the digital MRO market
- To identify and analyze various regional contracts in the digital MRO market
- To identify industry trends, market trends, and technology trends currently prevailing in the digital MRO market
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze the degree of competition in the digital MRO market by identifying key market players
- To analyze competitive developments such as contracts, acquisitions, partnerships, agreements, collaborations, funding, and new product launches & developments of key players in the digital MRO market
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of the digital MRO market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the digital MRO market
Generating Response ...
Growth opportunities and latent adjacency in Digital MRO Market
Interested in market developments within the MRO and digital services markets for aerospace and defense.