Expanding maintenance, repair, and overhaul (MRO) capacity in the Asia-Pacific region is a strategic imperative driven by the booming aviation industry in this dynamic region.
FREMONT, CA: According to the most recent industry projections, airline operators in Asia are expected to account for a little over one-third of worldwide MRO demand shortly. The region's MRO spending will increase at a 1.5 per cent CAGR from $36 billion in 2024 to $48 billion in 2033.
There are several well-known players in the MRO market in the Asia-Pacific region. The region can handle the anticipated MRO requirements, however, workloads may vary between countries and subregions.
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Proactive planning, infrastructure investment, personnel development, technological integration, and the promotion of efficient stakeholder collaboration are all necessary for the industry to meet the expected demand. With 33 per cent of the world's MRO demand expected in 2024, Asia-Pacific is expected to become the region with the greatest contribution to MRO demand. It is crucial to forecast future MRO demand accurately to make necessary preparations for capacity expansion or changes.
It is essential to have a strong supply chain and access to spare parts and components, facilitating prompt and effective maintenance operations. MRO suppliers in Asia have prepared plans for post-pandemic measures, and some of these plans—which include expanding facilities, capabilities, and workforce—are already being carried out.
Aircraft OEMs are accelerating production to meet the increased demand, and it is anticipated that Asian operators will purchase a significant share of the newly arrived fleet. The demand for aviation spare parts and components usually rises in response to increased aircraft production and deliveries.
The rise in initial provisioning orders and possible aftermarket sales will help component suppliers and manufacturers. The growing fleet creates a constant need for upkeep, fixes, and replacements, which gives suppliers access to the aftermarket by providing replacement parts and spare parts. To satisfy the increasing demand, OEMs will probably look for dependable suppliers, and becoming approved by OEMs as a supplier could open up new markets and business opportunities.
The shortage of old serviceable materials—mainly as a result of fewer retirements—is driving up the cost of materials when purchasing new parts, according to observations made by industry experts. Higher costs for aviation spare parts and components have been caused by supply chain disruptions and increasing demand. MRO providers face difficulty in sourcing parts at elevated prices, a factor that can notably affect their operational expenditures. Nevertheless, the field of modifications is another crucial driver behind the expansion of the MRO sector.
The growth rate of this sector is still higher than that of the industry as a whole. To remain competitive in product quality, airlines are putting more effort into optimising their aircraft layouts to increase profitability. This has led to an increase in the frequency of cabin renovations.
