These are heydays for the commercial aviation industry as well as businesses supporting it from the maintenance, repair, and overhaul (MRO) sector. Rising demand for air travel is keeping production lines at aircraft, engine, and component manufacturers busy and setting records. Lower oil prices, along with the willingness of airlines to spend on upkeep, are resulting in delayed retirements of older jets, which in turn provide more business for the MRO industry because of their additional servicing needs. An aircraft fleet growth and related trends are affecting aftermarket MRO demand. the Oliver Wyman “Fleet & MRO Forecast 2018-2028” says.
“The swelling demand continues to drive expansion of the global fleet. Where in our 2017–2027 forecast projected annual growth averaging 3.4 percent, our current outlook ratchets up that yearly increase to 3.7 percent. Inevitably, all this spells more business for the major aircraft manufacturers, pushing production rates to levels never seen before for commercial aircraft.
“By 2028, our forecast projects the worldwide fleet will total 37,978 aircraft, up from the 2018 total of 26,307. Narrow-body aircraft will be the biggest beneficiary of this expansion, increasing from about 56 percent of the fleet in 2018 to 66 percent in 2028 thanks to operating costs, range, and capabilities that allow them to encroach on territory once reserved for wide-bodies.
“By 2028, 55 percent of the fleet will have been designed and built after 2000 and boast the advanced systems, materials, and components that will help keep operating costs down over the near term. We do not expect that recent consolidations—particularly those in Europe—or mergers to come will interrupt this transformation of the fleet.
“Meanwhile, the commercial air transport MRO market is growing at a similar clip, with total MRO spending expected to rise to $114.7 billion from $77.4 billion in 2018. That’s a jump of 48 percent on an average four percent compound annual growth rate (CAGR). The expansion is back-end loaded, with growth averaging 3.5 percent for the first five years, increasing the total to $91.9 billion by 2023, and rising to 4.5 percent yearly growth between 2023 and 2028.”
To read more about the specific changes to fleets and their maintenance across the major geographies of the world, please download the report for free.