Digital MRO Market Size, Share & Growth

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The Global Digital MRO Market Size was valued at USD 0.9 billion in 2023 and is estimated to reach USD 2.0 billion by 2030, growing at a CAGR of 13% during the forecast period. 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

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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

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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.

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Scope of the Report

Digital MRO Market Highlights

The study categorizes the Digital MRO market based on technology, application, end user and 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..

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