The impact of COVID-19 on the aviation industry was immense. While the entire industry came to a halt during the initial phase of the pandemic, it also became a reason for the introduction of several new technologies in the industry. From contactless solutions to self-cleaning robots, technology has played a critical in supporting the resurrection of the aviation sector. Given the increasing competition around the world, the adoption of digital technologies is a vital step toward the expansion of aviation and more importantly, MRO companies.Digitalization will enable the industry tocreate a continuous stream of data that flows through the supply chain at various levels.It will also improve communication between stakeholders while also speeding up innovation in various operations.The aviation industry’s digital transformation has a significant impact on all aspects of the supply chain, including air traffic control, aircraft operations, and aircraft and component production and repair.Data-driven technology, such as data analytics, aid in the real-time tracking of aircraft MRO activities, hence improving the crew and passengers’ air travel experience. Furthermore, innovative technologies such as artificial intelligence (AI) and machine learning (ML) benefit airline crews and management in determining the aircraft's airworthiness.
The Middle East Aircraft MRO Market, specifically is being driven by the rising demand for new aircrafts as a part of regional carriers' fleet expansion and modernization programs. Furthermore, increased collaboration among aircraft MRO providers is likely to boost technological capabilities, allowing them to service new-generation aircraft being purchased by airlines.The early retirement of wide-body jets owing to COVID-19 is anticipated to have an impact on the aviation MRO sector since aircraft with an average age of over 10 years contribute toan above-average share of MRO spending as they start requiring heavy maintenance checks. Furthermore, for years, there has been a scarcity of aviation maintenance specialists, and the demand for trained technicians is being exacerbated by technological advancements in aircraft manufacture.With the inclusion of current generation aircraft platforms, demand for a newer, broader variety of skill sets for aircraft maintenance specialists is predicted to rise, aggravating the anticipated labor shortfall.
The Middle East aircraft MRO market is expected to increase at a CAGR of more than 17.6%. (2021-2026).MiddleEast has been a transit gateway for international flights. The COVID-19 pandemic has disrupted several vital and profitable routes due to the travel restrictions. According to Airports Council International, the pre-COVID baseline for passenger traffic in the Middle-East was 431 million in 2020 and 453 million in 2021.On the other hand, the devastating impact of COVID-19 can be seen in the updated forecast which shows a 68.5 percent and 59.4 percent decline in annual passenger traffic in 2020 and 2021, respectively.
In terms of revenue, Asia Pacific accounted for roughly 35 percent of the worldwide MRO market. The aviation industry in China is rapidly expanding with more than 55 airlines operating across the country. The growth of the MRO market in China is expected to be driven by the construction of new airports, the expansion of existing airports, and the expansion of domestic fleets.