A significant obstacle to the expansion of the APAC aviation MRO industry is the pandemic, which is also fought in Japan and other Southeast Asian nations
FREMONT, CA: By 2028, the APAC aircraft MRO market is expected to grow at a CAGR of 5.7 per cent, from USD 15.61 billion to USD 23.07 billion. The growing use of blockchain technology accelerates market expansion. The aviation industry's MRO services are vital in ensuring the longevity, security, and financial success of both commercial and military carriers. To maintain their competitive advantage in the future, businesses must be adaptable in embracing new and popular technologies that will help them digitize their company processes and eliminate the need for human labour. Blockchain and other cutting-edge technologies enhance procedures in MRO firms.
The MRO industry has enormous potential for this technology. Although blockchain technology hasn't been widely used yet, it will eventually play a significant role in the overall expansion of the APAC aviation MRO business. Businesses can keep track of the MRO component configuration information with the aid of blockchain technology. Additionally, this simplifies the documentation process between component makers and MRO service providers. By using blockchain, MRO service providers can also provide verifiable documentation regarding the components they have installed, maintaining operational transparency. The adoption of the technology is being heavily emphasized by stakeholders in the aviation sector, including aircraft manufacturers, aircraft MRO service providers, and aviation technology developers, to track their MRO processes. This aspect is expected to fuel the APAC aircraft MRO market in the upcoming years and will provide a significant future for the industry.
Since new airports are planned to open in several nations, it is anticipated that APAC will recover more quickly than other regions. Wide-body and narrow-body jets, which were the main consumers of aftermarket goods and services, were retired by several regional airlines. For the upcoming few months, it is projected that this issue will restrain the market for aircraft MRO. This factor is expected to hinder the aviation MRO business in the coming months. For instance, Qantas withdrew its Boeing B747 in the middle of 2020 to deal with the financial strain of the COVID-19 pandemic. The same reason led Singapore Airlines to send a number of its Airbus A380 aircraft to long-term storage. Wide-body jet retirement and long-term storage are thus reshaping the aircraft MRO industry.
In 2020, the commercial segment dominated the APAC aircraft MRO market based on end-users. Airlines that provide services for both passenger and cargo transportation make up the commercial aviation sector. The commercial aviation sector is experiencing an increase in demand for new aircraft due to rising air traffic and freight. To keep up with the rising demand for new aeroplanes and reduce backlogs, aircraft manufacturers are concentrating on making improvements to their production facilities. The demand for maintenance and repair services is anticipated to increase as the size of the commercial aviation industry's fleet grows. This will further boost the expansion of the APAC aircraft MRO market during the forecast period.