Aviation MRO Software Market Size, Share & COVID-19 Impact Analysis, By Solution (Software (ERP Solution, Point Solution, Suite), and Services (Deployment & Integration, Consulting, Support, Maintenance & Upgradation)), By Function (Maintenance Management, Operations Management, and Others), Business Management (Accounts & Finance, Sales & Marketing, and Human Resources), and Electronic Flightbag & Logbook Management), By Point of Sale (Subscription and Ownership), By Deployment Type (On-premise and Cloud), By End-use (Airline Operator, MROs, and OEMs) and Regional Forecast, 2022-2029

The global aviation MRO software market size was valued at USD 6.73 billion in 2021. The market is projected to grow from USD 6.95 billion in 2022 to USD 9.76 billion by 2029, exhibiting a CAGR of 4.93% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with aviation MRO software experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 3.22% in 2020 as compared to 2019.

Aviation MRO software facilitates predictive maintenance analysis and condition-based maintenance support as software-as-a-service to the end-users such as airline operators, MROs, and OEMs. It comprises a huge database and management modules for maintenance, operations, business, and electronic flightbag & logbook, which can be deployed on premise or provided through a cloud-based platform.

The aviation industry has become more data-driven and connected to ground-based MRO systems for predictive maintenance. It includes tracking and efficient operations based on data collected by software via aviation analytics digital twin technologies. Aviation Digital Twin facilitates the end-users to conduct various MRO functions using virtual aircraft models for predictive maintenance tracking and other MRO applications. With the utility of Internet of Things (IoT) location and sensor-recorded data, the end-users can subject the digital aircraft twin to environment and different weather conditions for predictive maintenance tracking and aviation analytics. The advent of aviation analytics and digital twin technologies is driving the aviation MRO software market growth during the forecast period.

COVID-19 IMPACT

Financial Influence of COVID-19 on Aviation MRO Industry is Impeding Market Growth

The COVID-19 pandemic affected over 1 million people across the globe. Stringent lockdowns and travel bans were declared across the world. The global COVID-19 pandemic has swayed the market in 2020 and 2021.

• Due to lockdown, there was a huge impact on the aviation industry, resulting in a slowdown in aircraft production, thus impacting aircraft deliveries. According to Airbus SAS, by the end of October 2020, Airbus SAS delivered 341 aircraft compared to 571 aircraft in 2019. Thus, the pandemic has impacted around 40% of aircraft deliveries across the globe. The reduction in aircraft deliveries has drastically reduced MRO services and software demand.


• Moreover, according to analysis, more than 16,000 commercial aircraft are grounded or parked due to less passenger travel due to pandemics. Thus, due to grounded aircraft, the demand for maintenance has drastically reduced and adversely impacted the demand for the software and services domain.

LATEST TRENDS

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Rising Adoption of Artificial Intelligence (AI) and the Internet of Things (IoT) by MROs is the Latest Trend in the Market

The aviation sector is witnessing huge transformation, owing to the emergence of AI, Machine Learning, IoT, and AR. Machine learning generates algorithms from existing data. It can anticipate future outcomes based on new data. Adoption of machine learning in MRO software will reduce supply chain risk, detect risk areas in a project, and many other advantages. Artificial intelligence with its voice interface is expected to allow simple operations, increased efficiency, increased staff productivity, and reduced need for training.

Integrating IoT in the MRO software will help deal with the huge amount of data. The entire value chain can be connected using IoT, enabling more efficient, faster, and more reliable processes from production to supply chain operations. The MRO sector uses augmented reality for faster training. The AR enables skilled engineers to provide support remotely, saving time and cost for the operations. Thus, AR, AI, and IoT adoption is expected to create tremendous opportunities for the market growth in the coming years.

DRIVING FACTORS

Increase in Demand for Advanced MRO due to Aircraft Fleet Expansion to Boost Market Growth

Airlines across the globe are focused on expanding their aircraft fleet size, owing to the rising air passenger traffic. The market's growth in the upcoming decade can be attributed to the rising number of aircraft fleets. The MRO sector is expected to witness steady growth through the next decade due to increasing demand for air travel and a growing aircraft fleet. In 2020, the International Air Transport Association (IATA) stated that the market will grow to USD 118 billion by 2027. Strong growth in the sector is expected to augment the growth of the MRO software market.

The aviation MRO software cost accounts for roughly one-fifth of the airline operational cost. Going by the ever-growing passenger-growth trend, we may witness the market growth, with engines attracting the bulk of the maintenance prices. Considering maintenance, categorization, airframe, component, and line maintenance may share the major chunk of operator cost bifurcation. With aircraft maintenance a priority, air operators now have choices among aircraft OEMs, independent MROs, and components.

The growing demand for smooth paperless operations perform maintenance operations with less turnaround time (TAT) and predictive maintenance is leading various aircraft operators to adopt aviation MRO software solutions.

Increase in MRO Spending due to Aircraft Fleet Expansion to Boost Market Growth

The major aircraft manufacturers, such as Airbus and the Boeing Company, are focused on developing next-generation aircraft having capabilities such as low fuel requirement, low emission, low operating cost, and others.

The growing demand for air travel leads to increased flight hours for aircraft. The life cycle of various aircraft components, such as engine, landing gear, brakes, wheels, and others, decreases due to increased flight hours. Hence, the airlines and operators focus on regular aircraft checkups, preventive checkups, servicing, and regular aircraft health updates. The increase in demand for the adoption of aviation MRO software to increase the efficiency of operations by collecting data generated by aircraft is expected to fuel the market growth during the forecast period.

RESTRAINING FACTORS

High Cost Involved in the Research and Development of Software and Hardware

MRO software has to meet the needs of most communication & surveillance applications, electronic transmission, and others. With increasing technological development in software and equipment, the software needs to be developed for compatibility with the platform. However, high costs are involved in the R&D of the respected technology due to complexity of the design and development of the module. The development and integration of systems across the platforms and the maintenance of these systems are costly. Hence, the market growth is anticipated to be negatively affected due to these factors.

SEGMENTATION

By Solution Analysis

Software Segment Led the Market in 2021 Due to Growing Demand for Aviation MRO Software for Numerous Applications

Based on solution, the market is divided into software and services. The software segment was projected to be the largest segment in 2021 and is projected to be the fastest-growing segment with the highest CAGR during the forecast period. The software segment is classified into Enterprise Resource Planning (ERP), point solution, and suite. The integration of Artificial intelligence and IoT in MRO software is a major reason for segment growth during the forecast period. The growing adoption of software-based solutions, such as digital logbooks, digital maintenance manuals, and other aircraft health monitoring software, boosts segment growth during the forecast period. For instance, in February 2022, Vietjet and Lufthansa Technik announced that they agreed with Singapore Airshow to adopt AVIATAR's Technical Logbook, the seamless digital pilot-to-maintenance collaboration application.

The services segment is projected to show significant growth during the forecast period. The services segment is estimated to hold significant market share by 2029. The segment is further classified into deployment & integration, consulting, and support, maintenance & upgradation. The growth of the service segment is due to the increased digitization of maintenance activities owing to the rise in demand for support, maintenance & upgradation affected by the end-users’ reassessment plans. The growth is attributed to the increased demand for maintenance activities, major modifications, and overhauls from airline operators worldwide. The major changes in standard components, certification, and other key updates are needed for proper task understanding of consulting services. Thus, higher growth numbers are expected in the near future.

By Function Analysis

Maintenance Management Segment to Drive Market Growth Due to High Demand for Fleet and Inventory Management

Based on function, the market is divided into maintenance management, operations management, business management, and electronic flightbag & logbook management.

The maintenance management segment is estimated to be the largest segment with market share in 2021. The segment is projected to grow at a significant CAGR during the forecast period. Maintenance management is further segmented into line, base, engine, and fleet maintenance. Airline operators and MRO organizations have strong demand for advanced fleet and inventory management software. The growth is attributed to the increased demand for maintenance activities and growing airline fleets worldwide that require fleet management software.

The operations management segment held a significant market share in 2021 and is anticipated to grow with a moderate CAGR during the forecast period. Operations management is classified into training, safety & quality assurance, supply chain management, engineering & CAMO, and others. The growing need for software to train the maintenance personnel and manage the supply chain boosts the segment during the forecast period. The growth of this segment is attributed to the increased demand for software for training safety, quality assurance, and supply chain management. The business management segment is expected to grow at a moderate growth rate through the projection period. The growth is attributed to the growing modernization in accounts and sales software. Business management is further divided into accounts & finance, sales & marketing, and human resources. The segment's growth is attributed to high demand for accounts and sales software to manage the inventory and finances in an MRO.

The electronic flightbag & logbook management segment is projected to grow at the highest compound annual growth rate through the forecast period. The growth is attributed to the increasing demand for commercial flight bag tracking for air travelers to reduce the risk of misplacement or losses. The high growth of this segment is attributed to the growing trend of eliminating paper documenting and incorporating digital logbooks to minimize error.

By Point of Sale Analysis

High Demand for Maintenance Management Applications to Thrust Segment During Forecast Period

The market is classified into subscription and ownership based on point of sale. The ownership segment is the largest segment in both 2021 and 2029, respectively. The major MRO companies primarily prefer ownership options, owing to high investment costs and strong financial support in the industry. These key aspects will eventually boost the segment growth during the forecast period. The segment's growth is due to increased demand for maintenance software by the organizations involved in unscheduled maintenance.

The subscription segment is anticipated to be the fastest-growing segment with the highest CAGR through the forecast period. The subscription segment is expected to be the fastest-growing segment, owing to the key players as they prefer subscription of software services due to low-cost benefits as they subscribe on an annual, monthly, and quarterly basis and can also apply for free samples of subscriptions. The growth of this segment is attributed to the increasing procurement of software for line and base maintenance activities. Thus, higher growth numbers are anticipated during the forecast period.

By Deployment Type Analysis

Cloud Segment to Register Higher CAGR due to Rising Investment by Industrial Companies

The market is classified into on-premise and cloud by deployment type segment. The on-premise segment was the largest in 2021. The growth is due to increased upgrading of the existing aircraft fleet and component availability in the storage. The segment's growth is attributed to the increased demand for an advanced computing infrastructure in the aviation industry.

Cloud is anticipated to be the fastest-growing segment with a higher CAGR throughout the forecast period. The segment is expected to grow significantly due to growth of the MRO industry in Asia and emerging countries such as India and China. The cloud segment is anticipated to be the fastest-growing segment due to increased demand for data storing solutions for fleet and maintenance management applications.

By End-use Analysis

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MROs Segment to Register Higher CAGR Owing to Increasing Investment in Maintenance Management

The market is classified into airline operators, MROs, and OEMs based on end-use. The airline operators segment was the largest segment in 2021. The segment will grow moderately as many operators enter into sub-contracts with other maintenance organizations for their maintenance activities. The segment's growth is attributed to increased passenger air traffic and air cargo load worldwide. The increasing low-cost carriers is the major reason responsible for the airline fleet.

MRO is projected to be the fastest-growing segment with the highest CAGR throughout the forecast period. The segment's growth is attributed to increasing airline and cargo fleet that requires major maintenance operations. The growing demand for maintenance operations after the suspension of travel restrictions and airlines started reviving their fleets led the MRO segment to grow faster.

The OEM segment held a significant market share in 2021. The segment will showcase moderate growth with a significant CAGR during the forecast period. The OEM segment is expected to grow significantly during the forecast period due to increased demand for maintenance management in several European and Asian countries.

REGIONAL INSIGHTS

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The market is segmented into North America, Europe, Asia Pacific, the Middle East, and the Rest of the World.

North America dominated the market in 2021. North America's market size stood at USD 1.85 billion in 2021. The U.S. dominated the market with the highest market share in 2021. The presence of market players, such as ATP Inc., Oracle Corporation, and IBM Corporation, is anticipated to drive the market growth in the U.S. with global and domestic expansion plans. In February 2022, IBS Software announced its partnership with Lynx Air to implement the iFlight digital platform, facilitating flight and crew operations management.

Europe's market size is set to grow at a moderate rate due to increased passenger air traffic. The presence of prominent key players and OEMs, such as Lufthansa Technik and Swiss Aviation Software, plays a major role in the market growth. MRO companies, such as Cromwell Group (Holdings) Ltd., Graco Inc., WABCO, Mento AS, Valeo Service U.K. Ltd., and other key MRO players, contribute to maintenance software installations. Aviation maintenance software providers are establishing agreements and contracts with key maintenance providers. MRO software providers use this to optimize the MRO facilities to deliver cost-effective and efficient services.

The market in Asia Pacific is projected to grow at the highest CAGR during the forecast period. Digitalization in this region is enhancing the technical perspective in the aviation industry for effective and efficient base management, operation management, and line management. Thus, higher growth numbers are expected during the forecast period. A rise in the aviation fleet for domestic and international routes to and from China is anticipated to drive the market growth in the country during the forecast period. In December 2019, CASL (China Aircraft Services Ltd.) selected the aviation MRO platform for its various maintenance operations.

The Middle East market is anticipated to grow at a moderate growth rate during the forecast period. In March 2022, Aircraft Accessories and Components Company announced a partnership agreement with Safran Landing Systems, a world leader in landing gear maintenance, repair, and overhaul (MRO).

The rest of the world will grow at a significant CAGR during the forecast period. In June 2021, Kotoka International Airport (KIA) in Ghana was granted grant funding for performing tasks to support the development of a Maintenance, Repair, and Overhaul (MRO) facility by the U.S. Trade and Development Agency.

KEY INDUSTRY PLAYERS

Technological Progressions in Aircraft MRO Software Executed by Key Players to Propel Market Growth During Forecast Period

The upcoming trends in the market are the design of technologically advanced aviation MRO software systems using cloud deployment and developing new enhancements. Key players in this industry, such as GE Aviation, Oracle Corporation, and Lufthansa Technik AG, adopt strategies such as agreements, procurements, and partnerships for their growth.

Additionally, investment in the research & advancement of new technologies is adopted by key companies to sustain their market position. A varied software portfolio and innovative concepts accepted by prime players are the key factors bolstering the market.

LIST OF KEY COMPANIES PROFILED:

• AeroSoft Systems Inc. (Canada)


• ATP Inc. (U.S.)


• Aviation Intertec Services Inc. (Canada)


• The Boeing Company (U.S.)


• CAMP Systems International Inc. (U.S.)


• Communications Software (Airline Systems) Limited (U.K.)


• GE Aviation (U.S.)


• HCL Technologies Limited (India)


• IBM Corporation (U.S.)


• IBS Software Pvt. Ltd. (India)


• IFS AB (Sweden)


• Jet Support Services Inc. (U.S.)


• Lufthansa Technik AG (Germany)


• Oracle Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 – Oracle Corporation introduced new logistics features within its software platforms, such as Fusion Cloud SCM, Fusion Cloud Transportation Management, and Fusion Cloud Global Trade Management, which will help reduce cost, risk minimization, resource planning, improve customer service experience, and provide agile business operations.


• December 2021 – Jet Support Services Inc. (JSSI) announced the acquisition of TRAXXALL, a Software-as-a-Service (SaaS) solutions provider of aviation maintenance tracking and inventory management. This acquisition will be a major addition to JSSI’s SaaS division, including SierraTrax.

REPORT COVERAGE

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The aviation MRO software market research report provides an in-depth technical market analysis. It focuses on key aspects such as leading market players, the COVID-19 effect on the market, in-depth software applications, and the research ideology of the software platform. Besides, the report offers insights into the market trends and highlights key industry developments & trends. In addition, it provides multiple factors that will contribute to the market's growth during the forecast period.

Report Scope & Segmentation