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The global aviation MRO software market size was USD 6.93 billion in 2019 and is projected to reach USD 8.78 billion by 2027, exhibiting a CAGR of 4.34% during the forecast period.
Digitalization in the aviation industry from the past few years has resulted in the accurate performance of a task to ensure the airworthiness of aircraft and its parts for the long term. Aircraft MRO software is a comprehensive solution that provides aircraft component maintenance scheduling, logbook tracking, work order management, service bulletins management, and electronic task card management. The aviation industry works on data-driven technology, which consists of a large amount of data. The most important objective of MRO software is to streamline the numerous processes, improving operational efficiency for airline companies, MRO service providers, OEMs, and other components manufacturers.
MRO software offers numerous functions, such as operation management includes training, safety, and quality assurance. Operation management provides solutions for supply chain management, engineering, and CAMO. The technological up-gradation from major MROs started, including ERP solutions for accounts, finance, sales & marketing, and human resources. The rise in need for accurate aircraft inspection, maintenance checks, defect rectification, and repair parts is likely to fuel the MRO software in the aviation market during the forecast period. Thus, the key players in the market are involved in developing innovations and adopt new strategies to strengthen their market share. Therefore, the demand for digital platform-based software is likely to increases during the forecast period.
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Rising Integration of Artificial Intelligence & Machine learning to Aid MRO Operation
The aviation industry is witnessing a massive in the up-gradation of technology in terms of digital platforms. A high level of digital development is possible by customization for the giant airline companies and compatibility of fleet size with their excellent technical capability. The software industry is transforming user capability in the maintenance industry. The development companies are facing key challenges in data entry about the developing requirement of MRO companies while using the ERP system. Therefore, software development companies are adopting AL/ML in ERP software technologies.
The new software capabilities enable an automated transactions. ERP system is a centralized platform that mainly consists of numerous combinations of resources planning, such as data storage of maintenance, human inventory resources, management, finance, and maintenance. This superior development by the software companies is expected to enhance technology in the aviation industry at the greater heights. Due to this, MRO Software is likely to experience significant growth in future years.
Increase in MRO Spending Due to Aircraft Fleet Expansion is likely to Boost Market Growth
A rise in air passenger traffic is primarily driving the demand for new aircraft around the globe. Airlines are focusing on the expansion of existing fleet size, which is expected to grow at a record level in the next coming decade. As per the International Air Transport Association, the global commercial fleet is projected to grow at a total fleet of 41,983 by 2028. The MRO market is estimated to grow at a 3.8% to 4.0% CAGR till 2029. Moreover. These factors are likely to fuel demand for the market during the forecast period.
New Generation Aircraft Projected To Fuel The Market Growth At A Healthy Rate
A rise in demand for new generation aircraft such as 787, A320 Neo, 737MAX, A350 & A380, and A220 are installed in 2018 in the commercial fleet across the globe. In the new generation, the global aircraft fleet includes 787 and A320 Neo type hold a major share in the market. This new-generation aircraft fleet generates a significant amount of data compared to older aircraft. Therefore, aircraft health monitoring will reduce the operational cost of airlines across the globe. This large amount of data usage is anticipated to enhance the efficiency of the maintenance process in the coming years, in turn, is projected to boost demand for MRO software in the aviation market during the forecast period.
Growing demand for air travel is making busy production lines for aircraft engines, parts, and components. The precautionary checking, regular updates, and servicing make aircraft health intact for a long duration. This certainly helps in the late retirement of aircraft, and low operational cost is likely to fuel demand for the MRO service through aviation MRO software in the coming years. Thus, the increase in the demand for maintenance technicians and software subscription is supporting aviation MRO software market growth.
Lack of Data Standards And Limited Adoption Of MRO Software Suite to Restrict Growth
Increasing the adoption of software-based services in the aviation industry has boosted the demand for MRO software in various countries. Aviation MRO software provides predictive analysis and condition-based support to the end-users. The MRO software also contains a large amount of database and management software, which is essential for End users. The comprehensive solution and integration require complex programming to develop, which further makes the software very expensive. The major concern for the MRO software in the aviation market is the lack of common data standards, which vary from country to country and based on their regional aviation authorities. These key factors are anticipated to restrain the aviation MRO software market growth in the future years.
The pandemic has triggered a global crisis of significant dimension affecting all industries, especially the aviation and MRO services. The many factors for infection spread are making responsible for the aviation industry, which has resulted in zero air traffic around the globe due to the shutdown of airports and halted international and domestic flights. This will impact the complete supply chain, which includes maintenance, repair, and operation (MRO) in the aviation industry. The heavy losses during the lockdown period are likely to impact on new business development for aviation MRO software companies during the few quarters in 2020. The market is projected to experience a slow growth in the coming years owing to a lack of new business opportunities, and severe losses to the airliners around the world.
Significant Adoption Of Software Based MRO Solution To Boost Market Expansion
Based on the solution, the market is classified into software and services. The software segment is further sub-segmented into an enterprise resource planning (ERP) solution, point solution, and a suite. The suite segment is projected to grow at the highest CAGR during the forecast period. Most of the MRO companies are preferring the multi-function, management, and tracking systems, and this factor is likely to boost demand for aviation MRO software in the coming years. The service segment is further divided into deployment & integration, consulting, support maintenance & up-gradation. The major changes in standards, components certification, and other key updates are needed to be employed in maintenance services. This, in turn, is expected to boost the market growth in the next few years. The support maintenance & up-gradation segment is projected to grow at a rapid pace in the forthcoming years.
Maintenance management Function is likely to Gain Maximum Revenue Share
By function, the market is segmented by maintenance management, operation management, electronic flight bag & logbook management, and business management. The maintenance management segment held a major share in the MRO software in the aviation market in 2019 and expected to be at the leading position during the forecast period. The airliners and MRO companies need to keep essential data secured for future use as well as it helps to reduce turnaround time in the emergency. Therefore, most companies are adopting the precise storage in digital form. The electronic flight bag & logbook management segment is expected to be the fastest-growing segment of the market during the forecast period. This growth is attributed to the increasing demand for commercial flight bag tracking for air travelers to reduce the risk of misplacement or losses. This factor is likely to boost demand for the MRO software in aviation the future years.
Subscription Segment Is Expected to Grow at the highest growth rate in MRO Software in the Aviation Market
By point of sale, the market is classified into subscription and ownership. The subscription segment is anticipated to be the fastest-growing in the next few years. The key companies prefer to subscribe to software services due to low-cost benefits. Key users subscribe for an annual, monthly, and quarterly basis, which offers flexibility and use. The major companies prefer ownership options due to high investment costs and strong financial back up majorly prefer the ownership of MRO software. These key aspects will boost the growth rate of the market in the estimated period.
The Growing Use of Cloud-Based Deployment Is fueling MRO Software Market Size
market-based on the deployment type includes on-premise and cloud. The cloud segment of the market is expected to grow at a significant growth rate during the forecast period owing to increased demand for MRO services and solutions in developing economies such as China, Indonesia, and India. The on-premise segment is expected to dominate the largest share of the market due to the increased up-gradation of the existing aircraft fleet and component availability in the storage.
Growing Commercial Aircraft Flights Is Supporting the Growth of End-use segment
Global MRO Software in the aviation market based on the end-use includes airline operators, OEMs, and MROs. The OEM segment is expected to grow at a significant growth rate during the forecast period owing to the rise demand for maintenance management in several countries. The digitalization of the aviation MRO sector is behind the growth of the OEMs segment.
The MRO segment is expected to dominate the largest share of the market due to the increased up-gradation, and regular maintenance of the existing aircraft fleet of passenger safety.
North America Aviation MRO Software Market Size, 2019 (USD Million)
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The findings based on our research methodology indicate North America was estimated to hold the second-largest share in 2019 in the MRO Software in aviation market. The U.S. has a presence of prominent companies for an aircraft manufacturer, component providers, MRO services, aircraft maintenance, and software service providers. The U.S. held a maximum number of airports in the region compared to the other countries. Moreover, the region has the presence of a large number of MRO Software manufacturers that facilitate excellent growth during the forecast period.
As per our market research report, Asia Pacific is expected to experience strong growth in the market during the forecast period owing to the significant rise in new commercial aircraft deliveries in developing countries such as India and China. These factors are likely to drive demand maintenance management software for the reduction of turnaround time. Digitalization in the various countries is enhancing the technical perspective in the aviation industry for effective and efficient base management, operation management, and line management. The region is expected to witness long-term growth in software market in aviation due to large potential backed by the largest populated region around the globe.
Europe held significant market share in 2018 owing to the presence of multiple MRO Software manufacturers in this region, such as Swiss Aviation Software, SAP SE, Communication Software, and IFS are among others. Furthermore, the market in the Middle East is expected to increase at a significant CAGR, owing to the significant number of service providers and airline companies in the region. Also, the increasing investment in the MRO sector in the region is forecasted to fuel the market in the Middle East region. Moreover, the market in the rest of the world will be expected to witness healthy growth in the future years.
Adoption of Continuous Innovation and Acquisition & Collaborations Strategies, To Sustain in The Market
The competition landscape of the market depicts the domination of selected players such as International Business Machines Corporation, Ramco Systems Limited, IFS AB, Oracle Corporation are among others. A diversified product portfolio of ERP, inventory management, supply chain management, human resources, inventory, maintenance, and other solutions. The companies are investing in collaborating with key software companies for the development of MRO solutions. Strong R&D and strategic acquisition are prominent factors responsible for the strengthening position of these companies. These companies are adopting organic and inorganic growth strategies such as mergers and acquisitions, a new product launched, entering into a long-term contract with airlines, MRO service providers, and building long-term relationships with OEMs.
The report offers qualitative and quantitative insights on the aviation MRO Software systems and detailed analysis of market size & growth rate for the segments in the market.
An Infographic Representation of Aviation MRO Software Market
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Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption of advanced technology, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key Aviation MRO industry trends.
Value (USD Million)
By Point of Sale
By Deployment Type
In 2019, the market was USD 6.93 Mn, and it is anticipated to reach USD 8.78 Bn by 2027, growing at a CAGR of 4.34% during the forecast period (2020- 2027).
In the market, software, maintenance management, ownership, on-premise, MROs, are the leading segments
Some of the driving factors for the market are the rising new aircraft deliveries owing to increased passenger traffic, increased demand for digital-based advanced technologies to enhance the maintenance and management operation.
In the market, some of the key players are International Business Machines Corporation, Ramco Systems Limited, IFS AB, and Oracle Corporation are among others. These players are focusing on acquisition and collaborating with domestic players to strengthen their aviation MRO Software system based portfolios.
In the market, the key players are mainly focusing on establishing a strong supply chain network in high growth regions such as Asia-Pacific. It is also involved in acquisitions and technological collaborations to strengthen its market share. Furthermore, Major companies are focusing on high investment to enhance R&D capabilities and new product development to enhance MRO Software systems.
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