It is expected in the next five years, with rise in the number of air passenger traffic in the country, Line and Field maintenance would grow at fastest CAGR of close to 13% in terms of revenue generated. This shall be followed by Airframe Heavy Maintenance & Modification tracing a CAGR of close to 11%. Inspite of lower growth, Engine Overhaul would continue to maintain leading position in overall revenue generated, capturing almost half the market size.
On the industry front, Commercial Aircraft MRO would grow at the fastest pace tracing a CAGR of close to 13% during FY’18-FY’23. However, defense MRO would continue to hold leading position generating close to 50% of the market value.
Provision of tax holidays, changes in GST structure and enhancement in Ease of Doing Business are the changes expected at the regulatory front which shall propel growth in the next 5-10 years.
Ken Research in its latest study, “India Aviation MRO Market Outlook to 2028 – By Defense, Commercial Aviation and Business Aviation and by Categories (Engine Overhaul, Airframe Heavy maintenance & modification, Line/Field Maintenance and Component Overhaul)” suggests that the demand for Aviation MRO services would grow owing to improvement & development of aviation infrastructure, exponential rise in air passenger traffic and implementation of better taxation policies in the coming future.
Indian MRO Association has been constantly lobbying with the government to propel constructive developments for this sector. The organization actively pushes the government to see MRO as an opportunity for nation growth. These factors would prove to be the real catalysts in the growth of this market. With persistent efforts, it is expected that the Indian governments would realize how not to bank on heavy taxations to generate funds but to thrust infrastructural development, making investment more attractive thereby letting more domestic & international players enter the market. This would bring in more possibilities of development hence the lost market space back to the country. The government policy of permitting 100% FDI in MRO market will enable and encourage foreign players to enter the market.
Increasing liberalization and FDI Inflow in the MRO market will attract new players and increase competition. This will result in higher quality services being provided by MROs. Another growth factor will be the UDAN scheme which is aimed at increasing regional connectivity between Indian states. This will lead to more construction of airports in various states in India. With the increase in the number of airports and flight operations, more MRO operations can be placed on charts. The number of airports in India is expected to increase in the future. Existing airports will also be renovated to be equipped with modern technological systems. AAI has planned to increase the number of airports operational under it from 125 to 250 by 2020. Commercial airlines in India are considering increasing their fleet size current Indian commercial fleet size is 590 aircrafts and is expected to double by 2020. The number of air passengers in India is also expected to grow as prices of air travel and rail travel become comparable. Air passenger traffic of commercial airlines is expected to grow from 230.6 million in FY’2019 to 344.8 million in FY’2022. Moreover, close to 300 business jets and helicopters are expected to be added in the non-scheduled aviation segment in the coming years.
It is expected that this current GST rate is likely to fall to 5% from 18%. Relaxation of taxes in the MRO sector will make MRO services cheaper in India than abroad. More Air Operators will then prefer to avail MRO services in India than going overseas as it will save cost and reduce turnaround time for the airlines. These factors together would further the market size of India’s MRO industry.
India Aviation Overhaul Market
India Aircraft MRO Industry
India Aviation MRO Industry Size
India Aviation MRO Market Risks
India Engine Overhaul Market
India Helicopter MRO Market
India Component Overhaul Market
India Business Aviation MRO Market
India Airlines MRO Market Revenue
India Aviation MRO Market Trends
India Aviation MRO Market Research Report
Aviation MRO Market In India
Aviation MRO Industry In India
Key Segments Covered:-
By Industry: Defense, Commercial Aviation And Business Aviation
By Categories:- Engine Overhaul, Airframe Heavy Maintenance And Modification, Line/Field Maintenance, Component Overhaul
Key Target Audience:-
Air Charter Companies
Business Aviation Companies
MRO Service Providers
Airport Authority of India and Respective State Authorities
Aviation Association – DGCA and BAOA
MRO Equipment Manufacturers
Consultants and Advisors
New Market Entrants
Time Period Captured in the Report:-
Financial Year 2012-2018 – Historical Period
Financial Year 2018 Onwards – Future Forecast
Companies Covered:- Air India Engineering Services Limited (AIESL), Indamer Company Private Limited, Deccan Charters Private Limited, Air Works, Max MRO Services Private Limited, Taj Air, Bird Execujet Airport Services Pvt. Ltd., GMR Aero Technic Ltd.
For more information on the research report, refer to below link:
Related Reports by Ken Research:
Ankur Gupta, Head Marketing & Communications