The rebound of air travel post-pandemic, coupled with a surge in new orders, has resulted in an increase in demand for maintenance, repair, and overhaul (MRO) services. MROs perform safety and repair services as part of their legacy workloads but have also seen an increase in demand for innovative solutions to appeal to the increasing number of passengers—a number which continues to rise. In Asia Pacific and the Middle East, for example, the number of passengers flying has increased by 10% each year, due to a rise in wealth and increased affordability in ticket prices. As a result, the maintenance (and manufacturing) markets have been soaring at an exceptional rate. Indeed, in 2023, the global maintenance repair and operations market size was valued at USD 666 billion and is expected to reach USD 834 billion by 2032.

New Demands for MRO Services

In response to the increase in air travel and demand for services, MROs are adding innovative services to their list of legacy repair and maintenance work. These may include services to enhance sustainability, convenience, and luxury experiences.

Sustainability

Aviation is a carbon-intensive field and a sector that garners significant attention in terms of greenhouse gas emissions. The rise in passengers, coupled with challenges facing the production of sustainable aviation fuel, puts extra pressure on MROs to reduce greenhouse emissions in service offerings. This may take the form of airframe/engine re-configuration and re-purposing solutions, in addition to innovative solutions like integrating recycled materials into cabin components. For MROs' airline customers facing the possibility of hefty taxes for emissions, these changes represent welcomed opportunities to replace fuel-intensive parts with superior performance designs that reduce greenhouse gas emissions. 

Enhanced Customer Experiences

In addition to sustainability, MROs are considering methods of meeting increased passenger expectations in their in-flight experiences. For MROs, this may include upgrades to in-flight entertainment systems, cabin retrofitting, and aircraft detailing. Notably, an upgraded entertainment screen may no longer be enough to appease travelers. New technologies are evolving to offer highly personalized experiences, from lighting to the types of entertainment offered in-flight. They may also include tailored in-flight services, customized to each passenger. Certainly, the future holds a realm of tailored experiences for passengers, derived by data analysis that accounts for individual passenger preferences. 

Changes to MRO Processes

The use of AI will fundamentally change the aviation industry, both in terms of in-flight services and MRO internal processes to enhance maintenance and repair processes. MROs' incorporation of new technologies to enhance their operations provides an additional opportunity for investment. These new MRO technologies include the use of Artificial Intelligence (AI) and Additive Manufacturing in MRO processes.

Artificial Intelligence (AI): Case Study

To minimize downtime of an aircraft or aircraft part, some MROs are employing AI to enhance predictive maintenance. Here, AI is used to analyze historical and real-time data during repairs to make data-based decisions about repairs. That is, predictive maintenance can minimize aircraft downtime by replacing components before they fail. For example, one aerospace manufacturer recently announced a significant investment to convert its Singapore aircraft engine repair facility into a cutting-edge 'Smart Factory' designed to revolutionize engine repair and enhance workforce skills to support the use of advanced technologies in MRO. The Singapore facility was one of the first worldwide to apply additive manufacturing technology to the repair of commercial jet engine airfoil components. Additionally, the 'Smart Factory' will introduce advanced technologies such as:

• Automated inspection systems, which can improve quality control and reduce human error.
• Innovative material removal processes relating to airfoils, which can enhance efficiency and accuracy.

Additive Manufacturing

Additive manufacturing, or 3D printing, is another technology that can significantly enhance MRO operations by allowing the on-demand production of customized parts and components. This technology can lower inventory costs, reduce lead times, and minimize waste, while also enabling more complex and innovative designs. For example, additive manufacturing can create lightweight components that enhance fuel efficiency and reduce emissions. It also supports rapid prototyping of new parts, facilitating quicker iterations and improvements.

Recent Investments in the MRO Sector

The growth in MRO services has led to new investment opportunities and partnerships. For instance, Marubeni Corporation, one of the world's largest trading and investment conglomerates, announced in 2023 an investment in KarbonMRO, a new business unit of Dviation Group, a consultancy, training, and MRO services provider headquartered in Malaysia. This partnership aims to leverage new technologies and innovative solutions to meet the rising demand for MRO services.

Another notable investment was made in 2022 by a maintenance subsidiary of a major European carrier that has been expanding its MRO capabilities globally. The subsidiary announced a significant investment in its facility based in a U.S. territory, to enhance its narrow-body aircraft maintenance capabilities. This expansion is expected to create hundreds of jobs and increase the facility's capacity to service more aircraft.

Moreover, in 2021, the maintenance division of a major U.S. airline invested in a new engine shop in the Southern U.S. This state-of-the-art facility focuses on next-generation engine technologies and aims to support the airline's fleet and third-party customers with advanced MRO services. 

Conclusion

The future of MRO will witness the introduction of innovative products and solutions. The MRO sector will continue to be propelled by increased air travel demand and expectations for the traveling experience. Moreover, the demand for MRO services will rise as airlines expand their fleets. Investment opportunities will continue to rise with the growth of MRO services and facilities.