The Global Military Aviation MRO Market 2012-2022 report offers the reader detailed analysis of the global military aviation MRO market over the next ten years, alongside potential market opportunities to enter the industry, using detailed market size forecasts.
What is the current market landscape and what is changing?
The global economic slowdown has reduced the defense budgets of most leading spenders in the world, including the US, France, Germany, and the UK. These countries have cut back their spending on various defense sectors such as space, aircraft, and military vehicles. However, these budget cuts have propelled the military aviation MRO industry as countries now prefer to maintain, repair and upgrade their existing fleet instead of buying new equipment. High growth markets such as India and China have been formulating continuous programs to enhance their military aviation MRO sector, with the US too focusing on maintaining their existing fleet. This trend is also evident from the fact that even a small market like Africa is expected to show positive growth during the forecast period.
What are the key drivers behind recent market changes?
The last decade has witnessed wars in Iraq, Afghanistan, Serbia and Libya which were primarily carried out by aerial attacks. Countries have been relying primarily on air power because it enables them to respond quickly to distant threats while putting relatively few lives at risk. However, this constant use has resulted in rapid aging and wearing out of the military aircraft fleet of the US and coalition allies, who are now spending considerably on their maintenance, repair and upgrading. The US, which is the highest spender on military MRO globally, is currently facing a combined problem of the rising age of many of its combat aircraft and delays to the F-35A fighter aircraft fleet. In spite of budget cuts and with a view of mitigating these problems, the government has decided to increase its spending on military aircraft MRO. Moreover, global spending is also expected to increase as the worldwide military fleet will only get older and the cost of replacing them is far greater than the cost of their MRO.
What makes this report unique and essential to read?
“The Global Military Aviation MRO Market 2012-2022” provides detailed analysis of the current industry size and growth expectations from 2012 to 2022, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
Detailed Market Analysis.
The report provides detailed analysis of the market for military aviation MRO during 2012-2022, including the factors that influence why countries are investing or cutting defense expenditure. It provides detailed expectations of growth rates and projected total expenditure.
The Main Providers in the Industry.
Lockheed Martin, Boeing, BAE Systems, DynCorp International, Pratt and Whitney, Honeywell International, EADS, SAAB, Thales, Northrop Grumman, General Dynamics, Raytheon, Elbit Systems, Rolls Royce, Embraer SA.
Market Entry Opportunities and Entry Strategies.
The military aviation MRO market is highly fragmented with many companies. With the total amount spent on military MRO being more than the amount spent on new aircraft production, many companies are vying for a share in this lucrative market and this has led to countries outsourcing most of their MRO contracts. Potential areas of cooperation with third-party MRO firms include issues with obsolescence in avionics for regular upgrades in software, training, calibration of test set-ups, aging studies and radio frequency identification (RFID). North America outsources approximately 50% of its military aviation MRO contracts and the Indian Air Force is also looking to outsource most of its MRO requirements to privately-owned companies in the country. This is primarily because it deals with issues such as a large mixed fleet, inadequate spares and support, high attrition of skilled manpower and obsolete equipment.
North America to continue to dominate the market.
Despite budget cuts, North America is expected to account for the largest share of the total global expenditure on military aviation MRO, with 48% share during the forecast period. High demand in the region is primarily driven by the region’s modernization programs and the overseas war against global terrorism.
Growth in performance based logistics (PBL) contracts.
Performance-based logistics contracts are rising in both civilian and military aviation MRO as they enable operators to offload investments in spares and other MRO capabilities. As a result, the company can focus on its core competencies thereby reducing costs and maximizing efficiencies. PBL contracts consist of an operator contracting with a supplier on a long-term basis to deliver a particular kind of service-related performance and sometimes take the form of a per-hour maintenance cost or a specific reliability guarantee. PBL contracts focus primarily on performance or output, rather than tasks or inputs by the service provider.
Civil MRO providers crossing over to the military domain.
The military maintenance market is worth more than its civil counterpart and this has resulted in commercial aviation MRO providers tapping into its potential to provide a distinct reliable revenue stream. In the current economic environment, companies in the aviation MRO domain are finding it hard to sustain strong revenues by focusing solely on civil MRO services and are looking to use their expertise for providing military MRO services. Government contracts and long term budget commitments make military MRO more resilient to global economic fluctuations compared to commercial maintenance.
Lockheed Martin, Boeing, BAE Systems, DynCorp International, Pratt and Whitney, Honeywell International, EADS, SAAB, Thales, Northrop Grumman, General Dynamics, Raytheon, Elbit Systems, Rolls Royce, Embraer SA
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