Luton, Bedfordshire, United Kingdom, June 13, 2025 (GLOBE NEWSWIRE) — Market Overview
The global Aerospace and Defense Maintenance, Repair, and Overhaul (MRO) market is projected to reach approximately USD 98 billion in 2024, driven primarily by increasing global defense expenditures and the growing need for fleet modernization across both commercial and military aviation sectors. Over the forecast period from 2025 to 2034, the market is expected to expand at a compound annual growth rate (CAGR) of 5.3%, potentially exceeding USD 160 billion by 2034.
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This growth is supported by the aging of global aircraft fleets and defense equipment, requiring more frequent and advanced maintenance services. In addition, the integration of digital tools, predictive analytics, and automation in maintenance operations is revolutionizing the MRO sector, helping reduce downtime and optimize service efficiency.
Key Market Segmentation
By Service Type
The MRO market is segmented into Maintenance, Repair, and Overhaul.
- Maintenance services form the backbone of the market, representing around 40% of total revenues. The demand is fueled by strict regulatory requirements and operational needs to ensure flight safety and availability. The increasing deployment of predictive maintenance tools enhances this segment’s efficiency and cost-effectiveness.
- Repair services account for approximately 35% of the market. This segment includes minor to moderate work on aircraft systems and components. Technological advancements such as 3D printing and the use of composite materials are reshaping repair practices.
- Overhaul services, while more capital-intensive, are critical for aging fleets, especially in military aviation. Representing about 25% of the market, overhaul involves comprehensive restoration and inspection tasks required to extend the life of aircraft and systems.
By Component Type
MRO activities are further classified by component:
- Engine MRO is the most resource-intensive, covering nearly 45% of all MRO spending. Engine systems require frequent high-cost maintenance to ensure fuel efficiency and reliability.
- Airframe MRO constitutes about 40%, encompassing structural inspections and compliance tasks necessary for airworthiness.
- Component MRO includes maintenance of avionics, hydraulics, landing gear, and electrical systems, making up 15% of the overall market.
By End User
The major end-user segments include Commercial Aviation, Military Aviation, and Space and Defense.
- Commercial aviation is the largest, representing about 55% of total demand. The resurgence of air travel post-pandemic and the vast global fleet of passenger aircraft drive this segment.
- Military aviation accounts for nearly 30%, propelled by ongoing geopolitical tensions and heightened defense readiness requirements.
- Space and defense, though currently contributing less than 10%, is experiencing rapid growth with increased investments in satellite systems and space exploration initiatives.
By Technology
Technological integration is becoming a key differentiator in the MRO space:
- Traditional MRO remains prevalent, contributing around 40%, but is gradually giving way to digital innovations.
- Predictive MRO, which uses AI and IoT-based systems to forecast maintenance needs, comprises 30% of the market and is gaining traction rapidly.
- Digital MRO, encompassing digital twins, remote diagnostics, and automation, also holds a 30% share, with expectations for steady growth due to its efficiency in reducing operational downtime.
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Regional Market Analysis
North America
North America is the largest market for aerospace and defense MRO, contributing around 40% of global revenues. The region’s dominance stems from its mature aerospace industry, robust defense spending—particularly in the United States—and a strong base of OEMs and MRO providers. Additionally, ongoing investments in next-generation defense technologies further drive demand for advanced MRO services.
Europe
Europe follows with an estimated 28% market share and a CAGR of around 4.5%. The region benefits from joint defense initiatives among EU nations and significant investments in fleet upgrades. However, regulatory uncertainties and shifts in policy post-Brexit may present hurdles for sustained growth.
Asia-Pacific
Asia-Pacific is emerging as the fastest-growing region, with a projected CAGR of 5.8%. Increased air travel, growing military expenditures, and infrastructure development in countries such as China, India, and South Korea are primary growth enablers. The establishment of new aerospace hubs and rising domestic demand for MRO services further bolster this trajectory.
Latin America and MEA
Latin America and the Middle East & Africa (MEA) are seen as emerging markets.
- Latin America holds a modest 8% share, but is expected to grow at a CAGR of 6.5%. Fleet modernization and domestic MRO facility development present key opportunities.
- MEA, with a 4% share, is projected to grow at 7% CAGR driven by regional security needs and increased defense budgets, …