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Top 10 MRO Market Predictions for 2020

jet
Credit: Gol Aerotech

What to watch for in the civil aviation aftermarket in 2020

1 | M&A: Hot, Hot, Hot

Mergers and acquisitions will continue to be hot from all sides, including OEMs and other non-MROs buying, as well as private equity buying and selling. However, expect few large acquisitions because the easy pickings are gone, and valuations of any remaining sizable acquisition targets are high.

aircraft
Valuations are high for the remaining sizable acquisition targets. Credit: Eric Piermont/GettyImages

2Robotics

Robotics are going to start truly taking off within MRO for improving safety and accuracy with tasks such as aircraft inspections, paint removal
and nondestructive testing.

robotics
Invert Robotics is adding nondestructive functionality to its inspection robots. Credit: Invert Robotics

3Drone Inspections

Drone trials will continue to proliferate for aircraft inspections. Could 2020 be the year regulators approve drone inspections as a stand-alone procedure?

DRONE
AAR is one of the companies that is trialing drone inspections. Credit: Donecle

4MAX Impact

With a prolonged 737 MAX grounding and growing pressure on capacity, there will be an impact on the aftermarket for the CFM56-3/7B on Boeing 737 Classics/NGs—and possibly even the V2500/CFM56-5 on Airbus A320s—as operators continue to defer maintenance in the short-to-mid-term.

jet

5Parts Shortages

Next-gen engines such as the PW1000G-JM will need maintenance on top of scheduled upgrades, and older aircraft are staying online due to delivery delays, so the shortage of used serviceable material for popular engine types—especially CFM56s, V2500s and CF6s—will be even worse in 2020. This will drive prices higher and also lead to more repair development.

engines
The CFM56 will dominate in-service engine fleets in 2020, with 33% of the market, according to Aviation Week Network’s 2020 Fleet & MRO Forecast. Credit: Aerolus Engine Services

6Southeast Asia

MRO facility growth in Southeast Asia will continue, with new or expanded facilities in places like Batam, Indonesia; U-Tapao, Thailand; and Kuala Lumpur.

jet
A proposed MRO hub at U-Tapao Airport is expected to play a key role in attracting investment to Thailand’s Eastern Economic Corridor project. Credit: Thai Airways

7Latin Expansion

Investment is underway as airlines gain partners and expand in-house maintenance services. For example, Brazil’s GOL launched a new business unit in late November, GOL Aerotech. Azul Airlines will open a hangar in 2020 to bring maintenance in-house. Delta plans to invest in LATAM, while United is doing the same with Avianca. Pratt & Whitney opened an engine overhaul center in Belo Horizonte on Dec. 11.

airlines
GOL Aerotech opened for third-party maintenance services in late November. Credit: Gol

8Big Data

To really accelerate big data analytics, companies need to start sharing more positive outcomes to demonstrate the value of the field and show why companies should consider sharing data.

Big Data
Big data analytics still draws debate in the aviation aftermarket about data ownership and skepticism about data sharing. Credit: Tonefotografia/Getty Images

9Slow Dance

Expect longer approval times for anything a regulator touches and a potential logjam for FAA certification projects if ODA is scaled back.

projects
The MAX grounding is having a trickle-down effect on FAA regulatory and organization designation authority approvals. Credit: FAA

10'Let’s Just Get Along'

Strife over foreign repair station approvals could erupt if the FAA carries out the U.S. Congress’ mandate for revamped oversight.

repairs

Lee Ann Shay

As chief editor MRO, Lee Ann Shay directs Aviation Week's coverage of maintenance, repair and overhaul (MRO), including Inside MRO.


 

As a subscriber to one of Aviation Week Network’s market briefings, your searches only provide you with access to articles from within that product.

To find out about obtaining additional data – including the most comprehensive details on organizations, fleets, personnel and programs – click here or call +1.561.279.4661.


 

As a subscriber to one of Aviation Week Network’s market briefings, your searches only provide you with access to articles from within that product.

To find out about obtaining additional data – including the most comprehensive details on organizations, fleets, personnel and programs – click here or call +1.561.279.4661.


 

As a subscriber to one of Aviation Week Network’s market briefings, your searches only provide you with access to articles from within that product.

To find out about obtaining additional data – including the most comprehensive details on organizations, fleets, personnel and programs – click here or call +1.561.279.4661.


 

As a subscriber to one of Aviation Week Network’s market briefings, your searches only provide you with access to articles from within that product.

To find out about obtaining additional data – including the most comprehensive details on organizations, fleets, personnel and programs – click here or call +1.561.279.4661.