The
report titled “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)” covers
aspects such as market size, market segmentation (by
industry type and by major segments), market synopsis (need for MRO market,
overview and genesis, India’s current position in global MRO market, growth
drivers for global MRO market), value chain, growth drivers, growth inhibitors,
risks associated, recent developments (a
success case study of Gujarat Emerging as an MRO Hub), government regulations &
involvement, competitive landscape (competitive scenario, strengths and
weaknesses of major players) along with company profiles of major players (Air India Engineering Services Limited, Indamer Private
Limited, Deccan Charters Private Limited, Air Works, Taj Air and Max MRO
Services Private Limited, GMR Aero Technic Ltd).
The
report is useful for existing commercial aviation companies, business aviation
companies, MRO companies, potential entrants, investors and other stakeholders
to align their market centric strategies according to ongoing and expected
trends in the future.
The Indian
MRO Market is in its growth stage. Due to lack of proper MRO facilities and
high taxes being imposed on the provision of MRO services in India, 90% of the
Indian MRO work is outsourced to countries like Singapore, Dubai, UAE, Sri
Lanka and others. There are 8 major players in the market namely, AIESL, Air
Works, Indamer Private Limited, Deccan Charter, Taj Air, Bird ExecuJet, GMR
Aero Technic Limited and Max MRO Private Limited. Presently, the market is
concentrated with these players capturing more than half of market revenue in
financial year 2018. Increase in the
number of air passengers, drastic expansion of commercial fleet size,
government initiatives and entry of low cost carriers have been major push
factors for the market. India Aviation MRO Market growth was driven mainly by
the rapid extension of the aviation industry in India which was valued at USD
16 billion in FY’16. The air passenger traffic of scheduled airlines grew from
103.7 million in 2013 to 178.8 million in 2017. This increase along with growth
in airline fleet sizes has increased demand for MRO services.
Availability
of low-cost MRO manpower has given India an added advantage from the rest of
the MRO hubs in the world such as USA, Europe, Singapore and others. Increase
in the Indian commercial and business fleet size has been another major factor
driving the demand for MRO services in the country. The current Indian
Commercial Fleet size consists of more than 500 aircrafts and is expected to
double by 2020. One of the biggest growth restraints for the market has been
high taxes and custom duties levied on the MRO sector which has made them
comparatively costlier in India than abroad. This has resulted in domestic and
international airlines preferring to avail MRO services from outside India. As
a result there is a loss of opportunity, employment and growth for the Indian
economy.
By Industry:- The generated revenue from Defense Aircraft MRO has acquired
highest share in FY’18. Prime reason facilitating this has been IAF’s large fleet
size. Moreover, naval and army forces require their independent fleet which
further increases the size and demand for aviation MRO by this sector. HAL
provides Aircraft MRO for KIRAN-I/IA, KIRAN-II, JAGUAR, MIRAGE, MiG - 21 BISON,
DO-228, HS-748, AN-32 and Helicopter MRO for ALH, Cheetah and Chetak. The revenue from Commercial Aircraft MRO has been the second
highest share. The Indian commercial fleet has increased from 420 in 2010 to
589 aircrafts in 2018 and is expected to reach 900-1,000 by 2020.
By Major Segments:- The revenue generated
from Engine Overhaul has been the highest market share. Engine Overhaul is the
process of maintaining and restoring engine and its parts and components. AIESL
Overhaul facilities are located in Mumbai, Delhi, Nagpur, Kolkata, Thiruvananthapuram
and Hyderabad. The revenue from Aircraft Heavy Maintenance and Modifications
has generated second highest share. In India, very few companies provide Heavy
Maintenance service because it requires approvals from a lot of global OEM’s
and Regulators. Most of the air operators prefer to avail Heavy Maintenance
service from abroad because of globally certified quality. The revenue
generated from Line/Field maintenance and Component Overhaul has been third
highest respectively.
Competitive Landscape
There are
8 major players operating in the Indian MRO Market including Air India
Engineering Services Ltd, Air Works India (Engineering) Pvt. Ltd, Deccan
Charters Limited, Indamer Aviation Pvt. Ltd, Max MRO Pvt Ltd, Taj Air, Bird
ExecuJet and GMR Aero Technic Ltd. With these 8 players capturing a major chunk
of the market and AIESL having highest of the total revenue generated, the
market nature has been concentrated. Most of these players provide line
maintenance, heavy maintenance and component overhaul. AIESL is the only player extending full-fledged engine
overhaul facility in India. AIESL, a subsidiary of Air India, is the market
leader in FY’17, followed by Air Works which has the second highest share in
the market revenue. Air Works has a global presence however provides MRO
services only in India.
The
Indian MRO market is forecasted to grow at an expected 5 year CAGR of close to 10%
by 2023. The market is estimated to grow at an expected CAGR of 12% in the
longer run. In this scenario, the market is expected to experience continuation
of high custom duties, taxes and GST which shall prolong the regime of higher
expenses than foreign MROs like in Singapore, Dubai or Sri Lanka. As a result,
India is expected to lose its MRO market share to its foreign competitors.
Moreover, this scenario is characterized by poor implementation of the National
Civil Aviation Policy 2016, which aimed to boost the Indian MRO market.
However, lack of proper implementation of this policy in the past few years has
continued to create problems for Indian MROs and is expected to remain the same
in the future.
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:-
Commercial Airlines
Air Charter Companies
Business Aviation Companies
MRO Service Providers
Airport Authority of India and
Respective State Authorities
Aviation Association – DGCA and BAOA
Investors
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.
Key Topics Covered in the Report:-
India Aviation MRO Market Synopsis
India Aviation MRO Market Value Chain
India Aviation MRO Market Size
India Business Aviation Market
Overview
India Aviation MRO Market Growth
Drivers
India Aviation MRO Market Growth
Inhibitors
India Aviation MRO Market
Segmentation by Market by Industry Type (Defense, Commercial and Business
Aviation)
India Aviation MRO Market
Segmentation By Major Segments
(Engine Overhaul, Airframe Heavy maintenance and modification, Line/Field
Maintenance and Component Overhaul)
Risks associated
Recent Developments
A Study of Gujarat Emerging as an MRO
Hub
Market Regulations and Government
Involvement
Competitive Landscape in India
Aviation MRO Market
Strengths and Weaknesses of Major
Players
Company Profile of Major Players
Porter’s Five Forces
Analyst Recommendations
Future Outlook and Projections
Industry Speaks Section
For more information on the research
report, refer to below link:
Related
Reports by Ken Research:
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Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
