It is
expected in the next five years, with rise in the number of air passenger
traffic in the country, Line and Field maintenance would grow at fastest CAGR
of close to 13% in terms of revenue generated. This shall be followed by
Airframe Heavy Maintenance & Modification tracing a CAGR of close to 11%.
Inspite of lower growth, Engine Overhaul would continue to maintain leading position
in overall revenue generated, capturing almost half the market size.
On the
industry front, Commercial Aircraft MRO would grow at the fastest pace tracing
a CAGR of close to 13% during FY’18-FY’23. However, defense MRO would continue
to hold leading position generating close to 50% of the market value.
Provision
of tax holidays, changes in GST structure and enhancement in Ease of Doing
Business are the changes expected at the regulatory front which shall propel
growth in the next 5-10 years.
Ken
Research in its latest study, “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)” suggests that the demand
for Aviation MRO services would grow owing to improvement & development of
aviation infrastructure, exponential rise in air passenger traffic and implementation
of better taxation policies in the coming future.
Indian
MRO Association has been constantly lobbying with the government to propel
constructive developments for this sector. The organization actively pushes the
government to see MRO as an opportunity for nation growth. These factors would
prove to be the real catalysts in the growth of this market. With persistent
efforts, it is expected that the Indian governments would realize how not to
bank on heavy taxations to generate funds but to thrust infrastructural
development, making investment more attractive thereby letting more domestic
& international players enter the market. This would bring in more
possibilities of development hence the lost market space back to the country.
The government policy of permitting 100% FDI in MRO market will enable and
encourage foreign players to enter the market.
Increasing
liberalization and FDI Inflow in the MRO market will attract new players and
increase competition. This will result in higher quality services being
provided by MROs. Another growth factor will be the UDAN scheme which is aimed
at increasing regional connectivity between Indian states. This will lead to
more construction of airports in various states in India. With the increase in
the number of airports and flight operations, more MRO operations can be placed
on charts. The number of airports in India is expected to increase in the
future. Existing airports will also be renovated to be equipped with modern
technological systems. AAI has planned to increase the number of airports
operational under it from 125 to 250 by 2020. Commercial airlines in India are
considering increasing their fleet size current Indian commercial fleet size is
590 aircrafts and is expected to double by 2020. The number of air passengers
in India is also expected to grow as prices of air travel and rail travel
become comparable. Air passenger traffic of commercial airlines is expected to
grow from 230.6 million in FY’2019 to 344.8 million in FY’2022. Moreover, close
to 300 business jets and helicopters are expected to be added in the
non-scheduled aviation segment in the coming years.
It is
expected that this current GST rate is likely to fall to 5% from 18%.
Relaxation of taxes in the MRO sector will make MRO services cheaper in India
than abroad. More Air Operators will then prefer to avail MRO services in India
than going overseas as it will save cost and reduce turnaround time for the
airlines. These factors together would further the market size of India’s MRO
industry.
Keywords:-
India
Aviation Overhaul Market
India
Aircraft MRO Industry
India
Aviation MRO Industry Size
India
Aviation MRO Market Risks
India Engine
Overhaul Market
India Helicopter
MRO Market
India
Component Overhaul Market
India Business
Aviation MRO Market
India Airlines
MRO Market Revenue
India
Aviation MRO Market Trends
India Aviation
MRO Market Research Report
Aviation
MRO Market In India
Aviation
MRO Industry In India
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.
For more information on the research
report, refer to below link:
Related
Reports by Ken Research:
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
