Global civil helicopter MRO market to exceed US$2 billion by 2020, according to Technavio

The global civil helicopter MRO market 2016-2020 is likely to grow at a CAGR of over four percent during the forecast period according to Technavio’s latest maintenance, repair and overhaul (MRO) industry report.

In this report, Technavio covers the present scenario and growth prospects of the global civil helicopter MRO market for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top five vendors operating in the market.

The market is segmented into the following regions:

– Americas;
– Europe, Middle East and Africa (EMEA); and
– Asia and Pacific (APAC).

Americas: largest civil helicopter MRO market

The Americas is the major market for civil helicopter MRO and is expected to grow at a compound annual growth rate (CAGR) of over two percent by 2020. North America proposes to procure civilian turbine-powered helicopters, which is predicted to have a positive impact on the civilian helicopter market.

“It is predicted that United States and Canada will jointly generate 27 percent of the region’s sales and fleet replacement deliveries in Latin America will increase by 34 percent during the forecast period,” said Abhay Singh, a lead analyst at Technavio specializing in the MRO industry.

Latin America’s exponential growth forecast will be driven by prevalent economic stability, which will allow for replacement of aging aircrafts that were used for offshore activities and search-and-rescue missions.

In addition, new repair stations and contracts for the development of helicopters contribute to the growth of the market in this region.

EMEA: civil helicopter MRO to exceed US$2 billion

The civil helicopter MRO market in EMEA is expected to grow at a CAGR of over three percent with France accounting for the highest sales in the aerospace sector in Europe.

Germany is also a major contributor to the aerospace sector, with 21 percent of its exports generated by this sector. The German aerospace industry and related industries witnessed a growth of 106 percent from 2008 to 2013.

Africa and the Middle East accounted for only six percent of the total market share in 2013, however, their share is expected to increase as Eurocopter Southern Africa Limited (ESAL) has experienced growth in Kenya, and plans to set up a permanent base in the country. This will provide opportunities of MRO operations for Airbus Helicopters in Africa and in parts of the Middle East.

A contract has also been signed with Kenya police for a twin-engine helicopter for increased airborne law enforcement and civil emergency response capabilities. These operations require varying types of helicopters and their operators, thus promoting the aftermarket MRO services.

APAC: fastest growing market for civil helicopter MRO with a CAGR of over seven percent

In APAC, China holds second position in the expanding civil aviation market. China is one of the fastest growing countries in the global aviation supply chain owing to its comprehensive aviation products and services. They are also planning to enter the commercial helicopter manufacturing market.

The earthquake in the Sichuan region of China in 2008, made the country realize the importance of helicopters for disaster relief and medical rescues. Therefore, China increased its procurement of helicopters for rescue missions during calamities.

The Chinese government is also encouraging private firms and foreign companies to co-operate and manufacture helicopters. The growing Chinese economy provides a huge potential market for manufacturing helicopters of all classes.

“Rapidly expanding airframe and engine manufacturers and the burgeoning number of helicopters in APAC have led to a boost in the MRO market,” said Abhay. “Increased number of incoming orders, new helicopter types, and emerging markets, indicate further expansion of the region’s support network.”

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