The report titled “” covers aspects such as market size, 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.
Indian Aviation MRO Market Overview and Market Size
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.
Growth Drivers and Restraints
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.
Market Segmentation
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.
Indian Aviation MRO Future Market Outlook
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.
For more information on the research report, refer to below link:
https://www.kenresearch.com/defense-and-security/defense/india-aviation-mro-market/174403-16.html
Related Reports by Ken Research:
https://www.kenresearch.com/automotive-transportation-and-warehousing/general-transportation/india-business-aviation-market/170612-100.html
https://www.kenresearch.com/automotive-transportation-and-warehousing/general-transportation/india-ground-handling-services-market/155051-100.html
https://www.kenresearch.com/automotive-transportation-and-warehousing/general-transportation/global-aerospace-market-research-report/125-100.html
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
This post first appeared on FactsnFigs - Submit Your Guest Post, Articles For More Exposure, Credibility And Traffic, please read the originial post: here
