Investment in India
Investment in MRO in India has long been discussed, albeit with little in the way of tangible results. This may finally change in 2024 as foreign OEMs and MROs establish aftermarket joint ventures and partnerships with Indian companies.
Airframe Parts Price Rises Will Continue
Vendors anticipate parts prices will increase in 2024, with some projecting they could rise by more than 10%. This will likely increase operators’ appetite for alternative sourcing, such as through PMA parts and DER repairs.
Inflation To Further Impact Energy Costs
Energy costs will remain an inflation-induced headache for the MRO industry. Relief seems unlikely in the first half of 2024, and this scenario may continue for the rest of the calendar year.
CFM56, V2500 MRO
As new-generation engine program issues continue to affect the narrowbody engine segment, MRO providers will look at growing or adjusting capacity to service the backlog of CFM56 and V2500 repairs in 2024.
Widebody Engine Reactivation
The coming year will be important for the widebody engine segment’s recovery. Expect a high volume of widebody engines to return from storage, stimulating the aftermarket.
More Localized Repairs
Localized repairs and supply of materials will be targeted as OEMs and MROs look to streamline supply chains as nearshoring strategies continue to gather momentum.
Sustainability Efforts Will Step Up
Sustainability efforts of aftermarket companies in North America, Europe and the Asia-Pacific region will be mirrored by MRO providers in the Middle East, Latin America and Africa trying to get up to speed and reduce energy consumption and costs.
Don’t Expect a Retirement Bow Wave for Equipment
A lack of aircraft and engine retirements will likely lead to the continuation of material constraints in 2024, as the market still relies on mature assets—particularly in the narrowbody segment.
M&A—A Market Bright Spot?
Travel demand is expected to expand further in 2024, bringing more flight activity and maintenance demand. Financial analysts anticipate this continued growth could result in more mergers and acquisitions as aftermarket companies seek to diversify.
Investment in Technician Training
The trend of airline maintenance providers and MROs investing in training will likely continue in 2024, with companies looking to establish programs subsidizing tuition costs to attract future workers as well as draw on overseas talent pools to fill skills gaps.
Predicting what could lie in store for the commercial aftermarket in 2024.
