Dublin, Sept. 02, 2019 (GLOBE NEWSWIRE) -- The "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)" report has been added to ResearchAndMarkets.com's offering.

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.

Time Period Captured in the Report

Indian Aviation MRO Market Overview & 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 & 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

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.

Key Segments Covered

By Industry

By Categories

Companies Mentioned

Key Topics Covered

For more information about this report visit https://www.researchandmarkets.com/r/a5f1ui

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