India's MRO industry to be worth $1.5 billion by 2020

New Delhi: India is poised to become the fastest growing market in the world for aircraft maintenance, repair and overhaul (MRO) services over the next decade tripling its worth to $1.5 billion, as airline companies buy more planes to cater for the country’s rapidly growing traffic.
“The MRO spend by airlines in India now is $500 million and is expected to grow to $1.5 billion in 2020. As a result, we expect significant investment to come into this space over the next 10 years,” MRO services provider Air Works managing director Vivek N Gour said.
Industry experts have estimated Indian air traffic will triple to 362 million passengers by 2021-22, by which time the country’s air carriers would have more than doubled their fleet to about 1,000 aircraft.
Experts also estimate that MRO revenues, a direct function of the number of aircraft, are growing at a compounded annual rate of 15% in India, which makes this space attractive. The MRO space is a $45-billion market globally, of which India constitutes only 1%.
But, according to global consultancy firm KPMG, over the next decade India is going to be the leader in this space, which is currently split between North America and Western Europe, because of higher economic growth rate that the country is going to witness.
“The fleet size in India is now reaching a critical mass where it makes sense to have a strong MRO space not just for the domestic fleet but also for international airlines. Growth of MRO in India is now a necessity than an option,” KPMG director (aerospace and defence) Amber Dubey said. Moreover, India will have no dearth of skilled manpower and has the advantage of its good geographical position, he added.
27/01/11 Anindya Upadhyay/Economic Times

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Categories: Indian Aviation- In General Jan 2011