Middle East repair and overhaul sector set to grow
Tuesday 1 February 2011 6:26 PM
AeroStrategy report says regional business aviation will surge 12.1%.
Dubai: The Middle East maintenance, repair and overhaul industry is set to grow to $11.2 billion (Dh41.13 billion) by 2019 as various segments of the industry grow to accommodate demand, a new research report by Aero-Strategy aviation consultants said.
In the air transport MRO market, the Middle East is moving from the $2.3 billion market to the $4.8 billion at an 8.3 per cent growth rate.
"The developing economies of India, China and the Middle East are all indicating the highest growth and the Middle East has the third highest growth rate behind India and China," David Stewart, Principal at AeroStrategy, said on Tuesday at the MRO show in Dubai.
Military spending
Regional business aviation will surge 12.1 per cent to $640 million, while military spending will rise to $5.4 billion at a 3.1 per cent compound annual growth rate. Within 10 years, the region will account for 7.6 per cent of the global MRO market.
Stewart said that while the market faced a downturn in the recession, aircraft operators delayed maintenance that was not urgent, and also reduced flying hours, resulting in lower maintenance requirements.
"The deferred maintenance came back in the third quarter of last year. There will be a kickback now of re-inventory in 2011," he said.
Maintenance for the civil helicopter market in the region will not be left behind, as demand continues from high net worth individuals. This segment will grow by 2.3 per cent to $335 million over the next decade.
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