According to a June 2021 Fortune Business Insights report, the global helicopter maintenance, repair, and overhaul (MRO) services market size was worth $7.21 billion in 2020. Pandemic challenges aside, the sector is still tipped to grow from $7.48 billion in 2021 to $10.23 billion in 2028, at compound annual growth rate of 4.57%.
This northward trend can be attributed to an increase in short-distance air travel and rapid urbanization leading to a preference for a comfortable ride on board a helicopter. Moreover, VIP services, demand for off-shore oil and gas exploration, renewables, as also emergency medical services (EMS), are all making helicopter services more commonplace than ever before. More helicopters pressed into service results naturally in more requirement for maintenance or MRO services for overhaul dynamic components, repair instruments, or work on rotor blades. Combined with an increase in aftermarket sales, I would expect MROs to be busy this year with pre-purchase inspections and customizations for new owners.
The global helicopter market will be augmented further with expanding civil and military aircraft including helicopter fleets across the globe. Further requirements by the Coast Guard of nations protecting not just coastlines but carrying out search and recue missions will see a steady growth path for helicopters and hence the maintenance of them all.
Challenges for Helicopter MRO service providers:
Challenges for helicopter MRO service providers too, like fixed wing aircraft, remain somewhat acute with shortage of skilled workers due to the industry plagued with near retirements, lack of sufficient new recruits available to join the workforce or, thanks to the pandemic – have opted for a different calling. Overcoming manpower challenges is the need of the hour. It can get critical having to maintain client work schedules in a timely manner.
Inventory management has also become a financial strain for MROs as it involves judicious spending on parts and components that are increasingly becoming expensive. One way of cost-recovery has been to pass on some of that cost to unwilling customers. This can lead to somewhat of a prickly client-supplier relationship.
Presence of third-party suppliers has further made the existing ecosystem more complex. MROs must at times take on upskilling additional workers recruited from outside, to be able to absorb them to work in unison on niche specialisation areas that certain MROs provide.
In an ever-changing landscape in the MRO business, with supply chain stretched due delays beyond their control like weather, covid restriction, ‘same day delivery’ or ‘priority delivery,’ cannot always be assured.
Furthermore, Brexit challenges and dealing with inflationary fluctuations, will drive MROs to streamline their activities to better manage their businesses.
However, the upside is that the helicopter business remains resilient compared to commercial fixed-wing aircraft operations. It is because of the versatility in the way helicopter services can be applied. Emergency medical services and Para public activity will be ongoing despite travel restrictions caused by pandemics and other calamities. Therefore, MRO requirements for helicopter fleet will be ongoing.
An effective way would be to invest in going digital with requisite tracking software of maintenance activities. Making use of historical maintenance data, a helicopter owner or MRO can forecast and schedule requirements and execute maintenance planning, based on data and analyses thereof.
Leveraging Technology in Helicopter Maintenance
Significant advancements in helicopter MRO can be made by leveraging advanced technology like Internet of Things (IoT), blockchain, artificial intelligence (AI), robotics, AR/VR, digital twins, and 3D printing technological advancements are all changing the MRO industry and driving the development of novel solutions. All this is towards, business viability, operational safety, and airworthiness of helicopter fleets.
Use of Augmented Reality (AR) for MRO Training
Application of Augmented reality (AR) for training MRO technicians is a new-age method of teaching technicians by creating a scaled 3D model of helicopter parts and systems, through simulation of engines. Civil helicopter MRO providers have found this advantageous – giving a boost to their businesses.
Hangar of the Future (HoF), an initiative from the Airbus SAS stable, have created futuristic hangars replete with digital tools to automate the MRO process and achieve greater efficiency. Replete with integrated smart technologies such as Internet of Things (IoT), connected machines like air-cobot, scanners, drones for inspection, cameras, and non-destructive sensors, helicopter MROs are hugely benefitted.
Opportunities for helicopter MRO businesses with fleet augmentation
Examples of helicopter fleet augmentation – Post pandemic orders by The Helicopter Company (THC) consisted of 20 helicopters from Airbus Helicopters. These modern flying machines use modern technologies, biofuel-compatible engines – critical for achieving decarbonisation goals from helicopter flights.
Recently, the Indian Armed Forces enhanced its helicopter-led capabilities with a procurement order of indigenously built received 15 Light Combat Helicopters (LCH).
Expansion of both civil and military helicopter fleets are expected to boost market growth.
The Indian helicopter markets
With India’s aviation sector growth pegged at becoming the third largest civil aviation market, sector friendly policies and reforms by the government, all presents a huge opportunity for MRO service providers. The indigenous MRO sector in India is fast emerging, and the potential is vast. With superior infrastructure facilities, talent for precision manufacturing, spare-parts supply chain, and creation of skilled workforce, makes this market ripe to find a place in the global aerospace market.
Leading companies like Boeing, Airbus, Hindustan Aeronautics Limited (HAL), Pratt & Whitney, and Safran have all set up MRO facilities and manufacturing facilities and these will drive the growth of helicopter MRO services market got global buyers. Indian entity like Indocopters offer MRO as also airworthiness management services. Services include 24/7 support for spares and consumables maintenance of Airbus, Leonardo and Bell Textron helicopters.
Helicopter MRO services go on to include assembly and dismantling of helicopters to meet airworthiness requirements; line and base maintenance; retrofitting after-market and OEM equipment and carrying out upgrades or modifications, issued by OEMs and/or the aviation regulators – DGCA, FAA, EASA; aircraft restoration and extension of life; sheet-metal and composite repairs of airframe; custom painting and livery; aircraft completion, cabin enrichment and refurbishment; maintenance and overhaul included.
Key Drivers for the Helicopter MRO Services Market
With medical emergencies being critical and essential, where helicopters are the logical mode of transportation, Helicopter Emergency Medical Service (HEMS) then drives the helicopter MRO market. OEM Airbus SAS have supplied 2,000 helicopters for emergency medical services worldwide. The growing demand for helicopters for EMS, leads to growth in helicopter MRO services. Thus, this market has remained vibrant.
Again, the growing demand for helicopters for EMS has seen a spurt in growth of the Light Weight helicopter segment, more than the other categories, Medium – weight and Heavy – weight helicopter categories. This is especially so in countries like India and China. Accordingly, the MRO requirements will grow in tandem in this category.
Growth for the medium and heavy-weight helicopter categories will arise out of military transportation and military operations, where the medium-weight category will see the highest CAGR.
Increasing Demand for Power by Hour (PBH) Helicopter MRO Services to Propel the Growth
Power By Hour Segment is a cost- effective contract between OEM and MROs which in the post-pandemic period has become popular with short-term services. The highest growth rate is however seen for flight inspections, due to increase in helicopter related incidents and accidents. Therefore, the demand for frequent inspection, audit of navigational aids, and adherence to flight procedures safe operations will be on the rise.
The overhaul services include disassembly, inspection, cleaning, repair, reassembly, and testing of aircraft or a component. During the helicopter’s overhaul, fatigued parts are replaced with technologically advanced systems and components. Overhaul services is expected to rise and grow in the Asian countries.
There are miscellaneous or ‘others’ segment in helicopter MRO services that include the driveshaft, avionics, and rotor blades. Advanced helicopter avionics will grow this segment.
Some significant helicopter MRO orders
In December 2020, the U.S. Army and Sikorsky (a Lockheed Martin Company) signed a five-year contract worth USD 507 million for combat helicopters. Leading the US market are helicopter MRO services from ST Engineering, Aerospace, HAECO Group, AAR, and Aviation Technical Services.
In November 2019, Russian Helicopters and Pratt & Whitney Canada signed a contract for fitting the cutting-edge light VRT500 helicopter with gas-turbine PW207V engines.
In Europe the growth story of major helicopter MRO service providers involve companies such as Airbus S.A.S. Rolls-Royce, Safran, MTU Aero Engines, and similar.
Like commercial aviation MRO business, the Asia Pacific region is tipped to grow at the highest CAGR during the forecast period (2021-2028) for helicopter MRO services. Plus, business consolidations arising out of mergers and acquisitions among MRO service providers will increase the growth potential. In July 2020, Bell Textron Inc. acquired Zhenjiang Aerochine Aviation Limited to increase Bell Helicopter (MRO) in China, is such an example.
The ‘rest of the world’ which include Middle East & Africa and Latin America saw some helicopter MRO activity in terms of business growth. In August 2020, Leonardo S.p.A. set up a service centre in South Africa to provide helicopter MRO services. Through an acquisition, Precision Aviation Services’ (Pty) Ltd (South Africa), for providing maintenance services, has been set up to serve South African customers.
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