Global MRO Blockchain Market Size (2023 - 2030)

The Global MRO Blockchain Market was valued at USD 0.42 billion and is projected to reach a market size of USD 1.50 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 20%. 

Industry Overview

A blockchain is a digital ledger of transactions that records every time a component is added to or taken out of an aircraft. Blockchain technology offers a real-time snapshot of events, from the production line through the fleet's retirement. The capacity to streamline and guarantee smoother, more efficient operations that result in a decrease in complexity and cost savings is what drives the adoption of blockchain in the aviation industry. Some of the factors driving market expansion include the enhanced passenger experience, decreased maintenance costs, simplified business transactions, and higher transparency & traceability of operations.

The aviation industry now benefits from a transparent and well-connected supply chain thanks to blockchain technology. This technology is necessary in the aviation industry as a result of the extensive and intricate supply networks that underpin the sector's expansion. Aircraft Maintenance, Repair, and Overhaul (MRO) companies, airlines, and aircraft manufacturers have recently announced plans to implement initiatives and research programmes that use blockchain technology, ranging from handling the purchase of airline tickets to replacing parts on in-service aircraft.

Impact of Covid-19 on the Industry

Major firms including Boeing (US), General Electric (US), Lufthansa Technik (Germany), SAP (Germany), and IBM are present in the digital MRO sector (US). These players have dispersed their operations over a number of nations, including those in North America, Europe, the Asia-Pacific region, the Middle East, Africa, and South America. Their companies have been harmed by COVID-19 as well. Industry analysts predict that COVID-19 will have a global impact on digital MRO services in 2020 of 30–40%. The rapid spread of COVID-19 in Europe, the US, and Asia Pacific has resulted in a significant decline in demand for digital MRO globally. As a result of late deliveries, manufacturing shutdowns, and equipment availability issues, different digital MRO service providers have seen a corresponding decline in revenues across all markets. Industry analysts predict that demand for digital MRO will increase globally.

Market Drivers

Increasing demand for predictive, prescriptive, and condition-based maintenance through data shared by connected aircraft

Instead of purchasing new aircraft, airlines choose to use MRO services to extend the life of their current fleet. Previously, airlines handled MRO for aircraft, which raised their operational costs and decreased overall efficiency. By minimising the turnaround time (TAT) of aircraft repair, software data analytics employed in MRO software aid airlines in conducting operations effectively. As a result, airlines are able to save maintenance expenses and concentrate on fleet management. MRO operators must use data analysis tools in order to maintain ideal inventory levels and order frequency. By having access to data on the number of aircraft coming for maintenance, it also assists MRO operators in managing their personnel requirements and addressing issues with overstaffing and staff shortages.

Satellite communication has made data connectivity possible for connected aircraft, which is intended to improve operational effectiveness and speed up maintenance and repairs. They are linked to ground stations, which provide information to various players in the aviation industry, including airlines, OEMs, and MRO service providers, on the health of the engines and system components of the aircraft. For scheduling predictive maintenance, this data can be used. Prescriptive maintenance aids MRO service providers in ascertaining current circumstances, analysing data pertaining to MRO tasks that must be carried out, and assessing information about a system before failure happens. MRO service providers assess data and monitor the health of the aircraft using condition-based analysis.

Increasing adoption of Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Augmented Reality (AR), and big data analytics by MROs

Due to the growing usage of the Internet of Things (IoT), artificial intelligence (AI), augmented reality (AR), blockchain, and big data analytics, the digital MRO industry is seeing a substantial transition in data analysis. Digital solutions for ERP-based software are being developed as a result of the digitization of aviation MRO software. For instance, Lufthansa Technik created a digital platform that incorporated all potential stakeholders via integration software, Internet of Things sensors, and other linked equipment.

Predictive and prescriptive analytics, automated reporting and communication tools, speech recognition, and deep learning are all included under the umbrella term of artificial intelligence (AI). MRO service providers are putting a lot of effort into digitalizing their software to make it more scalable, enabling intelligent memory utilisation, and enable learning. Applications for aircraft asset management and health monitoring leverage MRO software driven by AI. As an illustration, the MRO industry uses AI to speed up reaction times and lower costs associated with human error, while engine OEMs use smart engines to evaluate data collected from sensors mounted on their vehicles.

Market Restraints

High cost of acquisition of integrated MRO software suits

The acquisition of cutting-edge aviation MRO software is the main focus of airlines and MROs. However, before making purchasing selections, it is important to have a thorough grasp of fundamental MRO operations. Feasibility studies for the adoption of aircraft MRO software take many months. The majority of tier 2 and tier 3 MRO have little budgets for technology implementation, which presents a barrier to the uptake of aviation MRO software. The MRO sector is a capital-intensive one, with the majority of resources going into the upkeep of vital infrastructure, routine maintenance, and the recruitment of qualified personnel. Additionally, careless software failure may cost MROs a lot of money.

MRO BLOCKCHAIN MARKET REPORT COVERAGE:

This research report on the global MRO blockchain market has been segmented and sub-segmented based on usage type,  and Geography & region.

Global MRO Blockchain Market- By Usage Type

• Cargo & Baggage Tracking
• Passenger Identity Management
• Flight & Crew Data Management
• Aircraft Maintenance
• Inventory Management
• Aircraft Refueling
• E-Ticketing

The section may be divided into e-ticketing, inventory management, flight & crew data management, cargo & baggage tracking, aircraft maintenance, and cargo & baggage tracking based on the use cases. The ability to allow end-to-end component lifecycle visibility with the decrease of turnaround time and cost savings for the aviation sector is projected to boost the market for inventory management. Participants in the sector may manage their inventories more effectively thanks to blockchain technology. For instance, blockchain technology is being developed by Air France KLM and Lufthansa Technik to handle aircraft in service and replacement components. The development of the segment during the anticipated time frame is supported by these developments made by industry participants.

Global MRO Blockchain Market- By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

The Middle East & Africa, Asia Pacific, North America, and South America make up the majority of the worldwide MRO Blockchain industry. The market for MRO Blockchain in North America is estimated to grow at the greatest CAGR. One of the major drivers of this region's favourable market growth is the increasing adoption of technology by airports, airlines, and MRO service providers. Major airports and important industry players are present in North America, which is estimated to boost the use of blockchain in the aviation sector. For instance, Honeywell Aerospace announced the introduction of GoDirect Trade in January 2019, a B2B e-commerce platform for purchasing and selling parts and components for aeroplanes.

Global MRO Blockchain Market- By Companies

1. Accenture PLC
2. IBM Corporation
3. Microsoft Corporation
4. Zamna Technologies
5. Insolar Technologies
6. Loyyal Corporation
7. Aeron Labs
8. Winding Tree
9. Filament
10. Infosys
11. LeewayHertz Technologies
12. Moog Inc.
13. Ozone
14. BRUclou
15. Skybuys
16. Avinoc Ltd
17. 14bis Supply Tracking

NOTABLE HAPPENINGS IN THE GLOBAL MRO BLOCKCHAIN MARKET IN THE RECENT PAST:

• Product Launch: - In 2019, To acquire and sell aviation parts, Honeywell Aerospace introduced GoDirect Trade, a new business-to-business (B2B) e-commerce platform. By enabling direct inventory access and transparent pricing, the new platform gives airlines and other air transport clients access to new and used aircraft components.
• Business Partnership: - In 2019, To track the supply chain and trace the blockchain, GE Aviation forged a strategic cooperation with Microsoft Azure. The produced parts and data pertaining to the life cycle and production of aeroplane components are tracked by the GE Aviation Digital Group.