Market Size and Overview:

The MRO Blockchain Market on a global scale achieved a valuation of USD 0.42 billion, with a forecast to attain a market size of USD 1.50 billion by the conclusion of 2030. Throughout the anticipated period spanning from 2024 to 2030, a Compound Annual Growth Rate (CAGR) of 20% is anticipated for market expansion.

Industry Overview:

Blockchain technology serves as a digital ledger, meticulously documenting each addition or removal of components from an aircraft. This technology provides a real-time chronicle of events, from the manufacturing stage to the retirement of the fleet. The aviation industry's adoption of blockchain is driven by the potential to streamline operations, ensuring enhanced efficiency and reduced complexity, ultimately leading to cost savings. Factors contributing to market expansion encompass improved passenger experiences, decreased maintenance costs, simplified business transactions, and heightened transparency and traceability in operations.

The aviation sector now experiences the benefits of a transparent and interconnected supply chain, facilitated by blockchain technology. This technology proves essential in addressing the intricate supply networks supporting the industry's growth. Key stakeholders, including Aircraft Maintenance, Repair, and Overhaul (MRO) companies, airlines, and aircraft manufacturers, are actively pursuing initiatives and research programs incorporating blockchain. These initiatives range from ticket purchases to the replacement of in-service aircraft parts.

Impact of Covid-19 on the Industry:

Prominent companies such as Boeing, General Electric, Lufthansa Technik, SAP, and IBM, operating in the digital MRO sector across North America, Europe, Asia-Pacific, the Middle East, Africa, and South America, have been adversely affected by the global COVID-19 pandemic. Analysts anticipate a 30–40% global impact on digital MRO services in 2020 due to the pandemic. The rapid spread of COVID-19 led to a substantial reduction in demand for digital MRO services worldwide, attributed to delayed deliveries, manufacturing shutdowns, and equipment availability challenges. Despite these setbacks, analysts project a subsequent global increase in demand for digital MRO services.

Market Drivers:

Increasing Demand for Predictive Maintenance through Connected Aircraft Data:

Airlines opt for MRO services to extend the life of their existing fleets rather than investing in new aircraft. MRO software's data analytics capabilities minimize aircraft repair turnaround time (TAT), enabling efficient operations. Airlines benefit from reduced maintenance expenses and improved fleet management. MRO operators leverage data analysis for optimal inventory management, order frequency, and workforce planning, addressing overstaffing and staff shortages.

Adoption of IoT, AI, Blockchain, AR, and Big Data Analytics by MROs:

the digital MRO industry undergoes a significant transformation in data analysis through the increasing use of IoT, AI, AR, blockchain, and big data analytics. Digital solutions, such as ERP-based software, emerge with the digitization of aviation MRO software. AI-driven predictive and prescriptive analytics, automated reporting tools, speech recognition, and deep learning contribute to scalable and intelligent MRO software. MROs integrate AI for aircraft asset management, health monitoring, and streamlined response times, reducing costs associated with human error.

Market Restraints:

High Acquisition Costs of Integrated MRO Software Suites:

The primary focus for airlines and MROs is acquiring advanced aviation MRO software. However, the high cost and capital-intensive nature of the MRO sector pose challenges. Feasibility studies for MRO software adoption are time-consuming, and limited budgets in tier 2 and tier 3 MROs hinder technology implementation. The sector's capital-intensive nature, prioritizing infrastructure upkeep and routine maintenance, alongside potential financial losses from software failures, creates obstacles to widespread adoption of aviation MRO software.

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 can be categorized into e-ticketing, inventory management, flight & crew data management, cargo & baggage tracking, aircraft maintenance, and passenger identity management based on use cases. Blockchain technology's ability to provide end-to-end visibility into component lifecycles, reducing turnaround time and generating cost savings for the aviation sector, is anticipated to propel the inventory management market. Participants in the industry can enhance inventory management efficiency through the implementation of blockchain technology. Noteworthy developments by industry participants, such as the utilization of blockchain technology by Air France KLM and Lufthansa Technik for aircraft in service and replacement components, contribute to the growth of this segment during the projected timeframe.

Global MRO Blockchain Market - By Geography & Region:

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

The Middle East & Africa, Asia Pacific, North America, and South America constitute the primary regions in the global MRO Blockchain industry. The North American market for MRO Blockchain is projected to experience the highest Compound Annual Growth Rate (CAGR). A significant driver of market growth in this region is the widespread adoption of technology by airports, airlines, and MRO service providers. The presence of major airports and key industry players in North America is expected to drive the integration of blockchain technology in the aviation sector. As an illustration, Honeywell Aerospace introduced the GoDirect Trade platform in January 2019, a B2B e-commerce solution facilitating the buying and selling of aircraft parts and components.

Global MRO Blockchain Market - By Companies:

• Accenture PLC
• IBM Corporation
• Microsoft Corporation
• Zamna Technologies
• Insolar Technologies
• Loyyal Corporation
• Aeron Labs
• Winding Tree
• Filament
• Infosys
• LeewayHertz Technologies
• Moog Inc.
• Ozone
• BRUclou
• Skybuys
• Avinoc Ltd
• 14bis Supply Tracking

Notable Happenings in the Global MRO Blockchain Market in the Recent Past:

• Product Launch (2019): Honeywell Aerospace introduced GoDirect Trade, a B2B e-commerce platform, providing airlines and air transport clients direct access to new and used aircraft components. The platform facilitates transparent pricing and direct inventory access for the acquisition and sale of aviation parts.
• Business Partnership (2019): GE Aviation entered into a strategic partnership with Microsoft Azure to track the supply chain and implement blockchain for traceability. The collaboration enables the tracking of produced parts and data related to the lifecycle and production of airplane components through the GE Aviation Digital Group.