MRO SOFTWARE MARKET - GLOBAL FORECAST TO 2025

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1 EXECUTIVE SUMMARY

Maintenance, repair, and overhaul (MRO) software in aviation are cloud or system-based software that are
used to coordinate, monitor, and improve all processes related to aircraft MRO. Aviation MRO software
cover all the functions of aircraft MRO, such as aircraft handling, safety & security services, workforce
management, sales and marketing, and hangar operations, and their ecosystem.

The MRO software market in aviation is segmented based on solution, end user, function, pricing model,
deployment type, and region. Factors driving the market include the increase in demand for predictive,
prescriptive, and condition-based maintenance through data shared by connected aircraft, increasing
adoption of software-as-a-service, and the need to reduce the turnaround time of MRO operations.

Some of the key players in the MRO software market in aviation include IBM (US), SAP SE (Germany), HCL
Technologies Limited (India), Boeing (US), Ramco Systems Limited (India), Oracle Corporation (US), IFS AB
(Sweden), and Swiss AviationSoftware (Sweden).

FIGURE 1 ON-PREMISES SEGMENT TO ACCOUNT FOR LARGER SHARE OF MRO SOFTWARE

MARKET IN AVIATION IN 2020 AS COMPARED TO CLOUD SEGMENT

ON-PREMISES CLOUD

XX% XX%

Source: Annual Reports, Secondary Research, and MarketsandMarkets Analysis

Based on deployment type, the MRO software market in aviation is segmented on-premises and cloud. The
on-premises segment is estimated to account for a larger share of the market in 2020 due to the increase
in demand from large organizations such as airlines and MROs for customizable on-premises MRO
software.

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MRO SOFTWARE MARKET - GLOBAL FORECAST TO 2025

FIGURE 2 MAINTENANCE MANAGEMENT SEGMENT TO REGISTER HIGHEST GROWTH RATE

DURING FORECAST PERIOD

XX%
XX%
XX%
XX% Maintenance Operations
CAGR (%)

Management, Management,
XX% XX% XX% Operations
XX% Management, Electronic Flight
XX% Bag & Logbook
XX% Management,
XX% XX%

XX%
XX XX XX XX XX XX
Rank (According to Market Size in 2025)

Source: Annual Reports, Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis

Based on function, the maintenance management segment is projected to register the highest growth rate
during the forecast period. This is attributed to the rise in the demand for enhancement of maintenance
operations and the reduction of the turnaround time of MRO operations. MRO software help in improving
the line, heavy, and engine maintenance activities of aircraft.

FIGURE 3 SOFTWARE SEGMENT TO LEAD MRO SOFTWARE MARKET IN AVIATION IN 2020

SOFTWARE SERVICES
CAGR – XX% CAGR – XX%

XX% XX%
XX% XX% XX% XX% XX% XX%

Note: The color fill of bars represents the market share for 2020.
Source: Annual Reports, Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis

Based on solution, the software segment is expected to lead the MRO software market in aviation in 2020.
This segment is further categorized into ERP solution, point solution, and suite. Digitization of services and
MRO software is helping airlines and MRO operators to enable smooth maintenance, reduce operating
costs, and meet the demand for the management of operations due to increasing air travel. The ERP
solution is a complete end-to-end solution that manages, integrates, and optimizes MRO operations, such
as supporting aircraft operations and maintenance, supply chain, human resources, and finance, for end
users in the aviation industry.

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MRO SOFTWARE MARKET - GLOBAL FORECAST TO 2025

2 MRO SOFTWARE MARKET IN AVIATION, BY SOLUTION

2.1 INTRODUCTION
Based on solution, the MRO software market in aviation is segmented into software and services. These
software and services are offered to end users such as airlines, MROs, OEMs, and lessors as a bundled
package. The software segment is further divided into ERP solution, point solution, and suite. The services
segment is further divided into deployment & integration, consulting, and support, maintenance &
upgradation. The market for services is projected to grow at a higher CAGR of XX% during the forecast
period. Frequent upgrades of software as per the maintenance requirements by end users are expected to
drive the services market.

FIGURE 4 SOFTWARE SEGMENT EXPECTED TO LEAD MRO SOFTWARE MARKET IN AVIATION

DURING FORECAST PERIOD
XX
XX
Market Size (USD Million)

XX
XX
XX
XX
XX
Software Services
2020 XX XX
2025 XX XX
CAGR (2020–2025) XX% XX%

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

TABLE 1 MRO SOFTWARE MARKET IN AVIATION, BY SOLUTION, 2018–2025 (USD MILLION)

Solution 2018 2019 2020 2025 CAGR (2020–2025)

Software XX XX XX XX XX%

Services XX XX XX XX XX%

Total XX XX XX XX XX%

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

2.2 SOFTWARE
The software segment of the MRO software market in aviation is further classified into ERP solution, point
solution, and suite. Various types of MRO software solutions offered by software providers are considered
in this segment. The increasing demand for MRO software from airlines and MROs around the globe is
fueling the growth of this segment.

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TABLE 2 MRO SOFTWARE MARKET IN AVIATION, BY SOFTWARE TYPE, 2018–2025 (USD MILLION)

Software Type 2018 2019 2020 2025 CAGR (2020–2025)

ERP Solution XX XX XX XX XX%

Point Solution XX XX XX XX XX%

Suite XX XX XX XX XX%

Total XX XX XX XX XX%

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

2.2.1 ENTERPRISE RESOURCE PLANNING (ERP) SOLUTION

2.2.1.1 New ERP solutions enable higher mobility of data and allow
employees to access ERP applications from their home
computers or smartphones
New technologies and digitization of services are helping airlines and MRO operators to enable smooth
maintenance, reduce operating costs, and meet the demand for the management of operations due to
increasing air travel. The ERP solution is a complete end-to-end solution that manages, integrates, and
optimizes MRO operations, such as supporting aircraft operations and maintenance, supply chain, human
resources, and finance for end users in the aviation industry. This solution is designed to provide complete
real-time visibility across the entire range of MRO operations by integrating maintenance planning,
maintenance execution, configuration management, warranty handling, supply chain logistics, project
management, cost tracking, and invoicing. New ERP solutions enable higher mobility of data and allow
employees to access ERP applications from their home computers or smartphones. Apps are being
interfaced with systems, which is increasing the scope of ERP.

Reliability, complete data integrity across multiple systems, a harmonized platform for multiple operations,
management of workforce, and project allocation have helped MROs and airline operators in improving
business operations and are driving the growth of this solution in the aviation industry. Though ERP is
considered a complete system, it is developed through the integration of various common modules on a
single platform. The choice of whether a single module is required, or multiple modules need to be
integrated depends on the operational needs of the end users.

The modules mentioned below are integrated into all aviation ERP systems:

 Maintenance management
 Aircraft management
 Operations management
 Business management

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2.2.2 POINT SOLUTION

2.2.2.1 Point solutions are designed to solve specific MRO -related
problems in the aviation industry
The point solutions used in the aviation MRO industry are designed to address specific MRO-related issues.
These solutions work efficiently in their specific areas of functionalities, such as inventory management,
documentation, and health monitoring. Point solutions are further categorized into maintenance
management, operations management, aircraft management, and business management solution. The
drawback of point solutions is that they solve only one business problem. To address multiple issues,
multiple points are needed to be selected while sharing the common data between these point solutions,
resulting in complexity in data points and the risk of data inconsistency. Major players offering point
solutions include AerData (Boeing), Lufthansa Technik, Hexaware, and Airbus.

2.2.3 SUITE
2.2.3.1 Suite helps in demand -driven inventory planning for materials
requirement, as well as enhanced maintenance and service
planning and execution for complex assets
A suite refers to an MRO software that covers all modules of an ERP solution along with the high-end point
solutions and enterprise add-ons. One such suite is the aviation MRO software offered by SAP, named SAP
S/4HANA. Such suites help in the management of a wide range of operations, such as maintenance,
supply chain, finance, and human resources, along with the management of connected assets and
connected manufacturing. Suites help in optimizing order to cash with on-time delivery, collaboration, and
predictive capabilities. They also benefit MROs and OEMs in demand-driven inventory planning for
materials requirement, as well as enhanced maintenance and service planning and execution for complex
assets.

2.3 SERVICES
The services segment includes services that are provided by MRO software developers to maintain and
operate the installed MRO software efficiently. The breakdown of MRO software during any operation can
cause significant losses for aviation operators, MROs, OEMs, and lessors. Software-as-a-service (SaaS) has
been considered in this segment. The services segment is projected to grow from USD XX million in 2020
to USD XX million by 2025, at a CAGR of XX% from 2020 to 2025.

TABLE 3 MRO SOFTWARE MARKET IN AVIATION FOR SERVICES, BY APPLICATION,

2018–2025 (USD MILLION)

Application 2018 2019 2020 2025 CAGR (2020–2025)

Deployment & Integration XX XX XX XX XX%

Consulting XX XX XX XX XX%
Support, Maintenance & XX XX XX XX XX%
Upgradation
Total XX XX XX XX XX%

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

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2.3.1 DEPLOYMENT & INTEGRATION

2.3.1.1 Deployment & integration services include infrastructure
assessment and planning services, interface design and
development, upgrade assistance, and ongoing IT support
Deployment & integration services include infrastructure assessment and planning services, interface
design and development, upgrade assistance, and ongoing IT support. These services help configure, test,
and deploy MRO software and are essential for its efficient installation within an organization’s
infrastructure.

Vendors offer services that evaluate the complete project life cycle and cover all phases of software
implementation, right from planning and deployment to support. They also include software integration
with legacy systems that enables rapid deployment. Once the software is configured, extensive user
acceptance testing is done to ensure that the system works to improve business efficiency and employee
productivity. Vendors typically follow a phased implementation approach as per the organization’s desired
time frames for implementation, from installation and configuration to testing, training, and going live.

2.3.2 CONSULTING
2.3.2.1 Consulting services providers offer methods to overcome lack of
technical expertise to deploy and manage data in organizations
Consulting services ensure that every aspect of a project is handled with proper care. The MRO software
vendor team handles all the aspects of an MRO software project required for the successful functioning of
a solution, from the beginning to actual implementation, which leads to accurate decision-making. The
primary service includes the analysis and review of an organization’s legal contracts, identification of any
contractual risk, designing a maintenance management system as per international standards for
compliance and risk management, etc.

Consulting services providers offer methods to overcome the lack of technical expertise to deploy and
manage data in most of the organizations. These services clearly outline the process of seamlessly
deploying and migrating business applications and corporate data across centralized data centers residing
on the premises as well as on the cloud.

2.3.3 SUPPORT, MAINTENANCE & UPGRADATION

2.3.3.1 Support, maintenance & upgradation services help improve
operations and gain control ov er existing systems
Support, maintenance & upgradation services are generally subscription-based services through which
customers receive access to updates and technical support for the MRO software they license from the
software vendor. These are usually bundled with software offerings and offered under a year or multi-year
support, maintenance, & upgradation contract from software vendors.

These services include 24/7 troubleshooting assistance, web-based support, and web-based access to
online documentation, upgrade of existing software, problem-solving, repairs, replacing failure types,
emergency response management, field maintenance, proactive services, technical support by
technicians, and test scenario management. They also include regular system checks, backup support,
and software maintenance to provide security and minimize losses due to threats. Support, maintenance,
& upgradation services help improve operations and gain control over the existing systems.

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3 MRO SOFTWARE MARKET IN AVIATION, BY DEPLOYMENT TYPE

3.1 INTRODUCTION
Based on deployment type, the MRO software market in aviation is segmented into on-premises and cloud.
The deployment type is one of the crucial factors to be considered while selecting an ERP system for the
effective utilization of software offerings. The primary element of differentiation between cloud and on-
premises deployment is the installation platform. On-premises solutions are installed on the company’s
hardware and servers and managed by the respective IT teams. On the other hand, cloud-based solutions,
also called software-as-a-service, are provided as a service wherein the ERP vendor manages the data, and
the services are accessed through a web browser. More recently, the industry has adopted a hybrid model,
in which cloud software is hosted on a company’s private servers. While both on-premises and cloud
solutions have their pros and cons, the selection depends entirely on the user company’s operational
requirements. The basic parameters considered for the selection of these solutions include price,
implementation, security, and customizability.

FIGURE 5 ON-PREMISES SEGMENT EXPECTED TO LEAD DURING FORECAST PERIOD

XX
XX
Market Size (USD Million)

XX
XX
XX
XX
XX
On-premises Cloud
2020 XX XX
2025 XX XX
CAGR (2020–2025) XX% XX%

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

TABLE 4 MRO SOFTWARE MARKET IN AVIATION, BY DEPLOYMENT TYPE,

2018–2025 (USD MILLION)

Deployment Type 2018 2019 2020 2025 CAGR (2020–2025)

On-premises XX XX XX XX XX%

Cloud XX XX XX XX XX%

Total XX XX XX XX XX%

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

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TABLE 5 MRO SOFTWARE MARKET IN AVIATION, BY DEPLOYMENT TYPE,

2018–2025 (MILLION UNITS)

Deployment Type 2018 2019 2020 2025 CAGR (2020–2025)

On-premises XX XX XX XX XX%

Cloud XX XX XX XX XX%

Total XX XX XX XX XX%

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

3.2 ON-PREMISES

3.2.1 NEED FOR CUSTOMIZABLE MRO SOFTWARE ANTICIPATED TO BOOST

DEMAND FOR ON -PREMISES SOLUTIONS
On-premises solutions are installed locally on a company’s hardware and servers. The cost of these
solutions generally includes a one-time licensee fee, depending on the size of the organization and number
of concurrent users, along with continual fees for training, support, and software updates. The deployment
of on-premises software requires huge investments, as it includes the purchase of hardware and servers.
Hence, on-premises solutions are considered as the operating expenditure of organizations. Though their
cost is high, on-premises solutions can be customized and offer greater control over operations. For large
organizations, the ability to customize the software is highly important, and hence they prefer adopting on-
premises MRO solutions. The need of end users such as airlines, MROs, and lessors to deploy
customizable MRO software is anticipated to boost the demand for on-premises solutions during the
forecast period.

Unlike large organizations, small organizations have lower budgets. In addition, when the software is
customized to specific needs, its price increases further. In such cases, small organizations may look for
local software developers or low-cost cloud solutions.

Major companies offering on-premises MRO solutions include IBM, IFS AB, Infor, SwissAviation Software,
and Ramco Systems Limited.

TABLE 6 ON-PREMISES AVIATION MRO SOFTWARE: PROS AND CONS

FACTOR PROS CONS

Price decreases over time, as the IT Upfront investment is high, as hardware and
Cost infrastructure spend is minimal, and only related equipment need to be procured at the time
the software is required to be upgraded of installation

User company has complete control over Some organizations would not be efficient in
Security
the security of the software implementing security protocols

On-premises solutions are highly Customizations can delay software implementation

Customization
customizable time

Practical implementation of software is a time-

A company can implement the software
consuming activity; every device and asset is
Implementation on its existing systems and upgrade in
required to be in the loop and connected with the
future
other software

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

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3.3 CLOUD

3.3.1 DEMAND FOR COST -EFFICIENT MRO SOFTWARE SOLUTIONS

ANTICIPATED TO BOOST GROWTH OF CLOUD SEGMENT
Cloud MRO software solutions are hosted on ERP provider servers, and customers can access these
through web browsers. The initial costs for cloud MRO solutions are comparatively lower than that of on-
premises solutions, as cloud solutions do not require substantial investments in hardware, servers, and
other facilities and can be accessed over an Internet connection using a computer or similar device. The
responsibility of hosting, maintaining, and securing the software lies with the ERP solution provider. The
payment model for cloud-based MRO software solutions is mostly pay-as-you-go subscription, thus making
these solutions more cost-efficient than on-premises solutions.

Cloud-based systems digitally maintain records in the form of manuals, maintenance logs, flight plans,
aircraft maintenance tracking reports, record books for adherence to airworthiness regulations, and
service bulletins. These also provide fast and inexpensive management of different types of maintenance
data. These systems offer real-time access to spare parts inventories and send alerts for maintenance
tasks to MROs.

In 2016, Ramco Systems Limited secured a contract from L-3 MAS for the provision of cloud-based Ramco
aviation suite to support the Canadian CC-150 Polaris fleet. In 2016, IFS AB secured a contract worth
approximately USD XX million for the first six years of the 18-year contract from Affinity Flying Training
Services for the provision of the IFS Application 9. IFS managed the cloud-integrated solution for aircraft
maintenance and enterprise resource planning (ERP).

TABLE 7 CLOUD-BASED AVIATION MRO SOFTWARE: PROS AND CONS

FACTOR PROS CONS

Less upfront investments, as

Cost additional hardware investment is not System cost could grow over its life cycle
required

Though ERP providers look after software security,

ERP provider manages security
Security companies dealing in critical businesses might
protocols
interfere for keeping the data secure

Less customization needed, as the

solution provider updates and Limited customization possibilities in comparison
Customization
modifies the software as per industry with on-premises solutions
demand

Takes less time to implement and is

Implementation None
simpler than on-premises solutions

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

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3.3.2 CLOUD-BASED AVIATION MRO SOFTWARE: USE CASE

Company Copa Airlines (Panama)

Solution Provider IFS AB (Sweden)

To deploy cost-effective modernized MRO software for reducing time-intensive, repetitive

Objective
manual tasks

The existing MRO system deployed by Copa lacked the capacity required to consolidate
Challenges
all the maintenance data of its fleet.

Copa deployed cloud-based Maintenix software offered by IFS AB owing to its ease of
implementation, scalability, and ability to handle large fleets. Using Maintenix on cloud
Solution
infrastructure helped Copa Airlines in eliminating the need for a costlier and more time
consuming on-premises network installation.

Successfully deployed by October 2017 as per the project deadline

 Rolled out to 100 aircraft and over 1,300 users
Benefits  Engineering modifications to the maintenance program were reduced from months
to days
 More available flying time per aircraft

Source: IFS AB and Informa PLC

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