MRO in 2025: Rising Demand, Skills Shortages and Maintenance Pressure

The maintenance, repair, and operations sector experienced a defining year in 2025, marked by unprecedented growth, technological advancement, and persistent challenges that reshaped how the industry operates. As manufacturers and operators navigated supply chain disruptions, workforce shortages, and accelerating digital transformation, the MRO landscape evolved into a more complex yet opportunity-rich environment. This comprehensive review examines the key developments, innovations, and market dynamics that characterised the MRO industry throughout 2025, offering insights into how organisations adapted to meet rising demand whilst managing significant operational pressures.

The State of MRO Market Growth in 2025

The MRO industry demonstrated remarkable resilience and expansion throughout 2025, with the commercial aircraft MRO market reaching USD 118.1 billion, representing steady growth from previous years. This growth trajectory reflected the sector's critical role in maintaining aviation safety and operational efficiency as global air travel continued its post-pandemic recovery. The commercial aviation MRO segment maintained its position as the dominant force, with narrowbody aircraft accounting for 48.7% of market share, driven by the proliferation of short-to-medium-haul routes and the expansion of low-cost carriers across emerging economies. Engine MRO services commanded 31.4% of the total market, underscoring the high-value nature of propulsion system maintenance and the industry's focus on fuel efficiency and reliability.

The air transport MRO market grew from £86.01 billion to £89.42 billion, demonstrating a compound annual growth rate of 4.0%, whilst forecasters predicted this steady expansion would continue. Independent service providers emerged as market leaders with 36.9% share, capitalising on their flexibility, competitive pricing, and ability to service diverse aircraft fleets without proprietary limitations. This growth occurred despite significant headwinds, as supply chain challenges cost airlines more than $11 billion throughout the year, driven by excess fuel costs from operating older aircraft, increased maintenance expenses, elevated engine leasing costs, and surplus inventory holding requirements. The industry's ability to expand amidst these pressures highlighted both its essential nature and the determination of operators to maintain fleet readiness regardless of obstacles.

Digital Transformation and Technological Innovation

The digitalisation of MRO operations accelerated dramatically in 2025, fundamentally altering how maintenance organisations approached their work. Smart equipment technology and Internet of Things sensors became increasingly accessible and affordable, enabling manufacturers to transition from reactive maintenance strategies to predictive approaches that identified potential failures before they impacted operations. This transformation eliminated many inefficiencies inherent in traditional preventive maintenance schedules, where components were often replaced earlier than necessary, and reactive repairs led to excessive downtime. Data-driven maintenance strategies allowed operators to optimise replacement cycles, reduce unexpected failures, and maintain more accurate inventory levels, generating substantial cost savings whilst improving aircraft availability.

Artificial intelligence emerged as a transformative force across MRO operations, with 81% of aerospace and defence organisations either using or planning to implement AI and machine learning technologies. These systems analysed equipment performance data to identify usage trends, predict maintenance requirements, and optimise scheduling to prevent unexpected downtime. The adoption of AI-enabled software represented a fundamental shift in how MRO providers approached capacity management, inventory optimisation, and resource allocation. Augmented reality technology matured significantly, providing technicians with overlay diagrams and instructions directly on the machinery they serviced, virtually eliminating the need for hard-copy schematics whilst simplifying both repairs and training processes. The integration of these digital tools created a more efficient, responsive MRO ecosystem capable of meeting the demanding requirements of modern aviation operations.

Supply Chain Disruptions and Operational Challenges

Supply chain difficulties dominated industry discussions throughout 2025, creating a cascade of operational and financial challenges that tested the resilience of MRO providers and operators alike. The worldwide commercial aircraft backlog reached a historic high exceeding 17,000 aircraft, significantly surpassing the 13,000 aircraft average from 2010 to 2019, as production delays rippled through the supply chain. Airlines found themselves operating older, less fuel-efficient aircraft for extended periods, incurring approximately $4.2 billion in excess fuel costs whilst waiting for delayed deliveries of new, more efficient models. The ageing global fleet required more frequent and expensive maintenance, adding $3.1 billion in additional costs, whilst extended engine maintenance ground times necessitated increased leasing, contributing another $2.6 billion in expenses.

These supply chain pressures forced airlines to stock larger quantities of spare parts to mitigate unpredictable disruptions, increasing inventory holding costs by $1.4 billion. The challenges extended beyond immediate financial impacts, as unpredictable delivery schedules complicated fleet planning and limited airlines' ability to deploy sufficient aircraft to meet growing passenger demand. In 2025, passenger demand rose 10.4%, exceeding capacity expansion of 8.7% and pushing load factors to a record 83.5%. Geopolitical instability, raw material shortages, and tight labour markets compounded these difficulties, whilst sharp increases in tariffs during spring 2025 affected key materials such as titanium, carbon fibre composites, and avionics. The industry responded by stockpiling essential materials, pursuing import waivers for defence-related goods, and working with allied nations to diversify supply chains, demonstrating adaptability in the face of unprecedented disruption.

Sustainability Initiatives and Industry Transformation

Environmental considerations increasingly influenced MRO strategies throughout 2025, as manufacturers and operators recognised the sector's potential contribution to broader sustainability goals. The shift towards repairing parts rather than replacing them gained momentum, driven by the dual objectives of reducing resource consumption and minimising waste generation. Aircraft recycling capabilities expanded significantly, with nearly 80% of aircraft components now recyclable and over 90% of an aircraft's weight recoverable. Power plants, landing gears, auxiliary power units, and interior fixtures emerged as particularly valuable for reuse, with engines sometimes worth more than the rest of the aircraft combined. This circular economy approach not only addressed environmental concerns but also created new revenue streams and cost-saving opportunities for MRO providers.

Storeroom management evolved from an overlooked operational detail to a strategic priority, as organisations recognised that excellence in inventory management provided significant competitive advantages. The implementation of advanced storeroom strategies, supported by digital tracking systems and predictive analytics, enabled more efficient parts management whilst reducing waste and obsolescence. Sustainability initiatives extended beyond individual component decisions to encompass broader operational practices, including energy-efficient facility management, waste reduction programmes, and the adoption of environmentally friendly materials and processes. These developments reflected a fundamental shift in industry priorities, where environmental responsibility became integrated into core business strategies rather than treated as a separate compliance requirement.

The Impact on Hiring

The MRO industry's rapid technological evolution and persistent growth created unprecedented challenges and opportunities in talent acquisition throughout 2025. The shortage of skilled technicians emerged as one of the sector's most pressing concerns, particularly in regions experiencing rapid fleet expansion. New data-driven tools and cutting-edge equipment required a workforce with fundamentally different skill sets than traditional maintenance operations, creating a significant gap between available talent and industry requirements. Organisations found themselves competing intensely for candidates with expertise in predictive analytics, IoT systems, augmented reality applications, and AI-enabled diagnostic tools, whilst simultaneously needing personnel with traditional mechanical and electrical skills.

Recruitment strategies evolved to address these challenges, with many manufacturers drawing upon turnkey workforce solutions to meet immediate needs whilst investing heavily in training and development programmes to build long-term capability. Employer branding became increasingly important as organisations sought to position themselves as attractive destinations for technical talent, emphasising opportunities to work with cutting-edge technology, competitive compensation packages, and clear career progression pathways. The industry recognised that addressing the skills gap required collaboration between MRO providers, educational institutions, and government agencies to develop training programmes aligned with emerging technological requirements.

Hiring trends reflected the industry's digital transformation, with demand surging for data scientists, software engineers, and digital specialists alongside traditional maintenance technicians. Talent acquisition teams adapted their approaches, utilising digital recruitment platforms, virtual assessment tools, and targeted outreach to technical communities to identify candidates with the specialised skills required. The emphasis on flexibility and adaptability in hiring reflected recognition that technological change would continue accelerating, requiring personnel capable of continuous learning and skill development. Organisations that successfully attracted and retained skilled talent positioned themselves for competitive advantage, whilst those struggling with recruitment faced constraints on their ability to capitalise on market growth opportunities.

Strategic Developments and Market Consolidation

The MRO industry witnessed significant merger and acquisition activity throughout 2025, as organisations sought scale, capability expansion, and market positioning advantages. Private equity firms demonstrated increased interest in the sector, investing heavily in parts repair specialists and regional service providers. Notable transactions included AAR Corp's $120 million acquisition of Trax, which strengthened AAR's digital solutions portfolio whilst providing access to Trax's complementary customer base in aircraft MRO and fleet management software. These strategic moves reflected industry recognition that consolidation could address capacity constraints, enhance service offerings, and create more resilient organisations capable of weathering supply chain disruptions.

Vertical integration strategies gained prominence as OEMs moved into aftermarket services, offering lifetime maintenance contracts, whilst MRO providers acquired specialised repair facilities and developed Parts Manufacturer Approval capabilities. This trend represented a fundamental shift in industry structure, as organisations sought to control larger portions of the value chain and reduce dependence on external suppliers. Partnerships between MRO providers and original equipment manufacturers strengthened, facilitating data sharing, improving predictive maintenance capabilities, and creating more integrated service offerings. The growing importance of advanced air mobility created new partnership opportunities, as emerging technologies including electric vertical takeoff and landing aircraft required specialised maintenance approaches and expertise.

Looking Ahead: Positioning for Continued Evolution

As 2025 drew to a close, the MRO industry stood at an inflection point, having demonstrated remarkable adaptability whilst confronting significant challenges. The year's developments established clear trajectories for future evolution, with digitalisation, sustainability, and workforce development emerging as critical success factors. Organisations that invested in predictive maintenance capabilities, enhanced supply chain visibility, and developed skilled workforces positioned themselves advantageously for continued growth. The opening of aftermarket practices to reduce dependence on OEM-driven commercial models represented a potential catalyst for improved efficiency and reduced costs, whilst enhanced data sharing across supply chains promised to identify risks earlier and reduce bottlenecks.

The expansion of repair and parts capacity through accelerated approval processes, alternative parts solutions, and advanced manufacturing techniques offered pathways to ease persistent constraints. Regional dynamics suggested continued opportunity in Asia-Pacific markets, where expanding fleets and new airline operators created surging MRO requirements, whilst established markets focused on efficiency gains through technology adoption. The industry's ability to achieve projected growth rates approaching 14-15% depended on successfully balancing capacity expansion with efficiency improvements, addressing workforce challenges whilst implementing new technologies, and maintaining service quality amidst supply chain pressures. The developments of 2025 demonstrated that whilst challenges remained formidable, the MRO sector possessed the innovation, determination, and strategic focus necessary to navigate complexity whilst capitalising on substantial growth opportunities in the years ahead.