Middle East MRO market to grow rapidly: Frost & Sullivan
Frost & Sullivan released (15-Feb-2011) a report on the MRO sector in the Middle East. The consultancy expects passenger traffic in the Middle East to increase to 386 million by 2010, up from 183 million in 2009. Compound annual growth rates of 7% should be achieved over the next 10 years, with the rate expected to increase after 2020. Frost & Sullivan expects the increase in air transport to drive demand for MRO services in the region. Highlights of the report include:
- The MRO market in the Middle East is expected to experience an average annual growth of 11% over the next 10 years and encourage airlines from Europe and Asia to fly into the Middle East;
- The main restraint for MRO growth is expected to be the the lack of a technically capable work force. Frost & Sullivan stated the well-developed European MRO market is another threat to growth;
- The consultancy expects the Middle East MRO market to growth to USD3.07 billion by 2010 and to USD54.56 billion by 2010.
Frost & Sullivan: "Middle East is a preferred business hub due to the world-class infrastructure developed by the governments in this region. American and European companies are looking for emerging markets to expand their business. The geographic and economic aspects of the Middle East have attracted international companies into this region," John Siddharth, aerospace and defence analyst. [more]