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Aircraft assets employed in a commercial context (classed as Civil Aviation or Non-military) total ~380,000 globally, of which the overwhelming majority are smaller aircraft

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Sector Snapshot: Aviation Maintenance and Repair Software

AVIATION: MAINTENANCE & REPAIR SOFTWARE MARKET OVERVIEW

This Aviation vertical focus first appeared as a sub-section of our August 2020 sector report – broadly covering all Asset Maintenance & Repair Software verticals – and has been updated through October 2020

MARKET OBSERVATIONS

  • Aircraft assets employed in a commercial context (classed as Civil Aviation or Non-military) total ~380,000 globally, of which the overwhelming majority are smaller aircraft
  • Frequent maintenance and repair ensures regular, predictable and safe use and compliance with aviation industry regulations
  • Asset complexity, stringent safety regulations and large parts catalogs necessitate software tracking of all maintenance activities

KEY SOFTWARE EVALUATION CRITERIA

  • Target Market(s): Aircraft are maintained and repaired either by owner/operators (CAMO) or third-parties (MRO); CAMO software is typically sold to a department within a larger organization whereas MRO software likely forms the ERP backbone of dedicated repair organizations
  • Revenue Models: Usage-based fees (per aircraft or technician), data access fees (OEM manuals, common issues registry, etc.), or variable rate (e.g., parts marketplaces)
  • Customer Churn: Aircraft may change ownership several times during a useful life of up to 40 years, “parted out” or sold for scrap at end of life; this market feature drives systemic churn among software vendors
  • Market Tiers: Fleet size materially impacts the LTV of individual customers; software ACVs can vary by 4 orders of magnitude depending on market tier
  • Product Features: Integrated parts procurement is a strong differentiator
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