Insights
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
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