2025 material cost inflation exceeds forecasts by up to 200 basis points
Aircraft MRO Market 2025 to 2032: Engine Overhaul Dominance, Supply Chain Pressures, and Digital Transformation →The global aviation MRO market exceeded $136 billion in 2025, driven by an aging fleet and reliability challenges on newer aircraft. However, supply chain pressures have shifted to a new structural baseline. Material cost inflation continuously outpaced expectations by 100 to 200 basis points, alongside persistent material and labor shortages.
Severity: how big the impact would be if this plays out.
Likelihood: how probable the engine judges it is to happen or persist.
Spend exposed: the share of your annual category spend this flags.
Factor elevated material inflation into MRO procurement baselines and contracts
Supply chain cost pressures have structurally shifted, requiring higher baseline costs and scarcity to be built into long-term MRO budgeting and supplier agreements.
Source · Google News
Source · aviationweek.com
Source · ainonline.com
Source · oliverwyman.com
The global aviation maintenance, repair, and overhaul (MRO) market exceeded $136 billion in 2025, up 8% over 2024. This increase reflects an extended MRO “super cycle” — a combination of an aging fleet requiring higher maintenance and ongoing durability/reliability challenges for newer aircraft. By the end of the decade, [spending is expected to approach $193 billion](/our-expertise/insights/2026/