New Fleets Could Generate 98 Million Terabytes of Data Annually by 2026 According to Oliver Wyman’s MRO Survey
April 05 2016 - 1:37PM
Business Wire
Industry Struggling on How to Incorporate
Data into Aging Infrastructure
The latest aircraft designs now entering fleets are equipped
with technologies that can deliver unprecedented collection and
transmission of data at the system and part level according to
Oliver Wyman’s annual MRO (maintenance, repair, and overhaul)
Survey. The global fleet could generate upwards of 98 million
terabytes of data annually by 2026 according to forecast estimates
creating new opportunities for more prognostic maintenance.
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The survey, which was released at Aviation Week’s MRO Americas
Conference, examines a variety of technology and innovation themes,
including how operators, MROs, and OEMs (original equipment
manufacturers) are adopting, utilizing, and investing in big data
capabilities – particularly relating to aircraft health monitoring
(AHM) and predictive maintenance (PM) systems.
“Many carriers are enjoying improved margins and also ramping up
investments in new aircraft despite current low fuel costs and
impact on new aircraft economics,” said Tim Hoyland, Oliver Wyman
partner and report co-author. “These new next-gen aircraft provide
a robust data stream which will enable operators and providers to
better forecast, plan, and deploy aircraft assets. However, the
industry faces a real disconnect on how to integrate this data into
aging IT infrastructure at many airlines. Until this is resolved,
the real power of this data cannot be leveraged.”
Key survey highlights include:
Although adoption of AHM and PM is growing, sophistication at
the user level remains spotty and/or targeted at point
solutions:
- Fifty six percent utilize AHM for some
or all of their aircraft fleet. The most common application of AHM
is engine condition monitoring (ECM), a long-established OEM
offering. Use is less widespread within airframe and component
maintenance applications, areas in which third-party or captive
MROs are more common primary providers.
- Predictive maintenance adoption lags
that of AHM at only 44 percent, with less than half of those
respondents applying PM to all aircraft.
- Fifty-nine percent of airline
respondents plan to restrict AHM use to small subsets of data,
either directly or through a third party, rather than pursuing a
broad or comprehensive approach. For those using PM, 83 percent
focus on narrow subsets, while only one in five expect to apply
predictive techniques to all available data.
- The business case for a wide-scale
roll-out of big data solutions remains elusive for many
respondents. While 63 percent cite reliability improvements from
AHM and 30 percent for PM, roughly 1/3 of respondents or less are
currently seeing hard dollar cost savings across engines,
components and airframe maintenance costs.
- Additionally many carriers have other
immediate technology priorities. They report a great portion of
their IT budget aligned to initiatives such as repair and
maintenance of existing systems (29 percent), migration to new
software (19 percent), building/improving inventory system (9
percent), introducing new hardware to enable front line operations,
and other technology initiatives (24 percent). According to
respondents, only 8 percent of airline IT budgets are allotted to
building/improving AHM or PM systems.
- Despite this, respondents said they
plan to invest further in these technologies and expect them to
become a core part of decision making in the future.
In terms of the aftermarket segments, the authors expect:
- OEMs to continue to press adoption,
investing in understanding of the technology’s potential and
advancing usage at airlines.
- Carriers to become more purposeful and
outcome-oriented in their big data programs, engage a cross-section
of stakeholders to understand and prioritize available data, and
develop more robust business cases supporting greater
adoption.
- Other providers, including MROs,
consultancies, and IT firms, will search for sustainable niches in
the value chain surrounding big data. This may include partnering
or building in-house capability to package data-centric services –
collection, analysis, reporting, decision support, and compliance –
with traditional touch maintenance.
“The obvious challenge for carriers is a focused execution which
produces tangible and demonstrable improvements in cost and
reliability. For OEMs accelerating adoption and profitably
monetizing investments in predictive maintenance will be a
significant challenge,” says Chris Spafford, Oliver Wyman partner
and report co-author.
To download the entire report, please click here.
About the MRO Survey
Going on its second decade, the annual MRO survey produced by
Oliver Wyman is an industry standard for information about changing
trends in the MRO sector. The survey queries leaders across the MRO
industry, including top executives from airline operations,
procurement and engineering departments, captive and independent
maintenance providers, OEM aftermarket divisions, and financing and
leasing professionals. Our respondents are overwhelmingly in
C-suite and senior executive positions and represent a global cross
section of the industry.
The MRO Survey findings also include forecast data from our
2016-2025 Fleet and MRO Market Forecast (see
www.PlaneStats.com/betterinsight for more information about the
forecast data).
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With
offices in 50+ cities across 26 countries, Oliver Wyman combines
deep industry knowledge with specialized expertise in strategy,
operations, risk management, and organization transformation. The
firm's 3,700 professionals help clients optimize their business,
improve their operations and risk profile, and accelerate their
organizational performance to seize the most attractive
opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh
& McLennan Companies [NYSE:MMC]. For more information, visit
www.oliverwyman.com. Follow Oliver Wyman on Twitter
@OliverWyman.
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Oliver WymanFrancine Minadeo,
212-345-6417francine.minadeo@oliverwyman.com
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