Power By The Hour (PBH) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Engine, Landing Gear & Brakes, Spare Parts & Components, Airframes), By Platform (Commercial Aviation, Business Jet, Commercial Helicopters), By Application (Line Maintenance, Heavy Maintenance), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 24.22 Billion
CAGR (2026-2031)	9.02%
Fastest Growing Segment	Engine
Largest Market	North America
Market Size (2031)	USD 40.66 Billion

Market Overview

The Global Power By The Hour (PBH) Market will grow from USD 24.22 Billion in 2025 to USD 40.66 Billion by 2031 at a 9.02% CAGR. The Power By The Hour (PBH) market constitutes a performance-based logistics model in which aircraft operators pay a fixed rate per flight hour to cover comprehensive maintenance, repair, and overhaul (MRO) services. The sector's growth is fundamentally supported by the critical operational need for predictable budgeting, which allows airlines to stabilize fluctuating expenses, and the strategic transfer of financial risk associated with unscheduled repairs from the operator to the original equipment manufacturer. Furthermore, the imperative for high fleet utilization drives the adoption of these agreements, as they incentivize providers to minimize downtime through efficient inventory management, a structural driver distinct from temporary market trends.

However, the market faces a significant impediment due to persistent supply chain vulnerabilities that delay parts availability and extend service turnaround times, challenging the fulfillment of strict service guarantees. These logistical bottlenecks actively inflate operational expenditures. According to the International Air Transport Association (IATA), in 2025, supply chain constraints are projected to incur approximately $3.1 billion in additional maintenance costs for the global airline industry, underscoring the financial pressure on service providers to maintain contract margins.

Key Market Drivers

The expansion of global commercial and business aircraft fleets serves as a primary catalyst for the Power By The Hour (PBH) market. As operators acquire modern aircraft, the complexity of next-generation engines necessitates comprehensive support agreements that ensure budget stability and transfer technical risk to OEMs. This fleet growth directly correlates with increased service contract volumes, as new deliveries are frequently bundled with long-term maintenance packages. According to Airbus, September 2024, in the 'Global Services Forecast 2024-2043', the aviation industry is projected to require 42,430 new aircraft deliveries over the next twenty years, significantly enlarging the installed base of engines requiring hourly support. Furthermore, market revenue is amplified by rising asset utilization, which dictates the frequency of billing events in hourly contracts. According to Rolls-Royce, November 2024, in the 'Trading Update', large engine flying hours increased by 18% year-on-year for the first ten months of 2024, highlighting the strong operational recovery that drives recurring contract revenues.

Simultaneously, advancements in real-time engine health monitoring and IoT integration are enhancing the viability and profitability of PBH agreements. These technologies enable providers to shift from reactive maintenance to predictive strategies, significantly reducing unscheduled downtime and the associated financial penalties inherent in strict availability guarantees. By leveraging continuous data streams, MRO providers can optimize parts logistics and extend time-on-wing, making the PBH model more attractive to cost-conscious airlines. According to SITA, February 2024, in the '2023 Air Transport IT Insights' report, 97% of airlines confirmed plans to invest in artificial intelligence and data technologies to enhance fleet operations. This widespread digital adoption reinforces the PBH value proposition by ensuring that the stringent reliability targets demanded by operators are met through sophisticated, data-led asset management.

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Key Market Challenges

Persistent supply chain vulnerabilities present a formidable barrier to the expansion of the Power By The Hour (PBH) market by undermining the model’s core value proposition of guaranteed availability and cost predictability. These agreements rely heavily on the provider’s ability to execute rapid turnaround times; however, the scarcity of essential components and skilled labor creates extended delays that disrupt service level agreements. When providers cannot meet uptime guarantees due to logistical stagnation, they incur significant penalties and operational overheads that erode the fixed margins essential for the viability of these long-term contracts.

This inability to efficiently return assets to service forces operators to seek expensive interim solutions, further stressing the financial logic of the PBH structure. According to the International Air Transport Association (IATA), in 2025, supply chain inefficiencies are expected to generate approximately $2.6 billion in excess engine leasing costs globally as airlines attempt to mitigate prolonged equipment downtime. Such escalating costs not only diminish the profitability of existing PBH contracts but also deter service providers from offering competitive fixed-rate pricing, thereby stalling market adoption rates.

Key Market Trends

The expansion of Power By The Hour (PBH) agreements to encompass non-engine components represents a significant structural shift in the market, moving beyond traditional propulsion-only contracts to comprehensive "nose-to-tail" coverage. Operators are increasingly consolidating disparate maintenance requirements for airframes, avionics, and landing gear into single fixed-rate contracts to mitigate the administrative complexity and financial volatility of piecemeal sourcing. This trend allows airlines to streamline supply chain logistics by relying on a single integrator for broad inventory access and technical support. According to AJW Group, November 2024, in the 'AJW Group Signs Power-by-the-Hour Agreement with Enter Air Sp.' announcement, the company secured a multi-year PBH contract covering 22 Boeing 737NG aircraft to provide the Polish operator with extensive component management and stock positioning services, illustrating the growing demand for holistic asset coverage.

Simultaneously, the market is witnessing a decisive rise in PBH adoption among low-cost carriers (LCCs), a segment that historically favored time-and-material maintenance models to minimize upfront commitments. As LCCs aggressively expand their fleets, the operational imperative to guarantee dispatch reliability and lock in predictable maintenance costs has driven them toward hourly service agreements. These contracts insulate budget-sensitive carriers from the financial shock of unexpected component failures while ensuring high asset utilization through guaranteed parts availability. According to Lufthansa Technik, July 2024, in the 'Lufthansa Technik and Vietjet agree new Total Component Support deal' press release, the MRO provider finalized an exclusive agreement with low-cost carrier Vietjet covering 184 Airbus A320 and nine A330 aircraft, confirming the large-scale migration of budget airlines toward performance-based support structures.

Segmental Insights

The Engine segment is recognized as the fastest-growing category in the Global Power By The Hour market, driven by the critical need for cost predictability in fleet operations. Engines constitute the largest portion of aircraft maintenance expenses, leading operators to prefer hourly service agreements that transfer financial risk to service providers. Additionally, stringent airworthiness directives from regulatory bodies like the Federal Aviation Administration necessitate continuous monitoring and high-quality upkeep. This reliance on guaranteed availability and budget stability ensures that demand for engine-related services continues to outpace other market segments.

Regional Insights

North America maintains a leading position in the Global Power By The Hour market, driven by the strong presence of major original equipment manufacturers and a large active commercial fleet. This regional dominance is reinforced by the Federal Aviation Administration, which mandates strict safety and airworthiness standards that encourage operators to utilize comprehensive maintenance agreements. Furthermore, the region possesses a well-developed maintenance, repair, and overhaul infrastructure capable of supporting extensive service contracts. These elements provide a stable foundation for the continued adoption of hourly-based engine support programs throughout the North American aviation industry.

Recent Developments

• In November 2024, AJW Group officially launched a multi-year Power-by-the-Hour (PBH) agreement with Enter Air, the largest private airline operating in Poland. This comprehensive support contract covers the carrier's fleet of twenty-two Boeing 737NG aircraft. Under the terms of the arrangement, the aviation services provider will deliver a complete logistics solution, including warehousing and stock positioning in Warsaw to ensure rapid spare parts availability. The partnership is designed to provide the airline with significant cost predictability and operational efficiency while minimizing the financial risks associated with component maintenance and supply chain management.
• In November 2024, Lufthansa Technik finalized a Total Component Support (TCS) contract with Swiss International Air Lines to cover its future fleet of Airbus A350 aircraft. This agreement, which complements existing support for the carrier's other Airbus models, grants access to a global pool of components along with comprehensive maintenance, repair, and overhaul services. The contract is structured to guarantee high aircraft availability and operational reliability through a flight-hour-based fee model. By leveraging the service provider's extensive logistics network and parts inventory, the airline aims to secure supply chain stability during its long-haul fleet modernization.
• In September 2024, Pratt & Whitney announced a long-term EngineWise Comprehensive maintenance services agreement with airBaltic for its fleet of GTF engines. This strategic contract operates on a utilization-based model, directly linking maintenance costs to the actual flight hours of the engines. The seventeen-year arrangement covers the airline’s growing fleet of Airbus A220-300 aircraft, offering enhanced transparency and predictability for maintenance planning. By transferring maintenance risk and ensuring long-term aftermarket support, the manufacturer aims to optimize fleet performance and reliability as the carrier expands its route network and fleet size over the coming decade.
• In July 2024, Rolls-Royce signed a major long-term services agreement valued at $300 million with air carrier JSX. The deal includes TotalCare coverage for the majority of the 162 AE 3007A engines powering the operator’s fleet of Embraer ERJ-145 and ERJ-135 aircraft. This ten-year arrangement provides the airline with operational certainty by transferring the burden of time-on-wing and maintenance cost risks back to the engine manufacturer. The agreement ensures predictable service expenditures and maximizes engine availability, supporting the carrier's strategic plan to expand its public charter jet service to new markets.

Key Market Players

• Rolls-Royce plc
• GE Aviation
• Safran S.A.
• Raytheon Technologies Corporation
• MTU Aero Engines AG
• Honeywell Aerospace
• IHI Corporation
• Lufthansa Technik AG
• Aero Engine Services Limited
• ST Engineering Aerospace

By The Hour	By Component	By Platform	By Application	By Region
PBH	Engine Landing Gear & Brakes Spare Parts & Components Airframes	Commercial Aviation Business Jet Commercial Helicopters	Line Maintenance Heavy Maintenance	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Power By The Hour (PBH) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power By The Hour (PBH) Market, By The Hour:

• PBH

• Power By The Hour (PBH) Market, By Component:

• Engine
• Landing Gear & Brakes
• Spare Parts & Components
• Airframes

• Power By The Hour (PBH) Market, By Platform:

• Commercial Aviation
• Business Jet
• Commercial Helicopters

• Power By The Hour (PBH) Market, By Application:

• Line Maintenance
• Heavy Maintenance

• Power By The Hour (PBH) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE