Figure 1: Aircraft Development and In-Service Segments
Engineering Services play an important role
in supporting the value chain of the aircraft
development lifecycle. At one end, it supports
the aircraft prime manufacturer’s aircraft
development (design, analysis, certifications
and testing). In the middle segment, it supports
aerospace manufacturing organisations including
1 st tier and 2 nd tier assemblers and component
manufacturers. Finally, at the other end of the
chain, engineering services support airline
operators for their in-service modification and
technical service requirements (as shown in Figure
1). Engineering Service organisations require
a highly skilled engineering workforce which
specialises in design and engineering software,
manufacturing or maintenance equipment and
tools. The Engineering Service organisation
also needs to have a strong understanding of
its customer’s short to medium term business
requirements in order to provide the best value in
their service..
Aerospace Engineering Services
Segments
The global market for aerospace Engineering
Services Outsourcing (ESO) is quite substantial,
estimated to be around USD40 billion in
2018 and the number is growing 1 . Of these,
the manufacturing support services segment
accounted for the largest revenue share of
more than 30% in 2018 and is anticipated to
have further significant growth over the next few
years. Manufacturing support activities form a
vital service to the aerospace industry, providing
process engineering improvement activities,
digital simulations, and tooling and fixture design
services to 1 st and 2 nd tier assemblers and
component manufacturers.
The Maintenance, Repair and Overhaul (MRO)
engineering segment forms another major part of
the engineering services component. Among the
types of engineering services provided are design
and certification services for major and minor
structural modifications for large or small civilian
aircraft. This also includes aircraft interiors and
cabin modifications services. Service providers for
this type of work require organisational approvals
from the relevant national aviation authorities.
In addition to engineering design, engineering
services also include support for in-service
activities like technical services (compliance,
structural services, power plant, reliability and
aircraft performance, etc.) and Continuing
Airworthiness Management Organisation (CAMO).
It is expected that this segment will most likely
demonstrate larger growth in the future as more
and more aircraft enter the operator market.
Another important segment is the pure play
Design and Engineering segment that provides
services to the upstream segment of the
aircraft lifecycle. This service segment provides
design and engineering analysis of the aircraft’s
structural components, systems and avionics
components and can form part of the aircraft
certification support activity. For aero structural
components, stress analysis, fatigue and damage
tolerance analysis, design engineering and
project management are the types of work activity
provided by an Engineering Service organisation.
They generally offer either offshore work (doing
15