Aircraft Refurbishing Market

2021 Analysis and Review: Aircraft Refurbishing Market by Aircraft Type – Large Body Aircraft, Wide Body Aircraft, and Narrow Body Aircraft for 2021 – 2031

Aircraft Refurbishing Market: Key Dynamics

The aircraft refurbishing market went through a negative phase amid the spread of the Covid-19 crisis. The sales level in this market witnessed a downturn creating potential losses for the global manufacturers. As the condition is normalizing in 2021 due to strong and stringent government efforts, the top manufacturers are trying to recuperate the losses incurred through product diversifications and innovations.

Leading corporations including AAR, Air France Industries KLM E&M, Ascent Aviation Services, GKN, Hong Kong Aircraft Engineering Company, Jamco America Inc., JCB Aero, Lufthansa Technik, SIA Engineering Company, and Singapore Technologies Engineering Ltd., and others are making high investments in the establishment of research institutes in different regions to come up with improvements in their offerings.

They are adopting business strategies such as sales contracts, strategic alliances, acquiring technical expertise, product approvals, patents and events, joint ventures, partnership agreements, collaborations, digital marketing, mergers and acquisitions, capacity utilisations, technological advancements, etc to lead the global aircraft refurbishing market with largest market share.

For instance, Triumph Group and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) signed an agreement to overhaul nacelles for next-generation aircraft at Triumph’s Hot Springs, Arkansas repair facility. Through this joint venture, the companies will provide expanded ‘new gen’ nacelle maintenance, repair, and overhaul (MRO) services for customers. The aircraft operators in the Americas will be the ones to the benefit of operational issues and regular maintenance.

In addition to this, Jamco America Inc announced the launch of a new leather-wrapped Jamco Soft Divider, a soft eyebrow-type hanging divider. The divider comes with a simple and elegant design that enables maximum seat density and is designed for narrow-body single-aisle aircraft. The newly launched divider is perfect for creating a physical separation between aircraft business and economy classes, allows additional legroom, and offers easy installation.

In terms of growth, the North American region is projected to dominate the market during the forecast period owing to the government’s initiatives to develop the industry. The Asia Pacific region is expected to be lucrative owing to the emergence of new players. All the other key regions are driving the market growth and opening various opportunities for manufacturers to retain their position throughout the course of the forecast period.

Aircraft Refurbishing Market - Key Research Findings

  • Over the forecast period of 2021-2031, the aircraft refurbishing market is estimated to grow at a CAGR of over 5%.
  • In the aircraft refurbishing market, narrow body aircraft is estimated to gain significant traction.
    • Narrow body aircraft is expected to remain prominent over the forecast period owing to its increasing adoption by airline carriers, especially in APEJ.
    • High number of existing narrow body aircraft and increasing demand for upgrade of domestic cabins makes this segment lucrative in terms of revenue growth opportunities.
  • Commercial cabin refurbishing is expected to remain dominant in terms of market value share over the forecast period.
    • Customization and replacement demand for aircraft cabin interior components by major airline companies is primarily driving the growth of this segment.
    • Airline carriers go to great lengths to increase passenger share by adding more destinations, pricing aggressively, and renovating aircraft frequently.
  • In terms of fitting, passenger seats are expected to register robust growth, owing to rising airline passenger traffic.
    • Rising airline passenger traffic is pushing airline companies to go for frequent modification of seat coverings in aircraft, as comfortable seating in aircraft is what drives the reputation of airline companies.
  • In terms of value share, APEJ and North America are anticipated to be prominent markets by collectively holding ~50% of the volume and value shares in the global aircraft refurbishing market size.
  • In terms of the growth rate, the aircraft refurbishing market is most likely to foresee high growth in APEJ.
  • Manufacturers are focused on developing high-quality aircraft components adhering to specific requirements from OEMs and airline carriers. Most aircraft refurbishing suppliers have long-term contracts with OEMs and airline carriers to provide customised aircraft refurbishing products.
  • Increasing competition, lower cash outlays, and continuous efforts of airline carriers to enhance reputation, all characterize the evolving nature of the refurbishment industry.

Factors Shaping the Global Aircraft Refurbishing Market

VIP Aircraft Refurbishing Rising as Wealthy Travelers Seek Luxurious Travel Experience

Asia Pacific, followed by North America, is home to the largest population of high net worth individuals. This has led to an increased demand for a niche aerospace aftermarket, which includes refurbishment and completion of cabin interiors of business and corporate jets. VIP aircrafts feature a bedroom, lounge area, dining room, and first class seats.

In order to completely satisfy customers’ needs, refurbishment service providers directly collaborate with designers to customize the interiors of aircrafts. As a result, VIP cabin refurbishment will be the main growth area for service providers over the coming years. 

Airlines in Favor of Refurbishing for Better Operational Efficiency

Weight and power consumption are important factors, which affect the efficiency of an aircraft. Less fuel consumption means lower carbon dioxide emissions as well as significant savings on operating cost of airlines. The cabin area is a key part of the aircraft and it is in this area that the strongest of innovations are taking place.

Modular Aircraft Refurbishing to Gain Acceptance in Coming Years

Refurbishing service providers are offering standardized and modular designs for selected aircrafts. Completion and refurbishment centres are in constant search of more efficient ways to work. As a result, downtime for aircraft is minimal and cabin refurbishment is very cost effective.

The development of a modular aircraft cabin includes the entire ecosystem of airlines, manufacturers, passengers, and regulators, simplifying the process of customizing aircraft cabins. Thus, the modular kit interior concept is expected to become industry standard in business aircraft refurbishment in the coming years.

Aircraft Refurbishing Market Structure Analysis

  • A majority of manufacturers active in the aircraft refurbishing market are strategically focusing on the APEJ market.
  • Key market players in the aircraft refurbishing market, such as Diehl Stiftung & Co. KG, SIA Engineering Co Ltd, Hong Kong Aircraft Engineering Company Limited, and United Technology Corporation, are focusing on expanding their presence in regional markets to fulfill the growing demand for aircraft refurbishing across geographies.
  • Tier-1 players are strengthening their positions in the aircraft refurbishing market by offering technologically-developed products.

Key Segment

Based on the aircraft type

  • large body aircraft
  • wide body aircraft
  • narrow body aircraft

Based on the refurbishing type

  • VIP cabin refurbishing
  • commercial cabin refurbishing

Based on the fitting type

  • retrofit
  • IFEC and lighting
  • passenger seats

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