Aerospace Industry Today
Aircraft Cabin Upgrades Market Worth US$ 8,926.2 million in 2023
Aircraft Cabin Upgrades Market report is a 233-page study offering actionable insights into the global market opportunities, trends, forecasts, and competitive analysis.
Published 11 January 2019
Stratview Research has published a new research report on Aircraft Cabin Upgrades Market. This extensive 233-page report by Stratview Research analyses the growth of Aircraft Cabin Upgrades Market over the trend period of 2012 to 2017 and forecast period of 2018 to 2023 under the following segments -
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Exceptional interior with an excellent use of space
The prospects of aircraft cabin upgrades market seem attractive and offer favorable growth opportunities for the market stakeholders in the foreseen future. The global aircraft cabin upgrades market is projected to grow at a healthy rate over the next five years to reach US$ 8,926.2 million in 2023. There are several factors collectively driving the demand for cabin upgrades in the aircraft industry.
Introduction of advanced aircraft is the biggest growth driver of the aircraft cabin upgrades market. The latest fuel-efficient variants, such as A320neo, B777x, and B737 Max, have an exceptional interior with an excellent use of space to squeeze the number of seats. This is compelling airlines and leasing companies to upgrade their existing aircraft fleet to provide a uniform feel and to maintain the brand image across their fleet.
Aircraft OEMs are introducing upgraded products/technologies
Another factor driving the growth of aircraft cabin upgrades is advancement in products/technologies. Aircraft OEMs are introducing upgraded products/technologies in order to provide maximum comfort to the passengers. Large overhead bins, new connectivity systems, and compact slim seats are some of the noticeable advancements in the market. Airlines and leasing companies are increasingly preferring these advancements and are incorporating these in their existing aircraft fleet. For instance; both, Boeing and Airbus, have introduced large overhead bins for their B737 max and A320neo, respectively.
Airlines are preferably opting business-class seats
Another trend positively impacting the growth of the market is a shift from first-class seats to business-class. Airlines are preferably opting business-class seats by replacing the first-class seats. As per estimations, there has been more than 50% reduction in the number of first-class seats in wide-body aircraft over the past decade. However, they are taking the comfort of first-class seats to the next level by providing complete privacy, full bed, and full-height enclosures.
Airlines are also narrowing seat pitch and space
Similarly, as per the requirements of airlines, seat manufacturers are developing slim economy seats using composite materials in the seat frames and thinner upholstery in order to squeeze more seats per row. Airlines are also narrowing seat pitch and space for knee and shin clearance. This helps them to generate more revenue, thus driving higher profit margins. Airlines have also introduced another seating class, premium-economy class, with relatively smaller number of seats than economy-class at a higher fare. This encourages passengers to pay more for premium-economy seats to get the additional room.
Significant advancements in in-flight connectivity
Apart from modifications of aircraft cabin interiors, in-flight connectivity is another major growth trend. There have been significant advancements in in-flight connectivity over the decades, such as increasing use of satellite services with the purpose to provide internet service at a higher speed at lower cost. Airlines are adopting such technologies in order to enhance the customers’ overall experience.
Also, commercial aircraft fleet size is expected to reach 46.0 thousand units in 2037, leading to a substantial demand for cabin upgrades to meet the industry standards and deliver a unique customer solution. These factors will provide significant growth opportunities to the industry players to tap the growing need for cabin upgrades in the coming years. First- and business-class cabins are more frequently refurbished as compared to economy class. In
general cases, first- and business-class cabins are refurbished in 5 to 7 years, whereas economy-class cabins are refurbished in 8 to 10 years.
Commercial aircraft to remain the growth engine
The aircraft cabin upgrades market is segmented based on the aircraft type as Commercial Aircraft, Regional Aircraft, General Aviation, and Military Aircraft. Commercial aircraft is likely to remain the growth engine of the market during the forecast period. Increasing cabin upgrades of A320 and B737, introduction of next-generation aircraft including B787 and A350XWB, and market entry of new players, such as COMAC and Irkut are the major factors that are proliferating the growth of cabin upgrades in the market.
Narrow-body aircraft to generate a healthy demand
Among commercial aircraft types, narrow-body aircraft is likely to generate a healthy demand for cabin upgrades in the foreseeable future as airlines and leasing companies are increasingly upgrading aircraft interiors as per the latest A320neo and B737 max cabins to provide the uniform feel and to maintain the brand image across the aircraft fleet. Also, some of the companies are converting passenger aircraft to freight aircraft. This further substantiates the demand for cabin upgrades.
Wide-body aircraft is likely to remain the largest demand generator of cabin upgrades in the same period, driven by the introduction of next-generation aircraft, such as B787 and 350XWB and upcoming fuel-efficient variants, such as A330neo and B777x. The most expected upgrade of A330 and B777 to provide a similar feel as that of upcoming variants of A330neo and B777x and high demand for cabin system upgrades including connectivity will drive the segment’s growth in the coming five years.
Interior modification to remain the most dominant
Based on the application type, interior modification is likely to remain the most dominant segment of the global aircraft cabin upgrades market during the next five years, driven by commercial aircraft. Airlines and leasing companies are increasingly opting for cabin interior modifications of their existing aircraft fleet of A320, B737, A330, and B777 in order to provide a similar feel to fuel-efficient variants of A320neo, B737 max, A330neo, and B777x, respectively, to the customers. Also, a shift from first-class to business-class and introduction of premium economy class are further elevating the demand for cabin interior modifications. Avionics segment is likely to witness the highest growth in the same period, driven by advancements in technology.
North America to remain the largest market
Based on regions, North America is projected to remain the largest market during the forecast period, driven by large aircraft fleet size and presence of major OEM and tier players in the region. The USA is the growth engine of the region’s market, owing to its early adoption of new technologies; presence of major aircraft OEMs including Boeing, Airbus, Cessna, and Gulfstream; and aging commercial aircraft fleet.
Asia-Pacific is likely to witness the highest growth during the same period, driven by a host of factors including increasing demand for commercial aircraft to support rising passenger traffic, opening of assembly plants of Boeing and Airbus in China, upcoming indigenous commercial and regional aircraft (COMAC C919 and Mitsubishi MRJ), and rising aircraft fleet size.
Top market players
The supply chain of this market comprises raw material suppliers, cabin upgrade component manufacturers, cabin upgrade service provider, MRO companies, aircraft OEMs, airlines, and leasing companies. Some of the major cabin upgrades companies are AAR Corp, Air France Industries and KLM Engineering & Maintenance, Boeing Global Services, Diehl Aviation Laupheim GmbH, Jet Aviation AG, Lufthansa Technik AG, SR Technics, and Singapore Technologies Engineering Ltd (ST Engineering).
Why Stratview Research
Our report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights on the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- by Aircraft Type (Commercial Aircraft, Regional Aircraft, and Others)
- by Application Type (Cabin Connectivity, Painting, and Others)
- by End-user Type (Passenger Airlines, Freighter Companies, and Others)
- and by Region (North America, Europe, Asia-Pacific, and RoW)
Go through the detailed scope
Or
Get a free sample of the report
Exceptional interior with an excellent use of space
The prospects of aircraft cabin upgrades market seem attractive and offer favorable growth opportunities for the market stakeholders in the foreseen future. The global aircraft cabin upgrades market is projected to grow at a healthy rate over the next five years to reach US$ 8,926.2 million in 2023. There are several factors collectively driving the demand for cabin upgrades in the aircraft industry.
Introduction of advanced aircraft is the biggest growth driver of the aircraft cabin upgrades market. The latest fuel-efficient variants, such as A320neo, B777x, and B737 Max, have an exceptional interior with an excellent use of space to squeeze the number of seats. This is compelling airlines and leasing companies to upgrade their existing aircraft fleet to provide a uniform feel and to maintain the brand image across their fleet.
Aircraft OEMs are introducing upgraded products/technologies
Another factor driving the growth of aircraft cabin upgrades is advancement in products/technologies. Aircraft OEMs are introducing upgraded products/technologies in order to provide maximum comfort to the passengers. Large overhead bins, new connectivity systems, and compact slim seats are some of the noticeable advancements in the market. Airlines and leasing companies are increasingly preferring these advancements and are incorporating these in their existing aircraft fleet. For instance; both, Boeing and Airbus, have introduced large overhead bins for their B737 max and A320neo, respectively.
Airlines are preferably opting business-class seats
Another trend positively impacting the growth of the market is a shift from first-class seats to business-class. Airlines are preferably opting business-class seats by replacing the first-class seats. As per estimations, there has been more than 50% reduction in the number of first-class seats in wide-body aircraft over the past decade. However, they are taking the comfort of first-class seats to the next level by providing complete privacy, full bed, and full-height enclosures.
Airlines are also narrowing seat pitch and space
Similarly, as per the requirements of airlines, seat manufacturers are developing slim economy seats using composite materials in the seat frames and thinner upholstery in order to squeeze more seats per row. Airlines are also narrowing seat pitch and space for knee and shin clearance. This helps them to generate more revenue, thus driving higher profit margins. Airlines have also introduced another seating class, premium-economy class, with relatively smaller number of seats than economy-class at a higher fare. This encourages passengers to pay more for premium-economy seats to get the additional room.
Significant advancements in in-flight connectivity
Apart from modifications of aircraft cabin interiors, in-flight connectivity is another major growth trend. There have been significant advancements in in-flight connectivity over the decades, such as increasing use of satellite services with the purpose to provide internet service at a higher speed at lower cost. Airlines are adopting such technologies in order to enhance the customers’ overall experience.
Also, commercial aircraft fleet size is expected to reach 46.0 thousand units in 2037, leading to a substantial demand for cabin upgrades to meet the industry standards and deliver a unique customer solution. These factors will provide significant growth opportunities to the industry players to tap the growing need for cabin upgrades in the coming years. First- and business-class cabins are more frequently refurbished as compared to economy class. In
general cases, first- and business-class cabins are refurbished in 5 to 7 years, whereas economy-class cabins are refurbished in 8 to 10 years.
Commercial aircraft to remain the growth engine
The aircraft cabin upgrades market is segmented based on the aircraft type as Commercial Aircraft, Regional Aircraft, General Aviation, and Military Aircraft. Commercial aircraft is likely to remain the growth engine of the market during the forecast period. Increasing cabin upgrades of A320 and B737, introduction of next-generation aircraft including B787 and A350XWB, and market entry of new players, such as COMAC and Irkut are the major factors that are proliferating the growth of cabin upgrades in the market.
Narrow-body aircraft to generate a healthy demand
Among commercial aircraft types, narrow-body aircraft is likely to generate a healthy demand for cabin upgrades in the foreseeable future as airlines and leasing companies are increasingly upgrading aircraft interiors as per the latest A320neo and B737 max cabins to provide the uniform feel and to maintain the brand image across the aircraft fleet. Also, some of the companies are converting passenger aircraft to freight aircraft. This further substantiates the demand for cabin upgrades.
Wide-body aircraft is likely to remain the largest demand generator of cabin upgrades in the same period, driven by the introduction of next-generation aircraft, such as B787 and 350XWB and upcoming fuel-efficient variants, such as A330neo and B777x. The most expected upgrade of A330 and B777 to provide a similar feel as that of upcoming variants of A330neo and B777x and high demand for cabin system upgrades including connectivity will drive the segment’s growth in the coming five years.
Interior modification to remain the most dominant
Based on the application type, interior modification is likely to remain the most dominant segment of the global aircraft cabin upgrades market during the next five years, driven by commercial aircraft. Airlines and leasing companies are increasingly opting for cabin interior modifications of their existing aircraft fleet of A320, B737, A330, and B777 in order to provide a similar feel to fuel-efficient variants of A320neo, B737 max, A330neo, and B777x, respectively, to the customers. Also, a shift from first-class to business-class and introduction of premium economy class are further elevating the demand for cabin interior modifications. Avionics segment is likely to witness the highest growth in the same period, driven by advancements in technology.
North America to remain the largest market
Based on regions, North America is projected to remain the largest market during the forecast period, driven by large aircraft fleet size and presence of major OEM and tier players in the region. The USA is the growth engine of the region’s market, owing to its early adoption of new technologies; presence of major aircraft OEMs including Boeing, Airbus, Cessna, and Gulfstream; and aging commercial aircraft fleet.
Asia-Pacific is likely to witness the highest growth during the same period, driven by a host of factors including increasing demand for commercial aircraft to support rising passenger traffic, opening of assembly plants of Boeing and Airbus in China, upcoming indigenous commercial and regional aircraft (COMAC C919 and Mitsubishi MRJ), and rising aircraft fleet size.
Top market players
The supply chain of this market comprises raw material suppliers, cabin upgrade component manufacturers, cabin upgrade service provider, MRO companies, aircraft OEMs, airlines, and leasing companies. Some of the major cabin upgrades companies are AAR Corp, Air France Industries and KLM Engineering & Maintenance, Boeing Global Services, Diehl Aviation Laupheim GmbH, Jet Aviation AG, Lufthansa Technik AG, SR Technics, and Singapore Technologies Engineering Ltd (ST Engineering).
Why Stratview Research
Our report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights on the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- BMI Prepreg market overview, industry life cycle analysis, supply chain analysis
- Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend (2012 – 2017) and forecast analysis (2018-2023) of each segment.
- Competitors’ market share, product portfolio and new launches.
- Growth opportunities in each segment.
- Emerging trends which will decide the future course of development.
- Strategic growth opportunities for the existing and new players
- Key success factors.
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