Aircraft Retrofit Cabin Market Analysis (2024 - 2030)

The market for Aircraft Retrofit Cabin witnessed a valuation of USD 24.04 billion and is anticipated to achieve USD 39.37 billion by the culmination of 2030. Forecasted for the period spanning 2024 to 2030, the market is poised to expand at a CAGR of 7.3%.

Industry Overview:

The Aircraft Retrofit Cabin sector encompasses the refurbishment, reconstruction, and integration of components or equipment into existing aircraft to introduce enhancements not available during the original manufacturing phase. Many airlines are prioritizing the enhancement of passenger experience by investing in the modernization of their current aircraft fleets, thereby bolstering the overall share of the aircraft cabin interiors market.

The design and manufacture of aircraft cabin interiors aim to provide passengers with an attractive and comfortable environment while ensuring lightweight materials to minimize fuel consumption per flight. These materials are also required to prioritize passenger safety and well-being, driving various aerospace solutions providers to offer innovative solutions to the market. The adoption of cost-effective carrier aircraft in the air transport sector, as highlighted by the International Civil Aviation Organization, has significantly impacted the aircraft cabin interiors market.

Factors such as the burgeoning tourism sector, expansion in air traffic, and advancements in flight technology contribute to the market's growth. The demand for customized, luxurious, and comfortable cabin interiors with aesthetic lighting is expected to fuel the growth of the aircraft cabin interior market. Additionally, increased modernization and favorable economic conditions in emerging economies have spurred the production and sales of aircraft, leading to heightened demand for aircraft cabin interiors globally.

COVID-19 Impact on the Aircraft Retrofit Cabin Market:

The aviation industry has been adversely affected by the COVID-19 outbreak, resulting in air travel restrictions on both domestic and international flights across countries. This led to the grounding of aircraft fleets and a significant decline in aircraft orders and deliveries in 2020. These circumstances are expected to negatively impact the aircraft cabin interiors market in the short term, with a gradual recovery anticipated in the first quarter of 2021. The aviation industry may take 2-3 years to recover from the economic repercussions of COVID-19, resulting in reduced air travel and passenger traffic compared to previous estimates. The temporary halts in production have adversely affected the OEM market for aircraft cabin interiors, with delays in aircraft deliveries during the first and second quarters of 2020 further contributing to the decline in manufacturers' sales.

Post-COVID-19, business professionals, politicians, and high-net-worth individuals are likely to increasingly opt for air travel via private jets/turboprops and air taxis for safe, comfortable, and convenient transportation, both domestically and internationally. This trend is expected to drive the demand for aircraft cabin interiors, including luxurious and comfortable seating, hygienic lavatories, and efficient in-flight connectivity.

Market Drivers:

The expansion of long-distance flights is propelling market growth.

The significant increase in long-haul flights, defined as continuous air travel exceeding seven hours, has been notable in recent times. This is attributed to the extended range of aircraft, resulting in shorter travel times and fewer transit complications. However, long-haul flights pose various health issues for passengers, such as fatigue, restlessness, jet lag, and general discomfort. Airlines are focusing on enhancing passenger comfort through the adoption of comfortable, customizable, and technologically advanced cabin interior structures to replace conventional systems.

The rising demand for in-flight entertainment systems is boosting market growth.

The demand for in-flight entertainment systems has surged in the past decade, emerging as an alternative revenue source for most airlines. Ancillary revenues support airlines in maintaining service quality or enhancing the onboard service offerings. Airlines employ various avenues for revenue generation, including onboard shopping, Wi-Fi connectivity, and advertising. With advancements in in-flight entertainment technology, airlines have introduced online stores characterized by a self-service model, enabling retailing during flights.

Market Restraints:

The declining demand for large-body aircraft worldwide is hampering market growth.

Large aircraft, characterized by double decks and two aisles, require a greater quantity of aircraft cabin interior products. Consequently, the number of monuments such as overhead bins, lavatories, galleys, and lighting systems is much higher than that of narrow-body aircraft. Airlines with predominantly narrow-body fleets tend to maximize the passenger capacity of their aircraft by utilizing spaces occupied by galleys and lavatories. Therefore, the demand for these galleys is anticipated to decrease, as the cost of a single galley exceeds that of a row of seats, thereby restraining market growth.

Aircraft Retrofit Cabin Market - By Product Categories:

• Seating Arrangements
• Cabin Illumination
• Gallery Equipments
• Lavatory Facilities
• Windows & Windshields
• Other Accessories

In terms of product categories, the lavatory segment is anticipated to demonstrate significant growth in the fundamental aircraft cabin interiors market in the forthcoming years. Lavatories are perceived as the only private space for passengers aboard aircraft, prompting numerous airlines to emphasize the importance of delivering efficiency and comfort to cabin occupants during extended flights by introducing advanced restroom solutions.

Aircraft Retrofit Cabin Market - By Aircraft Categories:

• Single-Aisle Aircraft
• Twin-Aisle Aircraft
• Large Aircraft

Considering the Aircraft Categories, the escalating demand for long-haul air travel has spurred the production of large aircraft. A tailored interior design prioritizing passenger safety will enhance passenger comfort and overall travel experience at high altitudes. The adoption of long-haul and wide-body aircraft will drive growth in the aircraft cabin interiors market.

Aircraft Retrofit Cabin Market - By Distribution Channels:

• Original Equipment Manufacturers (OEMs)
• Aftermarket Suppliers

With a surge in aircraft deliveries observed in recent years, the need for maintenance, servicing, and repair of aircraft components is expected to fuel growth in the aftermarket distribution channel. Increasing demand for commercial aircraft, a growing consumer preference for air travel to save time, and a rising trend of customized interiors further accelerate the expansion of the aircraft cabin interiors aftermarket distribution channel.

Aircraft Retrofit Cabin Market - By Geographic Regions:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East
• Africa

Geographically, North America dominated the market during the forecast period from 2023 to 2030. U.S.-manufactured aerospace components are required to meet the Federal Aviation Administration's (FAA) aviation safety standards. FAA-approved components are known to provide maximum safety, thus boosting demand for aircraft cabin interiors. With air transport and tourism contributing approximately USD 779 billion annually according to the International Air Transport Association, increasing confidence in US-made products will drive demand for aircraft cabin interiors.

The Asia-Pacific region is expected to witness the fastest growth, with China's sales and production of aircraft cabin interiors projected to significantly increase due to the booming domestic and civil aviation industry, coupled with government initiatives to expand airport networks. Rapid urbanization has led to approximately 600 million passengers annually traveling domestically. The growing air traffic and high demand for aircraft have spurred demand for aircraft cabin interiors in China. Additionally, the Chinese government's investment in developing its own single-aisle aircraft presents a promising market for aircraft cabin interior growth.

Aircraft Retrofit Cabin Market Share by Leading Companies:

1. Café X
2. Miso Robotics
3. Mechanical Chef
4. Moley Robotics
5. Picnic
6. Admatic Solutions (RoboChef)
7. The Wilkinson Baking Company
8. Chowbotics
9. Karakuri Ltd.
10. Creator
11. Briggo Inc.

Mergers and acquisitions in the industry have enabled companies to diversify and enhance their service offerings.

Panasonic Avionics Corporation recently collaborated with Middle East Airlines Air Liban (MEA) to provide inflight entertainment and connectivity (IFEC) solutions called eX1 seatback for 15 of its Airbus A321 family aircraft.

Intense competition among aircraft cabin interior market players has driven significant research and development efforts to gain a competitive edge. The top ten market players, including United Technologies Corporation, collectively hold more than 50% of the market share.

The emergence of new market entrants is consolidating the market further. Market players are employing inorganic strategies such as strategic acquisitions, collaborations, and mergers with other companies to strengthen their market position. Expanding production capacity is also being considered as a strategy to expand and sustain in the global Aircraft Cabin Interior market.

Recent Noteworthy Developments in the Global Aircraft Retrofit Cabin Market:

• Expansion - In June 2021, HAECO ITM Limited announced an expansion of its agreement with China Airlines to provide inventory technical management for the airline's expanding Boeing 777 fleet.
• Collaboration - In 2020, Acumen Design Associates, in collaboration with ST Engineering, announced the development of ACCESS, the world's first extending aircraft lavatory. This innovation is expected to enhance the flying experience for passengers with reduced mobility.