Aircraft Refurbishing Market

Aircraft Refurbishing Market Outlook

Aircraft refurbishing market analysis reveals global demand will register year-on-year (YoY) growth of close to 6% throughout the forecast period of 2021 to 2031.

Demand for retrofit fitting is estimated to increase at 5.7% CAGR, while that for VIP cabin refurbishing is slated at 6.7%.

In this study, Fact.MR offers insights about key factors surging demand for aircraft refurbishing. The report tracks global sales in 20+ high-growth markets, where North America leads the way by far, followed by Europe and South Asia & Pacific.

The report also analyses the impact COVID-19 has had on the aviation industry in general, and the aircraft refurbishing market in particular.

Market Analysis	Values
Base Year Value (2020A)	US$  3.95 Bn
Projected Year Value (2031F)	US$  7.35 Bn
Value CAGR (2021-2031)	5.8%
Collective Value Share: Top 3 Countries (2021E)	43.1%

Revenue Analysis of Aircraft Refurbishing from 2016 to 2020 Compared to Demand Outlook for 2021 to 2031

As per the market research by Fact.MR, a market research and competitive intelligence provider, historically, from 2016 to 2020, market value aircraft refurbishing showcased a slow growth at around 0.9% CAGR, though the market saw steady growth from 2016 to 2019 with increase in demand for aircraft refurbishing as airlines focus on cabin interior designs to attract passenger and ensure passenger comfort. However, in 2020, due to the impact of COVID-19, the market declined.

Aircraft refurbishing market growth through 2031 is expected at a CAGR of 5.8%, with increase in first class and business class refurbishing by airlines owning to rising demand for passenger comfort.

• Global aircraft refurbishing market is set to provide an absolute $ opportunity of US$ 3.2 Bn and grow 1.8X, reaching a market value of US$ 7.4 Bn by 2031.

• Fact.MR estimates that demand for retrofit aircraft refurbishing is projected to grow 1.7X, while aircraft passenger seat refurbishing is set to grow 1.8X by 2031.
• South Asia & Pacific is expected to garner an absolute $ opportunity of nearly US$ 577 Mn and rise at a CAGR of 6.7%.
• According to Fact.MR, demand for wide body aircraft refurbishing is expected to grow at 6.2% CAGR through 2031.
• Commercial aircraft cabin refurbishing is expected to progress at a CAGR of 5.7% over the next ten years.

How is Growth in Demand for Aircraft Interior Refurbishment Nurturing Market Expansion?

Aircraft interiors comprise of carpeting, seating, cabinetry, hardware, LED lighting, and in- cabin entertainment systems. Key players in the aircraft refurbishing market focus on innovative designs for aircraft interiors with creative and constructive approaches to update interiors with latest styles for passenger safety and comfort. Companies are transforming aircraft interiors with latest styles and elegance to give an aesthetic and sophisticated look cabin interiors.

Sales of VIP aircraft refurbishing is growing due to increasing demand for aircraft interiors by business jet owners for VIP refurbishing. Factors accelerating demand for VIP refurbishing are high demand for VIP aircrafts, new types of airplanes & technologies, and arrival of new types of VIP aircrafts in the market. This demand has been driven by emerging markets such as the Middle East and Asian countries to a large extent.

What are the Latest Trends of Aircraft Interior Refurbishment Impacting Sales in the Market?

In a time of rapid technological advancements, manufacturers and suppliers have adopted advanced technology to increase the business for aircraft refurbishing, which is increasing the fuel efficiency of commercial aircrafts. Increasing trend of using 3D printing for aircraft interiors is adopting by many leading manufacturers for making aircraft interiors.

Aircraft manufacturer Boeing has teamed up with Oak Ridge National Lab to 3D print aircraft interior parts that will not only increase aircraft efficiency but also reduce manufacturing waste.

Growth in passenger to freighter aircraft conversions is one of the major trends being observed, thereby driving demand for aircraft refurbishment. Many airlines transform older passenger aircrafts to freighter cabins after their useful operational service as passenger aircrafts, thereby extending the economic life of the airplane.

What Cons of Aircraft Refurbishing Creates Barriers for Companies Providing Refurbishing Services?

There are various cons for aircraft refurbishing providers, such as Lufthansa announced that they have shrunk their collective fleet by 150 aircraft in March 2021 and are considering early retirement of aircraft that have been in deep storage for several years.

Stringent aircraft standards for air and noise pollution imposed by governments to ensure passenger safety and avoid harmful emissions are leading airlines to retire old aircraft. Introduction of new generation aircraft are bringing safety improvements for airlines but increasing maintenance and repair costs for them.

Also, restrictions across the world on domestic and international travel during COVID-19 put a halt on maintenance and repair services of aircraft, which impacted revenue for MRO service providers.

Country-wise Analysis                                             

Will Commercial Aircraft Cabin Refurbishing Demand Drive the U.S. Market?

North America has the largest aircraft fleet, and the size is growing due to high technology adoption in aircraft repair that is facilitating fast growth of new generation aircraft in the region. With increase in air travel and growth in air passenger traffic for tourism and business purposes, the need for aircraft refurbishing is also increasing across North America.

Commercial airlines are focusing on aircraft modifications for economy cabins to enhance their reputation among travellers in the economy class. The commercial cabin refurbishing market in North America is estimated to expand at a CAGR of 5.4% over the forecast period.

How is Demand for Aircraft Repair in Germany Shaping Up?

Germany has many aircraft maintenance and repair service providing companies, which makes it a lucrative market for aircraft interior modification. Western Europe has a high narrow body and wide body aircraft fleet size, which is one of the major reasons that Germany is a high-profit market for MRO providers.

Europe is a mature market due to high demand for air travel and significant growth in air passenger traffic from emerging regions such as the Middle East and Asia, which is fuelling demand for aircraft refurbishing in the country.

The market in Germany is estimated to progress at a CAGR of 5.6% through 2031.

Category-wise Insights

Why is Retrofit the Most Preferred Type of Aircraft Refurbishing?

Retrofit is the addition of new technology or features in aircraft for commercial or private planes. Retrofit aircraft refurbishing can extend the life of an aircraft and keep passengers safer, more connected, and better informed.

Increase in renovation of aircraft cabin interiors for high luxury and comfort is driving the market for retrofit refurbishing. This is one of the crucial factors contributing to market growth. The retrofit segment is estimated to expand at 5.7% CAGR through the forecast period.

What Makes Demand for Narrow Body Aircraft Refurbishing High?

Narrow body aircraft is a type of airplane that has a single aisle of seats with two to six seats per row. Many models of Boeing and Airbus have narrow body airplanes.

Narrow body aircraft are generally used for short- and medium-haul routes. These airplanes are generally used for domestic flights and need periodic refurbishing, which is contributing to rise in demand for narrow body aircraft refurbishing.

Owing to mounting demand for narrow body aircraft, their refurbishing is expected to garner an absolute $ opportunity of nearly US$ 1.8 Bn and projected to grow 1.7X by 2031.

What is Accelerating sales of VIP Refurbishing?

VIP aircraft refurbishment for private jet interiors and customization has been increasing since the past few years due to high demand for luxury and comfort while travelling. The interiors of VIP cabins are refurbished with modern technologies such as in-flight entertainment systems, LED lightings for greater level of style, and sophistication of aircraft interiors, along with latest styles of cabin headliners and window panels of unique designs.

VIP cabin refurbishing accounted more than 16% of all refurbishing type sales in 2021, and is estimated to rise at a CAGR of 6.7% over the decade

COVID-19 Impact on Industry

Many airlines and airports faced numerous challenges and losses due to COVID- 19 pandemic. All airports were closed during the pandemic and air travel was restricted around the world. There was a huge drop in air passenger traffic from many high-profit markets, as many passengers were scared to travel, besides the restrictions which impacted revenue generation of airlines.

However, after a decline in cases and rise in vaccinations, air travel has resumed partially, and it is estimated that it will continue to improve over the coming months. This will help airlines and airports earn revenue and ultimately drive demand for aircraft refurbishing.

Competitive Landscape

According to the market research analysis, Diehl Shiftung & Co. KG, Gulfstream Aerospace Ltd., Jamco America Inc., Hong Kong Aircraft Engineering Co. Ltd, and Lufthansa Technik AG are identified as top companies in the aircraft refurbishment market.

To increase penetration across profitable areas, major players in the aircraft refurbishing industry are maintaining successful relationships with airline companies, where they supply cabin interiors and aircraft system parts. Many players are using strategies such as mergers and acquisitions to upgrade interior solutions for the aircraft cabins that they provide. 

Some of the key developments are:

• In July 2021, Diehl Shiftung & Co. KG entered into a strategic partnership with HAECO Cabin Solutions to upgrade solutions for commercial aircraft cabins.
•  In July 2021, Hong Kong Aircraft Engineering Co. Ltd entered into a strategic commercial agreement with Diehl Aviation as an integrated supplier to deliver a wide range of aircraft cabin projects, which include complex installations.
• In Sept 2021, Collins Aerospace signed an agreement with FlightAware, a digital aviation company that provides global flight tracking solutions, analytics, and decision-making tools.

Similarly, recent developments related to companies offering aircraft refurbishing have been tracked by the team at Fact.MR, which are available in the full report.

Aircraft Refurbishing Industry Report Scope

Report Attributes	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America, Latin America, Europe, East Asia, South Asia & Pacific, and Middle East & Africa
Key Countries Covered	US, Canada, Brazil, Mexico, Germany, U.K., France, Spain, Italy, BENELUX, Poland, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, North Africa, South Africa, and GCC Countries
Key Market Segments Covered	Fitting Type, Aircraft Type, Refurbishing Type, and Region
Key Companies Profiled	Diehl Shiftung & Co. KG Gulfstream Aerospace Ltd. Jamco America Inc. Hong Kong Aircraft Engineering Co. Ltd Jet Aviation AG Lufthansa Technik AG Sabreliner Aviation LLC Raytheon Technologies SIA Engineering Co. Ltd Rose Aircraft Services Safran SA Nextant Aerospace AFI KLM E&M

Market Segments Covered in Aircraft Refurbishing Industry Analysis

• By Fitting Type
  • Retrofit
  • IFEC & Lighting
  • Passenger Seat

• By Aircraft Type

  • Large Body
  • Wide Body
  • Narrow Body

• By Refurbishing Type      

  • VIP
  • Commercial Cabin Refurbishing