Market Insight- Global Aircraft Refurbishing Market 2017-2027

Market Definition

Aircraft refurbishing is the process required to ensure the continuing soundness and safety of an aircraft. It includes inspection, overhaul, replacement, defect rectification, and embodiment modifications. Retrofit refurbishing gives a new look to the aircraft, which is comprised of constructing, renovating, and repairing cabin interiors, in order to comply with necessary requirements. Furthermore, it replaces lavatory, overhead bins, sidewalls liners, monuments, windows, cabin lighting, and carpet. In passenger seats refurbishing, the entire aircraft seating is replaced including, economy class, premium economy, first class, and business class. In VIP refurbishing, the entire VIP cabin is refurbished including replacements of seats, overhead bins, lavatory, monuments, etc. in the business class of the flight.

The global aircraft refurbishing market was valued at US$ 4,210.2 Mn in 2018 and is expected to grow at a CAGR of 6.0% during the forecasted period (2019-2027)

Market Dynamics- Drivers

  1. Growing appeal of premium economy class in travelers is expected to drive growth of the global aircraft refurbishing market during the forecast period

Premium economy class has been popular among travelers as it offers significant upgrade over regular economy class without high price of business class fare. Premium economy class is preferred by passengers as it offers more space and comfort, premium meals with complementary bar service, and priority check-in and baggage delivery at the airport. For instance, in 2016, American Airlines became the first U.S. carriers to provide premium economy cabin. Thus, it is expected to drive the market growth in the near future. Furthermore, major airlines around the world are introducing premium class section in their aircrafts for their customers. This, in turn, is expected to offer lucrative opportunities for refurbishment service providers to increase number of premium economy class seats for travelers. For instance, in 2015, Lufthansa Airline announced the installation of 3,600 premium economy seats on all Lufthansa’s 106 long-haul aircrafts.

  1. Increasing demand for VIP refurbishment of aircrafts is expected to propel the global aircraft refurbishing market over the forecast period

Asia Pacific, followed by North America is home to the largest population of high net worth individuals. This has supported growth of aerospace aftermarket albeit it is niche. Significant growth of this make has increased the demand for refurbishment and completion of cabin interiors of business and corporate jets. Moreover, VIP refurbishment is one of the most profitable businesses as the price for complete services including manufacturing, engineering, interior design, installation, and certification of custom interiors comes out to be really high. VIP cabins are comprised of lounge area, bedroom, first-class seats, and dining room. This, in turn, is expected to boost the market growth over the forecast period.

North America region dominated the global aircraft refurbishing market in 2018, accounting for 34.2% share in terms of value, followed by Europe, and Asia Pacific, respectively

Aircraft Refurbishing  | Coherent Market Insights

Market Dynamics- Restraints

  1. Advent of next-generation aircrafts with low maintenance is expected to restrain the global aircraft refurbishing market over the forecast period.

Next-generation aircrafts are manufactured with advanced avionics, engines, and systems, which makes them more efficient, mission capable, cost-effective, and comfortable for consumers. For instance, enhanced-vision system allows landing in rogue weather while advanced cabin pressurization system reduces the fatigue of flying. Moreover, advanced engine provides improved fuel efficiency. These factors encourage buyers to go for next-generation aircraft rather than refurbished old aircraft, which in turn, is expected to restrain the market growth. Furthermore, new aircraft comes with warranty for avionics, engines, airframe, and interiors for the span of five years, which compel buyers to rather go for next-generation aircraft.

  1. Strict regulatory policies associated regarding air and noise pollution and safety of passengers is expected to hinder the global aircraft refurbishing market over the forecast period

Many countries have laid down stringent regulatory policies related to noise and air pollution, in order to reduce greenhouse gas effects. This will lead to decline in aircraft refurbishing significantly and will compel owners to decommission their aircrafts and buy new ones. Moreover, aircraft with older technology engines exert larger greenhouse gas effect due to engine deterioration. Exercise of penalties for exceeding local emissions limits may further encourage airline owners to choose new aircrafts with lower nitric oxide emission. Therefore, these factors are expected to hamper the growth in the near future.

Market Opportunities

  1. High growth in conversion of passenger aircraft to freight carriers is expected to pose lucrative growth opportunities

Companies that are in cargo shipping business are looking for refurbished passenger aircrafts as they cost around one-third of a freighter aircraft. A P2F conversion extends the aircraft’s lifespan. Through this conversion, the companies transition airplanes into freighters, expanding economic life of the airplane after the useful operational service. Furthermore, any type of passenger plane can be converted into freighter, which extends its scope of this segment of the global aircraft refurbishing market.

  1. Development of advanced technologies in In-flight Entertainment System is expected to offer lucrative opportunities for market players

In-flight entertainment system components are integrated and repackaged consumer electronics. As these electronic components have small lifespan, aircraft refurbishing becomes extremely essential, in order to stay ahead and avoid obsolescence. Moreover, these technologies get outdated very quickly, key players have the opportunity to design, manufacture, and install customized inflight entertainment system and keep pace with new technological innovations. This, in turn, is expected to pose conducive business opportunities for market players in the near future.

Aircraft Refurbishing  | Coherent Market Insights

Market Trends

  1. Endorsement of brand name drive the demand for aircraft refurbishment

Over the years, aircraft cabins have transformed a lot in terms of features, functions, and applications. Airlines use cabins as presentation of their brand image and gain significance in the market by providing competitive features, services, ambiance, and comfort. The cabin designers are using lighting as a tool for branding as lighting has immense impact on space perception and create right ambience. Many airlines are inclined toward inclusion of LED lighting, larger windows, and overhead lockers, in order to enhance their brand identity.

  1. Emergence of 3D printed parts in aircraft interiors is another major trend

3D printing technique has been incorporated widely in different industries as it is easy to produce and carries less weight. The lighter material from 3D printing results in less jet fuel consumption and eventually reducing air pollution. Moreover, it allows airlines to design more complex parts according to the demand and manufacturing of discontinued parts. For instance, in June 2016, Airbus introduced world first 3D printed aircraft. In January 2017, Abu Dhabi’s Strata partnered with Siemens and Etihad Airways to develop the MENA first 3D printed aircraft interior parts.

Value Chain Analysis

Aircraft Refurbishing  | Coherent Market Insights

Competitive Section

Key companies operating in the global aircraft refurbishing market are B/E Aerospace, Inc., Diehl Stiftung & Co. KG, Gulfstream Aerospace, Ltd, Hong Kong Aircraft Engineering Company Limited, JAMCO America, Jet Aviation AG, Lufthansa Technik AG, Sabreliner Aviation LLC, Safran SA, SCI Cabin Interiors, SIA Engineering Co Ltd., United Technologies Corporation, and Zodiac Aerospace S.A.

Key Developments

  1. Key companies are focused on participating in exhibitions and conferences, in order to enhance their market presence. For instance, in April 2019, Diehl Aviation, a provider of aircraft cabin interior, presented its expanded services portfolio at MRO Americas 2019.
  2. Key companies are involved in mergers and acquisition, in order to gain competitive edge in the market. For instance, in January 2017, Safran SA, a French aerospace supplier, acquired Zodiac Aerospace for the deal of US$ 9 billion.

Aircraft refurbishment is the process of replacement and maintenance of the aircraft. It includes inspection, overhaul, replacement, defect rectification, and embodiment modifications. Aircraft refurbishment gives a new look existing aircraft by replacing the overhead bins, sidewalls liners, monuments, windows, cabin lighting, and others. Furthermore, the inflight entertainment and communications system (IFECS) refurbishment include, designing and installing customized IFECS solutions to engage and entertain passengers during the flight.

Market Dynamics

The low-cost carriers (LCC) airlines such as Sun Country Airlines Company is upgrading their cabin elements such as toilets, galleys, and lavatories in order to increase the seating capacity of aircraft. For instance, in May 2018, United States based Sun Country Airlines invested US$ 20 million on refurbishing planes to increase the seating capacity of the plane. In addition to this, each refurbished plane of Sun Country Airlines will increase capacity on the 737-800s by 9%.

Furthermore, the airline companies including British Airways and others are installing next-generation latest equipment and lightweight seats to develop their operational efficiencies. For instance, in February 2016, U.K based British Airways has completed the major refurbishment of 18 of the airline’s to the enhanced passenger experience.

Market Taxonomy

This report segments the global aircraft refurbishing market on the basis of aircraft type, refurbishing type, and fitting type. On the basis of aircraft type, the global aircraft refurbishing market is segmented into wide body aircraft, narrow body aircraft, and large body aircraft, On the basis of refurbishing type the market is segmented into passenger to freighter refurbishing, VIP cabin refurbishing, and commercial cabin refurbishing, On the basis of fitting type the market is segmented into retrofit, IFEC, and passenger seats.

Key features of the study:

  • This report provides an in-depth analysis of the global aircraft refurbishing market and provides market size (US$ Million) and Compound Annual Growth Rate (CAGR %) for the forecast period (2019 – 2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global aircraft refurbishing market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study B/E Aerospace, Inc., Diehl Stiftung & Co. KG, Gulfstream Aerospace, Ltd, Hong Kong Aircraft Engineering Company Limited, JAMCO America, Jet Aviation AG, Lufthansa Technik AG, Sabreliner Aviation LLC, Safran SA, SCI Cabin Interiors, SIA Engineering Co Ltd., United Technologies Corporation, and Zodiac Aerospace S.A.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global aircraft refurbishing market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global aircraft refurbishing market

Detailed Segmentation:

  •  Global Aircraft Refurbishing Market, By Aircraft Type:
    • Wide Body Aircraft
    • Narrow Body Aircraft
    • Large Body Aircraft
  • Global Aircraft Refurbishing Market, By Refurbishing Type:
    • Passenger to Freighter Refurbishing
    • VIP Cabin Refurbishing
    • Commercial Cabin Refurbishing
  • Global Aircraft Refurbishing Market, By Fitting Type:
    • Retrofit
    • IFEC
    • Passenger Seats
  • Company Profiles
    • B/E Aerospace, Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Diehl Stiftung & Co. KG
    • Gulfstream Aerospace, Ltd
    • Hong Kong Aircraft Engineering Company Limited
    • JAMCO America
    • Jet Aviation AG
    • Lufthansa Technik AG
    • Sabreliner Aviation LLC
    • Safran SA
    • SCI Cabin Interiors
    • SIA Engineering Co Ltd.
    • United Technologies Corporation
    • Zodiac Aerospace S.A.

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Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Aircraft Type
      • Market Snippet, By Refurbishing Type
      • Market Snippet, By Fitting Type
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New system Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
  4. Global Aircraft Refurbishment Market, By Aircraft Type, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Wide Body Aircraft
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Narrow Body Aircraft
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Large Body Aircraft
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Aircraft Refurbishment Market, By Refurbishing Type, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Passenger to Freighter Refurbishing
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • VIP Cabin Refurbishing
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Commercial Cabin Refurbishing
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  6. Global Aircraft Refurbishment Market, By Fitting Type, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Retrofit
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • IFEC
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Passenger Seats
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  7. Global Aircraft Refurbishment Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Aircraft Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Refurbishing Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Fitting Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Aircraft Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Refurbishing Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Fitting Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Aircraft Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Refurbishing Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Fitting Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Aircraft Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Refurbishing Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Fitting Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Aircraft Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Refurbishing Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Fitting Type, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • B/E Aerospace, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Diehl Stiftung & Co. KG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Gulfstream Aerospace, Ltd
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hong Kong Aircraft Engineering Company Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • JAMCO America
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Jet Aviation AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Lufthansa Technik AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Sabreliner Aviation LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Safran SA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SCI Cabin Interiors
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SIA Engineering Co Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • United Technologies Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Zodiac Aerospace S.A.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
    • Analyst Views
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

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