Aircraft refurbishing market

The global aircraft refurbishing market was valued at US$ 500.8 Mn in 2022 and is expected to grow at a CAGR of 5.3% during the forecasted period (2023-2030). In recent years, there has been a significant emphasis on cabin interior upgrades in the aircraft refurbishing market. Airlines and aircraft operators are investing in upgrading cabin elements such as seating, lighting systems, lavatories, galleys, and in-flight entertainment systems. These upgrades aim to enhance passenger comfort, improve aesthetics, and provide a more modern and enjoyable flying experience.

Global Aircraft Refurbishing Market: Regional Insights

Figure 1: Global Aircraft Refurbishing Market Share (%), By Region, 2022

North America region dominated the global aircraft refurbishing market in 2022, accounting for 34.2% share in terms of value, followed by Europe, and Asia Pacific, respectively.

Global Aircraft Refurbishing Market- Drivers

Growing appeal of premium economy class

Premium economy class has been popular among travellers 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, Qatar Airways, a renowned airline based in Qatar, offers a premium economy class on select long-haul routes. From 2020 onwards, they started introducing their new premium economy cabin, which provides passengers with additional space and comfort compared to regular economy class. 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 travellers.

Increasing demand for VIP refurbishment of aircrafts

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.

Global Aircraft Refurbishing Market- Opportunities

High growth in conversion into freighter from passenger aircrafts

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.

Development of advanced technologies

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.

Global Aircraft Refurbishing Market-Trends

Endorsement of brand name

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.

Emergence of 3D printed parts

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, Airbus has been utilizing 3D technology for various purposes in the aircraft industry, including cabin refurbishment. While I don't have specific information about the exact timing of their implementation, Airbus has been actively incorporating 3D design and visualization tools into their processes for several years.

Global Aircraft Refurbishing Market- Restraints

Advent of next-generation aircrafts

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.  

Strict regulatory policies

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.

Global Aircraft Refurbishing Market- Segmentation:

Figure 2: Global Aircraft Refurbishing Market Share (%), By Aircraft Type, 2022

Global Aircraft Refurbishing Market report is segmented into Aircraft type, Refurbishing type, Fitting Type

Global Aircraft Refurbishing Market: Key Developments

1. In 15^th Feb 2023, Air India, an air carrier company placed a record-breaking order for 470 aircraft and pledged significant expenditures for IT upgrades and aircraft refurbishment
2. In 13^th Feb 2023, Russia’s Federal Air Transport Agency (FAVT), also known as Rosaviatsiya, has approved the Dubai, United Arab Emirates (UAE)-based Global Jet Technic to maintain Russian-registered Airbus and Boeing aircraft.
3. In 2022, Lufthansa Technik, a company which provides worldwide maintenance, repair, and overhaul services for aircraft, engines, and components is currently carrying out the world's first Performance Restoration Shop Visit (PRSV) of a LEAP-1A engine. The PRSV serves to restore the performance of the engine.

4. In 2020, Airbus also announced plans to develop zero-emission hydrogen-powered aircraft by 2035, demonstrating their commitment to sustainability and environmental responsibility.

Global Aircraft Refurbishing Market: Key Companies Insights

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.

*Definition: Aircraft refurbishing refers to the process of renovating, updating, and enhancing the interior and/or exterior components of an aircraft to improve its appearance, functionality, and passenger experience. It involves a range of activities such as replacing or reupholstering seats, upgrading cabin lighting systems, modernizing lavatories, refreshing the cabin décor, installing new in-flight entertainment systems, and making necessary repairs or modifications.

Detailed Segmentation:

• Global Aircraft Refurbishing, By Aircraft Type
  • Wide Body Aircraft
  • Narrow Body Aircraft
  • Large Body Aircraft
• Global Aircraft Refurbishing, By Refurbishing Type
  • Passenger to Freighter Refurbishing
  • VIP Cabin Refurbishing
  • Commercial Cabin Refurbishing
• Global Aircraft Refurbishing, By Fitting Type
  • Retrofit
  • IFEC
  • Passenger Seats
• Global Aircraft Refurbishing, By Region:
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa