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Aircraft Refurbishing Market size was over USD 4.82 billion in 2023 and is anticipated to cross USD 9.91 billion by 2036, witnessing more than 5.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of aircraft refurbishing is estimated at USD 5.04 billion.
Significance of delivering world class facilities and luxury passenger flight experience along with growing domestic airline market are some of the significant factors that are anticipated to boost the aircraft refurbishing market growth. Additionally, the growing use of lightweight materials, since they reduce the weight of an aircraft which results in reducing fuel costs, gives the profit margins to the airlines. Driven by these prominent features along with favorable government regulations for permitting these restructuring activities in public transport.
Growth Drivers
Enhanced Travel Experience to Customers and Brand Recall
A large number of people travel through airlines annually, making the process of brand management an important dimension for airlines. Business studies have shown the importance of brand awareness, perceived quality, brand image and brand loyalty, and their likely effect on airline brand equity. This has led to an increased demand for a niche aerospace aftermarket, which includes refurbishment and completion of cabin interiors of business and corporate jets. VIP aircrafts feature a bedroom, lounge area, dining room, and first class seats. In order to completely satisfy customers’ needs, refurbishment service providers directly collaborate with designers to customize the interiors of aircrafts.
Airlines invest a significant amount of time to increase passenger share by adding more destinations, aggressive ticket prices, and revamping their aircrafts frequently. Manufacturers are focused on developing high-quality aircraft components to accommodate specific requirements from OEMs and airline carriers. Most aircraft refurbishing suppliers have long-term contracts with OEMs and airline carriers to provide customized aircraft refurbishing products. These are some of the considerable factors that are estimated to promote the growth of the aircraft refurbishing market. Additionally, this growth is backed by rising number of domestic passengers across the globe.
Improving Fuel-Efficiency and Minimizing Operational Costs
Aircraft weight and fuel consumption are important factors which affect the efficiency of an aircraft. Less fuel consumption means lower CO2 emissions as well as significant reduction in operating costs of airlines. The cabin part of an aircraft has seen significant technological innovations ranging from seating arrangements to lighting systems and is estimated to drive the global aircraft refurbishing market with growth opportunities throughout the forecast period. Refurbishing service providers offer standardized and modular designs for selected aircrafts resulting in minimal downtime for aircraft and cost effective cabin refurbishment. The modular kit interior concept is expected to be the industry standard in aircraft refurbishment over the coming years.
Challenges
High Capital Investment
The potential factor that is predicted to negatively affect the growth of the aircraft refurbishing market is the high initial capital investment with aircraft refurbishing. Airline industry required large amounts of continuous investments in order to keep the aircrafts updated and to introduce newer technologies.
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
5.7% |
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Base Year Market Size (2023) |
USD 4.82 billion |
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Forecast Year Market Size (2036) |
USD 9.91 billion |
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Regional Scope |
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The global aircraft refurbishing market is segmented by aircraft, by refurbishing, by application and by end user. On the basis of aircraft, the market is segmented into very light aircraft, wide body aircraft, narrow body aircraft, and others, out of which, the narrow body aircraft segment is estimated to hold leading share as these aircrafts are highly preferred among the aero manufacturers owing to their low operational costs as compared to wide body aircrafts. The aircraft refurbishing market is further segmented by application into transforming passenger to freight aircrafts, commercial aircraft cabin refurbishing, VIP cabin refurbishing and others. Among these segments, the passenger to freight transformation was the largest revenue generating segment in 2019 owing to various factors such as growing global e-commerce, international trade and emergency medical supplies to fight the pandemic. Additionally, the global geo-political conflicts and increase in defense budgets for acquiring freight planes for military supplies are additional factors estimated to contribute towards the growth of the segment.
Our in-depth analysis of the global market includes the following segments
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By Aircraft |
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By Refurbishing |
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By Application
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By End User
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On the basis of regional analysis, the global aircraft refurbishing market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. North America industry is likely to account for largest revenue share by 2036, propelled by growing requirements for continuously improving the design and specifications of the aircraft to meet the customer preferences are met in the region. Moreover, the growing requirements for continuously improving the design and specifications of the aircraft to meet the customer preferences are met in this region, which further increases the product demand. The market in Asia Pacific region is predicted to grow at the highest rate during the forecast period as a result of growing domestic aircraft demands and new players in the region.
On April 1, 2020, AMAC Aerospace, a Swiss refurbishing company, signed a deal with Boeing, US, to refurbish its business jet 747-8 cabin interiors with Ka-band systems and in-flight entertainment systems.
On June 17, 2019, Safran, a US based aircraft cabin refurbishing company, signed a strategic collaboration agreement with Chinese based aircraft OEM Zhejiang XiZi to create value for Chinese airlines and customers.
Author Credits: Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
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