As per FMI, the global aircraft refurbishing market is projected to top US$ 4.2 Bn in 2021.
Growing emphasis on the expansion of the aviation industry across China, India, and the U.S., following the outbreak of COVID-19 is facilitating the growth in the market.
Rising air passenger traffic is being experience, owing to the surging demand for fast-paced travel amongst the millennial population.
On account of this, the aircraft refurbishing market is expected to surpass US$ 7.4 Bn by the end of 2031.
For instance, according to a report by the International Air Transport Association (IATA), approximately 4.9 billion air travel passengers were reported in 2019 across the world.
Hence, increasing focusing on providing better comfort and luxury to the passengers during air travel, is creating lucrative growth opportunities in the market.
Numerous airline companies are actively investing in interiors of their aircrafts by installing advanced in-flight entertainment systems, comfortable seating, and LED lightings, to enhance the passenger experience.
In addition to this, growing demand for VIP cabin refurbishing due to rising air traffic in first class is anticipated to accelerate the sales of aircraft refurbishing market.
As per Future Market Insights, the market is projected to expand at 5.8% CAGR over the forecast period 2021-2031.
On the basis of fitting type, the retrofitting segment is projected to exhibit the fastest growth in the market, expanding at 5.7% CAGR through 2031.
Increasing installation of avionics systems, technologically advanced connectivity solutions, and new cabins to increase the safety and comfort in aircraft is driving the growth in the segment.
“Increasing demand for air transport maintenance, repair, and overhaul (MRO) services and upsurge in the trend of the passenger to freighter aircraft conversions is creating high growth prospects in the market,” says a FMI analyst.
Key Takeaways from Aircraft Refurbishing Market Study
- The U.S. is forecast to dominate the market in North America, accounting for nearly 90% of the sales in the region by 2021.
- China aircraft refurbishing market is estimated to total US$ 6.5 Bn through 2031, projecting sales at 7.1% CAGR over the assessment period.
- South Korea and Japan are expected to collectively hold a significant revenue share in the market, accounting for around 7.3% in 2021.
- In terms of aircraft type, narrow body aircraft is anticipated to emerge as the most lucrative segment, accounting for more than 50% of the demand share through 2021.
- Based on refurbishing type, the commercial cabin segment is projected to hold the lion’s in the market, accounting for over 80% of the sales in 2021.
- Increasing demand for customized luxury jets and narrow body aircrafts across the U.S., China, Germany, Japan, and India is propelling the demand for aircraft refurbishing across the VIP cabin segment.
- Growing production of narrow body aircrafts for long-haul flights by commercial airlines, owing to the increasing air passenger traffic is expected to drive the sales across the narrow body segment.
- Implementation of stringent aircraft standards for noise and air pollution and to ensure passenger safety are encouraging airlines to retire old aircrafts rather than refurbish them which is in turn, hampering the growth in the market.
- Increasing focusing on upgrading economy class interiors to improve passenger comfort at rather low investment in comparison with VIP refurbishing in expected to hinder the sales in VIP cabin segment.