Aircraft refurbishing: Key market research findings
- The Americas dominate the market geographically
- Narrow body aircraft account for a majority share of the market’s revenue
- Key vendors – AAR, Ameco, Aviation Partners Boeing, L-3 Communications Aviation Recorders, and ST Aerospace
Technavio’s market research analysts predict the global aircraft refurbishing market to grow at a CAGR of more than 5% between 2016 and 2020. The growing concern about the environment and the resultant demand for eco-friendly aircraft is the primary driving force behind growth in this market. Growing environmental concerns also drive the need for green technologies or eco-friendly systems for aircraft. Most of the US and European Airlines such as Virgin America, United Airlines, Southwest Airlines, Air Canada, Air France, Jet Blue, Lufthansa, British Airways, and Cathay Pacific are making use of green design, employing waste-reduction programs, and providing carbon-offset options to the air travellers. During 2015, the Americas dominated the global aircraft refurbishing market by accounting for a market share of more than 39%.
The new market research report from Technavio presents a breakdown and analysis of the aircraft refurbishing segments based on the aircraft type.
“Recently, there has been an increasing preference for air travel among consumers. With the growing disposable income, the buying patterns of passengers have shifted toward air travel. This shift towards air travel is triggering an increase in the number of aircraft refurbishments, leading to growth in the market,” says Abhay Kumar Singh, Lead Analyst, Aerospace & Defense, Technavio Research.
By 2020, the narrow body segment will account for more than 45% of the overall market share to continue its dominance as the primary revenue generator in the global aircraft refurbishing market. The diverse growth between regions, business models, and airplane types continue to strengthen the fragmentation in the market and is supported by refurbishments such as increasing the capacity of airlines. In 2015, Panasonic Avionics and Boeing developed a satellite-based, in-flight broadband service known as eXConnect.
The key vendors in the global aircraft refurbishment market include AAR, Ameco, Aviation Partners Boeing, L-3 Communications Aviation Recorders, and ST Aerospace. This market is highly competitive, and the vendors compete on the basis of cost, product quality, reliability, and aftermarket service to boost market shares. The established vendors are dominating the market in terms of in-house manufacturing capabilities, product offerings, global footprint network, R&D investments, newer technologies, and a strong client base. To sustain themselves in this market, the vendors have to develop cost-effective, high-quality, and innovative cabins with latest technology and materials.
A more detailed analysis is available in the Technavio report, Global Aircraft Refurbishing Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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