Aircraft Interiors Market Analysis | 2024-2032

“The Aircraft Interiors Market was valued at US$ 13 Billion in 2023 and is likely to grow at an impressive CAGR of 4.1% in the long run to reach US$ 20.4 Billion by 2032.”

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Market Dynamics

Introduction

Aircraft interiors can be defined as the interior design and arrangement of components within an aircraft that are intended to improve the passengers’ comfort and safety. Some of the common cabin components include seats, a galley, a lavatory, IFE solutions, and stowage. Aircraft interiors relate to customer experience and are an important aspect of airlines’ competitive positioning.

Over the years, the transformation in aircraft interiors has been nothing short of remarkable, with changes in design, technology, and passenger experience revolutionizing the way we perceive air travel.

Market Drivers

Aircraft interior manufacturers are constantly working to create new technologies that will benefit both, airlines and passengers, and improve the onboarding experience. New growth opportunities will be created by the rising demand for aircraft refurbishments and space optimization.

Upsurge in demand for cutting-edge aircraft interior systems, such as comfortable lightweight components to conserve fuel, wireless inflight entertainment, and connectivity, advanced products that will promote hygiene and a safe environment, large and spacious bins, and LED cabin lights, would create plenty of growth opportunities for market participants throughout the forecast period. In recent years, the demand for in-flight entertainment systems has grown since they act as an additional source of revenue for airlines.

COVID-19 Impact

The impact of the pandemic, though colossal, seems to be a thing of the past with the seeds of recuperation budding throughout the industry, including the aircraft interiors business. Post an acute downward spiral during 2019 to 2022, the aircraft interiors market is now heading towards reclamation and stabilization, marked by unremitting innovation, development, and growth.

Once the clouds of uncertainty clear, the organic growth of the aerospace industry [expected increase in deliveries of B737max, A320neo family, B777/777x, A350, A220, and B787] is likely to remain a key driving force for the market demand in the future.

Consistent demand from the OE and aftermarket is likely to act as an unwavering trust factor. According to Boeing and Airbus' latest outlooks, the global commercial aircraft fleet will be in the range of 48,000 to 51,000 aircraft by the end of 2043. Also, the global MRO revenue to reach US$ 124 billion in 2033 from US$ 101 billion in 2023, with a CAGR of ~2%, 2023-33 (Oliver Wyman).

Segments Analysis

By Aircraft Type

“Narrow-body aircraft is expected to remain the dominant aircraft of the market during the forecast period.”

• The aircraft interiors market is segmented into narrow-body aircraft, wide-body aircraft, regional aircraft, and business jets.

• Faster recovery of short-haul may imprint a positive impact on the demand for interiors.

• Interiors remain a key factor for differentiation and a marker of service level. Introduction of fuel-efficient variants with the latest interior outlook, compelling airlines to upgrade their existing fleet.

• Aircraft deliveries 24-34 à Single-aisle aircraft to hold the lion’s share.

• Boeing is anticipated to deliver 410 aircraft in 2024, 117 units lower than its 2023 deliveries (527 deliveries in 2023). Boeing could manage to deliver only 229 B737Max by Q3, 2024, 57 units less than Q3 2023. Boeing drastically reduced its production rates in H1, 2024 due to increased quality checks and audits by regulators after the Alaska Airlines flight incident.

• Airbus, already, announced to cut its delivery targets for 2024 to 770 aircraft from the previously announced target of 800 aircraft units. Stratview estimates suggest deliveries (752 deliveries, about 18 units lower) of Airbus in 2024. 

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By Application Type

“Seats are expected to remain the dominant application of aircraft interiors market.”

• The market is segmented into seats, galleys/ galley inserts, lavatories, stowages, IFEC, floor panels, cabin linings, and others.

• Aftermarket remains the biggest driver for seats shortly. There is a rising need for accommodation of a greater number of seats.

• A paradigm shift can be seen from first-class seats to business-class seats. For instance, according to the Asiana Airlines website, the airline has recently introduced its “Business Suite,” a hybrid between first and business class, offering a first-class experience within a business class cabin, and providing luxury services at a more competitive price.

• Premium seat classes (such as first class and business class) offer airlines high revenue potential by providing exclusive features like lie-flat beds, increased privacy, and extra space, which attract high-paying customers.

• Innovations in seat design, such as lightweight materials, ergonomic features, and in-seat entertainment incorporation, persistently push airlines to upgrade, sustaining high demand.

• The incessant growth in IFEC is mainly attributed to the increasing focus on in-flight internet connectivity for passenger engagements.

By Furnished Equipment Type

“BFE continues to remain the choice of equipment and is likely to remain so during the forecast period as well.”

• The aircraft interiors market is segmented into BFE and SFE.

• Suppliers offer qualified products in the proposed configuration.

• Airlines are transitioning from BFE to SFE products. This shift enables the prevention of delays from BFE suppliers and reduces the additional cost.

• Several innovations in retrofits such as cabin upgrades, new materials, high-speed connectivity, and increasing focus on passenger comfort.

• BFE is becoming the choice of equipment, especially in seats and IFEC. In cabin applications, SFE is being preferred in the wake of delays in wide-body aircraft deliveries.

By End-User Type

“OE is anticipated to remain the more rewarding end-user type of the market during the forecast period.”

• The aircraft interiors market is segmented into OE and aftermarket.

• Healthy demand from OE is primarily attributed to the surge in seat demand, particularly business class seats.

• Aftermarket presents dynamic opportunities in the cabin (mainly spare parts) and seats (demand from Asian and USA airlines), driven by the recovery of the widebody market and the positive momentum in air traffic.

• The trouble streak for aircraft manufacturer, Boeing persists. A massive strike of ~33,000 Boeing machinists who work on the best-selling 737 MAX, B767, and B777, has finally come to an end after a settlement was finalized on 3rd November 2024.

Regional Analysis

“North America is expected to remain the largest market for aircraft interiors during the forecast period.”

• According to IATA, the annual RPK growth rates are expected to glide down towards lower levels as the industry moves away from the pandemic period. This trend is felt in all regions, however, especially in Asia Pacific, which saw traffic surges from low levels in 2023.

• The growing share of Asia-Pacific is driven by the high demand for aircraft. Increased involvement of Asian companies, particularly, AVIC Cabin Systems, in M&As and JVs.

• A large number of existing as well as new airlines, some of which are based in fast-growing markets such as China and India, are increasing their capacity to address increasing passenger traffic, and at the same time, they are investing in higher-specification and more bespoke interiors.

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Key Players

The supply chain of this market consists of raw material suppliers, interior product manufacturers, aircraft OEMs, airlines, aircraft leasing companies, and MRO companies. Major players in the market are focusing on technological advancements to address the growing demand for aircraft interiors. 

The following are the key players in the aircraft interiors market (Based on Dominance)

• Safran S.A.
• Collins Aerospace
• Panasonic Avionics
• AVIC Cabin Systems
• Gogo Inc.
• Intelsat S.A.
• Thales Group
• Recaro Aircraft
• Diehl Aviation
• Jamco Corporation

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.

• Market trend and forecast analysis.

• Market segment trend and forecast.

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.

• COVID-19 impact and its recovery curve.

• Attractive market segments and associated growth opportunities.

• Emerging trends.

• Strategic growth opportunities for the existing and new players.

• Key success factors.

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s aircraft interior market realities and future market possibilities for the forecast period.

• The report segments and analyses the market in the most detailed manner in order to provide a panoramic view of the market.

• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com

Recent Market News

• In 2022, Air New Zealand revealed new Business Premier seating by Safran Seats that should go into service starting with 787-9 in 2024, to provide increased comfort and privacy solutions for ULH flights.

• In 2023, Collins Aerospace revealed Aurora, the first fully enclosed business class lie-flat seating for narrow-body airplanes, with the options for personalization and privacy with the service entry in 2024.

• In 2024, Collins Aerospace launched the Helix™ main cabin seat at the 2024 Aircraft Interiors Expo for narrow-body airplanes enhancing cabin comfort, sustainability, and cabin weight.

Recent Market JVs and Acquisitions:

A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:

• In 2024, Gogo Inc. signed a deal to acquire Satcom Direct for $375 million in cash plus five million shares of the new Gogo stock which will develop a distinct LEO-GEO-ATG enabler and broaden Gogo’s services in the global business aviation and military/government mobility markets.

• In 2024 the two companies, Collins Aerospace, and Panasonic Avionics come up with MAYA's next-generation business class suite including the 45 inches curved 4K OLED display for embracing immersion along with the incorporation of improved quality, environmental-friendly materials for elegantly enhancing the passengers traveling in the premium class.

• In 2024 Panasonic Avionics and EVA Air inked a deal for the advanced IFE connectivity, and digital services to 54 EVA Air wide & narrow body airplanes where Panasonic Avionics introduced various products and services including Astrova IFE solutions.

• In 2024, Azul and Viasat revealed that seven other new Airbus A330-neo nine Airbus aircraft of Azul company will contain Viasat’s ka band in-flight WiFi connectivity solution in the skies over Brazil.