Market Insights
An aircraft galley is an essential component to effectively provide services to passengers. In terms of the variety of meals that can be supplied to onboard passengers during a trip, aircraft galleys are believed to significantly enhance the flying experience offered by airlines. The introduction of fuel-efficient variants, such as the B737 Max and A320neo, an increase in the demand for lightweight galley systems, and an expected rebound in the production rates of the best-selling aircraft (B737, A320 family, B787, A220 series, and A350XWB) are anticipated to be the growth propellors of the market. Additionally, fleet modernization by airline operators to raise the caliber of services provided to passengers during the flight also has a positive influence on the commercial prospects of market manufacturers.
The COVID-19 outbreak in 2020, caused order cancellation, lockdown, and supply chain disruption, which completely shattered the market for aircraft galley equipment. The aircraft galley equipment market saw a massive decline of -42.5% in the year 2020. A partial recovery from the drop in the previous years was projected to occur in 2021. However, airlines that had intended to renovate their galley equipment had to postpone or abandon those plans due to the financial crisis. The grounding of B787 has further dented the recovery in 2021. As a result of that, the year 2021 proved to be another nightmare year for the market participants with a decline of -28.7% YoY in the aircraft galley equipment business.
The business outlook for the coming five years seems vibrant with several opportunities for the market participants to recover the losses witnessed in the past two years. Overall, the market for aircraft galley equipment is expected to grow at a robust CAGR of 11.1% during the forecast period to reach a value of US$ 2.2 Billion in 2028.
All airlines are urging manufacturers to create galleys with excellent utility and durability while consuming a minimal amount of cabin space. For airlines, a lightweight galley is their top necessity. Furthermore, the industry would experience further growth in the upcoming years due to a changing tendency toward aircraft refurbishing. Galley manufacturers are investing in research and development. New products such as Skypax and Aft-Simplex by Diehl Aviation enable up to 6-12 additional seats with more than 50kg weight reduction in the A320 program. Similarly, Spaceflex by Safran enables 6-12 additional seats with PRM capability.
Segment Analysis
Aircraft Type
The market is bifurcated into narrow-body aircraft, wide-body aircraft, regional aircraft, and business jets. Among aircraft types, Wide-body aircraft is expected to be the biggest demand generator for galley equipment in the foreseen future. The galley equipment market for the segment is being driven by mainly four aircraft (B787, A350XB, B777, and A330). Wide-body aircraft registered the highest decline amid the pandemic (2020 and 2021). The grounding of B787 in 2021 further exacerbated the market conditions. The segment’s market is started to rebounding from 2022 onwards with a myriad of opportunities in the near future. Also, faster recovery of international air traffic is leading airframers to speed up their production rates of wide-body aircraft programs.
Insert Type
The market is segmented into electric inserts and non-electric inserts. Electrical inserts include a beverage maker, chiller, water boiler, coffee maker, food warmer, and others. Non-Electrical inserts are divided into serving pots, rack/trays, galley trolleys, and other inserts. Due to the rising demand for water boilers, beverage makers, and chillers, the electrical insert type is projected to continue to have a larger market share over the next five years.
End-User Type
The market is segmented as OE and aftermarket. Over the projection period, it is expected that the OE segment will dominate the market. The main reasons for its dominance are the massive aircraft backlogs of key airframers paired with recovering market conditions. Boeing and Airbus have already announced their plans to gradually ramp up their productions, which, has a direct impact on the market at the OE level. Further, the entry of COMAC may substantiate the demand for galley equipment at this level. The aftermarket level will expand significantly as a result of replacing older galley equipment with new, modern solutions that are light, offer increased fuel efficiency, and take up minimal space.
Regional Analysis
North America is expected to remain the largest market for aircraft galley equipment over the forecast period. With the presence of several aircraft OEMs, tier players, distributors, airlines, and raw material suppliers, the area is the production hub of the aviation industry. Over the following five years, it is anticipated that the USA will continue to drive market expansion in the region.
On the other hand, Asia-Pacific is predicted to experience the highest market growth in the next five years, due to several factors, including the development of commercial and regional aircraft (CMAC's C919), the largest fleet of commercial aircraft, and assembly plants of Boeing and Airbus in China.
Key Players
The key strategies of all the leading players to obtain a competitive edge include the formation of long-term contracts, M&As, and the development of new products with improved cabin efficiency.
The following are some of the key players in the aircraft galley equipment market:
- Safran S.A.
- Collins Aerospace
- Jamco Corporation
- Diehl Stiftung & Co. KG
- AVIC Cabin Systems Limited
- EFW GmbH
- Boeing Encore Interiors LLC
- Bucher Leichtbau AG
- The Gill Corporation
- Euro-Composites Corporation
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s aircraft galley equipment market realities and future market possibilities for the forecast period of 2023 to 2028. The report segments and analyzes 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 the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the 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 the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the 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, Product portfolio, New Product Launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The aircraft galley equipment market is segmented into the following categories:
Aircraft Galley Equipment Market, by Aircraft Type
- Narrow-Body Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Wide-Body Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Regional Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Business Jet (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Aircraft Galley Equipment Market, by Galley Type
- Standard Galley (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Modular Galley (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Customized Galley (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Aircraft Galley Equipment Market, by Insert Type
- Electric Inserts (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Non-Electric Inserts (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Aircraft Galley Equipment Market, by Sales Channel Type
- BFE (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- SFE (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Aircraft Galley Equipment Market, by End-User Type
- OE (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Aftermarket (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Aircraft Galley Equipment Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: China, Japan, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Customization Options
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: Product portfolio, geographical reach, regional presence, and strategic alliances
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