The aircraft cabin interiors market is expected to increase at a CAGR of 13.2 percent from 2020 to 2025, from USD 17.6 billion in 2020 to USD 32.7 billion in 2025. The market's expansion can be linked to an increase in new aircraft orders as a result of increased air passenger travel around the world. Furthermore, airlines are increasingly concerned with improving the customer experience and, as a result, are investing more to improve their existing aircraft fleets, resulting in the expansion of the aeroplane cabin interiors market.
Due to air travel restrictions on domestic and international flights between countries, the COVID-19 epidemic has had a negative impact on the aviation industry, resulting in the grounding of aircraft fleets and a sharp drop in aircraft sales and deliveries in 2020. In the medium term, this is projected to have a negative impact on the aircraft cabin interiors industry; a sluggish rebound is expected in Q1 of 2021. COVID-19's financial effects on the aviation industry could take up to two years to recover from, resulting in fewer air travel and passenger traffic than previously estimated.
In-flight entertainment systems have grown in popularity during the last decade, offering a new source of revenue for most airlines. Ancillary revenue assists airlines in maintaining or improving the quality of services provided onboard. Airlines generate revenue from a variety of sources, including onboard retail, Wi-Fi connectivity, and advertising. Airlines have launched online stores that operate on a self-service model, allowing merchandising throughout the flight, thanks to developments in IFE technology.
In-flight entertainment and connection are regulated in numerous nations in the aeroplane cabin interiors market. Airlines are finding it increasingly difficult to acquire clearances for the installation of IFE equipment onboard. Because of the extensive approval procedure and the high cost of IFE systems, acquiring certifications for them is a lengthy process. To enable a safe landing, an IFE system, for example, must be connected to an electrical bus. The Federal Aviation Administration must approve this practise (FAA). As a result, regulatory frameworks and certifications pose as stumbling blocks to the in-flight entertainment and connection market's expansion.
Aircraft and component manufacturers are constantly working to develop new technology that will benefit both airlines and passengers while also improving the experience of air travel. For example, in February 2017, Lufthansa debuted a new aeroplane interior lighting technology designed for the Airbus 350-900. This new technology allows for 24 different lighting options for passenger enjoyment, and their functions are based on the biorhythms of passengers on board. Lufthansa has installed this equipment on ten aircraft and expects to do it on its Boeing 747-800s as well.
Delays in aircraft delivery are harming the aviation business, which can have a negative impact on operations, cash flow, and lessee losses. The market for aircraft cabin interiors is reliant on the aircraft market. A delay in aircraft delivery could have a negative impact on future procurement and contracts, ultimately resulting in significant losses for cabin interior makers. In 2017, Airbus scheduled the delivery of about 200 A320 neo aircraft to Indigo Airlines. However, due to technical challenges, the business was only able to deliver 16 aircraft by mid-2017, and completing the pending order on time is predicted to be extremely difficult.
The aviation cabin interior ecosystem includes prominent corporations that provide Aircraft Cabin Interior (ACI) goods, small and medium enterprises (SMEs), distributors, and end-customers (aircraft manufacturers and airline companies). Major effects on the aircraft cabin interiors market include investors and funders in the industry, university researchers, distributors, service providers, and airport authorities.
The aeroplane cabin interiors market is divided into aircraft seating, in-flight entertainment & connectivity, cabin lighting, aircraft galley, aircraft lavatory, aircraft windows & windshields, aircraft overhead stowage bins, and aircraft interior panels, depending on the type of aircraft. From 2020 to 2025, the aeroplane galley market is expected to increase at the fastest rate. The rapid drop in the market in 2020, due to travel restrictions enforced in most nations, is ascribed to the segment's rise. In 2020, the galley aftermarket and MRO is predicted to decline significantly before recovering in the next two to three years.
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