The Cabin Interior Market Will Be Worth $25.6B by 2020

MOSCOW, RUSSIA - MARCH 30, 2015: Emirates first class Boeing-777 interior. Emirates is one of two flag carriers of the United Arab Emirates along with Etihad Airways and is based in Dubai.

The aircraft cabin interior market is expected to grow to $25.6 billion by 2020.

A study published Tuesday projected that the aircraft cabin interior market will reach $25.6 billion by 2020 thanks, in part, to an increase in global air traffic and the growing influence of low-cost airline carriers.

The 2020 forecast of $25.6 billion is driven at a compound annual growth rate (CADR) of 12.5 percent, said MarketsandMarkets, an Indian-based market research firm, who published the data.

“A number of factors such as growth in regional economies, increase in demand for air travel, and modernization of aircraft programs among others drive the aircraft cabin interior market,” reads a portion of the firm’s press release. “On the other hand, factors such as high amount of investment, alternative modes of transportation, and uncertain financial environment are restricting the growth of this market. However, increase in global air traffic and influence of low-cost airline carriers provides new growth opportunities for market players.”

In 2015, North America is expected to maintain the largest share of revenue from the cabin interior market, followed by Europe.

The Asia-Pacific aircraft cabin interior market is expected to grow at a CAGR of 14.5 percent from 2015 to 2020, thanks to rise in air travel in emerging economies such as China and India.

The same market in Latin America, the Middle East and Africa are smaller than other regions, but are witnessing significant growth during the forecast period.

The firm categorizes the cabin interior market into three segments: product (seating, windows and windshield, cabin lighting, IFEC, galley and lavatory), fit (line fit and retrofit) and aircraft type.

MarketsandMarkets expects the wide-body aircraft segment to garner the widest share of the 2015 cabin interior market at 46.8 percent, followed by narrow-body aircraft with 39.2 percent of the 2015 market share.

[Photo: iStock]