This strategic assessment report provides a comprehensive analysis that reflects today's aircraft seat market realities and future possibilities for the forecast period 2020 to 2025.
The report segments and analyzes the market in the most comprehensive manner 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 low-hanging fruits available as well as formulate growth strategies.
The market for seats in the aircraft industry is set to grow at a CAGR of 4.7% over the next five years to reach US$ 6 billion in 2025.
Apart from the organic growth of the industry, several other factors are propelling the demand for seats in the aircraft industry. Some of those factors are a shift from first-class seats to business-class seats, advancements in interiors of the latest aircraft programs promoting airlines to upgrade the interior of the existing fleet, and increasing preference of airlines for premium-economy-class seats. Furthermore, advancements with regard to seat design and materials aid some momentum to the growth of the market.
Organic growth of the aircraft industry is anticipated to remain the biggest growth propeller. Both Boeing and Airbus are projecting healthy demand for commercial and regional aircraft in the next twenty years in their business outlooks. Boeing, in its outlook 2019-2038, projected that there will be the need for 44,040 commercial and regional aircraft during 2019-2038 out of which narrow-body aircraft will account for almost 78% share. Airbus too has similar projections in its business outlook of 2019-2038.
The airline industry is fiercely competitive with the presence of over 800 active airlines worldwide. Maintaining brand image and retaining customers to keep themselves competitive are the enormous tasks and require continuous improvements by addressing the emerging market needs. Airline companies are not only increasingly purchasing those aircraft that offer excellent comfort to their customers, but they also keep upgrading their existing fleet to deliver an unmatched customer experience. At the same time, the volatile crude oil prices have an unembellished impact on the profit margins of airlines. Interior applications including seats are also not untouched with such factors and experienced a drastic shift in their materials usage. Aircraft manufacturers worked along with seat manufacturers to develop seats that are lightweight and can accommodate a higher number of seats at reduced space.
The aircraft interiors market witnessed the most noticeable number of M&As in the past five years where the two biggest giants (Zodiac Aerospace and B/E Aerospace) were acquired by other aerospace conglomerates. For instance, in 2017, Rockwell Collins completed the acquisition of B/E Aerospace with a transaction value of US$ 8.6 billion, to strengthen its position and to expand its portfolio in the cockpit and cabin interior solution. With this acquisition, the company has not only entered into the aircraft seating business but also become the market leader in it. Similarly, in 2018, Safran S.A. acquired Zodiac Aerospace with a transaction value of US$ 9 billion and its business is restructured into three divisions: seats, cabin equipment, and AeroSystems. The acquisition of Zodiac Aerospace helped the company to gain capabilities in the aircraft interiors market including seats and further strengthen its capabilities in AeroSystems and AeroSafety products.
Market Segmentation
On the basis of aircraft type, the aircraft seat market is segmented as narrow-body aircraft, wide-body aircraft, very large body aircraft, regional aircraft, and business jets. Narrow-body aircraft is projected to remain the largest segment of the market during the forecast period of 2020 to 2025. Market entry of new aircraft programs, COMAC C919, A321 XLR, and Irkut MC-21, and increasing production rates of key aircraft programs, such as the A320 family, are likely to be the growth engines of the narrow-body aircraft segment of the market during the forecast period.
Based on seat class type, the market is segmented as first-class seats, business-class seats, premium-economy-class seats, and economy-class seats. The economy-class seat type is projected to remain the largest segment of the market in terms of units during the forecast period of 2020 to 2025; propelled by a large number of passengers traveled in the economy-class cabin and the growing number of LCCs (Low-cost carrier) across the world. Premium-economy-class and business-class seats are witnessing a greater adoption across the world and are growing at a faster pace than others.
Based on component type, the market is segmented as soft goods, metals, plastics, and composites, and electric. An aircraft seat is made with many small and mid-size components. The share of metal components to electrical components varies from aircraft to aircraft and from one seat-class type to another. For instance, a first-class seat includes a large number of electrical components to provide maximum comfort and wider functions to the passenger, whereas an economy-class seat can constitute little or no electric components.
In terms of region, North America currently holds the largest share of the global aircraft seat market and is projected to remain the largest aircraft seat market during the forecast period. The region is the assembly base of all the commercial and regional aircraft programs of Boeing and Bombardier. Airbus has recently expanded its first assembly plant for its A320 in Alabama, the USA to increase the production of A320 to seven per month from five. Also, Airbus has started production of A220 in the same plant. The region also owns one of the largest commercial aircraft fleets in the world.
Asia-Pacific is expected to register the highest growth over the next five years, driven by upcoming commercial and regional programs, such as COMAC C919 and Mitsubishi SpaceJet. Furthermore, the region owns the largest commercial aircraft fleet worldwide. This will create a sustainable demand for seats at the retrofit level. China and India are the growth engines of the Asia-Pacific's aircraft seat market.
The supply chain of this market comprises raw material suppliers, aircraft seat components suppliers, aircraft seat manufacturers, distributors, aircraft OEMs, airlines, aircraft leasing companies, and MRO companies. Some of the key players in the aircraft seats market are Safran S.A., Collins Aerospace, Stelia Aerospace, RECARO Aircraft Seating GmbH & CO. KG, Aviointeriors S.p.A, Acro Aircraft Seating Ltd, Thompson Aero Seating Ltd., Geven S.p.A., and ZIM Flugsitz GmbH. Long-term contracts and new product development are the key strategies adopted by major players to gain a competitive edge in the global market.
Key Topics Covered
1. Executive Summary
2. Aircraft Seats Market Overview and Segmentation 2.1. Introduction 2.2. Aircraft Seats Market Segmentation 2.2.1. By Aircraft Type 2.2.2. By Seat Class Type 2.2.3. By Component Type 2.2.4. By Fit Type 2.2.5. By Region 2.3. Supply Chain Analysis 2.4. Industry Life Cycle Analysis 2.5. PEST Analysis 2.6. SWOT Analysis
3. Aircraft Seats Market Assessment 3.1. Insights 3.2. Aircraft Seats' Penetration in the Aircraft Interiors Market 3.3. Aircraft Seats Market Trend and Forecast (US$ Million and Thousand Units) 3.4. Profitability Analysis 3.5. Market Segments' Analysis (US$ Million and Thousand Units) 3.6. Regional and Country-Level Analysis (Thousand Units) 3.7. Market Drivers 3.8. Market Challenges
5. Aircraft Seats Market Trend and Forecast by Aircraft Type (2014-2025) 5.1. Insights 5.2. Narrow-Body Aircraft: Regional Trend and Forecast (US$ Million and Thousand Units) 5.3. Wide-Body Aircraft: Regional Trend and Forecast (US$ Million and Thousand Units) 5.4. Very Large Aircraft: Regional Trend and Forecast (US$ Million and Thousand Units) 5.5. Regional Aircraft: Regional Trend and Forecast (US$ Million and Thousand Units) 5.6. Business Jets: Regional Trend and Forecast (US$ Million and Thousand Units)
6. Aircraft Seats Market Trend and Forecast by Seat-Class Type (2014-2025) 6.1. Insights 6.2. First-Class Seats: Regional Trend and Forecast (US$ Million and Thousand Units) 6.3. Business-Class Seats: Regional Trend and Forecast (US$ Million and Thousand Units) 6.4. Premium-Economy-Class Seats: Regional Trend and Forecast (US$ Million and Thousand Units) 6.5. Economy-Class Seats: Regional Trend and Forecast (US$ Million and Thousand Units)
7. Aircraft Seats Market Trend and Forecast by Component Type (2014-2025) 7.1. Insights 7.2. Soft Goods: Regional Trend and Forecast (US$ Million) 7.3. Metals: Regional Trend and Forecast (US$ Million) 7.4. Plastics and Composites: Regional Trend and Forecast (US$ Million) 7.5. Electric: Regional Trend and Forecast (US$ Million)
8. Aircraft Seats Market Trend and Forecast by Fit Type (2014-2025) 8.1. Insights 8.2. Linefit: Regional Trend and Forecast (US$ Million and Thousand Units) 8.3. Retrofit: Regional Trend and Forecast (US$ Million and Thousand Units)
9. Aircraft Seats Market Trend and Forecast by Region (2014-2025) 9.1. Insights 9.2. North American Aircraft Seats Market Analysis 9.3. European Aircraft Seats Market Analysis 9.4. Asia-Pacific's Aircraft Seats Market Analysis 9.5. Rest of the World's (RoW) Aircraft Seats Market Analysis
10. Strategic Growth Opportunities 10.1. Insights 10.2. Market Attractiveness Analysis 10.2.1. Market Attractiveness by Aircraft Type 10.2.2. Market Attractiveness by Seat Class Type 10.2.3. Market Attractiveness by Component Type 10.2.4. Market Attractiveness by Fit Type 10.2.5. Market Attractiveness by Region 10.2.6. Market Attractiveness by Country 10.3. Emerging Trends 10.4. Growth Matrix Analysis 10.5. Key Success Factors (KSFs)
