The aircraft galley market is poised to grow at a CAGR of above 3% during the forecast period 2020-2025. An aircraft galley is crucial for facilitating the services offered to the passengers by the cabin crew. Aircraft galleys are considered to significantly enhance the flight experience offered by the airlines, in terms of the plethora of meal options that can be served to the onboard passengers during a flight.
- The market is driven by the fleet expansion initiatives of the airline operators to cater to the growing air passenger traffic. Furthermore, the fleet modernization initiatives are undertaken by airline operators to enhance their level of services offered to the passengers during a flight also has a positive impact on the business prospects of the vendors operating in the market.
- The low-cost carrier (LCC) model focuses on increasing the number of onboard passengers while compromising on certain aspects such as inflight refreshment. The increasing global market penetration of LCCs has resulted in space constraints inside an aircraft, thereby forcing the galley designers to reduce the size and weight of the galley equipment. Technological and design complexity are certain challenges for the manufacturers of aircraft galley market.
Scope of the Report
To provide a comprehensive qualitative outlook, the aircraft galley market considers the different companies that offer both electrical and non-electrical inserts of the galleys. Market estimates are based on linefit installations of galleys into the cabin of new generation aircraft being procured by airline operators around the globe and are exclusive of retro fitment of individual galley inserts.
Key Market Trends
Growth in Air Passenger Traffic Resulting in Procurement of Aircraft
Air travel has become more efficient and accessible, hence the number of global air passengers have increased by around 38.88% between 2013 and 2018. This has resulted in a widespread need for new aircraft to cater to the increasing passenger flow. Thus, several airline operators have initiated procurement drives to upgrade their fleet so as to minimize operating costs while also concentrating on services to enhance the convenience and luxury of onboard passengers. In 2018, about 1,830 new aircraft were delivered globally. Galleys installed onboard these aircraft are utilized to cater to the wide range of food and drinks preferences of the passengers. Hence, the inserts of a modern galley include several luxurious types of equipment such as espresso machines, wine chiller inserts, etc. Since airlines perceive differentiated service as a means to enhance their market presence and brand image, the procurement of new-generation aircraft would drive the integration of aircraft galleys, thereby driving the business prospects of the aircraft galley market.
Increasing Demand from Asia-Pacific
The robust economic growth, coupled with favorable population and demographic profiles of the populace in developing countries, especially in the Asia-Pacific region is driving the air passenger traffic in the region. Thus, Asia-Pacific is expected to generate the highest demand for aircraft galleys during the forecast period. The demand is mainly due to the increasing orders and deliveries of new aircraft, propelled by ever-growing passenger traffic in the region. As of September 2019, there were 411 narrow-body aircraft and 160 wide-body aircraft delivered to this region by various aircraft OEMs. By 2025, China is forecasted to become the world's largest aviation market in terms of air traffic and India is forecasted to develop into the world's third-largest aviation market, while other countries such as Indonesia and Thailand are forecasted to enter the top 10 global markets. Such favorable trends are anticipated to drive the demand for aircraft galleys in the region.
The aircraft galley market is characterized by the presence of a limited number of dominant vendors operating at a global level. The market is highly competitive, with players competing to gain the largest market share. Constraints associated with the design and weight of aircraft galley and cancellation of aircraft orders due to macroeconomic factors impede the growth of the market.
It is crucial for vendors to provide advanced systems to aircraft OEMs to survive in an intensely competitive market environment. The dominant market players include United Technologies Corporation, JAMCO Corporation, Safran SA, Diehl Stiftung & Co. KG, and AIM Altitude. These players mainly compete based on their in-house manufacturing capabilities, global footprint network, product offerings, R&D investments, and a strong client base. The increase in aircraft procurement rate due to the rapid increase in air passenger traffic is expected to fuel the market growth during the forecast period. The competitive environment in the market is likely to intensify further due to an increase in product/service extensions and technological innovations.
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1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Aircraft Type
5.1.3 Business Jets
5.2.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
5.2.3 Asia Pacific
188.8.131.52 Rest of Asia-Pacific
5.2.4 Latin America
184.108.40.206 Rest of South America
5.2.5 Middle East and Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Saudi Arabia
22.214.171.124 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Aerolux Ltd.
6.2.2 AIM Altitude
6.2.3 United Technologies Corporation
6.2.4 Bucher Leichtbau AG
6.2.5 Commercial Aircraft Equipment
6.2.6 Diehl Stiftung & Co.ÊKG
6.2.7 Dynamo AviationÊInc.
6.2.8 JAMCO Corporation
6.2.9 Korita Aviation
6.2.11 TCI Turkish Cabin Interior
6.2.12 Safran SA
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid
databases. Public sources involve publications by different associations and governments, annual
reports and statements of companies, white papers and research publications by recognized industry
experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different
stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end
customers and other key opinion leaders of the industry. Primary research is used both to validate the
data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.