Northwest Aerospace News August | September Issue No. 10 | Page 39

Aircraft Interiors MARKET GROWTH [email protected] Glenn McDonald is a Senior Associate at AeroDynamic Advisory, and has 8 years of full-time consulting experience, working first at AeroStrategy, then at ICF International. Glenn has supported and managed many different projects, covering corporate strategy development and execution, acquisition search and transaction support, market analysis, cost and performance bench- marking, technology assessment economic development, and regulatory analysis and development. Glenn is a graduate of the Uni- versity of Michigan with both Bachelor’s and Master’s degrees in Aerospace Engineering. aerodynamicadvisory.com Photo credit: SuperJet International on Visualhunt.com / CC BY-SA The aircraft interiors market will grow from $7B in 2018 to over $10B by 2023. $11.0 $8.3 $5.5 $2.8 $0.0 2018 Interiors include: • Seats • Galleys • Lavatories • Panels & luggage bins • In-flight entertainment, connectivity & electronics • Lighting • Interior market includes new aircraft deliveries, retrofits, and repairs • Seats, especially expensive premium economy and lie-flat business class seats, will drive overall interiors market growth 2019 2020 2021 2022 2023 The number of aircraft with passenger connectivity will more then double over the next five years After a long period of subdued activity, aircraft interiors have taken on increasing importance to airlines in recent years. Interi- ors investment is influenced by airline profitability. According to IATA, global airlines had a collective cumulative net loss of $11.5B from 2008 to 2010, sig- nificantly limiting discretionary maintenance and investment in interior products. With a strong global economy and renewed airline focus on profitability, global airlines have totaled nearly $179B in net profits from 2011-2018, an average of over $20B per year. This windfall has given airlines the freedom to invest in interior retrofits and up- grades, which are important for attracting high margin premium and business traffic. 20,000 • 15,000 • Formerly limited to full-service carriers, passenger connectivity is becoming ubiquitous at a wide variety of airlines, including low-cost carriers 10,000 • 5,000 0 2018 Connectivity is one of the faster growing areas of the interiors market New satellite constellations offer lower cost-per-bit and faster speeds, while passenger expectations for an always-connected experience continue to rise 2019 2020 2021 2022 2023 SEPTEMBER 2019 ISSUE NO. 10 AERODYNAMIC ADVISORY LLC | PHONE: [phone] AUGUST| | AERODYNAMICADVISORY.COM 39