Market Overview:
Aircraft galley equipment consists of all products used for food preparation, storage, and serving in aircraft. Common galley equipment includes ovens, beverage makers, chillers & coolers, food equipment and trash compactors. Aircraft galley equipment provides convenience and comfort to passengers during long flights. Advances in equipment design help airlines optimize space utilization and operational efficiency in aircraft.
Market key trends:
One of the key trends driving growth in the aircraft galley equipment market is increasing aircraft refurbishment activities. Airlines periodically refurbish their aircraft interiors to offer enhanced passenger experience and upgrade ageing equipment. Refurbishment provides an opportunity for airlines to replace or retrofit existing galley equipment with latest models featuring improved design and functionality. According to Aviation Pros report, airlines spend around USD 150 million annually on aircraft interior modifications and refurbishments globally. Growing refurbishment activities are expected to boost demand for aircraft galley equipment over the forecast period.
The global Aircraft Galley Equipment Market Demand is estimated to be valued at US$ 2.56 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Porter's Analysis
Threat of new entrants: The aircraft galley equipment market requires high capital investment for R&D and manufacturing, creating entry barriers for new players.
Bargaining power of buyers: The presence of major airlines acts as significant buyers in the market. However, differentiated product offerings by vendors ensures airlines do not have strong buyer power.
Bargaining power of suppliers: Given the specialized nature of products, vendors face less threat from backward integration by suppliers. However, supplier consolidation has increased their bargaining power.
Threat of new substitutes: No direct substitutes exist for aircraft galley equipment due to regulations and customized requirements of airlines.
Competitive rivalry: Intense competition exists among existing players to gain market share through new technologies and contracts with airlines.
SWOT Analysis
Strengths: Vendors have strong engineering capabilities and long-standing relationships with airlines.
Weaknesses: High R&D and manufacturing costs pressure margins. Supply chain disruptions impact deliveries.
Opportunities: Rising air passenger traffic drives demand for new aircraft. Galley modernization programs by airlines present opportunities.
Threats: Economic slowdowns reduce airline profitability affecting fleet expansion plans. Disruptions from COVID-19 pandemic impacted market.
Key Takeaways
The global Aircraft Galley Equipment Market is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing air passenger traffic and fleet expansion plans of airlines. North America dominates the market currently owing to presence of major aircraft manufacturers in the US. Asia Pacific is poised to be the fastest growing market due to rising demand from China and India.
Regionally, North America dominates the aircraft galley equipment market, with the US being the major market. However, Asia Pacific is expected to witness the highest CAGR. China and India are emerging as new hotspots, driven by increasing aircraft orders and deliveries to support rising passenger traffic in the region.
Key players operating in the aircraft galley equipment market are SAFRAN, RTX, Aerolux Ltd, Diehl Stiftung & Co. KG, Jamco Corporation, Bucher Group, DYNAMO Aviation, GAL Aerospace, AVIC Cabin Systems, Boeing. Players adopt strategies like new product development, contracts with airlines and manufacturers to gain share.
