Market Trends of Aircraft Galley Industry
Twin-Aisle Aircraft to Register the Highest CAGR in the Forecast Period
This heightened air passenger traffic prompted numerous airlines to expand their fleet sizes and modernize their existing aircraft. With the increased global air passenger traffic, the demand for long-haul flights increased. Twin-aisle aircraft are designed to cover these extended routes efficiently, offering higher passenger capacity and comfort. Twin-aisle aircraft are also preferred for premium cabins, such as business and first class, due to their spacious layouts, allowing airlines to provide top-notch services and amenities. Galleys installed onboard these aircraft are utilized to cater to the passengers' wide range of food and drink preferences. Hence, the inserts of a modern galley include several luxurious types of equipment, such as espresso machines and wine chiller inserts.
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. For instance, in 2022, Boeing received 213 orders for widebodies. In June 2023, Air India ordered 70 widebody planes, comprising 34 A350-1000s and six A350-900s from Airbus, 20 B787 Dreamliners, and 10 B777Xs from Boeing. These scheduled orders are anticipated to bolster the growth of aircraft galley in twin-aisle aircraft.
Asia-Pacific is Expected to Generate the Highest Demand During the Forecast Period
The robust economic growth, favorable population, and demographic profiles of the populace in developing countries in the Asia-Pacific region are driving the air passenger traffic in the region. The region has seen a significant increase in air passenger traffic during the past decade, mostly due to the tourist destinations in the region and the ease of access to air travel, which is expected to continue during the forecast period.
According to Boeing Commercial Market Outlook, China is expected to account for 20% of the total commercial aircraft deliveries by 2040. As per Airbus, the region will require more than 17,600 new aircraft by 2040, given the average 5.3% YoY passenger growth in the region. By 2027, 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. These projections have encouraged aircraft OEMs to primarily focus on enhancing their footprint in the region. For instance, Embraer has planned to increase its aircraft deliveries to 100 per year due to an increase in orders from China and India. The company laid out the groundwork to deliver planes to China, as in November 2022, Embraer's E2 series, the E190-E2 commercial jets, received design certification approval from the Chinese Authorities.
