Market Trends of Latin America Commercial Aircraft Cabin Interior Industry
This section covers the major market trends shaping the Latin America Commercial Aircraft Cabin Interior Market according to our research experts:
The In-Flight Entertainment Systems is Expected to Witness Significant Growth During the Forecast Period
The inflight entertainment systems are expected to witness significant growth during the forecast period. The increase in the demand for new aircraft with advanced in-flight entertainment systems and the growth in the number of air passenger traffic will lead to the market witnessing growth in the near future.
The Latin American region, in the present scenario, is witnessing growth in terms of air passenger traffic and aircraft deliveries. According to the reports published by the Latin American and Caribbean Air Transport Association (ALTA), Latin America as well as the Caribbean continued to be the leading region in terms of recovery of commercial air transport activity from pre-pandemic levels. In April 2022, the international Revenue Passenger-Kilometer (RPKs) in Latin America had rebounded up to 96% of 2019 levels, followed by the Caribbean with a 75% recovery and South America with a 74%. Moreover, there were approximately 2.42 million commercial passenger flights in September 2022 as compared to 2.64 million in August 2022, while 2.07 million flights were recorded in September 2021 in the Latin American region.
The significant progress toward recovery achieved in April 2022 is mainly due to the fact that travel restrictions imposed by various governments on international traffic have been eased or eliminated. In addition, six countries in Latin America such as Mexico, Costa Rica, El Salvador, Argentina, Cuba, and the Dominican Republic have now fully opened up their borders. Several countries in the Latin American region have seen an accelerated recovery with respect to pre-pandemic levels, such as Colombia, which exceeded its 2019 levels by 30% for the month of April, followed by Mexico, with 6% above its 2019 levels. The increase in the number of travelers has led the aviation industry of Latin America to increase their procurement of new-generation aircraft with better in-flight entertainment system options. For instance, in November 2021, LATAM airlines announced that they have added HBO Max content to their offerings of in-flight entertainment on board their aircraft. LATAM airlines as well as Warner Media Group have strengthened their alliance through the introduction of HBO Max. Moreover, LATAM Airlines Group will be the first in Latin America to enter this alliance, with preferential access to the HBO Max library. The alliance includes exclusive premieres like 'Friends: The Reunion' and 'Raised by Wolves,' among other hit shows. Thus, such developments will lead to the market witnessing significant growth during the forecast period.
By Geography, Brazil is Expected to Witness Significant Growth During the Forecast Period
By geography, Brazil is expected to witness significant growth during the forecast period. This is attributed to the increase in air passenger traffic and the rise in preference for luxury and comfort travel by passengers in the region. The increasing demand for air travel in this region has led to the growth of the aviation industry in Brazil, as airlines are expanding their aircraft fleets. The business aviation aircraft in Brazil is witnessing a significant increase in recent time periods. In 2022, business activity in Brazil witnessed an increase of 174% as compared to 2019. In 2022, Brazil witnessed 38,574 business aircraft operations which was an increase of 38% as compared to 28,040 aircraft operations in 2021. Over the years, the Brazilian government has realized the impact of the aviation industry on the country's GDP and has amended a few of the regulatory barriers. These include the decisions on allowing 100% foreign ownership of airlines in the country and removing the free checked baggage allowance. Such developments may allow the airlines in Brazil to offer a wider choice to passengers, which can improve the air passenger traffic in and out of the country. The reintroduction of baggage allowance regulation may generate demand for more space in the cabin overhead bins of the airlines in the coming years, thereby, forcing the airlines to make cabin enhancements in the future and this will lead to the market witnessing growth during the forecast period.
