REPORT DESCRIPTION

Market Size and Overview:

The global commercial aircraft in-seat power system market is anticipated to witness a CAGR of 6.45% from 2024 - 2030. 

The aviation sector experiences a driving force stemming from the airlines' inclination toward enhancing existing cabins to elevate passenger comfort, the growing demand for upscale air travel, and the development and assimilation of cutting-edge subsystems facilitating the architecture of In-flight Entertainment (IFE). The commercial aircraft in-seat power supply system market witnesses significant impetus due to the emergence of more electric aircraft. Moreover, the implementation of governmental measures supporting aviation and the expansion of Original Equipment Manufacturers (OEMs) into the aftermarket are anticipated to substantially boost demand.

Industry Landscape:

The need for in-seat power for passenger devices has never been more pronounced. The escalation in screen sizes, intricate applications, and faster processing imposes a considerable load on mobile devices and their batteries, which are indispensable for many travelers. Airlines are now obligated to extend onboard power outlets or high-power USB charging options beyond business and first-class cabins, as a majority of passengers, including those in economy class, travel with multiple gadgets, including smartphones. Airlines prioritize providing passengers with optimal in-flight in-seat power charging solutions, given the increasing reliance on mobile devices for value-added passenger services such as bag monitoring and in-flight Wi-Fi entertainment. Diverse in-seat power charging technologies offer passengers the ability to keep devices of all sizes and types fully charged throughout their journeys, aligning with the rising trend of personal gadget usage and the Bring Your Own Device (BYOD) concept. The heightened demand for next-generation aircraft acquisitions, driven by robust passenger traffic growth and the imposition of new emission restrictions, is poised to positively impact the commercial aircraft in-seat power systems market, as most airlines incorporate this feature in their new fleets to enhance the in-flight experience for passengers.

Market Drivers:

The expansion of the commercial aircraft in-seat power supply system market is notably fueled by airlines' inclination toward cabin refurbishment to enhance passenger comfort.

Various cabin renovation initiatives, aiming to strike a balance between cost and aesthetics, have been initiated by airline operators, encompassing the incorporation of comfortable seats, spacious overhead bins, and in-seat power supply systems. Innovations like the upgrading of economy seats to premium economy seats with enhanced width, greater legroom, and in-seat power supply capabilities are expected to positively influence the market's aftermarket outlook.

One of the prominent trends in the commercial aircraft in-seat power supply system market that positively influences the sector is the evolution of more electric aircraft.

 The concept of more electric aircraft involves replacing outdated components of an aircraft control system with electrical technology, contributing to the reduction of overall aircraft weight. Additionally, the Wireless Avionics Intra-Communications (WAIC) initiative, involving collaboration among avionics system suppliers and aircraft OEMs, further augments the market's expansion.

Market Constraints:

A major hindrance to the global expansion of the in-seat power supply system market for commercial aircraft is the existence of various customs regulations.

The Agreement on Trade in Civil Aircraft of the World Trade Organization (WTO) stipulates that certain items and parts used in civil aviation are exempt from import taxes. However, compliance with these regulations involves considerable expenditures on customs negotiations and duties, raising concerns about the airworthiness of imported components for duty-free treatment. These regulations, particularly those governing paperwork, may impose restrictions on the market.

The physical limitations of the energy storage system and charging infrastructure represent another challenge to market expansion.

Industry initiatives to standardize charging standards face obstacles such as the need for further investigation into energy transmission to the charger for quick recharge requirements. Potential solutions, including parallel charging, wireless charging, and nanoelectrofuel flow batteries, encounter challenges related to infrastructure constraints, electromagnetic interference, and logistical difficulties. In addressing these challenges, industry players are exploring innovative approaches, such as nanoelectrofuel technology.

Segmentation Analysis:

Commercial Aircraft In-seat Power System Market – By End User:

• Economy Class
• Business Class
• Premium Economy Class
• First Class

The Economy Class segment is poised to witness the highest Compound Annual Growth Rate (CAGR) in the global commercial aircraft in-seat power system market throughout the forecast period. This projection is attributed to the fact that, for every airline fleet, the majority of seats fall under the economy class category. The surge in demand for economy class seats is notable, driven by the global expansion of the middle class. The increasing preference for low-cost carriers (LCCs) and ultra-low-cost airlines, in response to the rising air traffic, is a contributing factor. Consequently, the economy class sector is expected to undergo expansion in the coming years. Airlines globally are responding to this demand by upgrading the interiors of their economy cabins, launching retrofit programs, and introducing specialized seats in new aircraft. For example, in May 2019, Lufthansa introduced the first Airbus A321neo in its fleet, featuring an enhanced economy class interior provided by Geven, offering additional padding, more space, and increased recline. USB power outlets are also integrated into these seats. Despite having USB power plugs for long-haul flights, the economy class exhibits a lower adoption of AC power outlets compared to other classes. The increasing demand for economy class seats and cabin refurbishment, aimed at enhancing passenger experience, are expected to drive market growth.

Commercial Aircraft In-seat Power System Market - By Regional Outlook:

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

Geographically, the North American Commercial Aircraft In-seat Power System Market commands the largest share of revenue. This dominance is a result of the expansion of maintenance capabilities, strategic collaborations between aircraft seat suppliers and OEMs, and the presence of developed markets and technologically advanced nations such as the US and Canada.

The European Commercial Aircraft In-seat Power System Market is projected to experience substantial growth during the forecast period. The UK, hosting some of the world's busiest airports, including Gatwick, Manchester, and London Heathrow, contributes to this growth. The government's significant investments in commercial and military fighter jet modernization further drive the demand for commercial in-seat power systems.

The Asia Pacific Commercial Aircraft In-seat Power System Market is expected to register the fastest Compound Annual Growth Rate (CAGR) and generate the highest demand for commercial aircraft in-seat power systems in the forecast period. This growth is predominantly driven by the surge in new aircraft orders and deliveries, fueled by the expansion of regional passenger travel. Regional airlines in the Asia-Pacific region continue to invest in updating and upgrading current seats and associated equipment, alongside placing new orders, to enhance passenger services. Currently, China represents the largest market in the region, with both low-cost and full-service carriers implementing in-seat power systems in their cabins. Astronics Advanced Electronic Systems has been selected by multiple Asia-Pacific airlines, including Chinese low-cost carriers, to install the EmPower in-seat power and flight deck power systems by 2025. Vistara, an Indian airline, is focusing on improving customer experience by integrating in-seat power systems in their new aircraft, while some low-cost carriers in the region refrain from providing such systems in their cabins. Geven, a seat manufacturer, installed new cabin seats in a batch of A320 family aircraft received by Vistara in late 2019, featuring seatback USB power ports for the first time in economy and premium economy cabins, in addition to a three-pin universal power port in business class seats.

Major Market Participants:

The prominent entities involved in the commercial aircraft in-seat power system market encompass:

1. Astronics Corporation
2. Mid-Continent Instrument Co. Inc.
3. KID-Systeme GmbH
4. Astrodyne TDI
5. IFPL Group Ltd.
6. Burrana Pty Ltd.
7. InFlight Peripherals Ltd
8. Inflight Canada Inc.

Business Dynamics:

Market participants' revenues exhibit cyclical patterns due to their reliance on the sales of aircraft seating to commercial aircraft manufacturers. Manufacturers of in-seat power supplies for commercial aircraft strategically invest in innovative systems, contributing to contemporary aircraft features enhancement, including safety and aesthetics. However, these enterprises face diverse risks associated with such investments, such as design responsibilities, development of new manufacturing tools, adherence to delivery deadlines, increased capital and financial commitments, and specific contractual obligations. Furthermore, new aircraft programs may be susceptible to cost overruns, delays, or cancellations based on prevailing market conditions. These factors may influence the market prospects of the key players throughout the projected period.

Impact of COVID-19 Pandemic on the Commercial Aircraft In-seat Power System Market:

The global aviation sector endured substantial losses and a liquidity crisis due to the adverse effects of the COVID-19 pandemic, prompting many airlines to postpone or cancel aircraft deliveries and cabin refurbishment initiatives. The aerospace supply chain and commercial aircraft in-seat power supply system production facilities also encountered challenges, including raw material shortages and cost fluctuations, negatively impacting market growth in 2020. Major aircraft manufacturers reduced production rates to align with reduced demand. Both tier-1 and tier-2 players, including in-seat power system producers, faced hindrances, leading to a decline in their growth. However, with manufacturing units gradually resuming operations, normalization of business operations within the aircraft in-seat power supply system sectors is anticipated.

Recent Developments in the Global Commercial Aircraft In-seat Power System Market:

1. Product Launch (June 2022): Astronics Corporation, a leading provider of aerospace, defense, and mission-critical solutions globally, introduced EmPower® UltraLite G2, the most potent and intelligent cabin power system available for charging passenger electronic devices. The UltraLite G2 offers airlines flexibility and scalability to implement the best power system for their budget and passengers' needs.
2. Collaboration Agreement (August 2021): Astronics Corporation signed a collaboration deal with Aerotec Concept of Toulouse, France. This collaboration aims to market a broader range of new technology, applications, and/or modifications requiring certification by the EASA (European Union Aviation Safety Agency) and FAA (U.S. Federal Aviation Administration). The partnership provides Astronics with enhanced capabilities to expand its design, development, certification, and production capabilities for the European aerospace market.