The Aircraft Lighting Market is anticipated to grow at a CAGR of more than 3% during the forecast period.
- Certain factors such as the rising adoption of innovative cabin lighting and the growing demand for luxury air travel are anticipated to drive the market during the upcoming period.
- Moreover, the enhanced focus of the airlines towards passenger comfort and safety is also anticipated to drive the retrofitting of the lighting installed on both the interior and exterior of the aircraft.
- Emerging trends such as mood lighting systems, integration of interactive screens in aircraft cabins, and the adoption of photoluminescent emergency cabin lighting, are envisioned to cause a major technological disruption in the market during the forecast period.
- However, the COVID-19 pandemic has drastically affected the linefit aspect of aircraft lighting as several airlines have deferred their delivery schedules and have forced the aircraft OEMs to reduce their monthly rate of production of new aircraft. However, the aftermarket prospects of aircraft lighting have increased, as in the absence of new aircraft, airlines are preferring to modernize the cabin layout of their existing fleet to retain their level of service at par with their new counterparts.
Key Market Trends
The Interior Light Segment is Expected to Dominate the Market
The demand for the interior light in the aircraft is estimated to grow rapidly over the forecast period owing to the ongoing cabin modernization programs of several international airline operators. The widespread adoption of LED ambient lighting technologies across new generation aircraft has also triggered cabin retrofitting activities in older generation aircraft to maintain homogeneous service quality in the entire fleet. For instance, LATAM Airlines Group plans to overhaul the interiors of more than 200 aircraft in its fleet. Plans are afoot to introduce the retrofitted interiors by end-2018, and the airline operator has already allocated an investment budget of USD 400 million till the last quarter of 2020. Similarly, Indian carrier SpiceJet has partnered with STG Aerospace to retrofit its fluorescent lighting systems on the airline’s fleet of Boeing 737-700, 737-800, and 737-900 aircraft with the STG Aerospace LED aftermarket lighting system, liTeMood. Similarly, Latin American airliner Avianca has struck a deal with UTC Aerospace Systems to upgrade its entire A318 fleet with LED cabin lighting retrofit systems in line with its strategy to modernize and improve passengers' flight experience.
Asia-Pacific to Contribute to a Majority of the Market
Over the last decade, Asia-Pacific has been the focal point of business activities with countries such as China, India, and Japan witnessing a high number of foreign investments, which has resulted in rapid economic growth. This has contributed a fair bit to the overall growth of the region's aviation sector in terms of flight frequency and enhanced customer experience. The ongoing success of the low-cost carrier (LCC) model has contributed to a steady rise in passenger traffic in the region. It has also created significant opportunities for aircraft and associated system manufacturers in the region to grow by stimulating various companies to invest in new facilities. For instance, in April 2015, aircraft cabin lighting specialist STG Aerospace opened a new facility in Shanghai, China to provide services for its emergency floor-path safTglo and safTsign products. The rise in demand for newer and improved versions of aircraft is in tandem with the growing requirement for aircraft cabin lighting systems. Numerous airline operators are striving to collaborate with aircraft lighting OEMs. In October 2017, SpiceJet partnered with STG Aerospace in a cabin lighting retrofit program to upgrade its fleet of B737-700 / 737-800 / 737-900 with the LED aftermarket ambient lighting solution, liTeMood.
The aircraft cabin lighting market is characterized by the presence of many international vendors. The market is highly competitive with players competing to gain higher market shares. Price fluctuations of LED components, stringent regulatory norms, and delays in aircraft delivery are the key factors threatening the growth of the market. It is crucial for vendors to offer advanced lighting systems to sustain in an intensely competitive environment. In-house manufacturing capabilities, global footprint network, product offerings, R&D investments, and a strong client base are the key areas for retaining an edge over competitors. Improving global economic conditions are expected to fuel the market growth during the forecast period, thereby making it ideal to adopt new-generation aircraft. The market's competitive environment is likely to intensify due to a surge in product and service extensions and technological innovations.
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