Aircraft Refurbishing Market Size, Share, Industry Analysis, By Aircraft Type (Narrow Body, Wide Body, Business Jets, and General Aviation), By Refurbishment type (Interior refurbishment, Exterior Refurbishment, Avionics System Refurbishment, Engine and component Refurbishment, and Others), By Service Type (P2F Conversion, Commercial Refurbishing, and VIP Cabin Refurbishing), By Application (Civil & Commercial and Military), and Regional Forecast, 2025-2032

The global aircraft refurbishing market size was valued at USD 5.86 billion in 2024. The market is projected to grow from USD 5.88 billion in 2025 to USD 7.81 billion by 2032, exhibiting a CAGR of 4.13% during the forecast period. North America dominated the aircraft refurbishing market with a market share of 31.74% in 2024.

Aircraft refurbishing is the general maintenance, refurnishing, and renewal of various components of an airplane to optimize its performance, prolong its operating life, maximize passenger comfort, and meet regulatory needs. It includes processes such as inspection, overhaul, part replacement, defect removal, and structural modification. The Refurbishment also comprises interior modifications, including next-generation seat designs and state-of-the-art in-flight entertainment equipment) and outer reconstruction (i.e., repaints and framework construction). Refurbishment is in demand among airplane proprietors as a means to maximize aesthetics, functionality, fuel efficiency, and resale appeal. The process is open to all aircraft types, including very light aircraft, wide-body aircraft, narrow-body aircraft, large-body aircraft, and VIP jets.

Airlines are refurbishing aging planes more and more to stretch the life of these aircraft and skip the exorbitant cost of buying new ones. This can involve retrofitting regulatory standards, reducing fuel consumption, and enhancing comfort and safety for passengers. Key players include AAR Corporation, Air France Industries KLM Engineering & Maintenance, and Airbus SAS, among others, which compete in the global market growth.

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Market Dynamics

Market Driver

Increased Emphasis on Customized Interiors and Passenger Experience to Result in Substantial Market Growth

Personalization and passenger experience are major drivers of the aircraft refurbishing market growth, with passenger attitude change and competitive pressure between carriers driving investment. Increasingly, airlines are going for cabin interior furnishings that cater to a range of passenger desires, including adaptable seating, adaptable lighting, and adaptable in-flight entertainment. Premium cabins deliver distinctive experiences with lie-flat seats, mood lighting, and improved privacy to concentrate on high-spending passengers seeking comfort and luxury.

Technology also comes into play while customizing, as smart cabin technology enables dynamic real-time adjustment based on the passenger's requirements. IoT-compatible solutions, convertibles work or relax space, and modular seat designs deliver flexibility and maximum usage of space. Faster Wi-Fi and more sophisticated entertainment systems add further to passengers' satisfaction. Customization also helps in airline brand identity and loyalty by designing individualized travel experiences. For instance, spacious cabin interiors and ergonomic design make passengers comfortable on long-haul flights, and green materials are used to meet sustainability.

Personalization reflects the movement toward passenger-focused design solutions for the sector to remain competitive in an expanding market. In summary, customization adds functional efficiency and emotional appeal to new heights, thus becoming the backbone of modern aircraft overhaul programs.

Market Restraint

Supply Chain Disruptions to Restrain Market Growth

Disruption of the supply chain within the aircraft overhaul market significantly curbs the delivery of spare components and materials, with consequent impacts on delay of maintenance. Added to that, geopolitical conflict, shortages in workers, and blockages within logistic chains follow through. Thus, the ongoing Ukraine war created intensified shortages as a post-pandemic revival of activity congested reduced-size supply chains. Thus, carriers have longer ground times for their planes and reduced operational capacity, which negatively impacts schedules and passenger satisfaction. Additional budget pressures also arise from increasing raw material prices and faster shipping, and reliance on other suppliers introduces the risk of taking in counterfeit or inferior components.

Market Opportunities

Increased Air Passenger Traffic and Sustainable Initiatives Act as a Major Market Opportunity

Increased air passenger traffic and green efforts are mutually beneficial forces for the aircraft refurbishment market. With the world's increased demand for air travel expected to keep growing, reaching 19.3 billion in 2041, airlines and airports have no option but to adapt to stay on the path of growth while continuing to deal with environmental issues. Retrofitting aging aircraft with green technology, such as efficient engines and lightning, is a cost-effective step to meet growing travel demands without new carbon emissions. Meanwhile, tourists, especially the youth crowds, are shifting toward cleaner means of travel, forcing airlines to go greener through methods such as flying on Sustainable Aviation Fuels (SAF) and powering airport ground operations with electricity. All such projects reduce emissions with greater operating efficiency and customer satisfaction. By integrating sustainability in renewal projects, airlines are able to balance development and conservation, positioning themselves for competitiveness in a climate-conscious industry with customers taking the reins.

Market Challenge

High Cost and Labour Challenges to Restrict Market Development

Substantial spending and employment problems are great hurdles in the aircraft refurbishing business. It takes a massive investment to refurbish and update an aircraft, hence forcing airlines to make difficult choices when trading refurbishment expenditures against profitability. It entails advanced materials, hi-tech equipment, and quality personnel, all of which are expensive. Meanwhile, the industry is plagued by a critical shortage of maintenance personnel, which is further exacerbated by a high percentage of aging employees and hiring difficulties. The shortage of skills contributes to increased aircraft downtime, which will affect flight schedules and limit fleet expansion. The combination of high material prices, expensive technological innovations, and poor skilled manpower is a precarious situation for airlines and overhaul businesses, demanding strategic plans and capital in a bid to remain operational and competitive.

Aircraft Refurbishing Market Trends

Digitization and Connectivity Enhancement to Act as Major Market Trends

Digitalization and connectivity are revolutionizing the aerospace sector, improving the operations and performance of aircraft. For example, it is accomplished through digital twin computer simulations of aircraft or parts that allow monitoring and optimization in real time.

Airbus, for example, uses digital twins in its A350 XWB aircraft to record engine performance and fuel burn readings to model various conditions and adapt engine parameters and maintenance steps accordingly. Connectivity technologies such as IoT-based networks provide real-time visibility into the condition of aircraft and facilitate predictive maintenance while reducing downtime. Boeing's RFID-based management of hand tools and digital thread establishment are good examples of this.

Digitization of maintenance brought about remote monitoring systems that provide real-time data about engine and component conditions for enabling predictive maintenance. Virtual reality and augmented reality content are also being used to create engaging training possibilities where pilots and technicians get to interact with plane parts virtually and learn further.

Impact of COVID-19

The impact of the COVID-19 pandemic on the aircraft refurbishment sector led to a dramatic drop in air operations owing to the mobility curbs and stringent lockdowns, leading to low demand levels for refurbishment services. Planes were grounded, and thus, minimal maintenance and refurbishing were carried out as airlines were engaged in reducing expenses and saving money. Thus, the global aircraft overhaul industry was affected critically, and across-the-board market value reduction during the peak pandemic was quantified.

The MRO providers were affected the most by lower airline spending and difficulty in maintaining parked fleets near new conditions. However, as rising fuel consumption is encouraged by an expanding U.S. airline market and relaxed regulation, there is renewed interest in redoing current planes for more fuel efficiency and more humanity. As carriers look to replace current fleets with new technology and cleaner methods of operation, room for renovation trade again exists.

The industry will be in the recovery phase as the airlines reorganize to respond to shifting travel patterns and spend money on improvements to their aircraft in order to address potential demand.

Segmentation Analysis

By Aircraft Type

Growth in Convenient Passenger Experience Propelled Narrow Body Segment Growth

On the basis of aircraft type, the market has been divided into narrow-body, wide-body, business jets, and general aviation.

The narrow body segment accounted for the largest market share in 2024 and is expected to grow at the highest CAGR during the forecast period. The Refurbishment of narrow-body aircraft is expanding, with the aircraft proving economical and operationally efficient. Narrow-body aircraft are used extensively in short- and medium-haul routes and, therefore, become a necessity for domestic and regional travel. Refurbishment of narrow-body fleets is more convenient for airlines as they can develop routes without the capital expenditure involved in buying new aircraft. Besides, they are cheaper to buy and maintain, a plus for low-cost carriers and developing airlines. The passenger experience is improved by Refurbishment by installing more cabins, improving seating capacity, and using the most advanced in-flight entertainment systems, enabling airlines to compare with a number of other airlines in the very crowded market.

The business jets segment accounted for a significant market share in 2024. As air traffic increases, the most efficient utilization of taxiways and runways is of utmost concern. Airports are heavily spending on advanced emerging technologies to achieve the maximum runway occupancy time and optimize the effectiveness of aircraft turnaround. This entails the use of intelligent systems that monitor traffic flow and provide air traffic controllers with real-time data. Additionally, more efficient lighting systems and aid to navigation must be provided to ensure the safety of the plane flight, particularly in bad weather. Airports are incorporating innovative light technologies to enhance the sight and safety of aviation operations with minimal energy use.

By Refurbishment Type

Growth in Air Passenger Traffic to Augment Interior Refurbishment Segmental Growth

Based on refurbishment type, the market is segmented into interior refurbishment, exterior refurbishment, avionics system refurbishment, engine and component refurbishment, and others.

The interior refurbishment segment accounted for the largest market share in 2024. An increased focus on luxury, interior aesthetics, safety, and comfort for passengers primarily drives the growth in interior refurbishing types. High passenger traffic on premium and long-haul flights has thereby generated a high demand for luxurious and tailor-made interiors. Private airlines are refurbishing cabin interiors with LED lighting, better seating, and advanced in-flight entertainment (IFE) systems to enhance passenger experience.  Further, applying green materials and technology adheres to both regulatory norms and green goals. For instance, Emirates invested USD 2 billion in retrofitting the interiors of its fleet in its pursuit of increasing passenger satisfaction across all classes.

The avionics system refurbishment segment accounted for a substantial market share in 2024 and is expected to grow at the highest CAGR during the forecast period. The market for refitting the avionics system is growing due to an increase in the demand for improved and safer technology. Older aircraft are being modified with new avionics, such as newer navigation, improved flight control systems, and predictive maintenance. Refitting helps comply with shifting aeronautics regulations and reduces fuel consumption and operational costs. The rising trend of aviation digitalization, for instance, the use of IoT-equipped systems to keep tabs in real-time, also sustains the need for avionics refurbishment. Predictive analytics enable predictive maintenance, decreasing downtime and increasing reliability.

By Application

Growth In Demand For Better Passenger Experience To Enable The Civil & Commercial Segmental Growth

Based on application, the market is segmented into civil & commercial and military.

The civil & commercial segment accounted for the largest market share in 2024 and is expected to grow at the highest CAGR in the market during the forecast period. Commercial services' expansion in the aircraft refurbishment industry is largely fueled by increasing demand for upgraded passenger experience and operational efficiency. More airlines are refurbishing aged fleets to include newer technologies, enhance interior cabin comfort, and provide premium seating options. The move is an affordable option for buying new aircraft, as carriers can address increased air traffic needs without compromising competitiveness. Moreover, increased air travel in major emerging economies such as China and India has opened up the possibility of Refurbishment to provide more passengers and connectivity. Continuous development in fuel-efficient parts and environmentally friendly approaches further increases the demand for refurbishment services, which is in alignment with the objectives of airlines to minimize operational expenses and environmental footprints.

The military segment accounted for a significant market share in 2024. Defense services are seeing market expansion in aircraft overhaul with the necessity of upgrading the fleet and meeting changing defense needs. Vintage military aircraft of earlier ages are being overhauled with advanced avionics, safety features, and reinforcement to make them mission-capable and provide extended life service. Geopolitical tensions have risen worldwide, leading to greater defense expenditure, allowing governments to spend on upgrades as a cost-effective option over buying new fleets. In addition, equipping warplanes with cutting-edge technologies, such as intelligent flight systems, enhances operational effectiveness and responsiveness. Strategic alliances between OEM and defense organizations also propel development through the provision of customized solutions to mission-based needs. This is evidenced by the development of predictive maintenance systems that offer improved reliability at lower cost in the life cycle.

By Service Type

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Increasing Demand for Refurbishment to Drive Commercial Refurbishing Segment Growth

Based on service type, the market is segmented into P2F Conversion, commercial refurbishing, and VIP cabin refurbishing.

The commercial refurbishing segment accounted for the largest market share in 2024 and is expected to grow at the highest CAGR during the forecast period. Commercial refurbishing growth is fueled by a number of factors, which include cost savings, improved business efficiency, improved looks, and the need to develop a more interactive and productive work environment. Refurbishment enables companies to maximize available space without the inconvenience and cost of moving, as well as opening up opportunities to upgrade operations, upgrade technology, and generally upgrade the work environment.

The VIP cabin refurbishment segment accounted for a significant market share in 2024. High-end passenger experiences majorly drive growth in aircraft VIP cabin refurbishment demand and a need for luxury and comfort in corporate travel. Airlines are readily investing in the Refurbishment of older planes to meet passenger demand for new-generation interiors, ergonomic seating, and better in-flight entertainment. The trend is highly common among corporate travelers and high-net-worth travelers who desire a luxury travel experience.

Aircraft Refurbishing Market Regional Outlook

By region, the market is studied across North America, Europe, Asia Pacific, and the Rest of the World.

North America

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North America accounted for USD 1.87 billion in 2024 and is expected to grow at a significant CAGR in the forthcoming years. The region leads the aviation refurbishment industry due to the sector's well-established infrastructure and substantial levels of air traffic. Big airlines and MRO firms exist within the area to generate demand for fleet refurbishment. Canadian and U.S. airlines are pouring significant resources into refurbishing in-flight entertainment systems, avionics equipment, and cabin interiors to enhance passengers' experiences as well as the competitiveness of carriers. Moreover, the presence of technology innovators facilitates advanced refurbishment services. For instance, U.S. carriers specialize in retrofitting aging fleets with fuel-efficient technologies in order to meet sustainability targets as well as increase operating efficiency.

Europe

The European aircraft refurbishment industry is expanding with rising demand for air travel and stringent regulatory compliance. Leading nations such as Germany, France, and the U.K. are making the most of fleet replacement to ensure enhanced passenger comfort and safety. Airlines also emphasize business traveler-oriented premium cabin refurbishment to meet customer requirements and generate customer satisfaction. Also, Europe's focus on sustainability is the impetus for the application of green technologies and energy-saving materials in Refurbishment. An example is the use of Lufthansa Technik's maintenance operations, which reflect the continent's focus on the application of new technologies towards operational efficiency.

Asia Pacific

The Asia Pacific market is projected to achieve the highest growth rate in the coming years. The region is also witnessing a boom in refurbishing aircraft as growing air travel passenger traffic in China and India's emerging markets is driving demand. Airlines are refurbishing old fleets to economically meet growing travel demand while reconfiguring interiors for more passenger comfort. The middle class in the region is driving demand for refurbished fleets and upgraded cabins. Governments are also spending money on aviation infrastructure, which is driving refurbishment activity. For example, Air India's recent acquisition of Thales for the upgradation of its fleet shows Asia Pacific's path toward modernization and competitive positioning of the region in the international market.

Rest of the World

Several key factors drive the growth of the Latin America aircraft refurbishing market share. The evolving regional aviation infrastructure lends itself to refurbishment activities, with Brazil and Mexico emerging as key destinations. Collaborations between local and international MRO players enable further growth. For instance, Airbus estimates that more than 1,200 aircraft in the region will be replaced by 2042, presenting vast opportunities for refurbishment activities. Middle East & Africa's aviation overhaul industry is growing with increasing demand for high-end cabins and fleet renewal. Middle East's position as a global aviation hub propels investment in high-end overhauls of business jets and commercial airlines. On the contrary, Africa's growing aviation industry concentrates on low-cost overhauls of aging fleets to meet growing air transport demand.

Competitive Landscape

Key Market Players

High-end, Tailor-Made Solutions By Key Market Players are Leading to a Major Surge in Demand for Aircraft Refurbishing by OEMs

The competitive landscape of the global aircraft refurbishing market offers insights into various competitors. This includes an overview of each company, their financial performance, revenue generation, market potential, investments in research and development, new initiatives, strengths and weaknesses, product and brand portfolios, product launches, mergers and acquisitions, and their applications. The data provided focuses specifically on the companies' engagement within the market. Embraer S.A., GE Aviation, Safran SA, and AAR Corporation are some major players operating in the market. These companies are said to be major market players since they contribute to a major market share in aircraft refurbishing market growth, along with introducing and integrating new-age technologies to refurbishment uses.

List of Key Companies Profiled In The Market Report

• AAR Corporation (U.S.)


• Air France Industries KLM Engineering & Maintenance (France)


• Airbus SAS (Netherlands)


• Boeing Company (U.S.)


• Bombardier Inc. (Canada)


• Delta TechOps (U.S.)


• Embraer S.A. (Brazil)


• GE Aviation (U.S.)


• General Dynamics Corp. (U.S.)


• Honeywell Aerospace (U.S.)


• Hong Kong Aircraft Engineering Company (HAECO) Ltd (Hong Kong)


• Lufthansa Technik AG (Germany)


• MTU Aero Engines AG (Germany)


• Rolls-Royce plc (U.K.)


• Safran SA (France)


• SIA Engineering Company Ltd. (Singapore)


• Spirit AeroSystems Inc. (U.S.)


• Textron, Inc. (U.S.)


• Turkish Technic (Turkey)


• United Technologies Corporation (U.S.)

Key Industry Developments

• October 2024- As part of a major restoration program, Qantas is set to retrofit 10 A330-200 aircraft, which are able to be used on international routes from Australia to Hong Kong International Airport (HKG), Singapore Changi International Airport (SIN) and Tokyo Narita Airport (NRT).


• July 2024- De Havilland Aircraft of Canada Limited (De Havilland Canada) declared that Skyward Express had marked an agreement to buy a repaired Sprint 8-400 airplane. As a portion of the commitment by De Havilland Canada to “keep the fleet flying,” DHC has started the process to buy, repair, and re-market Dash 8-400 airplanes in a program to create and keep up the Dash 8 family of aircraft in response to customer demand.


• June 2024 – Tata-owned Air India (AI) began restoring its Airbus A320 aircraft fleet with modern business and premium economy class seats. Travelers will be able to use these on domestic and short-haul flights.


• May 2024 – Emirates declared plans to retrofit an extra 43 Airbus A380s and 28 Boeing 777 aircraft, with highlights including a refreshed first class, modern business class seats, and the expansion of premium economy. The carrier first revealed plans for what it referred to as the “largest known fleet retrofit” project in August 2022, with the restoration of 67 A38os and 53 777s.


• February 2024- Singapore's biggest defense contractor signed a series of preliminary MRO agreements with French and Brazilian companies. ST Engineering marked the deals for MRO work during the Singapore Airshow. The agreement is expected to cover Airbus' C-295 medium transport aircraft and Embraer's C-390 Millennium airlifter.

Report Coverage

The report analyzes the market in-depth and highlights crucial aspects, such as prominent companies, market segmentation, competitive landscape, airport types, and technology adoption. Besides this, it provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth over the years.

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Report Scope & Segmentation