Aerospace Avionics Market - By System (Flight Management System, Communication System, Navigation System, Surveillance System, Electric System, Emergency System, Collision Avoidance System, Weather System), By Application, By End Use, Market Share & Forecast, 2023 - 2032

Aerospace Avionics Market Size

Aerospace Avionics Market size was valued at USD 78.2 billion in 2022 and is estimated to register a CAGR of over 4% between 2023 and 2032. The increasing demand for air travel is a primary factor driving the market progress.

As more people choose air transportation for business & leisure purposes, airlines are expanding their fleets along with modernizing the existing aircraft. This necessitates the adoption of advanced avionics systems to enhance safety, efficiency, and passenger experience. These systems include navigation aids, communication equipment, flight control systems, and entertainment systems. Moreover, the introduction of newer & more fuel-efficient aircraft models is further propelling the demand for cutting-edge avionics, thereby ensuring that the aviation industry remains competitive and meets the evolving expectations of travelers worldwide.

Aerospace avionics, often referred to as avionics, is a specialized field of electronics that encompasses the design, development, installation, and maintenance of the electronic systems & devices used in aircraft and spacecraft. These systems include navigation, communication, flight control, monitoring, and safety equipment. Aerospace avionics play a critical role in the guidance & control of spacecraft as well as in ensuring safe & efficient civil and military aviation operations. They incorporate advanced technologies to enhance aircraft & spacecraft capabilities, safety, and performance while meeting the stringent regulatory & operational requirements.

The high manufacturing cost is a significant pitfall in the aerospace avionics market. Avionics systems require cutting-edge technology, quality assurance, and stringent testing to meet the industry standards and safety regulations. This necessitates substantial investments in research, development, and manufacturing initiatives, thereby driving up production costs. These elevated costs can limit market accessibility for smaller manufacturers and put pressure on larger ones to optimize efficiency. It may also lead to increased prices for customers, thereby affecting affordability and the overall market competitiveness as well as hindering growth & innovations in the sector.

COVID-19 Impact

The COVID-19 pandemic has had significant impacts on various industries including the aerospace avionics market. It led to a severe decline in global air travel, which resulted in the reduced demand for new aircraft and avionics systems. Airlines faced financial struggles, which led to the postponement or cancelation of orders; this affected the revenue streams of avionics manufacturers. Supply chain disruptions and workforce challenges also hampered production. Furthermore, the economic repercussions of the COVID-19 pandemic led to budget cuts in military aviation, thereby impacting the defense-related avionics programs. Overall, the market experienced a downturn, with delayed projects, reduced sales, and financial strains.

Aerospace Avionics Market Trends

The rapid integration of Artificial Intelligence (AI) & Machine Learning (ML) technologies into avionics systems is enhancing the automation, predictive maintenance, and decision-making capabilities. The development of more efficient & compact avionics components such as electronically steered antennas is reducing weight and improving fuel efficiency. The proliferation of connectivity solutions is enabling real-time data sharing for better situational awareness and passenger experience. Sustainability is also a growing concern, with the major focus being on the use of eco-friendly avionics technologies to reduce emissions and lower the environmental impacts. These trends are collectively shifting the consumer focus toward smarter, more connected, and environmentally responsible avionics systems.

Aerospace Avionics Market Analysis

Based on application, the aerospace avionics market is segmented into commercial aviation, military aviation, business jet & general aviation, and helicopters. The commercial aviation segment is expected to register CAGR of over 3% during forecast period 2023-32. Commercial aviation is experiencing growth in the market. The rising global demand for air travel led to the expansion of commercial airline fleets, which is propelling the need of advanced avionic systems for modernization & safety purposes.

The passenger expectations pertaining to in-flight connectivity and entertainment systems are driving investments in advanced communication & entertainment avionics. Airlines are striving to improve fuel efficiency and reduce emissions, thereby prompting the development of avionics solutions for optimized flight planning and navigation. Furthermore, stringent safety regulations and the need to enhance operational efficiency are compelling airlines to invest in state-of-the-art avionic technology, driving market growth in the commercial aviation sector.
 

Based on end use, the aerospace avionics market is segmented into OEM and aftermarket The OEM segment accounted for a market share of over 75% in 2022; and registered a market revenue of over USD 60 billion in the same year. The Original Equipment Manufacturers (OEMs) in the market are experiencing progress. The increasing demand for new aircraft & spacecraft is compelling OEMs to produce more avionics systems. Technological advancements are propelling the integration of advanced avionics into modern aircraft, which is further boosting the market shares of OEMs.

The stringent regulatory requirements for safety and emissions are augmenting upgrades and the replacement of avionics systems in the existing fleets, thereby creating a steady aftermarket demand. OEMs are also expanding in emerging markets such as Asia Pacific, where the growing air travel and aerospace industries present lucrative growth opportunities for the aerospace avionics sector.
 

North America accounted for a significant aerospace avionics market share of over 30% in 2022. The region is home to major aerospace manufacturers, such as Boeing and Lockheed Martin, driving demand for advanced avionics systems. North America has a robust defense sector, which invests heavily in avionics for uses in military aircraft. The continent has a large commercial aviation industry, with airlines continually upgrading their avionics systems to improve safety and fuel efficiency. Technological innovations and the research centers in the U.S. are fostering the development of avionics systems. Stringent safety regulations and the focus on aviation cybersecurity are encouraging investments in cutting-edge avionics technology, further propelling market trends.

Aerospace Avionics Market Share

The aerospace avionics market is highly competitive owing to the presence of key players such as

• Airbus
• BAE Systems
• Boeing
• Cobham Plc.
• Elbit Systems Ltd.
• General Dynamics Corporation
• General Electric
• Honeywell
• L3 Harris Corporation
• Leonardo S.P.A.
• Northrop
• Grumman
• Raytheon Airbus S.A.S.
• Saab AB
• Safran S.A

Thales Group. Industry participants are estimated to increase their foothold in the commercial industry with acquisitions and growing investments in facility centers. The significant investments in R&D to gain technological competitiveness as well as aggressive business strategies including technological launches, collaborations, and long-term agreements with clients to capture market shares are positively impacting market share.

Aerospace Avionics Market News

In July 2023, Thales Groups acquired Cobham Aerospace Communications, a leading supplier of advanced, ultra-reliable, and innovative safety cockpit communication systems. The proposed deal, valued at USD 1.1 billion, was aimed at bolstering the portfolio of Thales Avionics.

The aerospace avionics market report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD million) from 2018 to 2032, for the following segments:

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By system, 2018 – 2032

• Flight management system
• Communication system
• Navigation system
• Surveillance system
• Electric system
• Emergency system
• Collision avoidance system
• Weather system
• Health monitoring system
• Tactical system
• In-flight entertainment

By application, 2018 – 2032

• Commercial aviation
• Military aviation
• Business jet & general aviation
• Helicopters

By end use, 2018 – 2032

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA