Aerospace Avionics Market Analysis

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.