Avionics Market Forecasts to 2030 - Global Analysis By System Type, Platform, Fit, System Function, Distribution Channel and By Geography

According to Stratistics MRC, the Global Avionics Market is accounted for $47.8 billion in 2024 and is expected to reach $86.2 billion by 2030, growing at a CAGR of 10.3% during the forecast period. Avionics are electronic systems used in aircraft, satellites, and spacecraft, encompassing communications, navigation, display, and management systems. The avionics market is experiencing robust growth driven by advancements in technology, increasing aircraft production, and the rising demand for enhanced safety and efficiency.

According to data from the International Air Transport Association (IATA), the aviation sector contributes 3.5% to the global GDP (2.7 trillion US dollars) and has created 65 million jobs globally.

Market Dynamics:

Driver:

Increasing aircraft production

The growing demand for new aircraft, driven by rising air passenger traffic and the need to replace aging fleets, is fueling the avionics market. As aircraft manufacturers ramp up production to meet this demand, it directly increases the need for advanced avionics systems. Modern aircraft require sophisticated flight management, navigation, and communication systems, boosting the avionics market. This trend is particularly evident in emerging markets where air travel is rapidly expanding, creating a sustained demand for avionics equipment.

Restraint:

Complexity and maintenance

Modern aircraft incorporate highly integrated and sophisticated avionics, which require specialized skills for installation, maintenance, and repair. This complexity can lead to higher costs for airlines and operators in terms of training personnel and maintaining equipment. Additionally, the intricate nature of these systems can potentially increase downtime for maintenance and upgrades, impacting operational efficiency. The need for regular software updates and compatibility issues between different systems further add to the complexity and maintenance challenges.

Opportunity:

Development of new aircraft models

As manufacturers design next-generation aircraft, they incorporate cutting-edge avionics technologies to enhance performance, efficiency, and safety. This trend drives innovation in avionics, creating demand for advanced systems like enhanced flight management, improved navigation capabilities, and more efficient communication tools. The shift towards more electric aircraft and the integration of autonomous features also open new avenues for avionics suppliers to develop innovative solutions, potentially expanding their market share.

Threat:

Cybersecurity Risks

The increasing digitization and connectivity of avionics systems expose aircraft to potential cybersecurity threats. As avionics become more integrated and reliant on software, the risk of cyberattacks targeting critical flight systems grows. This threat could compromise flight safety, passenger data, and airline operations, which could impact market growth and innovation in the avionics sector.

Covid-19 Impact:

The Covid-19 pandemic severely impacted the avionics market, causing a sharp decline in air travel demand and disrupting aircraft production. Airlines postponed fleet expansion plans, leading to reduced orders for new aircraft and avionics systems. The industry faced significant revenue losses, layoffs, and supply chain disruptions. However, the crisis also accelerated trends towards digitization and modernization of aircraft systems, potentially benefiting the avionics market in the long term.

The flight management system segment is expected to be the largest during the forecast period

The dominance of the flight management system segment is driven by the increasing complexity of air traffic management and the need for fuel-efficient flight paths. They are crucial for modern aircraft operations, integrating navigation, performance, and flight planning functions. Flight management systems technology continues to evolve, incorporating features like 4D trajectory-based operations and enhanced weather avoidance capabilities. As airlines focus on operational efficiency and regulatory compliance, the demand for advanced flight management systems solutions is expected to grow, maintaining this segment's leading position in the avionics market.

The retrofit segment is expected to have the highest CAGR during the forecast period

The retrofit segment is projected to experience the highest CAGR over the forecast period. The high growth rate is attributed to the increasing need to upgrade existing aircraft with modern avionics. As airlines seek to extend the lifespan of their fleets while improving operational efficiency and meeting new regulatory requirements, retrofitting becomes an attractive option. This segment benefits from the large existing fleet of aircraft worldwide that require avionics upgrades to incorporate the latest technologies in navigation, communication, and safety systems. The trend towards modernizing older aircraft with advanced avionics solutions drives the rapid growth of the retrofit segment.

Region with largest share:

The North America's dominance in the avionics market is driven by factors such as the presence of major aircraft manufacturers, a large existing fleet, and significant defense spending. The region hosts leading avionics suppliers and has a strong ecosystem for aerospace innovation. The demand for advanced avionics in both the commercial and military sectors, coupled with stringent safety regulations, contributes to the market's growth. Additionally, the region's early adoption of new technologies and ongoing modernization efforts in air traffic management systems further solidify its leading position.

Region with highest CAGR:

The Asia Pacific region's high growth rate in the avionics market is fueled by rapidly expanding air travel demand, increasing defense budgets, and the emergence of new low-cost carriers. Countries like China and India are investing heavily in aviation infrastructure and expanding their aerospace industries. The region's growing middle class and rising disposable incomes are driving air travel demand, leading to fleet expansion and the need for advanced avionics systems. Additionally, the modernization of military aircraft in several countries contributes to the region's rapid growth in the avionics market.

Key players in the market

Some of the key players in Avionics market include Astronautics Corporation of America, Avidyne Corporation, BAE Systems, Boeing Company, Cobham plc, Collins Aerospace, Curtiss-Wright Corporation, Elbit Systems Ltd., Esterline Technologies Corporation, Garmin Ltd., General Electric Company, Honeywell International, Inc., L3Harris Technologies, Inc., Northrop Grumman Corporation, Raytheon Technologies Corporation, Safran S.A., Thales Group, and Universal Avionics Systems Corporation.

Key Developments:

In July 2024, BAE Systems received multiple contracts totaling $111 million to provide the Second-generation, Anti-jam, Tactical, Ultra-high Frequency Radio for NATO, or SATURN waveform, to the Republic of Korea (ROK). As part of the country's national communications modernization strategy, SATURN will bring secure and interoperable command and control capabilities to the ROK's military for fixed-wing and rotary aircraft.

In February 2024, Collins Aerospace, an RTX business, has been selected by Air India for a full suite of avionics hardware catering to the airline's expanding Boeing 737 MAX fleet. The deal was announced at the ongoing Singapore Airshow 2024. The comprehensive package includes communication, navigation, and surveillance equipment and air data sensors, designed to enhance safety, fuel efficiency and operational performance of Air India's fleet.

In June 2023, Honeywell is in the process of developing an advanced flight management system (FMS) and additional components for the Boeing 777X. The Boeing 777X is recognized as the largest and most efficient twin-engine aircraft, anticipated to be introduced worldwide for commercial use by 2025.

System Types Covered:

• Flight Management System
• Health Monitoring System
• Communication System
• Navigation System
• Surveillance System
• Display System
• Electrical Power System
• Emergency System
• Collision Avoidance System
• Weather Radar System
• Other Types

Platforms Covered:

• Commercial Aviation
• Military Aviation
• Business Jets and General Aviation
• Helicopters

Fits Covered:

• Line Fit
• Retrofit

System Functions Covered:

• Communication
• Navigation
• Surveillance
• Flight Control
• Data Management
• Other Functions

Distribution Channels Covered:

• Original Equipment Manufacturers (OEMs)
• Aftermarket

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances