Aircraft Avionics Market Size Report – Growth & Forecasts 2030

[Research Report] The aircraft avionics market is expected to grow from US$ 41.23 billion in 2022 to US$ 69.60 billion by 2030; it is estimated to register a CAGR of 6.8% from 2022 to 2030.

Analyst Perspective:

The aircraft avionics market has witnessed tremendous growth in the past few years. One of the major factors driving the growth of aircraft avionics is the rising global aircraft fleet and refurbishment of older aircraft fleet. Another major factor driving the growth for aircraft avionics market includes the rising electrification of aircraft components that is also generating the need for electronic controls for pilots who operates the aircraft. Manufacturers of aircraft avionics majorly focus on the development of innovative products to remain competitive in the market. However, some of the factors acting as challenges for the market include rise in environmental concerns caused by the aircraft operations and higher installation costs for avionics components.

Market Overview:

The aircraft avionics market is likely to register a healthy growth in the coming years. This is mainly due to the expected aircraft deliveries in the coming years. For instance, according to the Boeing’s Commercial Market Outlook (CMO) 2023 report, the airlines are expected to need 42,595 new commercial aircraft in the next 20 years to cater to the rapidly growing air passenger traffic. Similarly, according to the Airbus Global Market Forecasts (GMF) report, the airlines are expected to procure around 40,850 new aircraft by the end of 2042. Such factors are likely to generate huge opportunities for aircraft avionics market vendors in the coming decades that will is also expected to witness a huge demand for other aircraft components as well during the same period. Moreover, the rising electrification of aircraft components and the shift from mechanical to electrical components of the aircr5aft are some of the other factors driving the growth for aircraft avionics market across different regions.

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Aircraft Avionics Market: Strategic Insights

Market Size Value in	US$ 41.23 billion in 2022
Market Size Value by	US$ 69.60 billion by 2030
Growth rate	CAGR of 6.8% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Market Driver:

Growing MRO Industry is Generating New Demand for Aircraft Avionics

Retrofitting, which refers to the installation or addition of newer technologies on older aircraft fleets, helps increase passenger comfort and safety and facilitates the airlines in maintaining their older fleets. Continuous advancements in aircraft technologies are resulting in the upgrade of MRO capabilities. MRO service providers are constantly seeking upgrades and procurement of newer technologies in order to service the newer aircraft as well as retrofit the upgraded technologies on the older aircraft fleets. In the current scenario, global commercial airlines are holding on to their older aircraft fleet owing to the drop in fuel prices. This factor is compelling the airlines to opt for MRO activities frequently, which is facilitating the MRO service providers to offer the airlines to retrofit the aircraft fleet with newer technologies. The retrofitting trend is soaring among the MRO service providers. Thus, the integration of advanced and modern technologies such as advanced aircraft electronics including the avionics systems into older aircraft fleets is expected to drive the aircraft avionics market landscape as well as the face of the aviation industry in the coming years.

There is a rise in demand for real-time data analytics, especially in technologically advanced potential regions such as Europe and North America, where the adoption of the above-mentioned technology is maturing at an exponential rate.

Segmental Analysis:

Based on avionics type, the market is segmented into navigation systems, communication systems, power & flight management systems, weather monitoring system, electronic flight display, and others. The power & flight management systems segment held the largest share of the market in 2022 and it is expected to retain its dominance during 2022 to 2030 as well. Further, the power & flight management systems is also anticipated to register the highest CAGR in the aircraft avionics market during 2022-2030. The main factor behind the largest market share of power & flight management systems segment is its higher price, technology integration, and it is one of the key controllers for the pilot that allows them to have the visibility for aircraft operations during any flight. Moreover, the demand for power & flight management systems segment is also driven due to the fact that power & flight management systems are used in most of the aircraft operations during any flight. Further, the necessity to provide better management of flight components and real-time status of the flight controls is another major factor driving the growth for aircraft avionics market across different regions.

Regional Analysis:

The North America aircraft avionics market was valued at US$ 13.26 billion in 2022 and is projected to reach US$ 21.24 billion by 2030; it is expected to register a CAGR of 6.1% during 2022 to 2030. North America region some of the major aircraft OEMs such as Boeing, Bombardier, Lockheed Martin, and Airbus that have their respective production facilities across different parts of the region and keeps generating new demand for aircraft electronic products from their respective facilities. Such factor has been pushing the growth for aircraft avionics products across the region. Further, another major factor catalyzing the growth for North American aircraft avionics market includes the presence of aircraft avionics manufacturers across the countries such as the US and Canada. Such companies includes vendors such as Raytheon Technologies Corporation, Curtiss-Wright Corporation, Honeywell International Inc, General Electric Company, Moog Inc, and BAE Systems Plc.

Key Player Analysis:

The aircraft avionics market analysis consists of the players such as L3Harris Technologies Inc, Raytheon Technologies Corporation, Curtiss-Wright Corporation, Honeywell International Inc, General Electric Company, Safran SA, BAE Systems Plc, Moog Inc, Meggitt Plc, and Garmin Ltd. Among these mentioned aircraft avionics market players BAE Systems Plc, Raytheon Technologies Corporation, General Electric, Meggitt Plc, Curtiss-Wright Corporation are among some of the top aircraft avionics market players owing to the diversified product portfolio offered.

Aircraft Avionics Market Report Scope

Recent Developments:

Inorganic and organic strategies such as product launches, mergers, and acquisitions are highly adopted by companies in the aircraft avionics market. For instance, in April 2023, GE Aerospace and AJW Group signed an agreement to provide the support for avionics and electrical power systems for B777, B737 and A320/30/40 family of aircraft models. Similarly, in December 2021, HAL (Hindustan Aeronautics Limited) signed a contract worth US$ 288 million with BEL (Bharat Electricals Limited) to supply avionics components for the LCA Tejas Mk1A fighter aircraft programme. Such factors are also driving the aircraft avionics market growth from the suppliers perspective.