Aerospace Avionics Market size is estimated to register a CAGR of over 4% between 2023 and 2032

Aerospace Avionics Market Size

Aerospace Avionics Market size accounted for USD 78.2 billion in 2022 and is projected to exhibit a CAGR of more than 4% during 2023-2032. The rising air travel demand is one of the key drivers behind the market development.

With the growing number of individuals opting for air travel for business & recreation, airlines are increasing their fleet size as well as upgrading the current aircraft. This requires the implementation of modern avionics systems to promote safety, efficiency, and passenger comfort. Such systems consist of navigation aids, communication devices, flight control systems, and entertainment systems. In addition, the introduction of new & fuel-efficient aircraft models is also driving the demand for modern avionics, thus making the aviation sector competitive and meet the changing demands of passengers across the globe.

Aerospace Avionics Market Report Attributes
Report Attribute Details
Base Year 2022
Aerospace Avionics Market Size in 2022\tUSD 78.2 Billion
Forecast Period\t2023 to 2032
Forecast Period 2023 to 2032 CAGR\t4%
2032 Value Projection\tUSD 110 billion
Historical Data for\t2018 to 2022
No. of Pages\t200
Tables, Charts & Figures\t290
Segments covered\tSystem, Application, End-use & Region
Growth Drivers\t
Rising demand for commercial air travel
The developing aircraft avionics regulations in Europe
The need to upgrade avionics equipment at the commercial & military levels
Vulnerability to supply chain disruptions
Technological advancements and the implementation of the latest systems
Pitfalls & Challenges
High production costs
Risk of cyberattacks

Avionics in aerospace, also commonly known as avionics, is a high-tech electronics branch that deals with the design, development, installation, and maintenance of electronic devices & systems applied in spacecraft and aircraft. Navigation, communication, flight control, monitoring, and safety devices form part of the systems. Aerospace avionics have a critical application in guidance & control of spacecraft and maintaining safe & efficient civil & military aviation operations. Aerospace avionics integrate technologies with superior innovations to boost capabilities, safety, & performance of aircraft & spacecraft and also maintain regulatory & operating standards.

Excessive cost during manufacturing is an important drawback for the aerospace avionics industry. Avionics systems demand state-of-the-art technology, quality control, and rigorous testing to satisfy the industry requirements and safety standards. This calls for huge investments in research, development, and manufacturing programs, thus increasing the cost of production. These high costs can restrict market access for small manufacturers and put pressure on larger manufacturers to streamline efficiency. It can also result in higher prices for consumers, thus impacting affordability as well as the general market competitiveness along with stifling growth & innovations within the industry.

COVID-19 Impact
Hi there! The COVID-19 pandemic has been a significant setback for the world of aviation, and that spells trouble for the businesses that produce the high-tech equipment for aircraft. When no one is flying, airlines don’t require new planes or high-tech equipment to maintain their old ones. So, corporations that produce those items have lost a great deal of business. Airlines have been losing money, so they’ve postponed or even canceled their orders for new planes and equipment. This has made it very difficult for the corporations that produce that equipment to continue to make money. In addition to that, the entire supply chain has been disrupted, and it’s been difficult to obtain the parts and individuals required to produce planes. Even the military has had to reduce expenditures on planes and equipment, which has harmed the companies that produce those as well. Overall, the market for plane equipment has been in a free fall. Projects are being delayed, sales are way below, and firms are feeling the pinch.

Aerospace Avionics Market Trends
Hello! You would be surprised by the amazing improvements in airplanes these days! They’re becoming super-intelligent machines. To start with, we’re witnessing Artificial Intelligence (AI) and Machine Learning (ML) being implemented to get planes to do things like fly automatically, repair themselves before they break down, and make decisions like a pilot. It’s like having a miniature robot brain onboard. Then there are the electronics within aircraft shrinking and becoming more efficient. That allows for more passengers and greater distances traveled without refueling as frequently. And they’re using novel antennas that can transmit signals in multiple directions, which equals less space and weight. And here’s the kickeraircraft are getting more networked than ever. They can exchange information with the ground in real time, so pilots have a better idea of what’s happening around them and passengers get to experience quicker internet. But there’s more. We’re also looking out for the planet with green avionics technologies. These consume less power and emit less carbon, making aircraft more environmentally friendly. So, what does all this do for you? Well, what that means is that you should get to anticipate air travel that’s smarter, connected, and eco-friendly. The future, I guess, just showed up overhead on the flight

Market Analysis for Aerospace Avionics
Read more about how top segments influence this market

On the basis of application, the aerospace avionics market is divided into commercial aviation, military aviation, business jet & general aviation, and helicopters. The commercial aviation segment is anticipated to record CAGR of more than 3% in forecast period 2023-32. Commercial aviation is witnessing growth in the market. The increasing global demand for air travel resulted in the growth of commercial airline fleets, which is driving the demand of sophisticated avionic systems for modernization & safety reasons.

Passenger demands for in-flight connectivity and entertainment systems are fueling the investments in next-generation communication & entertainment avionics. The airlines are attempting to enhance fuel efficiency and minimize emissions, thus steering the development of avionics solutions toward optimized navigation and flight planning. Additionally, mandatory safety regulations and the need to optimize operational efficiency are forcing the airlines to invest in the latest avionic technology, and the growth of the commercial aviation market is driven by this.

Find out more about the prominent segments defining this market

Segmented on the basis of end use, the aerospace avionics market includes OEM and aftermarket The OEM segment held a market share of more than 75% in 2022; and posted a market revenue of more than USD 60 billion in the same year. The Original Equipment Manufacturers (OEMs) within the market are making progress. The growing need for new aircraft & spacecraft is forcing OEMs to manufacture more avionics systems. Advances in technology are driving the adoption of sophisticated avionics in contemporary aircraft, which is also increasing the market shares of OEMs.

The rigorous regulatory standards for emissions and safety are driving upgrades and replacement of avionics systems in the current fleets, thus generating a consistent aftermarket demand. OEMs are also growing in emerging economies like Asia Pacific, where the expanding air travel and aerospace sectors offer promising growth prospects for the aerospace avionics market.

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