Global Avionics Market Size, Share, Growth Analysis, By System(Hardware, Software), By Platform(Commercial, Military) - Industry Forecast 2023-2030

Global Avionics Market size was valued at USD 43.92 billion in 2021 and is poised to grow from USD 47.18 billion in 2022 to USD 78.57 billion by 2030, growing at a CAGR of 7.5% in the forecast period (2023-2030).

The global avionics market encompasses the electronic systems utilized in aircraft for communication, navigation, surveillance, and control. With technological advancements and increasing air travel demand, the market has witnessed significant growth. Key factors driving this growth include the integration of modern avionics solutions, enhanced safety measures, and improved operational efficiency in both commercial and military aviation sectors. Ongoing research and development efforts are focused on innovations such as fly-by-wire systems, satellite-based navigation, and real-time data connectivity to meet evolving industry requirements.

Top-down and bottom-up approaches were used to estimate and validate the size of avionics and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Segmental Analysis

Global avionics market is segmented based on system, platform, and region. Based on the System, the Global Avionics Market is segmented as hardware and software. Based on Platform, the Global Avionics Market is segmented as commercial, military, business jets & general aviation, and helicopters. Based on Region Avionics Market is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Driver

Technological progress has had a profound impact on the avionics systems market, with notable advancements in in-flight entertainment, glass cockpits, and health monitoring systems contributing to its expansion. The market's growth is driven primarily by an elevated demand for data analytics within the aviation sector, particularly in North America and Europe, where the industry is well-established and capable of supporting such advancements. The accelerated data processing speed facilitated by real-time data analytics plays a pivotal role in enhancing decision-making within the industry, and its anticipated significance is poised to have a substantial impact in the future.

Anticipated growth in passenger traffic, notably within commercial aircraft, is expected to drive the expansion of the market. This surge is attributed to the advanced technologies integrated into commercial aircraft, encompassing cutting-edge features such as flight management systems, communication systems, navigation systems, surveillance systems, and electrical systems. These innovations not only enhance the overall travel experience for passengers but also ensure a heightened level of travel safety. The resulting increase in demand for aircraft is poised to fuel the growth of the aerospace avionics industry, driven by the escalating number of passengers in commercial aviation. As an illustrative example, Airbus SE, a leading global aerospace company, demonstrated the industry's momentum by delivering a total of 566 commercial aircraft in 2021. This underscores the market's vitality and the continuing need for advanced avionics systems to support the expanding landscape of commercial air travel.

The progression of cutting-edge avionics technology requires the phasing out of outdated avionics systems in older military aircraft. These upgraded avionics suites are instrumental in enabling aircraft to meet the demands of contemporary battlefields, encompassing capabilities like long-range target identification and tracking, stealth operations, and electronic warfare protection. Consequently, allied military forces are initiating comprehensive modernization programs designed to enhance and update the avionics suites deployed in military aircraft. This strategic approach is essential for maintaining competitiveness and effectiveness against potential adversaries, reflecting a proactive response to evolving threats in the defense landscape.

Restraint

Challenges facing the global avionics industry involve the escalation of raw material expenses, diminished defense budgets impacting investment in avionic systems, and the increasing complexity of these systems.

The production and operation costs of commercial airplanes are inherently elevated due to their advanced technological features. Consequently, the overall price of aircraft avionics systems increases, and maintenance expenses are substantial. The inclusion of sophisticated components such as navigation systems, flight management systems, engine health monitoring, surveillance systems, among others, significantly contributes to the heightened cost. Moreover, the aerospace avionics market's size is influenced by technical constraints, including considerations of dependability, reliability, and efforts to minimize or eliminate processing interference. These technical factors pose challenges in cost management and impact the overall economic dynamics of the aerospace industry, necessitating a delicate balance between innovation and cost-effectiveness in the development and maintenance of avionics systems.

Market Trends

The development and integration of advanced flight control systems for the next-generation aircraft, slated to enter service in the coming years, are collaborative efforts between aircraft OEMs and avionics manufacturers. These partnerships aim to enhance the autonomous capabilities of both manned and unmanned aircraft by incorporating cutting-edge technologies such as artificial intelligence (AI) and extensive data analysis into onboard computer systems. In addition to these innovations, several manufacturers are introducing an additional layer of cybersecurity through the creation of physical unclonable function (PUF) based nano-electromechanical switches (NEMs). These NEMs are engineered to withstand extreme temperatures, microwaves, and high-dose radiation while also possessing the unique capability to self-destruct in the event of a data breach, further fortifying the security of aviation systems.