Avionics Market by Systems (Navigation, Payload & Mission Management, Traffic and Collison Management, Communication, Weather Detection, Flight Management, Electronic Flight Display), Platform, Fit, and Region - Global Forecast to 2030
Update:: 23.09.24
Avionics Market Size & Growth
[284 Pages Report] The Avionics market is estimated to be USD 43.4 billion in 2023 and is projected to reach USD 81.8 billion by 2030, at a CAGR of 9.5 % from 2023 to 2030. The market is driven by factors such as demand for modern connected aircraft and need of more fuel-efficient solutions. Technological advancements, the growing trend towards autonomous and electric aircraft contributes to innovation in avionics, fostering a dynamic industry landscape. Overall, the demand for sophisticated avionic systems to improve aircraft performance and meet evolving industry standards fuels the market's growth.
Avionics Market Forecast to 2029
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Avionics Market Trends
Driver: Escalating Aircraft Production Driving Avionics Market
The rise in aircraft manufacturing significantly impacts advancements in avionics systems. Growing aircraft production drives demand for advanced avionics technologies, including precise navigation systems, improved communication systems, and overall performance upgrades. This synergy between increased aircraft production and avionics development shapes a dynamic business landscape. Avionics innovators consistently work to introduce cutting-edge solutions that meet the evolving needs of the modern aviation industry. This collaborative effort not only addresses current requirements but also fosters continuous improvement and adaptation to emerging trends in the aerospace sector. Anticipated increases in aircraft deliveries in the coming years, as manufacturers ramp up production rates and the international aviation sector continues its post-pandemic recovery, underscore the significance of this market. In 2023, Boeing and Airbus collectively delivered 528 and 735 aircraft, surpassing their respective 2022 figures of 480 and 661 deliveries. Airbus reported record annual jet orders and confirmed an 11% rise in 2023 deliveries. The International Air Transport Association (IATA) predicts that the number of air passengers will reach 4.7 billion in 2024, surpassing the 4.5 billion passengers who traveled in 2019, indicating a demand for new aircraft in the upcoming years.
Restraints: Stringent Regulatory Compliance
Stringent regulatory compliance poses a notable impediment to avionics systems within the business landscape of the aviation industry. This constraint is intricately woven into the operational fabric of companies navigating the complex regulatory framework set forth by entities like the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA).
While these regulations are crucial for upholding safety and reliability standards in aviation, they introduce formidable challenges from a business perspective. The approval processes for avionics technologies involve meticulous scrutiny of design, performance, and safety aspects. This scrutiny, though essential, contributes to prolonged development timelines, impacting a company's agility in responding to market demands and gaining a competitive edge.
The extensive documentation and testing required for compliance lead to increased development costs. Companies must allocate substantial resources to ensure avionics systems meet the exact standards set by regulatory bodies. This financial strain can be particularly challenging for smaller players or startups in the avionics sector, acting as a barrier to entry and limiting their ability to compete effectively.
Moreover, the dynamic nature of regulatory standards necessitates frequent updates or modifications to existing avionics systems, adding to the strain on a company's resources. Successfully navigating this delicate balance requires strategic planning, streamlined processes, and collaborative engagement with regulatory bodies to ensure the seamless integration of avionics systems into the market. In essence, the regulatory landscape, while imperative for safety, demands a strategic business approach to navigate complexities and sustain competitiveness within the avionics industry.
Opportunity: Advanced Connectivity Solutions
The pursuit of Advanced Connectivity Solutions in avionics systems offers a strategic opportunity in response to the surging demand for enhanced connectivity options in the aviation industry. This opportunity revolves around implementing state-of-the-art communication technologies, notably high-speed satellite connectivity and the integration of 5G networks into avionics infrastructure.
Embracing these advanced connectivity solutions enables avionics systems to facilitate seamless data exchange between aircraft, ground systems, and other airborne platforms. This not only amplifies real-time monitoring capabilities but also contributes to refined air traffic management, bolstering operational efficiency and safety. The integration of high-speed satellite connectivity ensures uninterrupted and reliable communication, even in remote or challenging airspace, promoting effective coordination and data sharing.
Furthermore, this opportunity extends to elevating passenger experiences through connected air travel. The incorporation of advanced connectivity technologies enables in-flight internet access, entertainment, and real-time communication, aligning with the evolving expectations of modern travelers for a connected and digitally immersive air travel experience. As aviation undergoes digital transformation, avionics systems capitalizing on advanced connectivity solutions position themselves at the forefront of meeting industry demands for heightened operational efficiency, safety, and passenger satisfaction.
Challenges: Cybersecurity Vulnerabilities
In the dynamic landscape of aviation, the escalating connectivity and digitalization of avionics systems give rise to a critical challenge-Cybersecurity Vulnerabilities. As aircraft systems become more intricately interconnected, the industry faces an intensified risk of cyber threats targeting essential flight systems and sensitive data. This vulnerability is exacerbated by the expanding attack surface presented by digital interfaces and the growing reliance on communication networks. Safeguarding avionics systems against potential breaches is imperative for preserving the integrity and safety of flight operations. This challenge demands a proactive strategy, encompassing continuous monitoring, integration of threat intelligence, and the implementation of cutting-edge encryption protocols. Collaboration among aviation stakeholders, regulatory bodies, and cybersecurity experts is essential to establish and enforce industry-wide cybersecurity standards. In navigating the evolution of avionics systems, staying ahead of cyber threats is paramount. Innovative strategies are required to fortify the resilience of aviation infrastructure and uphold the ongoing safety and security of air travel in an era marked by rapid technological advancement.
Avionics Market Ecosystem
In the avionics market ecosystem, key stakeholders range from major avionics providers to private enterprises, distributors, suppliers, retailers, and end customers like airlines and air forces. Influential forces shaping the industry include investors, funders, academic researchers, distributors, service providers, and defense procurement authorities. This intricate network of participants collaboratively drives market dynamics, innovation, and strategic decisions, highlighting the complexity and vitality of the avionics sector.
Avionics Market Segmentation
Based on the platform, the commercial aviation segment is estimated to lead the avionics market in 2023
Based on the platform, the avionics market has been segmented broadly into commercial aviation, military aviation, special mission aircraft, and general aviation. Here commercial aviation is leading this segment in 2023. The commercial aviation segment in avionics is experiencing robust growth driven by technological innovations, heightened safety standards, and a surge in air travel demand. Modern avionic systems, incorporating state-of-the-art communication, navigation, and surveillance technologies, are pivotal in enhancing operational efficiency and passenger safety.
Based on the fit, the line fit segment is estimated to lead the avionics market in 2023
Based on the fit, the avionics market has been segmented broadly into line fit, and retro fit. Here line fit is leading this segment in 2023. The line fit segment in avionics is thriving due to a growing demand for aircraft equipped with integrated and advanced avionic systems straight from the manufacturing line. Airlines are increasingly prioritizing efficiency, safety, and compliance with evolving industry standards. Manufacturers are responding by offering cutting-edge avionics solutions during the initial assembly process, streamlining operations and reducing retrofitting costs.
Based on the systems, the navigation segment is estimated to lead the avionics market in 2023
Based on the systems, the avionics market has been segmented broadly into navigation, communication, flight management, power & data management, payload & mission management, traffic & collision management, weather detection, and electronic flight display. Here navigation is leading this segment in 2023. The navigation systems segment in avionics is flourishing as air travel demands precision, efficiency, and safety. Advanced navigation technologies, including GPS, inertial navigation, and synthetic vision systems, are crucial for optimizing routes, reducing fuel consumption, and enhancing overall flight operations. As the aviation industry continues to evolve, the navigation systems segment stands out as a pivotal driver in elevating navigation accuracy and operational effectiveness.
Avionics Market by Region
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Avionics Market Regional Analysis
The North America market is projected to have the largest share in 2023 in the avionics market
Based on region, the avionics market has been segmented into North America, Europe, Asia Pacific the Middle East and Rest of the World (RoW). North America's avionics sector is thriving due to a combination of factors. The region's robust aviation industry, marked by major players and a high concentration of airlines, drives consistent demand for advanced avionic technologies. The region's emphasis on modernizing aging fleets, coupled with a growing trend toward automation and connectivity, further propels the avionics market. The market is characterized by a surge in investments in research and development, fostering the evolution of state-of-the-art avionics tailored to meet the specific technical requirements of diverse platforms.
Avionics Companies: Key Market Players
Major players in the avionics companies include Honeywell International, Inc. (US), L3harris Technologies, Inc. (US), Raytheon Technologies Corporation (US), General Electric (US), and Thales (France) to enhance their presence in the market. The report covers various industry trends and new technological innovations in the avionics market.
Avionics Market Report Scope
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Report Metric |
Details |
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USD 43.4 billion in 2023 | |
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Projected Market Size |
USD 81.8 billion by 2030 | |
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Avionics Market Growth Rate (CAGR) |
9.5 % | |
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Market size available for years |
2019-2030 |
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Base year considered |
2022 |
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Forecast period |
2023-2030 |
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Forecast units |
Value (USD) |
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Segments Covered |
By Fit, Platform, and Systems |
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Geographies covered |
North America, Europe, Asia Pacific, the Middle East & ROW (Africa, and Latin America) |
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Companies covered |
Raytheon technologies Corporation (US), Honeywell International, Inc. (US), L3Harris Technologies, Inc. (US), General Electric (US), BAE systems (UK), Meggitt PLC.(UK), Thales Group (France), Curtiss-Wright Corporation (US), Northrop Grumman (US), Garmin International (US), TransDigm Group, Inc.(US), Leonardo S.p.A. (Italy), Astronautics Corporation of America (US), Safran SA (France), Elbit Systems Ltd. (Israel). |
Avionics Market Highlights
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Segment |
Subsegment |
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By Fit |
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By Platform |
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By Systems |
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By Region |
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Recent Developments
- In October 2023, Garmin entered into a lasting agreement to supply BETA Technologies with its cutting-edge Garmin G3000® integrated flight deck for the CX300 electric fixed-wing and A250 electric vertical takeoff and landing (eVTOL) aircraft. The G3000® offers high-resolution displays and advanced communication, navigation, and surveillance air traffic management capabilities. Its lightweight, flexible open system architecture seamlessly integrates with BETA's flight control, propulsion, and battery management systems.
- In May 2023, Honeywell International, Inc. has been selected by AIBOT to provide its Compact Fly-By-Wire (cFBW) system to support AIBOT's fully electric vertical takeoff and landing (eVTOL) aircraft. This Honeywell technology will empower the next generation of aircraft avionics and create a sustainable transportation ecosystem for the future.
Frequently Asked Questions (FAQs) Addressed by the Report:
What are your views on the growth prospect of the avionics market?
Response: The avionics market exhibits promising growth prospects driven by technological innovations, rising air travel demand, and increased focus on safety and efficiency. Advancements such as autonomous flight capabilities, enhanced communication systems, and sustainable aviation solutions contribute to market expansion.
What are the key sustainability strategies adopted by leading players operating in the Avionics market?
Response: Key players have adopted various organic and inorganic strategies to strengthen their position in the avionics market. Major players Honeywell International, Inc. (US), L3harris Technologies, Inc. (US), and Raytheon Technologies Corporation (US) have adopted various strategies, such as contracts and agreements, to expand their presence in the market further.
What are the new emerging technologies and use cases disrupting the avionics market?
Response: Some of the major emerging technologies are connected solutions and artificial intelligence that will disrupt the avionics market.
Who are the key players and innovators in the ecosystem of the avionics market?
Response: Major players in the avionics market include Honeywell International, Inc. (US), L3harris Technologies, Inc. (US), Raytheon Technologies Corporation (US), General Electric (US), and Thales (France).
Which region is expected to hold the highest market share in the avionics market?
Response: Avionics market in the North America region is estimated to account for the largest share of 43.3% of the market in 2023.
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This research study on the avionics market involved the extensive use of secondary sources, directories, and databases such as Hoovers, Bloomberg BusinessWeek, and Factiva to identify and collect information relevant to the market. Primary sources included industry experts, service providers, manufacturers, solution providers, technology developers, alliances, and organizations related to all segments of this industry's value chain. In-depth interviews with primary respondents, including key industry participants, subject matter experts, industry consultants, and C-level executives, were conducted to obtain and verify critical qualitative and quantitative information about the avionics market and assess the market's growth prospects.
Secondary Research
The market share of companies in the avionics market was determined using the secondary data acquired through paid and unpaid sources and analyzing the product portfolios of major companies operating in the market. These companies were rated based on the performance and quality of their products. Primary sources further validated these data points.
Secondary sources referred to for this research study on the avionics market included government sources, such as GAMA (General Aviation Manufacturer Association), FlightGlobal Commercial Avionics Consensus (2021), International Air Transport Association (IATA), Boeing Outlook 2023, Airbus Outlook 2023, and federal and state governments of various countries; corporate filings, such as annual reports, investor presentations, and financial statements; and trade, business, and professional associations; among others. Secondary data was collected and analyzed to determine the overall size of the Avionics market, which was further validated by primary respondents.
Primary Research
Extensive primary research was conducted after acquiring information regarding the Avionics market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, Asia Pacific, the Middle East, and ROW, which includes Africa and Latin America. Primary data was collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
- Both top-down and bottom-up approaches were used to estimate and validate the size of the avionics market.
- Key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of annual and financial reports of the top market players and extensive interviews of leaders, including CEOs, directors, and marketing executives.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, analyzed by MarketsandMarkets, and presented in this report.
Market size estimation methodology: Bottom-up Approach
Market size estimation methodology: Top-down Approach
Data Triangulation
After arriving at the overall size of the avionics market from the market size estimation process explained above, the total market was split into several segments and subsegments. Wherever applicable, data triangulation and market breakdown procedures explained below were implemented to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Additionally, the market size was validated using both top-down and bottom-up approaches.
Market Definition
Avionics refers to the electronic systems used in aircraft, encompassing communication, navigation, flight control, and monitoring systems. It involves integrating hardware and software for functions like radar, GPS, autopilot, and cockpit displays. Avionics ensures safe and efficient flight operations, enabling communication with air traffic control, navigation, weather detection, and precise aircraft control. These systems are critical for flight safety, improving situational awareness, and enhancing the overall performance of both commercial and military aircraft.
The market is driven by the constant evolution of technology, leading to the development of advanced avionic systems that contribute to fuel efficiency, reduced maintenance costs, and enhanced situational awareness. Growing demand for modernized aircraft, increased air travel, and the imperative for regulatory compliance further propel the avionics market.
The recent current-generation aircraft features state-of-the-art digital avionics based on sophisticated sensor technologies that monitor and report even a small deviation in the required flight parameters. The market is projected to grow on account of the adoption of digital cockpit systems onboard new-generation aircraft and the modernization of existing fleets to attain specified safety levels globally.
Stakeholders
Various stakeholders of the market are listed below:
- Government Authorities
- Regulatory Bodies
- R&D Companies
- Commercial aircraft manufacturers
- Subsystem manufacturers
- Providers of avionics solutions and services
Report Objectives
- To define, describe, and forecast the size of the avionics market based on platform, fit, system, and region from 2023 to 2030
- To forecast the size of market segments with respect to five major regions, namely North America, Europe, Asia Pacific, the Middle East, and the Rest of the world
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the market
- To analyze opportunities for stakeholders in the market by identifying key market trends
- To analyze competitive developments such as contracts, acquisitions, expansions, agreements, joint ventures and partnerships, product developments, and research and development (R&D) activities in the market
- To provide a detailed competitive landscape of the -market, in addition to an analysis of business and corporate strategies adopted by leading market players
- To strategically profile key market players and comprehensively analyze their core competencies2
1 Micromarkets are referred to as the segments and subsegments of the Avionics markets considered in the scope of the report.
2 Core competencies of companies were captured in terms of their key developments and key strategies adopted to sustain their positions in the market.
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at the country level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Avionics Market
Topics: General aviation retrofit, forward-fit, and/or conventional gauges market values for piston engine (only) aircraft. Avionics, more specifically electronic flight instrument systems (EFIS). Data: Market share, number of tails, growth rates, sales history, etc. Thank you in advance!