Aircraft Electrical Systems Market Analysis

Global Aircraft Electrical Systems Market Overview

Aircraft Electrical Systems Market Size Is Anticipeted to Reach 19,344 Million By 2030, and Grow at a CAGR Of 6.7% by 2020-2030

An aeroplane electrical framework incorporates generators, dispersion gadgets, change gadgets, and battery-board frameworks. These frameworks together are utilised to create, communicate, circulate, use, and store electrical energy.

The global Aircraft Electrical Systems Market has recently seen high development because of the expansion popular for new aeroplanes overall and the ascent sought after for electric aeroplanes for business avionics. Be that as it may, the absence of an avionics framework in the Asian economies is supposed to somewhat control the market development. Throughout the last ten years, the interest in a new aeroplane has essentially ascended worldwide, basically because of the rising air traveller traffic. All around the world, air traveller traffic has expanded as of late. 

The recent electronic aircraft technologies give crucial opportunities to component manufacturers. Many aircraft manufacturers are giving rise to major power generation and distribution methods at different levels of the market chain that will put significant value on the market. The developing solutions in the digital; systems, specialised architectures, and power electronics are some of the important technologies responsible for fueling the growth of this market. The engaging factors of programmable solid-state devices and switching power devices will also significantly contribute to their specialised features in building the market. 

COVID-19 Analysis

The adverse impact of COVID-19 on the aerospace & defense sector is likely to halt the growth of the globalaircraft electrical systems market over the next few years. The aviation industry has witnessed an unprecedented decline since the beginning of the pandemic. The outbreak of the virus has significantly impacted airline companies. The number of scheduled flights worldwide for the week starting 4th January 2021 was 43.5% lower than that of the week starting 6th January 2020. Due to this drastic decrease in air passenger traffic globally, the revenues of airline companies declined in 2020. The aviation industry has witnessed little to no growth as compared to the previous year. 

The decline in air passenger revenues is also expected to decrease the demand for new aircraft by the airline companies during this year. Moreover, there will be delays in aircraft deliveries by aircraft manufacturers such as Airbus SAS and Boeing. Thus, delays in aircraft delivery and a decrease in aircraft operations are reducing the demand for aircraft electrical systems.

Despite the COVID-19 crisis, the outlook remains positive and constrained by several factors, such as the COVID-19 curve, vaccination rate, and economic recovery. Governments across the world are working in close collaboration with the vaccine manufacturers for rapid vaccine rollout. With these constraints being short-term in nature and the long-term growth drivers still being relevant, the aviation industry is expected to bounce back to pre-pandemic growth levels in a couple of years. Therefore, the COVID-19 impact on the global aircraft electrical systems market is expected to be short-term and recover in the next couple of years.

Market Dynamics

• Increase in Demand for New Aircraft Worldwide

Over the past decade, the demand for new aircraft has significantly risen across the world, primarily due to the increasing air passenger traffic. Globally, air passenger traffic has increased significantly in recent years. Before the pandemic hit, air passenger traffic was witnessing significant growth.As per International Civil Aviation Organization (ICAO), the air passenger traffic across scheduled flights rose to 4.5 billion in 2019, witnessing a 3.6% growth compared to 2018.

In April 2021, Boeing Company, one of the world’s largest aerospace and defense companies, in its annual commercial market outlook (CMO) forecasted the demand for over 2,200 new jet planes over the next two decades in India alone. The company ascribed this demand to strong aviation growth and the expanding middle-income class in the country. The company added that despite the near-term challenges posed by the pandemic, the passenger traffic growth is expected to be higher than the global average and get almost double as compared to pre-pandemic levels by 2030. With a rise in per capita disposable incomes, passenger traffic related to leisure and business activities is expected to grow in the future. By 2039, the company anticipates a four-fold growth in India’s commercial fleet, owing to increasing demand for domestic, regional, and long-haul travel. Therefore, an increase in air passenger traffic is the key factor responsible for the growth of the demand for aircraft electrical systems.

• Technological Advancements in Aircraft Electrical Systems

Over the past decade, the more electric aircraft (MEA) concept has propelled the need for advanced aircraft electrical systems in terms of efficiency, safety, and low overall system weight. Additionally, there has been a rise in the demand for hybrid electric and fully electric aircraft to deal with the growing environmental concerns posed by the rising number of aircraft.

Aircraft manufacturers have been working closely with leading aircraft electric systems manufacturers on several innovative projects to design and develop such systems. Thus, the demand for technologically advanced aircraft electrical systems for hybrid electric and fully electric aircraft presents lucrative growth opportunities for the players operating in the global aircraft electrical systems market.

• Lack of Aviation Infrastructure in Leading Asian Economies

The major economies in Asia-Pacific, such as China and India, have witnessed a considerable rise in the disposable incomes of their emerging middle-class population over the last decade. As a result, the standard of living in these countries has significantly improved, and the travel industry was booming until the emergence of the COVID-19 pandemic.With growth factors still relevant and the aviation sector expected to recover and reach pre-pandemic levels in a couple of years, the air travel industry is expected to grow considerably during the forecast period.

Additionally, the investments made by the governments in such countries towards aviation infrastructural growth have not been enough to keep up with the rapidly increasing air passenger traffic in the aviation sector. Aviation infrastructure primarily comprises airports, aircraft, and air traffic control systems. The potential growth of the aviation industry in these economies is constrained by the lack of aviation infrastructure, there by restricting the growth in the demand for new aircraft and associated electrical systems as well. Thus, the lack of aviation infrastructure is expected to restrict the growth of the aircraft electrical systems market during the forecast period.

• High Demand for New Aircraft Deliveries to Bolster Market’s Growth Rate

The global aircraft electrical systems market is forecasted to register a growth rate of 6.4% over the analysis period (between 2021 and 2027) on account of thehigh demand for new aircraft deliveries.

Market Segment Overview

Increasing Focus on Operational Efficiency of Energy Storage Systems to Drive their Market Growth

The aircraft electrical systems market, by system, has been segmented into power generation, power distribution, power conversion, and energy storage. The major players in the aircraft electrical systems market have been working on designing and developinglightweight and high-quality energy storage systems. Aircraft manufacturers are working in close collaboration with the aircraft electrical systems providers on the operational efficiency of energy storage systemsto optimize the operational performance of hybrid electric and fully electricaircraft. As a result, the demand for the aircraft electrical systems market in the energy storage segment is projected to grow at a notable rate during the studyperiod.

Growing Demand for Ruggedized Uninterruptible Power Systems to Generate Strong Demand for Battery Management Systems

Bycomponent, the global aircraft electrical systems market is segmented into generators, distribution devices, conversion devices, and battery management systems.The battery management systems segment is expected to have considerable growth during the forecast period, owing to the growing demand forruggedized uninterruptible power systems.

Regional Analysis

North America Expected to Focus on Fleet Simplification Leading to More Aircraft Deliveries

The aviation industry in the region is characterized by stake acquisition in other airlines (partly or wholly) and rising alliance partnerships & joint ventures, thereby enabling the carriers in the region to increase their global footprint. Over the next two decades, the air passenger traffic growth is expected to grow at 2.7%, while the fleets of the carriers are likely to register a growth rate of 1.7%. Due to the growing air passenger traffic and airline fleets, the demand for almost 9,000 new passenger aircraft is forecasted over the next two decades. Moreover, an increasing number of collaborations between aircraft electrical systems manufacturers and aircraft manufacturers to optimize the operational efficiency of aircraft electrical systems is expected to significantly contribute to the market growth.Thus, the North Americanaircraft electrical systems market is estimated to register strong growth during the forecast period.

APAC Races Ahead at the Fastest Rate as China and India Take the Lead

Asia-Pacific aircraft electrical systems market is forecasted to grow at the fastest rate, owing to the rising demand for new aircraft in the region. Asia-Pacific is the most diverse and the largest region in the world, comprising of key established and emerging economies. The region consists of five sub-regions, namely China, Oceania, Northeast Asia, Southeast Asia, and South Asia; the aviation sectors of all these sub-regions have their ownunique market dynamics. The aviation industries in China, South Asia, and Southeast Asia have a strong growth rate, while those of Oceania and Northeast Asia have a relatively slower growth rate.

The Asia-Pacific region has been primarily responsible for sturdy air passenger traffic growth worldwide over the past decade. The air passenger traffic in the region had an annual growth rate of 8.3%, which is way above the 6.5% global growth rate. In 2019, the global share of intra-Asia air travel was 25%, which is expected to reach 32% by 2039. Over the next two decades, the region is expected to account for over 17,000 new passenger airplane deliveries, which is calculated to be about 41% of the global deliveries. This forecasted demand will drive the mean annual air traffic growth of 5.1% and 4.3% fleet growth for airlines in the region during the next two decades. Thus, the Asia-Pacific aircraft electrical systems market is expected to grow at a rate significantly faster than other regions during the forecast timeline.

Competitive Landscape

Significant Investments by Players to Intensify Competition

The aircraft electrical systems market is expected to grow significantly in the coming years due to the increase in demand for new aircraft worldwide and the rise in demand for electric aircraft for commercial aviation. The global aircraft electrical systems market is characterized by the presence of several global and regional vendors. The market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, intense competition, and government regulations are the key factors that impact global market growth. The vendors compete based on cost, product quality, and reliability.

List of Key Companies Covered in this Report

• Safran (France)


• AMETEK, Inc. (US)


• Esterline Technologies (US)


• GE Aviation (US)


• Astronics Corporation (US)


• Honeywell International Inc. (US)


• Thales Group (France)


• Raytheon Technologies Corporation (US)


• Meggitt (UK)


• Amphenol Corporation (US)

Recent Developments

April 2021 - AMETEK, Inc. procured Abaco Systems, Inc., one of the main providers of strategic mission-critical embedded computing systems, in a money exchange esteemed at USD 1.35 billion.

July 2020 - Astronics Corporation was granted agreements from Bell Textron Inc., an auxiliary of Textron Inc., for the headway of its CorePower airframe electrical age and power circulation frameworks to help their drawn-out programs — Future Long-Range Assault Aircraft (FLRAA) and Future Attack Reconnaissance Aircraft (FARA).

February 2020 - AMETEK, Inc. obtained IntelliPower, one of the main providers of ruggedised uninterruptible power frameworks that serve a wide assortment of safeguard and modern applications.

Report Overview

Scope of the Report

The scope of the report highlights drivers, opportunities, restraints, and challenges surrounding the global market. With easy-to-comprehend segmentation that includes system, component, application, platform, and region, MRFR projections are based on historical and expected trends. Major firms active in the global market have been profiled and paired with the top strategies employed by them to remain competitive in the industry.

Segmentation Table

• 
  System
  
  
  
  • Power Generation
  
  
  • Power Distribution
  
  
  • Power Conversion
  
  
  • Energy Storage
  
  
  
  


• 
  Component
  
  
  
  • Generators
  
  
  • Distribution Devices
  
  
  • Conversion Devices
  
  
  • Battery Management Systems
  
  
  
  


• 
  Application
  
  
  
  • Power Generation Management
  
  
  • Cabin System
  
  
  • Flight Control & Operation
  
  
  • Configuration Management
  
  
  • Air Pressurization & Conditioning
  
  
  
  


• 
  Platform
  
  
  
  • Commercial Aviation
  
  
  • Military Aviation