Avionics Market Analysis

Avionics Market Overview

Avionics Market Size was valued at USD 46.1 Billion in 2022. The Avionics market industry is projected to grow from USD 50.2 Billion in 2023 to USD 100.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.10% during the forecast period (2023 - 2032). Rising Global air travel, modernization and upgradation, regulatory requirements, growing use of unmanned aerial vehicles (UAVs), advancements in technology, enhanced communication and connectivity, safety and security concerns, increased defense spending, sustainable aviation, emerging markets are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Avionics Market Trends

• Modernization and upgradation is driving the Avionics Market growth

Safety continues to be the primary concern in the aviation industry. Modern avionics systems come standard with cutting-edge avionics technologies including terrain awareness and warning systems (TAWS), collision avoidance systems, and enhanced weather radar, which significantly increase situational awareness and reduce the risk of accidents. The overall safety and dependability of the aircraft are strengthened by the adoption of such technology, providing crew and passengers with greater comfort during flights.

Modern avionics greatly improve operational efficiency, which enables airlines to save costs. For instance, GPS-based navigation reduces flying times, improves routes, and consumes less fuel. Additionally, next-generation avionics provide real-time monitoring and analysis of aircraft performance, enabling predictive maintenance and lowering downtime. As pressure mounts on the aviation industry to reduce its environmental impact, avionics are crucial to achieving sustainability goals. Modernized systems with improved fuel management and optimized flight paths result in decreased fuel consumption and greenhouse gas emissions. This link with green goals is driving the use of eco-friendly avionics systems.

The digital change that is sweeping all industries is having an effect on avionics. Modern avionics systems enable seamless connection, enabling the exchange of real-time data between aircraft and ground control. This connectivity enhances communication, enables remote monitoring, and makes it simpler to provide crucial data, all of which increase the efficiency of flight operations. The demand for compatible avionics systems has increased as new aircraft types with cutting-edge features and technology are created. Airlines that purchase the most recent aircraft also strive to outfit them with state-of-the-art avionics in order to maximize the potential of their new fleet.

Modern avionics improvements can lengthen an aircraft's useful life and delay the need to make expensive new aircraft purchases. This approach offers a practical means of enhancing aircraft capabilities for both commercial and military operators without having to make an outright purchase of brand-new aircraft. The defense sector has a major impact on the expansion of the avionics market. Military groups all across the world are spending money modernizing their fleets to maintain air superiority and operational readiness. A sophisticated avionics system with increased situational awareness and communication capabilities is needed for modern military missions. Thus, driving the Avionics market revenue.

Avionics Market Segment Insights

Avionics System Insights

The Avionics Industry segmentation, based on type includes navigation, payload & mission management, traffic & collision management, communication, power & data management, weather detection, flight management and electric flight display. The flight management segment dominated the market in 2022. Airlines and aircraft producers are always looking for ways to minimize fuel usage and cut operating expenses. Through more effective flight planning and route optimization, advanced FMS systems are essential to achieving these objectives.

Avionics Platform Insights

The Avionics Market segmentation, based on platform, includes commercial aviation, military aviation and general aviation. The military aviation category generated the most income in 2022. Military aviation capabilities must always be enhanced due to the changing nature of global security and potential threats from enemies. In order to effectively combat growing threats, aircraft must be equipped.

Avionics Fit Insights

The Avionics Market segmentation, based on fit, includes line fit and retrofit. The retrofit segment dominated the market in 2022. Companies may retrofit their current products or services to satisfy customer demands for new features, increased safety, or better performance.

Figure 1: Avionics Market, by Fit, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Avionics Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific  Market Avionics Market dominated this market in 2022 (45.80%). Due to reasons like rising passenger demand, economic expansion, and the emergence of low-cost carriers, the Asia Pacific region is one of the aviation sectors with the fastest growth rates in the world. This expansion fuels the demand for contemporary avionics products. Moreover, China’s Avionics market held the largest market share, and the Indian Avionics market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: AVIONICS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Avionics Market accounts for the second-largest market share. North America has seen growing interest in urban air mobility solutions, which requires specialized avionics for eVTOL and other aerial mobility platforms. Further, the U.S. Avionics market held the largest market share, and the Canada Avionics market was the fastest growing market in the North America region.

Europe Avionics market is expected to grow at the fastest CAGR from 2023 to 2032. European aviation authorities, such as the European Union Aviation Safety Agency (EASA), have stringent safety and regulatory standards. Avionics manufacturers must comply with these regulations, leading to continuous improvements and updates in avionics technology. Further, the German Avionics Indutry held the largest market share, and the UK Avionics market was the fastest growing market in the European region.

Avionics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Avionics market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Avionics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Avionics industry to benefit clients and increase the market sector. In recent years, the Avionics industry has offered some of the most significant advantages to medicine. Major players in the Avionics market, including Avilution LLC (The U.S.), BAE Systems (The U.K.), CCX Technologies (Canada), Cobham PLC (The U.K.), Collins Aerospace (The U.S.), Garmin Ltd. (The U.S.), General Electric (The U.S.), Honeywell International Inc (The U.S.), L3Harris Technologies, Inc. (The U.S.), Meggitt (The U.K.), Nucon Aerospace(India), Safran S.A.(France), Teledyne Technologies Incorporated. (The U.S.),Thales Group(France), Transdigm Group, Inc. (The U.S.), uAvionix Corporation (The U.S.) and others, are attempting to increase market demand by investing in research and development operations.

BAE Systems Plc (BAE) is a systems integrator and defense contractor. The company provides military, aerospace, and security systems for the air, land, and sea. In addition to information technology solutions and support services, BAE's product offerings include advanced electronics, cybersecurity, and intelligence technologies. The company develops, manufactures, and sells a variety of products, including guided missile systems, avionics, radars, command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, and military aircraft. The government and commercial clients are both catered to. The company has activities throughout Africa, the Middle East, Central and South America, North America, and Asia-Pacific. London in the United Kingdom serves as BAE's headquarters.

Global positioning system (GPS)-enabled hand-held, portable, and fixed-mount equipment are designed, developed, manufactured, and marketed by Garmin Ltd. For the automotive/mobile, outdoor, fitness, maritime, and general aviation segments, the business also provides navigation, communications, and information devices. Quickdraw, ECHOMAP, inReach, EmpirBus, Navionics, Montana, Rino, Fusion, Force, Instinct, Garmin Connect, Connect IQ, and Vivofit are some of the brands under which it sells products. Through a network of independent dealers, independent retailers, distributors, installation and repair businesses, and original equipment manufacturers (OEMs), Garmin offers GPS receivers and accessories to retail establishments as well as aviation products to aviation dealers and aircraft manufacturers. Africa, the Middle East, Europe, Asia-Pacific, and North America are all regions where the organization conducts business. The headquarters of Garmin are in Schaffhausen, Switzerland.

Key Companies in the Avionics market include

• Avilution LLC (The U.S.)


• BAE Systems (The U.K.)


• CCX Technologies (Canada)


• Cobham PLC (The U.K.)


• Collins Aerospace (The U.S.)


• Garmin Ltd. (The U.S.)


• General Electric (The U.S.)


• Honeywell International Inc (The U.S.)


• L3Harris Technologies, Inc. (The U.S.)


• Meggitt (The U.K.)


• Nucon Aerospace(India)


• Safran S.A.(France)


• Teledyne Technologies Incorporated. (The U.S.)


• Thales Group(France)


• Transdigm Group, Inc. (The U.S.)


• uAvionix Corporation (The U.S.)

Avionics Industry Developments

October 2022: Alaska Airlines ordered 52 Boeing 737 MAX planes in an effort to expand the size of its fleet. By the end of 2023, the airline expects to have all Boeing aircraft in its mainline fleet.

September 2022: The US Navy has awarded Lockheed Martin a firm-fixed contract to build 12 Sikorsky MH-60R Seahawk helicopters for the Royal Australian Navy. These 12 helicopters will be delivered by the OEM between mid-2025 and mid-2026.

Avionics Market Segmentation

Avionics System Outlook

• Navigation


• Payload & Mission Management


• Traffic & Collision Management


• Communication


• Power & Data Management


• Weather Detection


• Flight Management


• Electric Flight Display

Avionics Platform Outlook

• Commercial Aviation


• Military Aviation


• General Aviation

Avionics Fit Outlook

• Line Fit


• Retrofit

Avionics Regional Outlook

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America