Aircraft Electrical Systems Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, France, Germany, China, Canada - Size and Forecast 2024-2028

Aircraft Electrical Systems Market Size 2024-2028 

The aircraft electrical systems market size is forecast to increase by USD 4.55 billion, at a CAGR of 4.5% between 2023 and 2028. Market growth is contingent on several key factors: increasing demand for commercial aircraft, a significant focus on electric planes, and ongoing investments and partnerships within the aviation industry. As global air travel continues to rebound, there is a heightened demand for commercial aircraft to accommodate passenger and cargo transport needs efficiently. The industry's shift towards electric planes represents a pivotal advancement in sustainable aviation, driven by environmental concerns and technological innovation. This focus not only addresses carbon emissions but also stimulates market interest and investment in electric aircraft development and infrastructure. Concurrently, continued investments and strategic partnerships bolster research, development, and deployment efforts across the aviation sector, fostering innovation in aircraft design, manufacturing, and operational efficiencies. These factors collectively shape the future of the aviation market, positioning stakeholders to capitalize on emerging opportunities and contribute to a more sustainable and resilient global air transportation system.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is witnessing significant growth due to the increasing demand for commercial aircraft orders and aircraft modernization programs. Aerospace companies are focusing on enhancing fuel efficiency and integrating advanced avionics systems in aircraft, leading to the adoption of electrical systems. Aircraft electrical systems consist of power generation, distribution, conversion, and various other components such as batteries, alternators, and DC generators. Aircraft manufacturers and component manufacturers are investing in research and development to introduce distributed architectures and electrical energy storage systems. Hydraulically controlled systems are gradually being replaced by electric power sources, making the market for aircraft electrical systems more competitive. The market is expected to grow at a steady pace due to the increasing air travel demand and the need for air transportation services. Power generation and distribution are essential aspects of aircraft electrical systems. Fuel efficiency is a critical factor in the aviation industry, and electrical systems help improve it by reducing the weight and complexity of hydraulic and pneumatic systems. The market for aircraft electrical systems is expected to witness significant growth in the coming years due to these factors. In conclusion, the Aircraft Electrical Systems market is expected to grow significantly due to the increasing demand for commercial aircraft orders, aircraft modernization programs, and the need for advanced avionics systems. The market is competitive, with key players including Airbus, Boeing, and Rolls-Royce, among others. The focus on fuel efficiency, weight reduction, and distributed architectures is expected to drive market growth in the coming years.

Key Market Driver

Growing demand for commercial aircraft is notably driving market growth. The global air travel industry has witnessed a consistent growth in air traffic, leading aircraft original equipment manufacturers (OEMs) to expand their production capabilities to meet the increasing demand. In 2021, major OEMs, such as Airbus, reported significant delivery numbers, with Airbus delivering 611 commercial aircraft to 88 customers, a rise from 566 in 2020. Developing countries like India and China have also contributed significantly to the aircraft production sector. Advanced avionics systems, electric propulsion systems, and lightweight materials are becoming increasingly integral to modern aircraft design. These technologies require sophisticated electrical systems, including batteries, alternators, DC generators, power distribution units, and high voltage systems. Power conversion and energy storage solutions are also essential for optimizing operational expenses and ensuring aviation standards are met.

Moreover, electric motors and advanced avionics systems are key components of electric propulsion systems, which are gaining popularity in the commercial and defense sectors. Airline fleets and aviation transportation services are increasingly adopting these technologies to reduce fuel consumption and carbon emissions. The integration of these systems into aircraft structures necessitates the development of advanced electrical systems to support their operation. In summary, the growing air travel industry requires the production of more advanced and fuel-efficient aircraft. The integration of electric propulsion systems, advanced avionics, and lightweight materials necessitates the development of sophisticated electrical systems, including power distribution, power conversion, energy storage, and high voltage systems. These systems are essential for ensuring the safe and efficient operation of modern aircraft. Thus, such factors are driving the growth of the market during the forecast period.

SIgnificant Market Trends

Technological innovations in aircraft electric systems is the key trend in the market. The aircraft electrical systems market is experiencing significant advancements with the integration of electric propulsion systems and the use of lightweight materials in air travel. Collins Aerospace, a Raytheon Technologies business, recently completed a critical design review and initiated the fabrication of a 500-kilowatt electric motor for the Airlander 10 aircraft. This collaboration with Hybrid Air Vehicles and the University of Nottingham aims to achieve a hybrid-electric operation by 2025 and an all-electric, zero-emission operation by 2030.

Besides, in another development, NASA selected two US companies to develop electric propulsion technologies for aircraft, targeting their introduction to US aviation fleets by 2035 under the Electric Powertrain Flight Demonstration (EPFD) program. The value of these awards totals USD 253 million. Advanced avionics systems, power distribution, power conversion, energy storage, and high voltage systems are integral components of these innovations. Aviation technologies continue to evolve, focusing on reducing operational expenses and adhering to aviation standards. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

The impact of COVID-19 on the aviation industry is the major challenge that affects the growth of the market. The global aircraft electrical systems market has been significantly impacted by the COVID-19 pandemic, which led to a historic decline in air travel. Commercial and defense airlines have been forced to reevaluate their fleet strategies and capital expenditures due to the financial strain caused by the pandemic. Consequently, new aircraft orders have been canceled, deferred, or renegotiated. Despite the challenging circumstances, the aviation industry continues to invest in advanced avionics systems, electric propulsion systems, and lightweight materials to improve power distribution, power conversion, and energy storage solutions.

However, the industry is not expected to return to pre-pandemic levels anytime soon. The market for aircraft electrical systems includes components such as batteries, alternators, DC generators, power distribution units, high voltage systems, and energy storage solutions. These components play a crucial role in powering advanced avionics systems, electric motors, and other aviation technologies. The market is expected to grow steadily as the aviation industry recovers and invests in new technologies to improve efficiency and reduce operational expenses. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• AMETEK Inc.: The company offers primary power distribution unit which provides primary power bus connectivity, transfer, and distribution functions to the aircraft loads.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Amphenol Corp.
• Astronics Corp.
• B and C Specialty Products Inc.
• BAE Systems Plc
• Carlisle Companies Inc.
• Collins Aerospace
• Crane Aerospace and Electronics
• EaglePicher Technologies LLC
• Electric Power Systems
• General Electric Co.
• HEICO Corp.
• Honeywell International Inc.
• Meggitt Plc
• Nabtesco Corp.
• PBS Aerospace Inc.
• Safran SA
• Thales Group
• TransDigm Group Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Platform 

The commercial aviation segment is estimated to witness significant growth during the forecast period. The global aircraft electrical system market is experiencing significant growth due to increasing commercial aircraft orders and the demand for fuel-efficient aircraft in commercial aviation networks. Aerospace companies are focusing on developing advanced electrical systems for power generation, distribution, conversion, and fuel efficiency to cater to the needs of air passengers and the tourism sector. Aircraft battery technologies, integrated systems, and electric propulsion technology are gaining popularity to reduce greenhouse gas emissions and noise pollution.

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The commercial aviation segment accounted for USD 8.27 billion in 2018. Military aircraft fleets, including fighter aircraft, also require advanced electrical systems for their complex hydraulically controlled systems. Component manufacturers and electrical system manufacturers are investing in distributed architectures, power electronics, programmable solid-state devices, and switching power devices for miniaturization and improved performance. Airports and regional aircraft are also adopting hybrid electric systems to reduce fuel consumption and carbon footprint. Generators and electrical energy storage systems are essential components of these advanced electrical systems, providing power from various electric, pneumatic, hydraulic, and mechanical power sources.

Regional Analysis

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Europe is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The global aircraft electrical system market is experiencing significant growth due to increasing commercial aircraft orders and the demand for fuel-efficient aircraft in the aerospace industry. Power generation, distribution, conversion, and fuel efficiency are key focus areas for electrical system manufacturers to cater to the needs of commercial aviation networks and air passengers in the tourism sector.

Further, the aviation industry relies on various power sources, including pneumatic, hydraulic, mechanical, and electric, to operate hydraulically controlled systems. Component manufacturers are focusing on distributed architectures and power electronics, including programmable solid-state devices and switching power devices, for miniaturization and improved efficiency. The commercial aviation segment is the largest market for aircraft electrical systems, with generators and electrical energy being essential components.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user Outlook
  • Hospitals and clinics
  • Ambulatory surgery centers

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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• Aircraft Electrical Systems Market by Platform and Geography - Forecast and Analysis
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• Commercial Aircraft Electronic Flight Bag Systems Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, India, Germany, France - Size and Forecast

Market Analyst Overview:

The market is a significant segment of the aerospace industry, catering to the power generation, distribution, and conversion needs of commercial and military aircraft. With the increasing number of commercial aircraft orders, the demand for fuel-efficient aircraft is on the rise, leading to a growing focus on electrical systems that enhance fuel efficiency and reduce greenhouse gas emissions. Aircraft electrical systems encompass various technologies, including power generation from hydraulic, pneumatic, mechanical, and electric power sources. Integrated systems that combine power electronics, programmable solid-state devices, and switching power devices are becoming increasingly popular.

Moreover, the commercial aviation segment is the largest consumer of aircraft electrical systems, driven by the growing passenger traffic in the tourism sector. Airports are investing in advanced infrastructure to accommodate the increasing number of fuel-efficient aircraft, further fueling market growth. Military aircraft fleets also rely heavily on electrical systems for various functions, including communication, navigation, and weapon systems. The military aviation segment is expected to witness significant growth due to the modernization of military aircraft and the integration of electric propulsion technology. Aircraft battery technologies, such as lithium-ion batteries, are gaining popularity due to their high energy density and long life cycle.

Further, hybrid electric systems are also being explored as a viable solution for reducing noise pollution and improving fuel efficiency. Electrical system manufacturers are focusing on miniaturization and distributed architectures to reduce weight and improve system reliability. Component manufacturers are also developing advanced technologies, such as generators and electrical energy storage systems, to meet the evolving needs of the aviation industry.

Market Scope
Report Coverage	Details
Page number	143
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.5%
Market growth 2024-2028	USD 4.55 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.23
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 33%
Key countries	US, France, Germany, China, and Canada
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AMETEK Inc., Amphenol Corp., Astronics Corp., B and C Specialty Products Inc., BAE Systems Plc, Carlisle Companies Inc., Collins Aerospace, Crane Aerospace and Electronics, EaglePicher Technologies LLC, Electric Power Systems, General Electric Co., HEICO Corp., Honeywell International Inc., Meggitt Plc, Nabtesco Corp., PBS Aerospace Inc., Safran SA, Thales Group, and TransDigm Group Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies