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The commercial aircraft avionic systems market size is forecast to increase by USD 3.62 billion, at a CAGR of 1.68% between 2023 and 2028. The growth of the aerospace market hinges on several pivotal factors. Firstly, there is a rising demand for commercial aircraft, driven by global travel needs and expanding airline fleets. Secondly, the development of technologically advanced next-generation aircraft components is propelling market expansion, enhancing efficiency and performance benchmarks. These advancements not only improve operational and maintenance costs but also elevate safety standards through integrated advanced electronic technologies. The integration of such technologies ensures streamlined operations and enhances the overall safety profile of aircraft. As aerospace manufacturers and operators prioritize efficiency and safety, these factors collectively drive the trajectory of market growth, fostering innovation and meeting the evolving demands of the aviation industry worldwide.
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The market is witnessing significant growth due to increasing passenger traffic and aircraft demand. Aircraft OEMs are integrating advanced avionic systems in new aircraft models to meet the requirements of airlines and passengers. Widebody jets and narrowbody segments are the major consumers of avionic systems. MRO providers play a crucial role in maintaining and upgrading the avionic systems of existing fleets. Flight management, flight control, navigation & surveillance systems, electrical & emergency systems, and innovative technologies such as digital cockpits and connectivity solutions are the major avionic systems used in commercial aircraft. Avionics manufacturers are focusing on developing lightweight, energy-efficient, and cost-effective avionic systems to reduce fuel consumption and emissions.
However, the market faces challenges such as stringent regulations and certifications, cyber threats, compatibility issues, and economic downturns. The FAA and other regulatory bodies are implementing strict guidelines for avionic systems to ensure safety and security. Avionic manufacturers are investing in research and development to address these challenges and offer advanced solutions. The market is expected to grow at a steady pace in the coming years due to fleet expansion by low-cost carriers and the integration of advanced technologies such as automotive electronics in avionic systems. Despite the challenges, the future of the market looks promising with continuous innovation and technological advancements.
Increasing demand for commercial aircraft is notably driving market growth. The market is experiencing significant growth due to increasing passenger traffic and expanding aircraft demand. Aircraft Original Equipment Manufacturers (OEMs) are investing heavily in advanced avionic systems for new aircraft models, while Maintenance, Repair, and Overhaul (MRO) providers focus on upgrading existing fleets. Widebody jets and narrow-body aircraft segments, including those used by low-cost carriers, are major consumers of these systems. Flight management, flight control, navigation & surveillance systems, electrical & emergency, communication, and systems electronics are key sub-systems. Engine controls and aircraft operations computers are also essential components. Freighters and regional & business jets also utilize these systems.
Further, fit in new aircraft deliveries and fleet expansion in emerging economies is driving market growth. In-flight entertainment and real-time data systems are increasingly important for enhancing passenger experience and improving network capacities. The regulatory framework, including FAA guidelines, is shaping the market. Vulnerability to cyber-attacks is a concern, leading to increased focus on Nextgen aircraft and commercial aviation networks. Freight volume and airline passenger growth, driven by the expanding middle-class population and low-cost airlines, are significant factors. System expenditure is expected to increase as airlines invest in advanced technologies to optimize operations and improve safety. Mosaic ATM and other initiatives aim to streamline air traffic management. Thus, such factors are driving the growth of the market during the forecast period.
Preference for satellite-based cockpit connectivity is the key trend in the market. The market is experiencing significant growth due to increasing passenger traffic and aircraft demand. Aircraft Original Equipment Manufacturers (OEMs) are continuously innovating to meet the needs of fleet expansion and regulatory requirements set by the Federal Aviation Administration (FAA) and other aviation authorities. MRO providers play a crucial role in maintaining and upgrading avionics systems in widebody jets, narrowbody aircraft, freighters, regional and business jets. Key sub-systems include flight management, flight control, navigation & surveillance systems, electrical & emergency, communication, and systems electronics. Engine controls and aircraft operations computer are also integral components. In-flight entertainment systems and real-time data transmission are becoming increasingly important for passenger comfort and network capacities.
Addition, emerging economies and the expanding middle-class population are driving demand for low-cost carriers, leading to an increase in narrow body aircraft deliveries. However, the aviation industry faces challenges such as vulnerability to cyber-attacks and the need to comply with the regulatory framework. Next-generation aircraft and commercial aviation networks are expected to revolutionize the market with advanced avionics systems. System expenditure is projected to grow as freight volume and airline passengers continue to increase. Thus, such trends will shape the growth of the market during the forecast period
Complications associated with malfunctioning is the major challenge that affects the growth of the market. The market is experiencing significant growth due to increasing passenger traffic and aircraft demand. Aircraft Original Equipment Manufacturers (OEMs) are continually innovating to meet the needs of fleet expansion and modernization. The Federal Aviation Administration (FAA) and other regulatory bodies are driving the adoption of advanced avionics systems, including flight management, flight control, navigation & surveillance, electrical & emergency, communication, systems electronics, and engine controls. Widebody jets and narrowbody segments, particularly in low-cost carriers, are major consumers of these systems. In-flight entertainment and real-time data are becoming essential for enhancing passenger experience and network capacities.
Moreover, the vulnerability to cyber-attacks is a concern, and regulatory frameworks are being established to mitigate risks. Next-generation aircraft, such as those with advanced communication systems and Nextgen aircraft technologies, are driving system expenditure. Emerging economies with growing middle-class populations and increasing airline passengers are significant markets for avionics systems. Freight volume is also a factor, with freighter aircraft requiring specialized avionics systems. MRO providers play a crucial role in maintaining and upgrading these systems for various aircraft types, including regional & business jets, narrow body, wide body, and freighters. Hence, the above factors will impede the growth of the market during the forecast period
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
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.
Airbus SE - The company offers commercial aircraft avionic systems such as Platform electronics, Gyros and actuators, Sensors and LIDARs, Sun sensors and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The FCS segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to increasing passenger traffic and expanding aircraft demand. Aircraft Original Equipment Manufacturers (OEMs) are investing heavily in advanced avionic systems for new aircraft models, including widebody jets and narrowbody segments, to meet the needs of both flag carriers and low-cost airlines. The Federal Aviation Administration (FAA) and other regulatory bodies are driving fleet expansion through regulatory frameworks and next-generation aircraft certifications. MRO providers play a crucial role in maintaining and upgrading existing avionic systems in the wide body, narrow body, regional and business jet segments.
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The FCS segment was the largest and was valued at USD 14.67 billion in 2018. Flight management, flight control, navigation & surveillance systems, electrical & emergency, communication, systems electronics, engine controls, and aircraft operations computer are key sub-systems undergoing continuous development. In-flight entertainment and real-time data systems are becoming essential for enhancing passenger experience and network capacities. The vulnerability to cyber-attacks in avionic systems is a growing concern, necessitating increased focus on security measures. The emerging economies' middle-class population growth and the expansion of low-cost airlines are driving airline passengers and freight volume, leading to substantial system expenditure. Mosaic ATM and commercial aviation networks are crucial for optimizing air traffic management and ensuring efficient aircraft operations.
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North America is estimated to contribute 36% 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 market is experiencing significant growth due to the increasing adoption of advanced technologies in the aviation industry. Emerging economies are playing a pivotal role in driving this market forward, with a focus on navigation and communication systems for both commercial airlines and defense organizations. Uncrewed aerial vehicles (UAVs) are also contributing to the market expansion, with regulatory requirements and initiatives prioritizing aviation safety and environmental sustainability.
Additionally, aircraft manufacturers are introducing avionics upgrade packages for existing aircraft models to enhance situational awareness, flight safety, and connectivity solutions for pilots and passengers. Military agencies and operators are also investing in these technologies to ensure compatibility with digital cockpits and meet stringent regulations and certifications. However, the market faces challenges such as cyber threats, economic downturns, and emissions and fuel consumption concerns. Innovative technologies, such as automotive electronics, are being explored to address these challenges and improve overall efficiency and performance. The avionics manufacturers are collaborating to develop solutions that meet the evolving needs of the aviation industry while ensuring regulatory compliance and addressing compatibility issues.
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.
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The market is driven by the increasing passenger traffic and aircraft demand. Aircraft OEMs are integrating advanced avionic systems in new aircraft models to meet the requirements of the Federal Aviation Administration (FAA) and other regulatory bodies. Fleet expansion by both traditional and low-cost carriers is also fueling the market growth. MRO providers are playing a crucial role in the maintenance and upgrading of avionic systems in older aircraft. The market can be segmented into sub-systems such as flight management, flight control, navigation & surveillance systems, electrical & emergency, communication, systems electronics, engine controls, and flight management systems. Widebody jets and narrow body aircraft are the major segments in the market. The narrow body segment is expected to dominate due to the high demand from low-cost carriers.
In addition, the market is witnessing significant investment in next-generation aircraft with advanced avionic systems, including real-time data transmission and in-flight entertainment. However, the vulnerability to cyber-attacks is a major concern for the market. The regulatory framework is also evolving to address this issue. The market is expected to grow significantly due to the increasing freight volume, airline passengers, and middle-class population in emerging economies. The regional & business jet segment is also expected to grow due to the increasing network capacities and system expenditure. Mosaic ATM and commercial aviation networks are playing a crucial role in the integration of avionic systems across the aviation industry. The market is expected to continue its growth trajectory in the coming years.
Market Scope |
|
Report Coverage |
Details |
Page number |
190 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 1.68% |
Market growth 2024-2028 |
USD 3.62 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
1.64 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 36% |
Key countries |
US, France, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, Avidyne Corp., Avilution, LLC, BAE Systems Plc, Curtiss Wright Corp., Field Aerospace, Garmin Ltd., General Electric Co., Honeywell International Inc., L3Harris Technologies Inc., Meggitt Plc, Northrop Grumman Corp., Panasonic Avionics Corporation., Safran SA, Sagetech Avionics Inc., Samtel Avionics., Teledyne Technologies Inc., Thales Group, The Boeing Co., and Universal Avionics Systems Corporation |
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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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