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Aerospace Avionics Market Report

RA02838

Aerospace Avionics Market by Systems (Flight Control System, Communication System, Navigation System, Monitoring System, and Others), Application (Commercial Aviation, Military Aviation, and Business Jets & General Aviation), Distribution Channel (OEM and Aftermarket), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

RA02838

Pages: 285

Sep 2021

COVID-19

pandemic has shown to have an enormous impact on most
industries.

Click Here to access our comprehensive analysis of the

Impact of covid-19 on Aerospace Avionics Market

Global Aerospace Avionics Market Analysis

The aerospace avionics market forecast is estimated to be $1,18,619.0 million in the 2021-2028 timeframe, growing from $71,362.8 million in 2020, at a healthy CAGR of 6.7%.

Market Synopsis

The surge of passengers travelling in commercial aviation is anticipated to be the major driving factor for growth of the aerospace avionics market size.

However, the high initial investment required in the aerospace avionics industry is predicted to restrict the market growth.

According to the regional analysis of the market, the Asia-Pacific aerospace avionics market share is anticipated to grow at a CAGR of 7.3%, by generating a revenue of $28,670.2 million during the aerospace avionics market forecast period.

Aerospace Avionics Overview

Aerospace avionics market includes engine controls, flight control systems, navigation, communications, flight recorders, lighting systems, threat detection, fuel systems, electro-optic (EO/IR) systems, weather radar, performance monitors, and systems. The three major sectors in which the aerospace avionics market is covered are aircraft, spacecraft, and artificial satellites. Commercial airliners, helicopters, military fighter jets, unmanned aerial vehicles (UAV), business jets, and spacecraft all use avionics.                            

Covid-19 Impact on Aerospace Avionics Market

The Covid-19 impact on aerospace avionics market has been moderate. As per the International Air Transport Association, a trade association of the world's airlines headquartered in Montreal, Canada, international passenger demand in 2020 was 75.6% below 2019 levels. The domestic demand in 2020 was down 48.8% compared to 2019. This has resulted in the reduction in demand for the avionics hardware and software in the commercial aviation sector, restraining the growth of the aerospace avionics market.

During this pandemic period, businesses across the world are experiencing the need for digital management of their operations. The need for implementation of technologies such as industrial internet of things (IIOT) that will enable real-time monitoring of manufacturing process of aerospace avionics products and virtual control of production are expected to have a positive impact on the market growth as well as desirable impact on the aerospace avionics market size in the pandemic period.

Growing Demand in the Commercial Aviation for Passenger Travel is Anticipated to be a Major Driving Factor or the Growth of this Market

The aerospace avionics market is anticipated to witness notable growth in the forecast period because of increasing traffic of passengers in commercial aviation mode of transportation around the world. The commercial aircrafts utilize avionics systems such as flight management systems, communication systems, navigation systems, surveillance systems and electrical systems. This might lead to a surge in the number of passengers in commercial aviation and propel the demand for a greater number of aircrafts and hence aiding the growth of aerospace avionics market.

In recent developments, major manufacturer of aircrafts, Airbus SE, headquartered in France, is expected to deliver 566 aircraft to its customers in 2021, the same number the company supplied in 2020, as the company doesn't expect any further disruption to the world economy, air traffic, or internal operations. Airbus had delivered 566 commercial aircraft during 2020. This shows the consistent demand of commercial aircrafts across the world despite of the pandemic. These factors are anticipated to aid the growth of aerospace avionics market in the forecast period.

To know more about global aerospace avionics market insight and drivers, get in touch with our analysts here.

The Capital-Intensive Nature of Aerospace Avionics Technology to Restrain the Market Growth.

Commercial aircrafts are very sophisticated and require high cost for manufacturing and operations which make them heavily priced and along with this they require high maintenance costs. As the hardware and software required avionics flight management systems, navigation systems, surveillance systems, engine health monitoring and others is sophisticated and expensive, this can hamper the demand of global aerospace avionics market.

The Increasing Demand from Developing Countries in Commercial Aviation is Expected to Create Opportunities for Aerospace Avionics Market

The growing demand for commercial and military aircrafts along with a gradual rise in the number of passengers are expected to increase the scope of the aerospace avionics globally. As per The International Air Transport Association (IATA), a trade association of the world's airlines founded in 1945 and headquartered in Montreal, Canada, the airline industry is expected to deliver around 1300+ Aircrafts in 2021. The rise in per capita income in developing countries such as Brazil, Russia, India, China, and South Africa (BRICS) might increase the number of air passengers and is anticipated to increase the demand for air travel as well as the number of aircrafts. These are the positive aerospace avionics market trends that are expected to act as facilitators in the growth of the aerospace avionics market during the forecast period.

To know more about global aerospace avionics market trends, get in touch with our analysts here.

Aerospace Avionics Market
By System

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Based on systems, the market has been divided into Flight Control System, communication system, navigation system, monitoring system, and others. Among these, the Flight Control System sub-segment is anticipated to generate the maximum revenue and the navigation system sub-segment is expected to show the fastest growth.

Source: Research Dive Analysis

The flight control system sub-segment is predicted to have a dominating share in the global market and register a revenue of $ 44,541.4 million in 2028, growing from $ 27,763.5 million in 2020 during the forecast period.
The increasing emphasis on improving the aircraft operations in the commercial and military aviation is expected to aid the growth of flight control systems sub-segment. As the fuel efficiency of aircraft operations has improved, the profitability of aircraft has increased. The efficiency of aircraft operations depends on factors such as aircraft design, flight and navigation routes, and weather conditions. 

The navigation system sub-segment is anticipated to have the fastest market growth and generate a revenue of $20,366.1 million by 2028, growing from $11,610.3 million in 2020, at a healthy CAGR of 7.5% in the forecast period. The increasing need for improving accuracy in the aircraft navigation space in the commercial and armed forces aviation is expected to aid the growth of navigation systems sub-segment. The increasing number of commercial aircrafts due to surge in the number of passengers globally is propelling the demand of aircraft navigation systems in the commercial aviation. 

Aerospace Avionics Market
By Application

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Based on application, the market has been divided into Commercial Aviation, military aviation, and business jets & general aviation. The Commercial Aviation sub-segment is expected to be the most dominating as well as fastest growing sub-segment.

Source: Research Dive Analysis

The commercial aviation sub-segment is estimated to have a dominating market share as well as the fastest growth in the global market and register a revenue of $62,638.0 in year 2028, with a healthy CAGR of 7.0% during the forecast period. The growing number of passengers and cargo across the world is expected to increase the growth of the commercial aviation sub-segment. As per the International Air Transport Association, a trade association of the world's airlines headquartered in Montreal, Canada, in its “20-Year Air Passenger Forecast" published in 2018, predicts 8.2 billion air travelers in 2037. As per IATA, the airline industry is expected to deliver around 1300+ Aircrafts in 2021. This shows the growing demand for commercial aviation in the forecast period, aiding in the growth of the commercial aviation sub-segment.

Aerospace Avionics Market
By Distribution Channel

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Based on distribution channel, the market has been sub-segmented into original equipment manufacturer (OEM) sub-segment and aftermarket. Among the mentioned sub-segments, the OEM original equipment manufacturer is estimated to show a dominant share, whereas the aftermarket sub-segment is projected to garner the fastest growth.

Source: Research Dive Analysis

The original equipment manufacturer (OEM) sub-segment is anticipated to have a dominating share in the global market and surpass $67,910.5     million by 2028, with an increase from $41,429.5 million in 2020. The growth in all the major sectors of aviation such as commercial aviation, military aviation and general aviation is expected is to aid the growth of original equipment manufacturer (OEM) sub-segment. The increasing number of passengers in commercial aviation for instance as per the International Air Transport Association, is a trade association of the world's airlines headquartered in Montreal, Canada, in its "20-Year Air Passenger Forecast" published in 2018 predicts 8.2 billion air travelers in 2037. The major aerospace original equipment manufacturers such as Airbus S.A.S and Boeing are expecting large number of orders of commercial aircrafts, adding to the growth of OEM sub-segment in the forecast period.

The aftermarket sub-segment of the global aerospace avionics market is projected to have the fastest growth and register a revenue of $50,708.5     million during the analysis timeframe, growing at a healthy CAGR of 7.0%. The growing need for upgradation of existing avionics systems such as mission & tactical systems, flight management systems, engine health monitoring, collision avoidance systems, weather systems, and others in the commercial and military aviation is expected to aid the growth of aftermarket sub-segment. While the aerospace & defense industry has been affected by the pandemic, continued technological developments in 2021 are likely to drive its growth and shape the aftermarket sub-segment over the forecast period.

Aerospace Avionics Market
By Region

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The Aerospace Avionics market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Source: Research Dive Analysis

The Market for Aerospace Avionics in North America to be the Most Dominating

The North America aerospace avionics market generated $24,192.0 million in 2020 and is projected to register a revenue of $38,990.1 million by 2028. The North America region is expected to dominate the global aerospace avionics market in the forecast period due to its well-established infrastructure in the commercial and military aviation along with strong emphasis on the research and development of aerospace avionics in the civil aviation and military systems. These factors are expected to aid the growth of aerospace avionics market in the North America region during the forecast period.

The Market for Aerospace Avionics in Asia-Pacific to be the Fastest Growing

The Asia Pacific aerospace avionics market generated $16,513.4 million in 2020 and is projected to register a revenue of $28,670.2 million by 2028. The expansion in the commercial aviation and surge in the modernization programs in the military aviation by different countries such as China, India, and Japan are expected to aid the growth of aerospace avionics market in the Asia-Pacific region. As per the International Air Transport Associations (IATA) 20-Year Air Passenger Forecast report in 2018, it is expected that Asia-Pacific will see an additional 1,836 million passengers, with China being the fastest growing market with the addition of 817 million new passengers up to year 2035. The increase in the number of air passengers is anticipated to increase the demand for air travel as well as the number of aerospace avionics equipment in the commercial aviation market of Asia-Pacific region. These factors are expected to aid the growth of aerospace avionics market in the Asia-Pacific region.

Competitive Scenario in the Global Aerospace Avionics Market

Agreement and acquisitions are common strategies followed by major market players.

Competitive Scenario in the Global Aerospace Avionics Market

Source: Research Dive Analysis

Some of the leading aerospace avionics market players are NORTHROP GRUMMAN CORPORATION, L3Harris Technologies, Inc., General Dynamics Corporation, BAE Systems, Thales Group, Leonardo S.P.A, Elbit Systems Ltd., Airbus, General Electric, and Boeing.

Porter’s Five Forces Analysis for the Global Aerospace Avionics Market:

  • Bargaining Power of Suppliers: The suppliers in the aerospace avionics market are moderate in number. Several companies are working on new methodologies such as AI based aerospace avionics to gain the major market share. Thus, there is less threat from the suppliers. 
    Thus, the bargaining power of suppliers is moderate.
  • Bargaining Power of Buyers: Buyers have moderate bargaining power; they demand services at a cost-effective manner. This increases the pressure on the aerospace avionics providers to offer the best service in a cost-effective way. Thus, buyers can have alternatives and choose the convenient service that best fits their preference. 
    Thus, the bargaining power of buyers is moderate.
  • Threat of New Entrants: Companies entering the aerospace avionics market face high competition since all new players strive to adopt technological innovations such as Internet of Things (IOT) to customize products for attracting clients. The initial investment in the aerospace avionics is high and technology is complex. 
    Thus, the threat of the new entrants is low.
  • Threat of Substitutes: There is no alternative product for aerospace avionics solutions. 
    Thus, the threat of substitutes is low.
  • Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Boeing and NORTHROP GRUMMAN CORPORATION. Companies in the aerospace avionics do acquisitions to gain major market share. 
    Therefore, competitive rivalry in the market is high.

Aspect

Particulars

  Historical Market Estimations

  2019-2020

  Base Year for Market Estimation

  2020

  Forecast Timeline for Market Projection

  2021-2028

  Geographical Scope

  North America, Europe, Asia-Pacific, LAMEA

  Segmentation by Systems

  • Flight Control System
  • Communication System
  • Navigation System
  • Monitoring System
  • Others

  Segmentation by Application

  • Commercial Aviation
  • Military Aviation
  • Business Jets & General Aviation

  Segmentation by Distribution Channel

  • OEM
  • Aftermarket

  Key Companies Profiled

  • NORTHROP GRUMMAN CORPORATION
  • L3Harris Technologies, Inc.
  • General Dynamics Corporation
  • BAE Systems
  • Thales Group
  • Leonardo S.P.A
  • Elbit Systems Ltd.
  • Airbus
  • General Electric
  • Boeing.    .

Frequently Asked Questions
 

A. The latest technological trends in the aerospace avionics market are advanced aerial mobility (AAM) and hyper sonics technology.

A. The cost-effective nature of low-cost carriers and high fuel efficiency are the major reasons of growth for aerospace avionics deployment in the forecast period.

A. The increasing number of passengers in the commercial aviation globally is aiding the expansion of the commercial aviation sub-segment.

A. The increasing demand in the commercial and military aviation has aided the growth of avionics market.

A. Aerospace is a field that provides knowledge and skills for the design and development of aircraft, spacecraft, and missiles. Avionics process the hardware or electronic parts of a spacecraft or aircraft.

A. Russia is considered to be the best country for aerospace engineering and also for becoming an avionics engineer.

1.Research Methodology

1.1.Desk Research
1.2.Real time insights and validation
1.3.Forecast model
1.4.Assumptions and forecast parameters

1.4.1.Assumptions
1.4.2.Forecast parameters

1.5.Data sources

1.5.1.Primary
1.5.2.Secondary

2.Executive Summary

2.1.360° summary
2.2.Systems trends
2.3.Application trends
2.4.Distribution Channel trends

3.Market overview

3.1.Market segmentation & definitions
3.2.Key takeaways

3.2.1.Top investment pockets
3.2.2.Top winning strategies

3.3.Porter’s five forces analysis

3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market

3.4.Market dynamics

3.4.1.Drivers
3.4.2.Restraints
3.4.3.Opportunities

3.5.Application landscape
3.6.Regulatory landscape
3.7.Patent landscape
3.8.Market value chain analysis

3.8.1.Stress point analysis
3.8.2.Raw material analysis
3.8.3.Manufacturing process
3.8.4.Distribution channel analysis
3.8.5.Operating vendors

3.8.5.1.Raw material suppliers
3.8.5.2.Product manufacturers
3.8.5.3.Product distributors

3.9.Strategic overview

4. Aerospace Avionics Market, by Systems

4.1.Flight Control System

4.1.1.Market size and forecast, by region, 2021-2028
4.1.2.Comparative market share analysis, 2021-2028

4.2.Communication System

4.2.1.Market size and forecast, by region, 2021-2028
4.2.2.Comparative market share analysis, 2021-2028

4.3.Navigation System

4.3.1.Market size and forecast, by region, 2021-2028
4.3.2.Comparative market share analysis, 2021-2028

4.4.Monitoring System

4.4.1.Market size and forecast, by region, 2021-2028
4.4.2.Comparative market share analysis, 2021-2028

4.5.Others

4.5.1.Market size and forecast, by region, 2021-2028
4.5.2.Comparative market share analysis, 2021-2028

5. Aerospace Avionics Market, by Application

5.1.Commercial Aviation

5.1.1.Market size and forecast, by region, 2021-2028
5.1.2.Comparative market share analysis, 2021-2028

5.2. Military Aviation

5.2.1.Market size and forecast, by region, 2021-2028
5.2.2.Comparative market share analysis, 2021-2028

5.3.Business Jets & General Aviation

5.3.1.Market size and forecast, by region, 2021-2028
5.3.2.Comparative market share analysis, 2021-2028

6. Aerospace Avionics Market, by Distribution Channel

6.1.OEM

6.1.1.Market size and forecast, by region, 2021-2028
6.1.2.Comparative market share analysis, 2021-2028

6.2.Aftermarket

6.2.1.Market size and forecast, by region, 2021-2028
6.2.2.Comparative market share analysis, 2021-2028

7. Aerospace Avionics Market, by region

7.1.North Region

7.1.1.Market size and forecast, by Systems, 2021-2028
7.1.2.Market size and forecast, by Application, 2021-2028
7.1.3.Market size and forecast, by Distribution Channel, 2021-2028
7.1.4.Market size and forecast, by country, 2021-2028
7.1.5.Comparative market share analysis, 2021-2028

7.1.6.U.S

7.1.6.1.Market size and forecast, by Systems, 2021-2028
7.1.6.2.Market size and forecast, by Application, 2021-2028
7.1.6.3.Market size and forecast, by Distribution Channel, 2021-2028

7.1.7.Canada

7.1.7.1.Market size and forecast, by Systems, 2021-2028
7.1.7.2.Market size and forecast, by Application, 2021-2028
7.1.7.3.Market size and forecast, by Distribution Channel, 2021-2028 

7.1.8.Mexico

7.1.8.1.Market size and forecast, by Systems, 2021-2028
7.1.8.2.Market size and forecast, by Application, 2021-2028
7.1.8.3.Market size and forecast, by Distribution Channel, 2021-2028

7.2.Europe

7.2.1.Market size and forecast, by Systems, 2021-2028
7.2.2.Market size and forecast, by Application, 2021-2028
7.2.3.Market size and forecast, by Distribution Channel, 2021-2028
7.2.4.Market size and forecast, by country, 2021-2028
7.2.5.Comparative market share analysis, 2021-2028

7.2.6.UK

7.2.6.1.Market size and forecast, by Systems, 2021-2028
7.2.6.2.Market size and forecast, by Application, 2021-2028
7.2.6.3.Market size and forecast, by Distribution Channel, 2021-2028

7.2.7.Germany

7.2.7.1.Market size and forecast, by Systems, 2021-2028
7.2.7.2.Market size and forecast, by Application, 2021-2028
7.2.7.3.Market size and forecast, by Distribution Channel, 2021-2028

7.2.8.France

7.2.8.1.Market size and forecast, by Systems, 2021-2028
7.2.8.2.Market size and forecast, by Application, 2021-2028
7.2.8.3.Market size and forecast, by Distribution Channel, 2021-2028

7.2.9.Spain

7.2.9.1.Market size and forecast, by Systems, 2021-2028
7.2.9.2.Market size and forecast, by Application, 2021-2028
7.2.9.3.Market size and forecast, by Distribution Channel, 2021-2028

7.2.10.Italy

7.2.10.1.Market size and forecast, by Systems, 2021-2028
7.2.10.2.Market size and forecast, by Application, 2021-2028
7.2.10.3.Market size and forecast, by Distribution Channel, 2021-2028

7.2.11.Rest of Europe

7.2.11.1.Market size and forecast, by Systems, 2021-2028
7.2.11.2.Market size and forecast, by Application, 2021-2028
7.2.11.3.Market size and forecast, by Distribution Channel, 2021-2028

7.3.Asia-Pacific

7.3.1.Market size and forecast, by Systems, 2021-2028
7.3.2.Market size and forecast, by Application, 2021-2028
7.3.3.Market size and forecast, by End- User, 2021-2028
7.3.4.Market size and forecast, by Country, 2021-2028
7.3.5.Comparative market share analysis, 2021-2028

7.3.6.China

7.3.6.1.Market size and forecast, by Systems, 2021-2028
7.3.6.2.Market size and forecast, by Application, 2021-2028
7.3.6.3.Market size and forecast, by End- User, 2021-2028

7.3.7.India

7.3.7.1.Market size and forecast, by Systems, 2021-2028
7.3.7.2.Market size and forecast, by Application, 2021-2028
7.3.7.3.Market size and forecast, by End- User, 2021-2028

7.3.8.Japan

7.3.8.1.Market size and forecast, by Systems, 2021-2028
7.3.8.2.Market size and forecast, by Application, 2021-2028
7.3.8.3.Market size and forecast, by End- User, 2021-2028

7.3.9.South Korea

7.3.9.1.Market size and forecast, by Systems, 2021-2028
7.3.9.2.Market size and forecast, by Application, 2021-2028
7.3.9.3.Market size and forecast, by End- User, 2021-2028

7.3.10.Australia

7.3.10.1.Market size and forecast, by Systems, 2021-2028
7.3.10.2.Market size and forecast, by Application, 2021-2028
7.3.10.3.Market size and forecast, by End- User, 2021-2028

7.3.11.Rest of Asia-Pacific

7.3.11.1.Market size and forecast, by Systems, 2021-2028
7.3.11.2.Market size and forecast, by Application, 2021-2028
7.3.11.3.Market size and forecast, by End- User, 2021-2028

7.4.LAMEA

7.4.1.Market size and forecast, by Systems, 2021-2028
7.4.2.Market size and forecast, by Systems, 2021-2028
7.4.3.Market size and forecast, by Distribution Channel, 2021-2028
7.4.4.Market size and forecast, by Country, 2021-2028
7.4.5.Comparative market share analysis, 2021-2028

7.4.6.Latin America

7.4.6.1.Market size and forecast, by Systems, 2021-2028
7.4.6.2.Market size and forecast, by Application, 2021-2028
7.4.6.3.Market size and forecast, by Distribution Channel, 2021-2028

7.4.7.Middle East

7.4.7.1.Market size and forecast, by Systems, 2021-2028
7.4.7.2.Market size and forecast, by Application, 2021-2028
7.4.7.3.Market size and forecast, by Distribution Channel, 2021-2028

7.4.8.Africa

7.4.8.1.Market size and forecast, by Systems, 2021-2028
7.4.8.2.Market size and forecast, by Application, 2021-2028
7.4.8.3.Market size and forecast, by Distribution Channel, 2021-2028

8.Company profiles

8.1.Northrop Grumman Corporation

8.1.1.Business overview
8.1.2.Financial performance
8.1.3.Operating Segments
8.1.4.Recent strategic moves & developments
8.1.5.SWOT analysis

8.2.L3Harris Technologies, Inc.

8.2.1.Business overview
8.2.2.Financial performance
8.2.3.Operating Segments
8.2.4.Recent strategic moves & developments
8.2.5.SWOT analysis

8.3.General Dynamics Corporation

8.3.1.Business overview
8.3.2.Financial performance
8.3.3.Operating Segments
8.3.4.Recent strategic moves & developments
8.3.5.SWOT analysis

8.4.BAE Systems

8.4.1.Business overview

8.4.2.Financial performance
8.4.3.Operating Segments
8.4.4.Recent strategic moves & developments
8.4.5.SWOT analysis

8.5.Thales Group

8.5.1.Business overview
8.5.2.Financial performance
8.5.3.Operating Segments
8.5.4.Recent strategic moves & developments
8.5.5.SWOT analysis

8.6.Leonardo S.P.A

8.6.1.Business overview
8.6.2.Financial performance
8.6.3.Operating Segments
8.6.4.Recent strategic moves & developments
8.6.5.SWOT analysis

8.7.Elbit Systems Ltd.

8.7.1.Business overview
8.7.2.Financial performance
8.7.3.Operating Segments
8.7.4.Recent strategic moves & developments
8.7.5.SWOT analysis

8.8.Airbus 

8.8.1.Business overview
8.8.2.Financial performance
8.8.3.Operating Segments
8.8.4.Recent strategic moves & developments
8.8.5.SWOT analysis

8.9.General Electric

8.9.1.Business overview
8.9.2.Financial performance
8.9.3.Operating Segments
8.9.4.Recent strategic moves & developments
8.9.5.SWOT analysis

8.10.Boeing.

8.10.1.Business overview
8.10.2.Financial performance
8.10.3.Operating Segments
8.10.4.Recent strategic moves & developments
8.10.5.SWOT analysis

Aerospace avionics system includes flight control systems, communications, lighting systems, electro-optic (EO/IR) systems, engine controls, navigation, weather radar, fuel systems, threat detection, and performance monitors. The main application areas of this system are respectively spacecraft, commercial airlines, military fighter jets, unmanned aerial vehicles (UAV), and business jets.

In recent years, the number of air travelers has been increased all across the world, surging the demand of commercial aircrafts. More and more fighter jets are being manufactured for military and defense industry. There’s a rise in the demand of unmanned aerial vehicles and business planes with the growing industrialization in the developed countries. These are the main factors expected to contribute to the growth of the aerospace avionics market during the forecast period, 2021-2028.

Recent Trends of the Industry

According to a report published by Research Dive, the topmost players of the global aerospace avionics market include Elbit Systems Ltd., L3Harris Technologies, Inc., Airbus, Boeing, NORTHROP GRUMMAN CORPORATION, Thales Group, BAE Systems, General Dynamics Corporation, Leonardo S.P.A, and General Electric among many others.

These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market. These strategies include product launches, mergers and acquisitions, collaborations, partnerships, and refurbishing of existing technology. Some of the recent developments of the market are as follows:

  • In August 2021, Northrop Grumman Corporation, an America-based global aerospace and defense technology company, provided the Arrays at Commercial Timescales Integration and Validation (ACT-IV) system to the Air Force Research Laboratory (AFRL) and Defense Advanced Research Projects Agency (DARPA). The system is based on a cutting-edge automatically scanned array (AESA) that completed numerous successful demonstrations and acceptance testing at the test facilities of Northrop Grumman.
     
  • In December 2019, Airbus, a global pioneer in the aerospace sector, acquired MTM Robotics, an industrial automation company. This step reflects the dedication of Airbus’ in the expansion of advanced robotics competences within its industrial processes. The motif behind this acquisition was to leverage the benefits of using robotics in the manufacturing process of commercial aircraft.
     
  • In April 2021, Elbit Systems Ltd, an Israel-based international defense electronics company, announced following the Company's announcement of December 23, 2020, that its U.S. subsidiary, Elbit Systems of America, LLC, completed the acquisition of Sparton Corporation from an affiliate of Cerberus Capital Management, L.P.
     
  • Sparton is a premier producer, developer, and supplier of systems helping Undersea Warfare for the U.S. Navy and allied military forces.
     
  • This acquisition is aimed at the enhancement of Elbit Systems’ portfolio by the addition of the technological strength of Sparton to the long-term strategy of the company.
     
  • In August 2021, Boeing, the largest aerospace company in the world, entered into a strategic partnership with AE Industrial Partners (AEI), a private equity firm specializing in aerospace, defense & government services, space, power generation, to multiply Boeing’s venture capital investing in space and connectivity, mobility, industrial tech, and enterprise digital solutions, with a greater focus on sustainability.

Impact Analysis of COVID-19 on the Market

The Covid-19 has affected the global aerospace avionics market in a drastic way. The main reason behind this downfall is the decline in air passenger traffic during the pandemic. In order to curb the spread of the virus, restrictions were imposed in travel across borders by the governments. According to data released by International Air Transport Association, the international passenger demand in 2020 dropped to below 75.6% of the demand in 2019. This downfall in passenger traffic resulted in decreased demand of avionics software and hardware in the manufacturing of commercial aviation. This is one of the major factors behind the downfall of the industry during the pandemic.

Post Pandemic Insight

In order to revive from the downfall, the market players are focusing on remodeling and redefining their business structure and strategy to cope with changing scenario of the industry. Implementation of advanced technologies such as Internet of Things (IoT) will create many opportunities for the market in the post pandemic period.

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