Global Aerospace Avionics Market Is Anticipated to Generate a Revenue of $1,18,619.0 Million, Growing at a CAGR of 6.7% from 2021 to 2028Download Sample Reports Overview
The global aerospace avionics market forecast to be valued at $1,18,619.0 million by 2028, surging from $71,362.8 million in 2020, at a noteworthy CAGR of 6.7%.
Analysis of Covid-19 Impact on Aerospace Avionics Market
The Covid-19 impact on aerospace avionics market has been moderate. The restrain in the global industrial production due to imposed lockdowns across the globe has disturbed supply chain of aviation industry with shortage of crucial components required in manufacturing of avionics equipment’s such as flight management systems, weather systems, engine health monitoring, and others, hindering the growth of aerospace avionics’ market. These factors are expected to negatively impact the market growth.
The coronavirus epidemic has enforced the companies in the aerospace avionics industry for the adoption of new methods of operation such as implementation of predictive analytics to forecast losses accurately and virtual monitoring of the production. These developments are anticipated to have a positive impact on the technological segment of the global aerospace avionics market growth.
Global Aerospace Avionics Market Analysis
The increasing need for upgradation of existing avionics systems such as flight control, communication, navigation, and monitoring system and making them more technologically advanced are expected to drive the growth of the aerospace avionics market. As per the Stockholm International Peace Research Institute (SIPRI), an independent international organization to research into conflict, armaments and disarmament., the global defense expenditure increased to $1981 billion in the year 2020. The surge in defense expenditure for the development and procurement of flight management systems, communication systems, navigation systems, and surveillance systems required in defense aviation is expected to contribute to the growth of global aerospace avionics market size.
The possibility of breach of security during installation of avionics software by a malware in the aircraft system and unauthorized access can lead to tracking of the user and loss of confidential information in the defense applications and any incident of the security breach can result in major unfavorable consequences. These factors can hamper the growth of aerospace avionics market.
The aerospace avionics market trends such as new innovations in the field of avionics are expected to propel the market growth. For instance, on July 20, 2021, major US based aerospace and defense firm, Collins Aerospace, launched its PerigonTM computer, available for a broad range of commercial and defense platforms such as flight management systems. With advanced computing power, open-system architecture and flexible configurability, Perigon is designed to enable future flight control and vehicle management needs. PerigonTM computer is available for commercial or military applications. These new developments are anticipated to open new scope of opportunities for the global aerospace avionics market.
Global Aerospace Avionics Market, Segmentation
The global aerospace avionics market is segmented based on systems, application, distribution channel, and region.
The systems segment is further classified into flight control system, communication system, navigation system, monitoring system, and others. Among these, the flight control system sub-segment is expected to have the largest aerospace avionics market share and surpass $44,541.4 million by 2028, with an increase from $27,763.5 million in 2020.
The increased emphasis on research and development has led to major developments in the field of flight control systems. For instance, in July 2021, Garmin International, Inc., a unit of Garmin Ltd., confirmed that the GFC 600H flight control system has received Supplemental Systems Certificate (STC) approval for installation on the Bell 505 helicopter, providing a cost-effective flight control solution that reduces pilot workload and improves mission effectiveness. Positive aerospace avionics market trends like these are expected to positively impact the growth of this sub-segment
The application segment is further classified into commercial aviation, military aviation, and business jets & general aviation. Among these, commercial aviation sub-segment is anticipated to dominate in the forecast period and surpass $ 62,638.0 million by 2028, with an increase from $37,033.3 million in 2020.
The rise in cargo transportation through the aviation is also expected to aid the growth of commercial aviation sub-segment. As per the IATA, the near-term outlook for cargo is positive due to ongoing recovery in some of the leading demand indicators such as new export orders. In 2021, cargo tonne-kilometers (CTKs) are estimated to rise by 13.1% vs. 2020, and to be 2.8% higher than 2019 levels. These factors are expected to contribute in the growth of this sub-segment in the forecast period.
The distribution channel segment is further divided into original equipment manufacturer (OEM) sub-segment and aftermarket. The original equipment manufacturer (OEM) subsegment sub-segment is projected to have a dominating market share in the global market and register a revenue of $ 67,910.5 million during the forecast timeframe of 2021-2028.
The rise in per capita income in developing countries such as Brazil, India, China, and others will increase the number of air passengers, which is anticipated to increase the demand for air travel as well as the number of aircrafts. These aspects are expected to aid in the growth of the original equipment manufacturer (OEM) sub-segment during the forecast period.
The aerospace avionics market forecast for the Asia-Pacific region generated a revenue of $ 16,513.4 million in 2020 and is further projected to reach up to $28,670.2 million by 2028. The Asia-Pacific region is expected to be the most lucrative region for the aerospace avionics market in the forecast period. The increasing number of passengers in the commercial aviation due to rise in per capita income of population in the Asia-Pacific region 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.
Key Players in the Global Aerospace Avionics Market
- NORTHROP GRUMMAN CORPORATION
- L3Harris Technologies, Inc.
- General Dynamics Corporation
- BAE Systems
- Thales Group
- Leonardo S.P.A
- Elbit Systems Ltd.
- General Electric
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Aerospace Avionics Market:
- Bargaining Power of Suppliers: There are moderate number of suppliers in the aerospace avionics market. Across the world there are different organizations working in the field of aerospace Avionics to get a competitive edge in the market.
Thus, the bargaining power suppliers is moderate.
- Bargaining Power of Buyers: The buyers in market have moderate bargaining power, therefore the suppliers in the aerospace avionics market focus on providing superior quality services in a cost-effective manner.
Thus, the bargaining power of the buyers is moderate.
- Threat of New Entrants: The companies that are entering in the aerospace avionics market emphasize on innovation for reducing the cost of production since the capital requirement in aerospace avionics market is already high.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: The aerospace avionics process is essential and currently there is no alternative of aerospace avionics measures.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: There is a highly competitive rivalry between companies in the aerospace avionics market. including Thales Group and Leonardo S.P.A. Therefore, competitive rivalry in the market is high.