The Global Aerospace Avionics Market Is Estimated to Generate a Revenue of $110,605.5 Million by 2030, Growing at a CAGR of 4.6% from 2022 to 2030Download Sample Reports Overview
The global aerospace avionics market forecast to be valued at $110,605.5 million by 2030, surging from $74,217.3 million in 2021, at a noteworthy CAGR of 4.6%.
Analysis of Covid-19 Impact on Aerospace Avionics Market
The onset of COVID-19 pandemic has brought several challenges for the functioning of various businesses across the world. However, the COVID-19 pandemic has caused moderate impact on the aerospace avionics industry. The global industrial production was hampered due to imposed lockdowns across several countries that has disrupted the supply chain of the aviation industry. For instance, during pandemic the aerospace avionics manufacturers had experienced significant shortage and delays in the availability of critical components required in the manufacturing of avionics equipment such as flight management systems, weather systems, engine health monitoring, and others, impeding the growth of the aerospace avionics market. These elements are expected to have a negative impact on market growth.
The coronavirus epidemic has compelled companies in the aerospace avionics industry to adopt new methods of operation, such as the use of predictive analytics to accurately forecast losses and virtual production monitoring. These developments are expected to boost the technological segment of the global aerospace avionics market growth.
Global Aerospace Avionics Market Analysis
The growing need to upgrade existing avionics systems such as aircraft monitoring systems, flight control, navigation, and communication systems, in order to make them more technologically advanced is projected to boost the market of the aerospace avionics market. According to the Stockholm International Peace Research Institute (SIPRI), the leading organization that conducts research on armaments, conflict, and disarmament, the global defense spending will reach $1981 billion in 2021. The increase in defense spending for the development and procurement of navigation systems, flight management systems, communication systems, and surveillance systems required for defense aviation is expected to contribute to the expansion of the global aerospace avionics market.
However, the aerospace avionics system is prone to security breach that can occur during the installation of the avionics software in the aircraft system. For instance, the aerospace avionics system can be breached by a malware and unauthorized access that can breach the user’s confidential information. This is a major risk especially in the defense applications that can pose severe consequences. Such factors are anticipated to restrain the aerospace avionics market share in the upcoming years.
New innovations in the field of avionics are expected to generate significant opportunities to propel the aerospace avionics market demand. For instance, on July 20, 2021, Collins Aerospace, the leading aerospace and defense company based in the U.S., launched its Perigon computer, which is available for a wide range of defense and commercial platforms such as flight management systems. Perigon computer is designed to meet the vehicle management and future flight control demand. Perigon is equipped with flexible configurability, advanced computing power, and open-system architecture. Perigon computer is available for commercial or military use. These new developments are expected to expand the global aerospace avionics market opportunities.
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 garner highest revenue share and shall surpass $39,930.8 million by 2030, with an increase from $28,608.0 million in 2021. The increased emphasis on R&D has resulted in major advancements in the field of flight control systems. Garmin International, Inc., the Swiss multinational technology company, confirmed in July 2021, that the GFC 600H flight control system, which is cost-effective digital flight control solution, has been granted Supplemental Systems Certificate (STC) approval for installing this flight control system on the Bell 505 helicopter. This flight control system will minimize the pilot workload and can boost the mission effectiveness. In addition, it has advanced features such as low speed and over speed protection, superior stability, hover assist, and others.
The application segment is further classified into commercial aviation, military aviation, and business jets & general aviation. Among these, commercial aviation sub-segment acquired highest revenue share in 2021 and shall surpass $60,068.3 million by 2030, with an increase from $38,805.6 million in 2021.The increase in cargo transportation via aviation is also expected to help the commercial aviation sub-segment grow. According to the International Air Transport Association (IATA), the trade association founded in 1945, the near-term outlook for cargo is positive owing to continued improvement in key demand indicators such as new export orders. Cargo tonne-kilometers (CTKs) are expected to increase by 13.1% compared to 2021, and to be 2.8% higher than in 2019. These factors are expected to help this sub-segment grow over the forecast period.
The distribution channel segment is further divided into original equipment manufacturer (OEM) sub-segment and aftermarket. The original equipment manufacturer (OEM) sub-segment is anticipated to register a revenue of $63,139.4 million during the forecast timeframe of 2022-2030. The rise in per capita income in developing countries such as China, India, Brazil, and others is expected to boost the number of air passengers. This will in turn increase the demand for aircrafts and air travel. These factors are anticipated to propel the growth of original equipment manufacturer (OEM) sub-segment in the upcoming years.
The North America aerospace avionics market generated $24,788.6 million in 2021 and is anticipated to register a revenue of $33,801.0 million by 2030. 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 focus on the research and development of aerospace avionics in the civil aviation & military systems. These factors are expected to aid the growth of aerospace avionics market in the North America region during the forecast period. For instance, in December 2021, Boeing, the American multinational corporation and leading manufacturer of aircraft, and Taikoo (Shandong) Aircraft Engineering Co., Ltd., which specializes in the manufacturing of narrow body aircrafts, expanded the 737-800BCF Conversion Capacity to boost the market demand.
Key Players in the Global Aerospace Avionics Market
Some of the leading global aerospace avionics market players are
- General Electric
- NORTHROP GRUMMAN CORPORATION
- L3Harris Technologies, Inc.
- General Dynamics Corporation
- BAE Systems
- Thales Group
- Leonardo S.P.A
- Elbit Systems Ltd.
For instance, in April 2022, Airbus, the leading aircraft manufacturer, acquired DSI Datensicherheit, the leading provider of ground and naval equipment solutions, which is the leading European manufacturer of cryptography for space applications to boost the development of end-to-end security systems.