Aerospace Avionics Market to Reach $94 Billion by 2025
According to Global Market Insights, Inc., Aerospace Avionics market is projected to exceed USD 94 billion by 2025. The growth of this market can be attributed to the increasing passenger traffic, new aircraft deliveries and increasing per capita income in Asia Pacific and the Middle East & Africa. The increasing technological advancements in open architecture, neural sensing and motion planning act as drivers for the market.
Some major findings of the aerospace avionics market report include:
- The demand for new aircraft is increasing across the globe due to increasing passenger traffic and cargo movements
- Increasing defense spending from countries such as India & China is driving the demand for military aviation, supporting aerospace avionics market growth
- Increasing demand for lightweight and integrated avionics systems is contributing to the growth
- Some of the major players operating in the aerospace avionics market are Safran, Harris Corporation, Saab AB, Thales Group, and BAE Systems
- Companies are focusing on a new technology with robot co-pilot, airborne wireless network, and neural sensing to gain a competitive edge over the rivals
- Increasing tourism and growth of the electronics industry are driving passenger traffic growth and the demand for new aircraft in Asia Pacific and the Middle East
The increasing demand for commercial aviation and technological advancements is driving the demand for flight management systems. Major companies in the aerospace avionics market are focusing on the development of a more advanced and integrated system for ease in aircraft operations. For instance, Thales Group has developed next-generation flight management systems based on the open architecture. The new system can be integrated into the existing cockpit configuration, supporting all the third-party software and applications.
High manufacturing costs of the avionics system act as a major restraint to the aerospace avionics market. The existing aircraft backlogs and complex design for the avionics system are acting as major barriers to growth. The companies are focusing on more integrated avionics systems and with the advancements in manufacturing technologies and the introduction of 3D printing & laser sintering, the manufacturing cost is expected to reduce.
The increasing ultra-rich population and cash-rich sports league around the globe are contributing to the growth of business jet & general aviation. Various government rules and regulations are acting in favor of the aerospace avionics market. For instance, the Federal Aviation Administration (FAA) announced a deadline for the installation of ADS-B systems in all the active aircraft fleet in North America by 2020. Over 5,400 business jets are not equipped with ADS-B technology, creating a potential market for the business jet avionics system market.
The demand for commercial & military aircraft is contributing to OEM growth. The growing demand for new aircraft in regions of China and India due to the increasing tourism and economic growth is contributing to the increasing passenger traffic and cargo movement. Increasing military expenditure from developing regions and investments from the major aircraft manufacturers to increase production capacity are positively affecting aerospace avionics market growth.
The upgrading of the existing avionics systems and government regulations are driving the demand for avionics systems in North America. The demand for more effective communication and government regulations are also major drivers. The major avionics manufacturers in the region are focusing on long-term contracts with the local airlines; for instance, in 2019, Boeing announced its agreement with Jet Aviation and HK Bellawings Jet for deliveries of enhanced avionics such as Jeppesen Operator and Jeppesen JetPlanner Pro digital solutions. This agreement will enhance the efficiency, safety, and conveyance of operators and is expected to last for five years.
Companies are focusing on developing more advanced and integrated avionics systems to handle the intense workload and ease the operation for operators. The aviation industry is moving toward Aerospace 4.0 and with the introduction of AI and digitalization in the air traffic management system, the demand for advanced avionics systems is increasing. Aircraft operators are focusing on upgrading their existing aircraft fleet with new advanced avionics systems to reduce fuel consumption and their operational costs. With the introduction of new aircraft manufacturers in the Asia Pacific region, the leading companies are focusing on investments in the developing region to gain competitive advantages.
