Semiconductor and Electronics

Aerospace Electronics Market

Global Industry Analysis and Forecast 2024-2031

Pages : 120

Base Year : 2023

Released Year : March 2024

Format :Pdf Ppt Xls

Report ID:KR517

Author : Antriksh P.

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Base Year

2023

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Forecast Year

2024-2031

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Historical Years

2019-2022

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Market Value (2023)

USD 197.96 Billion

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Forecasted Value (2031)

USD 360.37 Billion

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CAGR (2024 - 2031)

7.90%

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Fastest Growing Region (2024 - 2031)

Asia Pacific

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Largest Region

North America

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By Component

Avionics and Flight Controls, Communication, navigation and radar systems, Microelectronics , Space Electronics, Others.

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By Application

Commercial, Defense.


Market Perspective

The global Aerospace Electronics Market was valued at USD 197.96 billion in 2023 and is projected to reach USD 360.37 billion by 2031, growing at a CAGR of 7.90% from 2024 to 2031.

The aerospace electronics market is currently experiencing significant growth, driven by various factors such as technological advancements, increasing demand for commercial aircraft, rising investments in the defense sector, and the emergence of electric and hybrid aircraft. With the continuous evolution of technology, aerospace electronics are becoming more sophisticated, enabling improved efficiency, safety, and performance of aircraft systems. The market outlook remains optimistic as the demand for modernization and upgrading of existing aircraft fleets continues to rise globally.

Additionally, the growing emphasis on unmanned aerial vehicles (UAVs) and autonomous aircraft is fueling the demand for advanced electronics and avionics systems. The integration of artificial intelligence, machine learning, and data analytics into aerospace electronics is expected to further drive market growth by enhancing operational capabilities and reducing maintenance costs. Furthermore, the increasing focus on sustainable aviation solutions is boosting investments in electric propulsion systems and lightweight electronic components, thereby opening up new opportunities in the market. Overall, the aerospace electronics market is poised to witness substantial growth in the coming years, fueled by technological innovation, increasing air travel demand, and evolving industry dynamics.

Analyst’s Review on Aerospace Electronics Market

The integration of Industry 4.0 technologies, artificial intelligence (AI), and digitization is undeniably a vital trend shaping the future of the aerospace electronics market. As the industry continues to evolve, manufacturers are increasingly leveraging these advanced technologies to enhance efficiency, productivity, and safety in various aspects of aircraft design, manufacturing, operation, and maintenance. AI-driven predictive maintenance, for instance, enables proactive identification of potential issues, which reduces downtime and enhances overall aircraft reliability. Similarly, the growing adoption of digital twin technology facilitates real-time monitoring and analysis of aircraft performance, which, in turn, enables optimized decision-making and predictive maintenance strategies.

Furthermore, the implementation of Industry 4.0 principles such as IoT connectivity, big data analytics, and cloud computing enables seamless data exchange and collaboration across the aerospace ecosystem. As a result, the market outlook for the forecast years remains highly promising, with continued investments in AI, digitization, and Industry 4.0 technologies expected to drive innovation, efficiency, and competitiveness in the aerospace electronics sector. This trend is anticipated to revolutionize various aspects of aerospace electronics, including avionics systems, flight control, navigation, and communication, ultimately shaping the future of the industry in a digitally connected and data-driven era.

Market Definition

Aerospace electronics encompass a wide range of electronic systems, components, and subsystems specifically designed and integrated into aircraft and spacecraft to enable various functionalities crucial for safe and efficient operation. These electronics play a vital role in controlling, monitoring, and communicating within aerospace platforms. The applications of aerospace electronics encompass navigation, communication, flight control, surveillance, monitoring, and entertainment systems.

Key components of aerospace electronics include avionics, which comprise navigation systems such as GPS, flight management systems, autopilots, and communication systems such as radios and transponders. Additionally, aerospace electronics incorporate various sensors for detecting parameters, including altitude, airspeed, temperature, and engine performance. Furthermore, subsystems such as electronic flight instrument systems (EFIS), electronic warfare systems, radar systems, and in-flight entertainment systems fall under the umbrella of aerospace electronics. These components and subsystems are meticulously engineered to withstand the harsh environmental conditions experienced during flight, including extreme temperatures, vibrations, and electromagnetic interference while ensuring high reliability and safety standards essential for aerospace applications. Overall, aerospace electronics represent the technological backbone of modern aircraft and spacecraft, enabling advanced capabilities and enhancing overall operational efficiency and safety.

Market Dynamics

Increased military expenditure by governments to protect national borders is a significant driver fostering the growth of the market. In recent years, geopolitical tensions and security threats have prompted governments worldwide to increase their defense budgets, leading to increased investments in advanced aerospace electronics and defense systems. These investments are primarily aimed at enhancing military capabilities, improving situational awareness, and ensuring the security of national borders. Additionally, the modernization of military aircraft fleets with state-of-the-art avionics, communication systems, and electronic warfare capabilities drives the demand for aerospace electronics. As governments continue to prioritize national security and defense preparedness, the aerospace electronics market is poised to benefit from ongoing investments in military aerospace applications. For instance, in March 2023, China increased its defense spending by 7.2% to enhance combat readiness. The national budget allocated USD 224 billion to military expenditures.

Concerns pertaining to complexity and integration present a significant restraint to the growth of the aerospace electronics market. The aerospace industry operates within stringent regulatory frameworks and safety standards, necessitating the integration of highly complex electronic systems and components into aircraft and spacecraft. However, the integration of diverse electronic subsystems while ensuring compatibility, reliability, and safety poses major challenges to market development. The complexity of aerospace electronics increases the risk of system failures, interoperability issues, and maintenance challenges, thereby impacting operational efficiency and safety. Moreover, the rapid technological advancements exacerbate integration challenges as manufacturers strive to incorporate the latest innovations while ensuring seamless interoperability with existing systems. Addressing these concerns requires robust testing, certification processes, and collaboration among stakeholders to mitigate risks and ensure the seamless integration of aerospace electronics into next-generation aerospace platforms.

Segmentation Analysis

The global aerospace electronics market is segmented based on component, application, and geography.

Based on component, the market is segmented into avionics and flight controls, communication, navigation and radar systems, microelectronics, space electronics, and others. The avionics and flight controls segment dominated the market with a share of 34.85% in 2023 as a result of its pivotal role in ensuring the safety, efficiency, and functionality of aircraft systems. Avionics encompass a wide array of electronic systems and components essential for flight navigation, communication, surveillance, and monitoring. Flight controls, which include fly-by-wire systems, autopilots, and electronic flight instrument systems (EFIS), are integral to aircraft operation, enabling precise control inputs and automated flight management. The dominance of the avionics and flight controls segment is further driven by increasing demand for modernization and upgrade of existing aircraft fleets, growing emphasis on safety and efficiency in commercial and military aviation, and technological advancements enhancing avionics capabilities.

Based on application, the market is classified into commercial and defense. The commercial segment is expected to grow at the highest CAGR of 8.12% over the forecast period due to the expanding global commercial aviation sector and increasing demand for modern passenger aircraft. Commercial aviation is witnessing robust growth, driven by rising air travel demand, the expansion of low-cost carriers, and increasing international trade and tourism activities. This growth necessitates the continuous modernization and upgrading of commercial aircraft with advanced aerospace electronics and avionics systems to enhance safety, efficiency, and passenger experience. Moreover, the emergence of next-generation aircraft models incorporating advanced electronic systems, such as the integration of fly-by-wire technology and digital cockpit displays, further fuels the demand for commercial aviation.

Geographical Analysis

Based on region, the global aerospace electronics market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Aerospace Electronics Market Size & Share, By Region, 2024-2031

North America dominated the market in 2023 with the highest valuation of USD 58.67 billion, largely attributed to a strong presence of key manufacturers, a technologically advanced aerospace industry, and significant investments in defense and space exploration. The region is home to leading aerospace electronics companies, including Boeing, Lockheed Martin, and Northrop Grumman, which contribute to the region's market dominance through their extensive product portfolios and technological innovations.

Furthermore, North America boasts a robust defense sector, with the United States accounting for a significant portion of new jet deliveries, thereby driving the demand for aerospace electronics in military applications. For instance, in October 2023, the burgeoning demand for jet deliveries in the business aviation sector prompted Honeywell to forecast a potential uptick of up to 8,500 new business jet deliveries between 2024 and 2033. This projection underscores a significant potential opportunity valued at approximately $278 billion. Additionally, the region's thriving commercial aviation industry, supported by major airlines and aerospace OEMs, contributes to the dominance of North America in the global aerospace electronics market.

Competitive Landscape

The global aerospace electronics market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

The major players in the Aerospace Electronics Market are:

  • Honeywell International Inc.
  • Thales
  • BAE Systems
  • Teledyne Technologies Incorporated
  • RTX
  • L3Harris Technologies, Inc.
  • General Electric
  • Northrop Grumman Corporation
  • Safran S.A.
  • Leonardo S.p.A.

Key Developments

  • January 2024 (Partnership): LeoStella advanced its collaboration with Syrlinks, a subsidiary of Safran Electronics & Defense, to enhance its latest LS-300 satellite buses. Syrlinks integrated its cutting-edge N-SPHERE GNSS receiver, renowned for its high performance and resilience in low-Earth orbit scenarios, into LeoStella's new satellite platform.
  • July 2023 (Collaboration): Boeing collaborated with Intel Corporation to advance semiconductor technology within the aerospace sector. The partnership aimed to develop next-generation microelectronics applications in artificial intelligence, secure computing, and advanced flight capabilities for forthcoming products.

The global Aerospace Electronics Market is segmented as:

By Component

  • Avionics and Flight Controls
  • Communication, navigation, and radar systems
  • Microelectronics
  • Space Electronics
  • Others

By Application

  • Commercial
  • Defense

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • U.K.
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America.
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Frequently Asked Questions (FAQ's)
The global aerospace electronics market is projected to reach USD 360.37 billion by 2031, growing at a CAGR of 7.90% from 2023 to 2030.
The global aerospace electronics market was valued at USD 197.67 billion in 2023.
Increased military expenditure by governments to protect national borders is a significant driver fostering the growth of the market.
Top manufacturers of aerospace electronics market are Honeywell International Inc., Thales, BAE Systems, Teledyne Technologies Incorporated, RTX, L3Harris Technologies, Inc., General Electric, Northrop Grumman Corporation, Safran S.A., Leonardo S.p.A., and others.
Asia-Pacific is expected to witness the fastest growing region with the CAGR of 8.49% in the forecasted period (2024-2031) with the market value forecasted to reach at USD 81.18 billion.
By component, avionics and flight controls will hold the maximum share of 34.78% in the aerospace electronics market with the revenue value of USD 125.33 billion in 2031.
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