As per the report published by Kings Research, the global Aerospace Electronics Market was valued at USD 197.96 billion in 2023. The market 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 encompasses a wide array of electronic systems and components that are integral to the operation of aircraft, spacecraft, and related applications. These electronic systems play a crucial role in enabling communication, navigation, surveillance, flight control, and entertainment onboard aerospace vehicles. They are essential for ensuring the safety, efficiency, and comfort of both commercial and military aviation. The applications of aerospace electronics are diverse, ranging from avionics systems that control the aircraft's functions to in-flight entertainment systems that provide passengers with a comfortable and enjoyable travel experience.
Furthermore, the subsystems within aerospace electronics, such as radar systems, flight control computers, and communication systems, are driven by the increasing demand for more advanced and efficient technologies in the aerospace industry. Several factors boosting the development and adoption of these subsystems include the need for enhanced safety and situational awareness, improved operational efficiency, and the growing trend toward autonomous and unmanned aerial vehicles. As a result, the aerospace electronics market continues to evolve to meet the ever-increasing demands of modern aviation and space exploration.
Key Insights
- Based on component, the communication, navigation, and radar systems segment is anticipated to experience a significant CAGR of 8.72% over the forecast period
- Based on application, the commercial segment generated the highest revenue of USD 114.54 billion in 2023
- On the basis of region, Asia Pacific is expected to witness considerable growth, depicting a CAGR of 8.49% over the projection period
BAE Systems Completes Acquisition of Ball Aerospace from Ball Corporation
February 2024: BAE Systems acquired Ball Aerospace, establishing a new business division named Space & Mission Systems (SMS). Leveraging their vast expertise in spacecraft, instruments, ground systems, sensors, tactical systems, operations, data analytics, and other defense and civil systems, BAE Systems Space & Mission Systems is well-positioned for continued success.
L3Harris Technologies Won Contract from the U.S. Navy
November 2023: L3Harris Technologies secured a contract from the U.S. Navy for the ongoing advancement of cutting-edge systems aimed at modernizing electronic warfare (EW) capabilities on F/A-18 aircraft, bolstering pilot defense against evolving and prospective threats with an $80 million contract, L3Harris developed a next-generation EW system for the Navy's F/A-18 fleet.
Emergence of Unmanned Aerial Vehicles (UAVs) and Drones to Create Promising Opportunities for Aerospace Electronics Market Expansion
The increasing adoption of unmanned aerial vehicles (UAVs) and drones across various applications, including military, commercial, and recreational sectors is creating potential opportunities for market progress. UAVs and drones require sophisticated electronic systems for navigation, communication, payload delivery, and autonomous operation. This demand is driving advancements in aerospace electronics to cater to the specific needs of UAVs and drones, including miniaturization, power efficiency, and enhanced communication capabilities. As a result, the market is expected to witness significant growth as the UAV and drone industry continues to expand and diversify its applications.
Supply Chain Disruptions Threaten Stability Could Pose a Challenge for Market Growth
Supply chain disruptions pose significant challenges to manufacturers in the aerospace electronics market, threatening stability and impeding operations. The industry relies on a complex global supply chain for sourcing electronic components, materials, and subsystems essential for aircraft production and maintenance.
However, disruptions such as natural disasters, geopolitical tensions, and trade restrictions have led to supply chain bottlenecks, material shortages, and delivery delays. These disruptions not only impact production schedules and project timelines but also increase costs and affect overall market stability.
Furthermore, the aerospace industry's stringent quality and safety standards necessitate rigorous supplier qualification processes, adding complexity to supply chain management. Overall, manufacturers are increasingly investing in resilient supply chain strategies, diversifying their supplier base, and adopting digital technologies such as predictive analytics and real-time monitoring to mitigate risks and ensure continuity of operations amidst supply chain disruptions.
Asia Pacific is Anticipated to Witness the Highest Growth of 8.49% over the Forecast Period
Asia Pacific is poised to exhibit substantial growth in the market, mainly driven by increasing air travel demand, rising defense expenditures, and growing investments in aerospace infrastructure and technology. Countries such as China, India, Japan, and South Korea are witnessing rapid urbanization, economic growth, and expansion of their aerospace industries, thereby driving the demand for advanced aerospace electronics.
Furthermore, the Asia Pacific region is a key manufacturing hub for commercial aircraft, UAVs, and space launch vehicles, attracting investments from global aerospace companies aiming to capitalize on the region's favorable business environment and skilled workforce.
Additionally, governments in the region are focusing on enhancing domestic aerospace capabilities, fostering innovation, and strengthening defense capabilities, thereby contributing to the increasing demand for aerospace electronics. For instance, the Indian government earmarked a total budget allocation of USD 72 billion, which represents 13.18% of the overall budget for aerospace electronics. As a result, the Asia Pacific region is expected to offer lucrative growth opportunities for market players in the aerospace electronics sector.
Market Players Concentrating on Innovative Product Launches to Drive Market Development
The global aerospace electronics market is fragmented with key players such as Honeywell International Inc., Thales, BAE Systems, Teledyne Technologies Incorporated, RTX, L3Harris Technologies, Inc., General Electric, Northrop Grumman Corporation, Safran S.A., and Leonardo S.p.A. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.