Global Avionics Market Overview, 2024-29

Market Dynamic

Market Drivers • Escalating aircraft production is driving the avionics market. The global avionics market is significantly fueled by the increasing production of aircraft on a global scale. Commercial airlines, armed services, and private operators are boosting their fleets to accommodate the rising demand for air travel by carrying more passengers and freight. The increased manufacturing of aircraft requires the incorporation of sophisticated avionics systems to guarantee the aircraft's dependability, efficiency, and safety. Modern aeroplanes rely heavily on avionics technology, which includes a vast range of electronic equipment for communication, navigation, flight control, and surveillance. Avionics systems and components are in greater demand as aircraft manufacturers increase output to meet demand. As a result, avionics manufacturers have a lot of opportunity to offer cutting-edge technological solutions to satisfy the changing demands of aircraft original equipment manufacturers. • Advanced Connectivity Solutions: The advent of advanced connectivity solutions represents a key driver shaping the global avionics market. In an increasingly digital and interconnected world, the aviation industry is leveraging advanced connectivity technologies to enhance operational efficiency, passenger experience, and overall safety. Advanced connectivity solutions, such as satellite-based communication systems, broadband internet access, and wireless data transmission capabilities, enable seamless communication between aircraft, ground control centres, and other aircraft in the airspace. These connectivity solutions facilitate real-time data exchange, enabling improved situational awareness, enhanced air traffic management, and more efficient flight operations. Moreover, connectivity solutions support the implementation of emerging technologies such as predictive maintenance, remote diagnostics, and in-flight entertainment systems, further enhancing the value proposition of avionics systems. As airlines and operators seek to harness the benefits of connectivity to optimise their operations and differentiate their services, the demand for advanced avionics solutions incorporating these connectivity features continues to grow. Market Challenges • Cybersecurity Vulnerabilities: One of the significant challenges facing the global avionics market is the increasing prevalence of cybersecurity vulnerabilities. As avionics systems become more interconnected and reliant on digital technologies, they become susceptible to cyber threats such as hacking, malware, and data breaches. Cybersecurity vulnerabilities in avionics systems pose serious risks to the safety, integrity, and confidentiality of aircraft operations. A cyberattack on avionics systems could potentially compromise critical flight controls, navigation systems, or communication networks, leading to catastrophic consequences for aircraft safety and passenger well-being. The aviation industry recognises the importance of cybersecurity and has implemented measures to mitigate risks, including the development of cybersecurity standards, protocols, and best practices. • High Cost of Maintenance of Systems to Restrict Market Growth: The high cost of avionics system maintenance is another major obstacle impeding the growth of the global avionics industry. Avionics systems are intricate, sophisticated electrical systems that need to be regularly maintained, upgraded, and repaired in order to guarantee maximum performance, dependability, and regulatory compliance. However, avionics system maintenance can be costly, especially for operators with limited funds or older aircraft fleets. A number of variables contribute to the high cost of avionics maintenance, such as labour expenses, the need for replacement parts, equipment downtime, and regulatory compliance. Furthermore, operators find it difficult to stay up to date with the most recent improvements and advancements in avionics technology due to its rapid advancement, which might result in obsolescence problems.

Key Development

• In October 2023, Garmin entered into a lasting agreement to supply BETA Technologies with its cutting-edge Garmin G3000® integrated flight deck for the CX300 electric fixed-wing and A250 electric vertical takeoff and landing (eVTOL) aircraft. The G3000® offers high-resolution displays and advanced communication, navigation, and surveillance air traffic management capabilities. Its lightweight, flexible open system architecture seamlessly integrates with BETA's flight control, propulsion, and battery management systems. • In May 2023, Honeywell International, Inc. has been selected by AIBOT to provide its Compact Fly-By-Wire (cFBW) system to support AIBOT's fully electric vertical takeoff and landing (eVTOL) aircraft. This Honeywell technology will empower the next generation of aircraft avionics and create a sustainable transportation ecosystem for the future. • In May 2023, Lockheed Martin Corporation entered a partnership with IFS Global to strengthen their market position by using each other’s market strengths. The partnership is aimed at promoting various services and products to assist aerospace and defense groups in modernizing both equipment and supporting technological infrastructure. • In February 2023, the USAF awarded a USD 135 million contract to Collins Aerospace for providing electronic control system of C-130 aircraft. The Collins Aerospace would provide manufacturing and engineering support for the NP2000 eight-blade propeller, electronic propeller control system, and spare parts for Air Force C-130 production.