Aerospace Avionics Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Systems (Flight Control System, Communication System, Navigation System, Monitoring System, Others), By Application (Commercial Aviation, Military Aviation, Business Jets & General Aviation), By Sales Channel (OEM and Aftermarket), By Region, Competition, 2020-2030F

Market Overview

The Global Aerospace Avionics Market, valued at USD 65.40 Billion in 2024, is projected to experience a CAGR of 6.02% to reach USD 92.85 Billion by 2030. Aerospace avionics encompasses the electronic systems employed in aircraft, including communication, navigation, flight control, and surveillance equipment. The global aerospace avionics market experiences robust growth, primarily driven by ongoing fleet modernization initiatives, increasing demand for enhanced operational efficiency and safety features, and the expanding global air travel sector necessitating new aircraft deliveries. According to the Aircraft Electronics Association, total worldwide business and general aviation avionics sales for 2023 exceeded $3.2 billion, representing an 11.2% increase over 2022 and marking the largest annual sales volume in the report's history.

This market expansion is further supported by advancements in avionics technology, such as integrated modular avionics and digital connectivity solutions. However, a significant impediment to sustained market expansion remains persistent supply chain disruptions, particularly concerning critical components and skilled labor availability, which can lead to production delays and increased costs for manufacturers.

Key Market Drivers

The Global Aerospace Avionics Market is significantly influenced by two primary factors: growing commercial aircraft production and fleet expansion, alongside global military aviation modernization programs. Increased commercial aircraft production and the ongoing expansion of airline fleets are direct catalysts for the demand for new avionics systems. Each new aircraft requires a comprehensive suite of electronic equipment for essential functions such as navigation, communication, and flight control. The continuous delivery of new airplanes, driven by increasing air travel demand and the need to replace aging models, inherently stimulates the market for advanced digital cockpit systems and integrated avionics designed for enhanced operational efficiency and safety. According to The International Air Transport Association, in October 2025, the study “Restarting the Commercial Aircraft Supply Chain” reported that global commercial aircraft orders reached a record 17,000 units in 2024, representing a substantial future demand for new avionics installations.

Complementing this commercial growth, global military aviation modernization programs are pivotal. Governments worldwide are prioritizing investments to upgrade their existing military aircraft fleets and procure new, technologically superior platforms to maintain strategic advantage and respond to evolving security challenges. These modernization efforts necessitate the integration of cutting-edge avionics for advanced mission capabilities, including sophisticated radar systems, electronic warfare countermeasures, and precision targeting technologies. According to the U. S. Department of Defense, in March 2024, in its release “Department of Defense Releases the President's Fiscal Year 2025 Defense Budget”, the President’s Fiscal Year 2025 defense budget request included $61.2 billion for airpower, directly supporting the development and acquisition of advanced aerial assets equipped with modern avionics. These dual pressures from commercial and military sectors collectively propel innovation and market expansion within the aerospace avionics industry.

These combined drivers foster robust growth across the aerospace avionics sector, pushing innovation in system integration and component miniaturization to meet stringent performance and safety requirements. The demand extends beyond initial equipment to include ongoing upgrades and maintenance, ensuring existing fleets remain operationally relevant. This sustained activity reflects strong underlying market fundamentals. According to BAE Systems, in February 2025, the company reported an 11% growth in its order backlog to £77.8 billion ($98.06 billion) in 2024, underscoring the substantial demand for defense and aerospace products and services which include advanced avionics solutions.

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Key Market Challenges

Persistent supply chain disruptions, particularly concerning critical components and skilled labor availability, significantly impede the growth of the Global Aerospace Avionics Market. Shortages of essential electronic parts and raw materials directly lead to production delays for avionics manufacturers. According to the Aerospace Industries Association, in 2023, the aerospace sector experienced an average delay of 8.5 weeks in the delivery of critical components, affecting the timely integration of avionics systems into new aircraft and existing fleet modernization programs. This situation elevates manufacturing costs and extends lead times for advanced avionics equipment.

Concurrently, a scarcity of skilled labor, including specialized engineers and technicians, constrains manufacturing output and slows technological advancement within the market. According to the Aerospace Industries Association's Workforce Report, in 2023, the industry saw a 15% increase in job vacancies, highlighting a critical gap in human capital required for design, production, and maintenance. These combined factors directly hamper the industry's ability to meet increasing demand from the expanding global air travel sector, limiting overall market expansion.

Key Market Trends

The aerospace industry is increasingly prioritizing environmental sustainability, driving a pronounced emphasis on green and sustainable avionics solutions. This trend fosters demand for advanced avionics that facilitate fuel efficiency, support lighter aircraft designs, and integrate with alternative energy systems. The European Union Aviation Safety Agency (EASA) reported in December 2024 that sustainable aviation fuel (SAF) represented only 0.53% of global jet fuel use in 2024, with a mandatory target of 2% for supply at European airports beginning in 2025, underscoring the critical role of avionics in this transition. This imperative for greener aviation propels innovation in sophisticated power management, energy storage, and optimized flight trajectory systems. Collins Aerospace announced in July 2024 that it completed the preliminary design review for critical power conversion and secondary distribution systems within the EU's Clean Aviation HECATE program, which aimed to conduct ground tests of hybrid-electric architectures at Technology Readiness Level 5 in 2025, directly influencing advanced propulsion avionics development.

A second significant trend transforming the market is the rise of autonomous and connected aircraft systems, which aims for enhanced safety, operational efficiency, and the realization of new air mobility concepts. This necessitates the development of advanced avionics capable of sophisticated sensing, real-time data processing, seamless artificial intelligence integration, and robust communication links. According to the Federal Aviation Administration (FAA), commercial drone operations increased by 68% between 2022 and 2024, with over 385,000 registered commercial drones operating in U. S. airspace, demonstrating a clear trajectory towards more automated airborne platforms. This expansion stimulates the market for specialized avionics that can manage complex tasks independently and communicate effectively within an integrated airspace. In January 2025, Honeywell and NXP Semiconductors N. V. announced an enhanced partnership at CES 2025, aiming to drive innovation for autonomous flight by integrating aerospace expertise with high-performance computing to create AI-driven aerospace technologies, signifying substantial investment in this advanced operational future.

Segmental Insights

The Commercial Aviation segment represents the fastest-growing area within the Global Aerospace Avionics Market. This rapid expansion is primarily driven by the escalating demand for new aircraft deliveries to accommodate increasing global passenger air traffic and the ongoing modernization of existing airline fleets. Airlines are investing in advanced avionics systems to bolster operational efficiency, significantly enhance flight safety, and comply with evolving regulatory mandates from organizations such as the International Civil Aviation Organization (ICAO). Furthermore, continuous technological advancements in integrated digital cockpits and sophisticated communication solutions are pivotal in supporting modern air travel requirements and optimizing aircraft performance.

Regional Insights

North America stands as the leading region in the global aerospace avionics market due to several key factors. The region benefits from the strong presence of major aerospace manufacturers and a substantial commercial aircraft fleet, driving consistent demand for advanced systems. Significant defense expenditures and continuous military modernization programs further contribute to market leadership. Moreover, the stringent regulatory environment enforced by bodies like the Federal Aviation Administration (FAA) and Transport Canada mandates ongoing upgrades and adherence to evolving safety and operational standards, stimulating market growth. This robust ecosystem, alongside substantial investment in research and development, positions North America at the forefront of avionics innovation.

Recent Developments

• In August 2025, XTI Aerospace announced the selection of the Garmin G700 TXi avionics system for its TriFan 600 aircraft. This decision marks a significant milestone for the revolutionary xVTOL aircraft program, which aims to integrate the speed and comfort of a business jet with the operational flexibility of a helicopter. The Garmin G700 TXi flight deck is expected to provide pilots with advanced capabilities for navigation, communication, surveillance, situational awareness, and comprehensive aircraft monitoring across all flight phases, delivering crucial cockpit technology for safe and efficient diverse operations.

• In June 2025, the German Aerospace Center (DLR) and Diehl Aviation agreed to a long-term cooperation for joint research and development of innovative technologies for civil aviation. The partnership is concentrating on aircraft systems, cabin technologies, and onboard supply systems. DLR and Diehl Aviation will combine their strengths to develop practical, forward-looking solutions for current and future aviation challenges, ranging from low-emission flights to the digitalization of development and approval processes. This collaboration is intended to advance various aspects of aviation technology, including avionics, by designing efficient cabin and system architectures.

• In February 2025, Collins Aerospace launched the 2025 edition of its Powered by Collins Initiative at Aero India. This program is designed to foster collaboration with small and medium-sized deep technology enterprises. The initiative specifically targets technologies critical to the future of the aerospace and defense industry, with a particular focus this year on material informatics and quantum-enabled navigation. Through funded, rapid development demonstration programs, Collins Aerospace aims to accelerate the deployment of innovative solutions for its customers, representing a strategic effort to enhance technology development through partnerships.

• In January 2025, Honeywell and NXP Semiconductors announced an expanded partnership focused on accelerating aviation product development and advancing autonomous flight capabilities. This collaboration leverages Honeywell’s deep aerospace expertise and NXP’s high-performance computing architecture to enable AI-driven aerospace technology. The initiative aims to improve operational efficiency for flight planning and management through the Honeywell Anthem avionics system. Furthermore, it seeks to advance large-area displays for next-generation cockpits and streamline transitions to newer avionics technologies, ensuring long-term value for aircraft manufacturers and operators.

Key Market Players

• Honeywell
• Collins Aerospace
• Thales
• Safran
• Garmin
• L3Harris
• BAE Systems
• Curtiss-Wright
• Universal Avionics
• Genesys

Report Scope:

In this report, the Global Aerospace Avionics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Aerospace Avionics Market, By Systems:

o   Flight Control System

o   Communication System

o   Navigation System

o   Monitoring System

o   Others

• Aerospace Avionics Market, By Application:

o   Commercial Aviation

o   Military Aviation

o   Business Jets & General Aviation

• Aerospace Avionics Market, By Sales Channel:

o   OEM

o   Aftermarket

• Aerospace Avionics Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Aerospace Avionics Market.

Available Customizations:

Global Aerospace Avionics Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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