Aircraft Electrical Conversion Systems Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component Type (Transformers, AC-DC Converters, and DC-AC Converters), By Aircraft Type (Commercial Aircraft, Helicopter, Military Aircraft, and UAV), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.01 Billion
CAGR (2026-2031)	7.86%
Fastest Growing Segment	DC AC Converters
Largest Market	North America
Market Size (2031)	USD 1.59 Billion

Market Overview

The Global Aircraft Electrical Conversion Systems Market will grow from USD 1.01 Billion in 2025 to USD 1.59 Billion by 2031 at a 7.86% CAGR. The Global Aircraft Electrical Conversion Systems Market encompasses the development and manufacturing of units designed to transform generated electrical power into specific voltage and frequency levels required for avionics, cabin systems, and other onboard utilities. The primary drivers supporting the growth of this market include the increasing industry adoption of the More Electric Aircraft architecture, which replaces traditional hydraulic and pneumatic systems with electrical alternatives to enhance fuel efficiency. Furthermore, the sustained recovery and expansion of global commercial air traffic are compelling airlines to modernize their fleets, thereby generating consistent demand for reliable power management components.

One significant challenge that could impede market expansion involves the rigorous certification standards and safety regulations enforced by international aviation authorities, which substantially lengthen product development cycles and increase costs. These regulatory hurdles are often compounded by the technical difficulty of managing thermal heat dissipation within the weight and volume constraints of modern airframes. Despite these operational obstacles, the underlying demand for new aircraft remains robust. According to the 'General Aviation Manufacturers Association', in '2025', 'total airplane shipments during 2024 increased by 3.0 percent compared to the prior year to reach a total of 3,162 units'.

Key Market Drivers

The expansion of global commercial aircraft fleets serves as a primary catalyst for the Global Aircraft Electrical Conversion Systems Market. As airlines aggressively modernize their operations to meet rising travel demand, there is a parallel surge in the requirement for advanced power management units to support increasingly sophisticated onboard avionics, cabin entertainment, and galley systems. This fleet growth ensures a sustained manufacturing pipeline for conversion components that are essential for transforming variable frequency power into stable voltages required by sensitive electronic loads. According to Boeing, June 2025, in the 'Commercial Market Outlook 2025-2044', the global commercial fleet is projected to approach 50,000 active airplanes by 2044, driving a long-term industry demand for approximately 43,600 new aircraft deliveries.

Simultaneously, the market is being propelled by the accelerating adoption of More Electric Aircraft (MEA) architectures and hybrid-electric propulsion technologies. This structural shift replaces traditional hydraulic and pneumatic systems with electrical counterparts, necessitating high-density power conversion solutions to handle increased voltage loads and manage thermal dissipation effectively. To support these technological innovations, significant capital is being directed toward next-generation power research; according to the Clean Aviation Joint Undertaking, September 2025, the partnership launched a €945 million research initiative across 12 new projects to mature hybrid-electric and other disruptive propulsion concepts. This transition is already positively impacting supplier performance. According to Thales, March 2025, sales in the company's Aerospace segment for the 2024 financial year totaled €5.47 billion, marking a 4.8% increase driven by robust demand for avionics and electrical systems.

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Key Market Challenges

The rigorous certification standards and safety regulations enforced by international aviation authorities present a substantial obstacle to the Global Aircraft Electrical Conversion Systems Market. These stringent requirements create a complex compliance landscape, significantly extending the timeline for bringing new power management solutions to market. As the industry shifts toward More Electric Aircraft architectures, conversion units become more intricate, necessitating exhaustive testing to meet safety protocols. This prolonged development phase escalates manufacturing costs and delays the deployment of advanced voltage transformation technologies, slowing the pace at which airlines can adopt these efficient systems.

These regulatory bottlenecks result in severe production delays, restricting the immediate revenue flow for component suppliers. When airframe manufacturers struggle to clear certification hurdles for new models, the entire supply chain faces a deceleration in component integration. This operational stagnation is highlighted by recent industry figures. According to the 'International Air Transport Association', in '2024', 'the global commercial aircraft backlog reached a historic high of more than 17,000 units'. This accumulation of undelivered orders demonstrates how regulatory and production constraints prevent the timely installation of essential onboard utilities, directly impeding the market's ability to capitalize on robust underlying demand.

Key Market Trends

The adoption of Silicon Carbide (SiC) and Gallium Nitride (GaN) semiconductors is fundamentally reshaping the market by enabling the production of lighter and more efficient power electronics capable of operating at significantly higher temperatures. This transition from traditional silicon-based components addresses the critical thermal management challenges in modern avionics, allowing for the miniaturization of conversion units without compromising performance. The superior conductivity and thermal resistance of these wide-bandgap materials are driving tangible advancements in component specifications. According to GE Aerospace, November 2025, in the 'GE Aerospace Advanced Silicon Carbide Power Devices' announcement, the company demonstrated fourth-generation SiC chips that achieve an industry-leading temperature rating of 200 degrees Celsius, a capability that directly facilitates the removal of heavy liquid cooling systems in favor of compact air-cooled designs.

The development of high-power density modular converters is simultaneously gaining momentum as manufacturers seek to support the massive energy requirements of future hybrid-electric architectures through scalable and standardized units. This trend prioritizes the creation of interchangeable power modules that can be stacked to handle megawatt-class loads, thereby reducing maintenance costs and simplifying supply chain logistics for aircraft operators. Major industry partnerships are heavily funding the maturation of these modular technologies to ensure they meet the rigorous reliability standards required for entry into service. According to Clean Aviation, January 2025, in the 'Highlights 2024' report, the Joint Undertaking is currently backing 28 pioneering projects with over €800 million in funding to accelerate the technological readiness of such disruptive propulsion and power distribution concepts by 2030.

Segmental Insights

Based on recent market analysis, the DC AC Converters segment is currently the fastest-growing category within the Global Aircraft Electrical Conversion Systems Market. This rapid expansion is primarily driven by the widespread transition toward More Electric Aircraft (MEA) architectures, which utilize High Voltage DC power distribution to reduce weight and enhance fuel efficiency. Consequently, advanced inverters are increasingly required to transform this direct current back into alternating current for critical subsystems, including flight control actuators, fuel pumps, and cabin electronics. This technical shift is further accelerated by the industry's commitment to lowering carbon emissions, aligning with sustainability goals monitored by institutions such as the International Civil Aviation Organization.

Regional Insights

North America maintains a leading position in the global aircraft electrical conversion systems market, driven by the extensive manufacturing capabilities of key aerospace entities within the United States. The region experiences high demand for reliable power distribution units to support both commercial aviation and defense sectors. Additionally, the Federal Aviation Administration enforces rigorous certification protocols that encourage the integration of standardized electrical infrastructures to ensure flight safety. This strong regulatory framework, coupled with continuous investments in fleet modernization and the transition toward electric aircraft architectures, solidifies the region's established market dominance.

Recent Developments

• In November 2024, GE Aerospace successfully demonstrated a hybrid electric propulsion system rated at one megawatt under a $5.1 million research and development contract with the U.S. Army. The demonstration, conducted at the company's research center in New York, involved integrating a turboshaft engine with a company-developed electric machine and advanced power electronics. This research focused on maturing technologies for lightweight and reliable electrified powerplants applicable to future military air and ground vehicles. The successful test highlighted the company's progress in developing integrated electrical conversion systems capable of handling the high power loads required for hybrid-electric flight.
• In October 2024, Collins Aerospace completed the prototype development of critical high-voltage power distribution components for the European Union's Clean Aviation SWITCH project. The newly developed hardware, which includes a solid-state power controller and a megawatt-class power distribution panel, was produced at the company's facility in Nördlingen, Germany. These components were subsequently shipped to the company's electric power systems laboratory in Illinois for integration testing. This breakthrough is essential for enabling the safe management of high-voltage electricity at altitude, a fundamental requirement for the hybrid-electric propulsion systems planned for future short- and medium-range aircraft.
• In May 2024, Safran Electrical & Power signed a major agreement with Bell Textron Inc. to provide the starter-generation systems for the U.S. Army’s Future Long Range Assault Aircraft program. The company committed to supplying an advanced high-voltage starter-generator system equipped with a high-speed rotor and sophisticated power electronics to ensure precise control and reliability. The design, development, and qualification of these systems were scheduled to take place at the company's facilities in Ohio and Florida. This collaboration underscores the growing importance of high-power electrical conversion technologies in next-generation military vertical lift platforms.
• In April 2024, ZeroAvia announced the launch of a new business division dedicated to supplying key electric propulsion components to other aviation manufacturers, marking a significant expansion in the market for aircraft electrical conversion systems. The company began offering its advanced silicon carbide inverters, which feature a bidirectional design with high power density, alongside its high-performance electric motors. To support this initiative, the company opened a new propulsion center of excellence in Everett, Washington, focusing on the manufacture of these critical power electronics. This strategic move allows the company to commercialize its proprietary technology and support the broader industry's transition to hybrid-electric architectures.

Key Market Players

• Astronics Corporation
• RTX Corporation
• Crane Company
• Honeywell International Inc.
• Safran SA
• Ametek Inc.
• Thales SA
• Eaton Corporation plc
• Parker-Hannifin Corporation
• Moog Inc.

By Component Type	By Aircraft Type	By Region
Transformers AC-DC Converters DC-AC Converters	Commercial Aircraft Helicopter Military Aircraft UAV	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Aircraft Electrical Conversion Systems Market, By Component Type:

• Transformers
• AC-DC Converters
• DC-AC Converters

• Aircraft Electrical Conversion Systems Market, By Aircraft Type:

• Commercial Aircraft
• Helicopter
• Military Aircraft
• UAV

• Aircraft Electrical Conversion Systems Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE