Avionics Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By System (Hardware and Software), By Platform (Commercial, Military, Business Jets, and General Aviation), By End User (OEM and Aftermarket), By Region and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 46.64 Billion
CAGR (2026-2031)	6.85%
Fastest Growing Segment	Software
Largest Market	North America
Market Size (2031)	USD 69.41 Billion

Market Overview

The Global Avionics Market will grow from USD 46.64 Billion in 2025 to USD 69.41 Billion by 2031 at a 6.85% CAGR. Avionics refers to the electronic systems utilized on aircraft, satellites, and spacecraft to perform critical functions including communications, navigation, and flight management. The market is primarily supported by the need for enhanced operational efficiency and strict adherence to evolving aviation safety standards which drives the retrofit of legacy fleets. Furthermore, the sustained recovery in global air travel fuels the production of new aircraft and necessitates modern electronic suites. This robust demand is evident in recent industrial data; according to the General Aviation Manufacturers Association, in 2024, general aviation aircraft billings increased to $31.2 billion.

Despite these favorable conditions, the industry faces a significant challenge regarding supply chain reliability. The persistent shortage of semiconductor chips and other essential electronic components constrains manufacturing output and extends lead times. These logistical disruptions hamper the ability of vendors to fulfill delivery schedules and inflate production costs which could impede the broader expansion of the global avionics sector.

Key Market Drivers

Global military aviation modernization and increased defense spending serve as a primary catalyst for the avionics sector. Governments are prioritizing the upgrading of airborne defense capabilities, including advanced radar systems, electronic warfare suites, and secure communication networks, to address rising geopolitical tensions. This financial commitment facilitates the procurement of new military platforms and the extensive modification of existing assets with digital cockpit technologies. The scale of this investment is substantial; according to the North Atlantic Treaty Organization (NATO), April 2025, in the 'Secretary General Annual Report 2024', NATO Allies in Europe and Canada invested a total of $486 billion in defense, representing a significant real-term increase. This budgetary growth directly benefits avionics manufacturers who supply the mission-critical electronic infrastructure required for next-generation combat readiness.

Rising commercial aircraft fleet expansion and modernization further propel market trajectory as airlines seek to optimize flight operations and reduce carbon footprints. Carriers are aggressively retiring older models in favor of fuel-efficient aircraft equipped with integrated avionics that support precision navigation and predictive maintenance. This renewal cycle ensures a steady stream of orders for original equipment manufacturers. According to Boeing, June 2025, in the 'Commercial Market Outlook 2025-2044', the global aviation industry is projected to require 43,600 new commercial aircraft over the next two decades to meet traffic growth and replacement needs. Highlighting the broader scale of this opportunity for the overall global avionics market, the same report forecasts that the total active worldwide commercial fleet will expand to more than 49,600 aircraft by 2044.

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Key Market Challenges

The Global Avionics Market is currently impeded by severe supply chain volatility, specifically the persistent shortage of semiconductor chips and essential electronic components. This scarcity directly restricts the manufacturing capacity of avionics vendors, forcing them to extend lead times for critical flight management and navigation suites. As aircraft manufacturers cannot finalize assembly without these integral electronic systems, the entire production line slows down. This disruption causes a ripple effect that defers revenue recognition for avionics suppliers and inflates operational costs, effectively stalling the market's ability to capitalize on the recovery in air travel.

The magnitude of this production bottleneck is quantitatively evident in recent industry figures. According to the International Air Transport Association (IATA), in 2024, the backlog of unfulfilled commercial aircraft orders reached a historic high of more than 17,000 units. This unprecedented accumulation of undelivered aircraft highlights the severity of the component shortage, as airframers are unable to source the necessary avionics and systems to complete orders, thereby directly limiting the sector's immediate expansion despite robust demand.

Key Market Trends

The expansion of avionics suites for Urban Air Mobility (UAM) and eVTOL platforms is creating a distinct high-growth segment focused on lightweight, simplified, and highly automated flight management systems. Unlike traditional commercial aircraft, these electric vehicles require integrated avionics that manage battery distribution, electric propulsion, and eventually autonomous navigation within dense urban airspace. This segment is rapidly transitioning from prototyping to industrial-scale production, supported by substantial capital inflows aimed at certifying these novel cockpit technologies. According to Archer Aviation, February 2025, in the 'Q4 & FY 2024 Shareholder Letter', the company reported a strong liquidity position with $834.5 million in cash and cash equivalents to support its manufacturing ramp-up and certification efforts.

Simultaneously, the deployment of cyber-resilient avionics frameworks is becoming a critical priority as aircraft connectivity increases through Wireless Avionics Intra-Communications (WAIC) and satellite links. The industry is shifting from perimeter-based security to zero-trust architectures, ensuring that mission-critical flight data remains protected against sophisticated digital threats targeting airborne networks. This focus on hardening electronic infrastructure is driven by the integration of commercial-off-the-shelf components which, while cost-effective, introduce new vulnerabilities that operators must mitigate. According to SITA, May 2025, in the '2024 North American Air Transport IT Insights report', 77% of North American airlines ranked cybersecurity among their top three IT priorities for 2025, highlighting the sector's urgency in addressing these digital risks.

Segmental Insights

The software segment is projected to register the fastest growth in the global avionics market, driven by the increasing need for precise flight management and operational diagnostics. Aviation operators are adopting software-centric solutions to comply with evolving safety standards from regulatory bodies such as the Federal Aviation Administration. These digital updates enable aircraft to maintain compliance and improve fuel efficiency without requiring complete hardware overhauls. Furthermore, the rising demand for real-time data analytics and cybersecurity integration supports the sustained expansion of this market segment.

Regional Insights

North America holds the leading position in the global avionics market, primarily due to the concentration of major aircraft original equipment manufacturers and substantial defense investments. The Federal Aviation Administration drives market growth through mandatory modernization programs, such as the Next Generation Air Transportation System, which requires operators to install compliant navigation and communication technologies. Additionally, the region benefits from established infrastructure for commercial aviation and frequent military fleet upgrades. These factors, combined with strict safety standards, create a steady demand for avionics hardware and software solutions across the United States and Canada.

Recent Developments

• In September 2025, Thales secured a long-term avionics maintenance agreement with IndiGo to support the airline's fleet of Airbus A320 aircraft. Under this eleven-year contract, the company committed to providing repair services and a comprehensive spares management program for critical avionics components. The agreement utilized a repair-by-the-hour model to ensure the timely availability of parts, thereby minimizing aircraft downtime and enhancing fleet reliability. This collaboration highlighted the importance of aftermarket services within the Global Avionics Market, as the company expanded its support footprint in the Asia-Pacific region to meet the operational needs of a major commercial carrier.
• In January 2025, Honeywell Aerospace expanded its strategic collaboration with NXP Semiconductors to advance the processing capabilities of its Anthem avionics suite. This partnership focused on integrating high-performance computing architectures into the flight deck to support autonomous flight functions and artificial intelligence applications. The joint research aimed to optimize power efficiency and data security within avionics systems, addressing the growing demand for next-generation cockpit technologies in the Global Avionics Market. By leveraging specialized processing hardware, the companies sought to accelerate the development of software-defined avionics solutions for commercial and advanced air mobility platforms.
• In December 2024, Collins Aerospace launched a modernization program for the Beechcraft King Air and Hawker aircraft fleets, directly addressing the retrofit segment of the Global Avionics Market. The initiative provided operators with upgrades to the Pro Line Fusion and Pro Line 21 integrated avionics suites, replacing legacy equipment with high-resolution digital displays and enhanced navigation capabilities. This program was designed to extend the operational life of these aircraft by meeting updated airspace mandates and improving flight efficiency. The upgrade offered pilots advanced synthetic vision and streamlined graphical user interfaces, thereby increasing safety and reducing operational complexity.
• In October 2024, Garmin unveiled the G3000 PRIME, an integrated flight deck designed to enhance cockpit operations for the business aviation sector of the Global Avionics Market. This new system featured advanced touchscreen displays and an open architecture that allowed for seamless integration of third-party applications and future upgrades. The launch introduced significant safety capabilities, including a runway occupancy awareness system and an autonomous emergency landing feature, aiming to improve pilot situational awareness and reduce workload. By delivering these automated tools and modernized interfaces, the company strengthened its portfolio of avionics solutions for turbine-powered aircraft.

Key Market Players

• Honeywell
• Collins Aerospace
• Thales
• Garmin
• L3Harris
• Safran
• BAE Systems
• Curtiss-Wright
• Elbit Systems
• Raytheon

By System	By Platform	By End User	By Region
Hardware and Software	Commercial Military Business Jets General Aviation	OEM and Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Avionics Market, By System:

• Hardware and Software

• Avionics Market, By Platform:

• Commercial
• Military
• Business Jets
• General Aviation

• Avionics Market, By End User:

• OEM and Aftermarket

• Avionics 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