Military Aircraft Avionics Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Aircraft Type (Fixed-wing Combat Aircraft, Fixed-wing Non-Combat Aircraft, Helicopters, Unmanned Aerial Vehicles (UAVs)), By Subsystem Type (Flight Control System, Communication System, Navigation System, Monitoring System), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 42.42 Billion
CAGR (2026-2031)	5.78%
Fastest Growing Segment	Unmanned Aerial Vehicles
Largest Market	North America
Market Size (2031)	USD 59.43 Billion

Market Overview

The Global Military Aircraft Avionics Market will grow from USD 42.42 Billion in 2025 to USD 59.43 Billion by 2031 at a 5.78% CAGR. Military aircraft avionics encompass the electronic systems and equipment installed in defense platforms to perform essential functions such as communications, navigation, display management, and tactical mission execution. The global market is primarily supported by the imperative to modernize aging fleets and the escalation of geopolitical tensions, which create a critical demand for superior situational awareness and network interoperability. These strategic necessities compel defense organizations to invest heavily in upgrading their capabilities to maintain operational readiness in contested environments.

According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, the defense sector turnover increased by 13.8 percent to €183.4 billion, reflecting the significant capital inflow directed toward these technologies. However, a major challenge impeding market expansion is the high cost and technical complexity associated with retrofitting modern avionics suites into legacy aircraft. This integration difficulty often results in extended development timelines and budgetary constraints that can delay the deployment of critical upgrades.

Key Market Drivers

The expansion of global defense budgets and military expenditure acts as a primary catalyst for the growth of the avionics sector. As nations perceive heightened regional security threats, they are prioritizing the financial allocation necessary to acquire air superiority and maintain operational readiness. This fiscal growth provides the essential funding for advanced cockpit electronics, communication suites, and mission computers. According to the Stockholm International Peace Research Institute, April 2024, in the 'Trends in World Military Expenditure, 2023' Fact Sheet, total global military expenditure rose by 6.8 percent to reach $2443 billion. Such macroeconomic trends ensure sustained liquidity for avionics contracts, enabling defense departments to initiate long-term technology acquisition programs. Furthermore, the sheer scale of investment is evident in major national outlays; according to the U.S. Department of Defense, in 2024, the Fiscal Year 2025 Budget Request included $61.2 billion specifically for aircraft procurement.

Concurrently, the development and procurement of next-generation combat aircraft programs drive rapid technological innovation within the market. Modern aerial warfare demands platforms equipped with sensor fusion, electronic warfare capabilities, and open systems architectures, which are central to fifth and sixth-generation fighters. This requirement compels manufacturers to deliver software-defined solutions that offer adaptability and resilience. The industrial magnitude of this demand is reflected in the financial performance of key suppliers. According to BAE Systems, February 2024, in the 'Annual Report 2023', its Electronic Systems sector reported revenue of £5.8 billion, underscoring the heavy reliance on advanced electronic subsystems. Consequently, the push for superior aerial platforms ensures that avionics remain a high-value component in military aviation strategies.

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Key Market Challenges

The high cost and technical complexity associated with retrofitting modern avionics suites into legacy aircraft act as a significant impediment to the growth of the Global Military Aircraft Avionics Market. Integrating advanced digital systems into airframes originally designed for analog technology requires substantial engineering customization, including extensive rewiring and structural modifications. These technical intricacies often result in unforeseen compatibility issues and rigorous certification demands, which inevitably extend development timelines and inflate project costs. As a result, defense agencies frequently face budget overruns that necessitate the delay or reduction of modernization programs, directly slowing the pace at which upgraded avionics are adopted across fleets.

This operational bottleneck persists despite the substantial capital flowing into the broader defense sector. According to the Aerospace Industries Association, the aerospace and defense industry generated $995 billion in combined sales in 2024, representing a 4.2 percent increase from the prior year. While this figure highlights the immense scale of investment available, the high expense of retrofitting means that a significant portion of these funds is absorbed by integration and engineering costs rather than the procurement of additional avionics units. Consequently, the market's potential for volume expansion is constrained by the financial and technical burdens of keeping aging platforms relevant.

Key Market Trends

The widespread adoption of the Modular Open Systems Approach (MOSA) is fundamentally reshaping the market by dismantling proprietary architectures that historically locked defense agencies into single-vendor ecosystems. This paradigm shift mandates standardized interfaces, such as the Sensor Open Systems Architecture (SOSA), enabling the rapid insertion of upgraded processors and mission systems without costly platform redesigns. As militaries prioritize agility in contested environments, the demand for MOSA-compliant embedded computing has surged, rewarding suppliers who align with these interoperability standards. According to Curtiss-Wright Corporation, February 2025, in the '2024 Annual Report', the company's Defense Electronics segment recorded a 17 percent increase in operating income to $225 million, underscoring the financial growth driven by the procurement of these advanced, open-architecture electronic solutions.

Concurrently, there is a critical transition toward Software-Defined Radio (SDR) and cognitive communication architectures, driven by the imperative for secure, jam-resistant data exchange in multi-domain operations. As adversaries enhance their electronic warfare capabilities, defense forces are replacing hardware-centric radios with flexible, software-programmable solutions that can dynamically alter waveforms to evade detection and interference. This technological pivot ensures robust network interoperability and high-speed connectivity across allied fleets. According to Elbit Systems, November 2025, in the 'Third Quarter 2025 Results' press release, the C4I and Cyber division achieved a 14 percent revenue increase, a growth trajectory primarily attributed to the accelerating sales of advanced radio systems and command and control technologies.

Segmental Insights

The Unmanned Aerial Vehicles segment is currently registering the fastest expansion within the Global Military Aircraft Avionics Market due to increased procurement of autonomous systems for intelligence, surveillance, and reconnaissance missions. Defense organizations are prioritizing these aircraft to reduce human risk during combat operations and lower overall flight costs compared to manned platforms. This demand drives the requirement for specialized avionics that enable reliable remote control and secure data transmission. Consequently, the shift toward autonomous warfare capabilities is fueling significant investment in avionics technologies tailored specifically for unmanned fleets.

Regional Insights

North America currently holds the largest share of the military aircraft avionics market, driven primarily by substantial defense investments in the United States. The region benefits from established procurement programs initiated by the U.S. Department of Defense, which prioritize the modernization of avionics suites in legacy fleets and the development of next-generation platforms. Furthermore, the presence of major avionics manufacturers within the region facilitates the rapid integration of advanced navigation, communication, and surveillance systems. This consistent government funding and a strong industrial base ensure North America maintains its leading position globally.

Recent Developments

• In December 2025, Saab collaborated with Divergent Technologies to unveil a software-defined aircraft fuselage constructed using additive manufacturing techniques. The project introduced a distinct avionics architecture that separates flight-safety functions from mission-critical software, allowing for independent updates to each system. This design utilizes digital twin technology to streamline the engineering process and support flexible manufacturing. The initiative aims to provide military customers with adaptable aircraft platforms that can rapidly integrate new avionics and sensor capabilities, thereby reducing the time and cost associated with traditional aircraft modification programs.
• In July 2025, Lockheed Martin announced a technological breakthrough in airborne maritime surveillance involving the integration of artificial intelligence into avionics mission systems. The company successfully demonstrated a capability that processes sensor data in real-time to detect and track maritime targets with improved efficiency. This development is intended to reduce the cognitive workload for crews on military aircraft by automating the analysis of complex visual and radar data. By enabling faster identification of potential threats, the technology supports quicker decision-making processes for naval aviation units operating in vast or cluttered maritime domains.
• In November 2024, Collins Aerospace secured a $19 million contract from the U.S. Department of Defense to equip the United Kingdom’s new fleet of H-47 Chinook helicopters. The company will install its Common Avionics Architecture System, a digital management suite that aligns the U.K. fleet with U.S. standards. This system features a Modular Open Systems Approach that integrates navigation, communications, and mission sensors to improve interoperability and operational safety. The project involves upgrading the flight deck with digital displays and applications, ensuring that allied forces can collaborate effectively in shared battlespace environments while minimizing sustainment costs.
• In October 2024, BAE Systems was awarded a contract by the U.S. Army with a ceiling value of $460 million to supply the AN/ARC-231/A Multi-mode Aviation Radio Set. This agreement covers the delivery of hardware, repair services, and engineering support for the software-defined radio system used on rotary-wing aircraft. The equipment is designed to provide secure, anti-jam voice and data communications, ensuring connectivity in contested military environments. The system’s programmable architecture allows for the rapid integration of new waveforms, enabling the Army to adapt to evolving mission requirements without replacing physical hardware.

Key Market Players

• L3Harris Technologies, Inc
• RTX Corporation
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Thales Group SA
• BAE Systems Plc
• Honeywell International Inc
• Elbit Systems Ltd
• Genesys Aerosystems
• Cobham Limited

By Aircraft Type	By Subsystem Type	By Region
Fixed-wing Combat Aircraft Fixed-wing Non-Combat Aircraft Helicopters Unmanned Aerial Vehicles (UAVs)	Flight Control System Communication System Navigation System Monitoring System	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Military Aircraft Avionics Market, By Aircraft Type:

• Fixed-wing Combat Aircraft
• Fixed-wing Non-Combat Aircraft
• Helicopters
• Unmanned Aerial Vehicles (UAVs)

• Military Aircraft Avionics Market, By Subsystem Type:

• Flight Control System
• Communication System
• Navigation System
• Monitoring System

• Military Aircraft 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