Aerospace Avionics

Global Aerospace Avionics Market to Reach US$86.0 Billion by 2030

The global market for Aerospace Avionics estimated at US$56.0 Billion in the year 2024, is expected to reach US$86.0 Billion by 2030, growing at a CAGR of 7.4% over the analysis period 2024-2030. Communication / Navigation / Surveillance Systems, one of the segments analyzed in the report, is expected to record a 5.7% CAGR and reach US$31.6 Billion by the end of the analysis period. Growth in the Flight Management Systems segment is estimated at 9.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$15.3 Billion While China is Forecast to Grow at 11.3% CAGR

The Aerospace Avionics market in the U.S. is estimated at US$15.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$17.9 Billion by the year 2030 trailing a CAGR of 11.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.8% and 7.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.9% CAGR.

Global Aerospace Avionics Market – Key Trends & Drivers Summarized

What’s Powering the Avionics Overhaul in Modern Aerospace Platforms?
The aerospace avionics market is undergoing a profound transformation, fueled by the convergence of digitalization, automation, and real-time connectivity across both commercial and defense aviation ecosystems. Avionics systems—comprising flight management, navigation, communication, surveillance, and display components—are transitioning from federated, hardware-centric architectures to fully integrated, software-defined and modular platforms. The integration of open-architecture systems and real-time data links is enabling enhanced situational awareness, faster decision-making, and adaptive flight control. Advanced avionics suites, powered by multi-core processors and high-speed data buses, are becoming central to next-gen aircraft programs, supporting capabilities like fly-by-wire controls, synthetic vision systems, and predictive maintenance diagnostics. This shift is being accelerated by rising demand for fuel efficiency, safety enhancements, and automation-led pilot workload reduction across both fixed-wing and rotary-wing platforms.

The rollout of next-generation aircraft programs—from single-aisle commercial jets to unmanned aerial vehicles (UAVs) and sixth-generation fighter aircraft—is catalyzing avionics innovation at every level of the supply chain. OEMs and Tier 1 avionics suppliers are investing heavily in the development of scalable, future-proof systems that support plug-and-play upgrades and software refresh cycles, minimizing obsolescence in long-life aircraft. Digital twin technologies and high-fidelity flight simulators are increasingly integrated into avionics development pipelines, enabling real-world validation and accelerated certification timelines. Moreover, new standards like DO-326A for avionics cybersecurity and DO-178C for software assurance are driving redesigns focused on resilience and compliance. The demand for single, unified cockpit systems with augmented reality overlays, touchscreen human-machine interfaces (HMI), and automated co-pilot assistance is reshaping how cockpit ergonomics and avionics performance are engineered, both for commercial pilot efficiency and military tactical dominance.

How Are Connectivity and Cybersecurity Shaping Next-Gen Avionics Architectures?
Aerospace avionics are evolving into hyper-connected, data-intensive networks that serve as the digital backbone of modern aircraft. Real-time connectivity between aircraft systems and ground infrastructure is now indispensable, particularly for fleet-wide performance monitoring, predictive maintenance, air traffic control integration, and situational threat intelligence. The proliferation of satellite-based navigation (GNSS), ADS-B, and high-speed broadband communication (via L-band, Ku-band, and emerging Ka/LEO constellations) is transforming how avionics platforms manage navigation, communication, and data synchronization. These advancements are instrumental in supporting dynamic rerouting, weather avoidance, and seamless integration with next-gen ATM systems like SESAR and NextGen. Avionics systems are increasingly tasked with managing an ever-growing volume of real-time data while ensuring zero-latency performance, interoperability, and cybersecurity assurance.

In parallel, the aviation industry is facing growing threats from cyber intrusions and signal spoofing, particularly in military and high-security commercial operations. As avionics become more software-centric and wirelessly networked, the potential attack surfaces multiply, pushing cybersecurity to the forefront of avionics system design. Regulations such as DO-326A, ED-202A, and FAA guidance on aircraft network security are prompting manufacturers to embed intrusion detection systems (IDS), encrypted data links, and segmented network architectures directly into avionics ecosystems. Blockchain and AI-based threat analytics are also being piloted in avionics for real-time risk profiling and response. In the military domain, electronic warfare capabilities are increasingly being fused into avionics platforms to allow real-time jamming, spoofing detection, and spectrum dominance operations. These cybersecurity-centered innovations are essential in ensuring mission-critical continuity, flight safety, and airspace integrity in an increasingly digitized aviation landscape.

Where Is Avionics Demand Expanding Beyond Traditional Aircraft Markets?
The global demand for aerospace avionics is rapidly diversifying beyond conventional commercial and defense aircraft to encompass emerging aerial platforms such as UAVs, electric vertical takeoff and landing (eVTOL) vehicles, and high-altitude pseudo satellites (HAPS). These platforms demand lightweight, power-efficient, and software-centric avionics systems that support autonomous navigation, real-time remote command, and safe airspace integration. In the case of UAVs, avionics are tasked not only with autonomous guidance and telemetry but also with payload control, collision avoidance, and geofencing in both civilian and military use cases. For eVTOLs and advanced air mobility (AAM) vehicles, avionics systems are being reengineered to ensure high-redundancy vertical flight control, electric propulsion monitoring, and urban navigation in GPS-denied or congested airspace conditions.

In addition to air platforms, avionics systems are being deployed in space applications such as low Earth orbit (LEO) satellite constellations and reusable launch vehicles, where robust guidance, data handling, and fault-tolerant control systems are mission-critical. Furthermore, the rise of blended air/ground defense operations is prompting cross-domain avionics development—linking manned aircraft with unmanned assets and surface systems through secure tactical data links and shared situational awareness platforms. These developments are expanding the scope of avionics from purely airborne systems to broader aerospace command-and-control ecosystems. This diversification of end-use cases is opening up new design paradigms focused on SWaP-C (Size, Weight, Power, and Cost) optimization, interoperability with digital ground control stations, and cloud-based post-flight data analysis—all of which are creating sustained multi-domain growth opportunities in the avionics value chain.

The Growth in the Aerospace Avionics Market Is Driven by Several Factors…
It is propelled by sustained investments in next-generation aircraft programs, rising global defense expenditures, and the rapid proliferation of digitally connected air platforms. A core growth driver is the industry-wide transition from analog and federated avionics systems to integrated modular avionics (IMA), which reduce hardware redundancy and enable seamless functionality updates via software. The increasing need for real-time data processing, integrated flight management, and enhanced pilot situational awareness is pushing airlines, defense agencies, and OEMs to modernize fleet avionics to meet evolving operational standards. Furthermore, the rise in commercial aviation traffic, airline fleet renewals, and demand for fuel-efficient aircraft are stimulating the adoption of advanced avionics that support lighter, more automated, and eco-compliant cockpit environments.

On the defense side, geopolitical instability and the ongoing modernization of air forces are fueling demand for next-gen mission systems, electronic warfare capabilities, and network-centric avionics infrastructure. The emergence of future air combat systems, optionally piloted vehicles, and multi-domain operations is also intensifying R&D in avionics systems that can be adapted across platforms and conflict scenarios. Concurrently, regulatory mandates around cybersecurity, spectrum management, and integrated airspace navigation (such as SESAR/NextGen) are compelling stakeholders to invest in compliant, resilient, and upgradeable avionics ecosystems. Rising urban air mobility initiatives and autonomous flight technologies are further reinforcing demand for smart, miniaturized, and software-defined avionics tailored for low-altitude operations. Collectively, these technology-driven, operational, and regulatory factors are converging to accelerate market expansion and innovation cycles across the global aerospace avionics landscape.

SCOPE OF STUDY:

The report analyzes the Aerospace Avionics market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Sub-system (Communication / Navigation / Surveillance Systems, Flight Management Systems, Flight Control Systems, Health Monitoring Systems, Electrical & Emergency Systems); Fit (Retrofit, Forward Fit); Platform (Commercial Aviation, Military Aviation, Special Mission Aviation, General Aviation); End-Use (OEM, Aftermarket)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Avidyne Corporation
• BAE Systems plc
• Boeing Avionics
• Collins Aerospace
• Curtiss-Wright Corporation
• Dynon Avionics
• Elbit Systems Ltd.
• Embraer S.A.
• Esterline Technologies Corporation
• Garmin Ltd.
• General Electric Aviation
• GKN Aerospace
• Honeywell Aerospace
• Indra Sistemas, S.A.
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Meggitt PLC
• Mercury Systems, Inc.
• Moog Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.