Next-Generation Avionics

Global Next-Generation Avionics Market to Reach US$5.0 Billion by 2030

The global market for Next-Generation Avionics estimated at US$3.0 Billion in the year 2024, is expected to reach US$5.0 Billion by 2030, growing at a CAGR of 8.9% over the analysis period 2024-2030. Management System Avionics, one of the segments analyzed in the report, is expected to record a 7.4% CAGR and reach US$2.3 Billion by the end of the analysis period. Growth in the Communications System Avionics segment is estimated at 11.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$785.1 Million While China is Forecast to Grow at 8.7% CAGR

The Next-Generation Avionics market in the U.S. is estimated at US$785.1 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$798.2 Million by the year 2030 trailing a CAGR of 8.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.0% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.3% CAGR.

Global Next-Generation Avionics Market - Key Trends & Drivers Summarized

What’s Driving the Shift Toward Next-Generation Avionics Systems in Aerospace?
The aviation industry is undergoing a significant transformation, with next-generation avionics playing a central role in enabling safer, smarter, and more efficient flight operations. Avionics, the electronic systems used in aircraft for communication, navigation, flight control, and systems monitoring, are evolving in response to the growing demand for fuel efficiency, airspace optimization, automation, and compliance with stricter global safety and environmental regulations. These systems are no longer viewed as static cockpit fixtures but as dynamic and upgradeable digital architectures supporting real-time decision-making and predictive operations.

Next-gen avionics are being rapidly adopted by both military and commercial aircraft platforms to address the increasing complexity of air traffic management, autonomous flight capabilities, and data-intensive missions. Modern avionics suites integrate advanced hardware-such as multifunctional displays, touchscreens, synthetic vision, and enhanced GPS-with powerful software solutions powered by artificial intelligence (AI), real-time data analytics, and cyber-resilient flight systems. In commercial aviation, this translates into better situational awareness, fuel economy, and reduced pilot workload, while in defense applications, these systems support high-speed data links, sensor fusion, and mission-critical communication in contested airspaces.

How Are Technology Convergences Redefining Avionics Capabilities?
The convergence of digital twin technology, edge computing, AI, and satellite-based navigation is redefining the functionality of avionics systems. Digital twin models are being embedded within avionics software, allowing aircraft systems to simulate performance scenarios, anticipate system failures, and suggest corrective actions in real-time. Meanwhile, edge AI enables onboard processing of vast data streams from radar, lidar, and environmental sensors, facilitating rapid, autonomous decision-making without reliance on ground control.

Advanced display systems now offer pilots 3D terrain mapping, synthetic vision overlays, and real-time weather visualization, improving situational awareness under low-visibility conditions. Communication technologies like satellite-based ADS-B (Automatic Dependent Surveillance-Broadcast), Controller-Pilot Data Link Communication (CPDLC), and space-based VHF data links are enabling global coverage and seamless interaction between aircraft and air traffic control systems, particularly important in polar routes and oceanic operations.

Open avionics architectures such as FACE (Future Airborne Capability Environment) and MOSA (Modular Open Systems Approach) are gaining traction across military and civil programs. These frameworks allow modularity, cross-platform software integration, and hardware scalability-key for rapid deployment of new features and mission upgrades. This is essential in an era when avionics systems need to keep pace with evolving airspace policies, cybersecurity threats, and urban air mobility (UAM) demands.

Which Aircraft Categories and Regions Are Accelerating Avionics Modernization?
The commercial aviation sector, led by OEMs such as Boeing, Airbus, and Embraer, is heavily investing in avionics upgrades across narrow-body, wide-body, and regional jets to meet rising expectations around fuel savings, in-flight connectivity, and maintenance optimization. Avionics modernization is also surging in general aviation, with business jets, turboprops, and light aircraft retrofitting older platforms with glass cockpits, touchscreen avionics, and digital autopilot systems to comply with NextGen and SESAR (Single European Sky ATM Research) initiatives.

Military aviation is another high-growth segment where avionics innovation is central to fleet recapitalization programs. Fighter jets, transport aircraft, and unmanned aerial systems (UAS) are integrating avionics that enable electronic warfare, GPS-denied navigation, secure datalinks, and multi-domain operations. Rotary-wing aircraft are also seeing enhanced mission management capabilities through advanced avionics.

Regionally, North America dominates due to strong investment in NextGen air traffic control infrastructure, military modernization, and a large installed base of aircraft. Europe follows closely with SESAR-led initiatives and rising demand for green aviation technologies. Asia-Pacific is emerging as a strategic market with expanding regional aviation networks, growing defense budgets, and increased aircraft manufacturing activities, especially in China, India, Japan, and South Korea. Latin America and the Middle East are focusing on upgrading aging fleets and improving cross-border airspace navigation systems.

What Is Fueling Growth in the Global Next-Generation Avionics Market?
The growth in the global next-generation avionics market is driven by several factors, including the need for real-time data processing, increasing air traffic density, heightened cybersecurity requirements, and the emergence of electric and autonomous aircraft. Airlines are under pressure to optimize fleet operations, reduce carbon emissions, and enhance passenger experience-all of which are supported by intelligent avionics platforms offering predictive maintenance, flight optimization, and seamless ground-to-air communication.

Government mandates and aviation authorities such as FAA, EASA, and ICAO are enforcing avionics-related compliance deadlines related to ADS-B, CPDLC, and Performance-Based Navigation (PBN), compelling both new installations and retrofit opportunities. The shift toward connected aircraft ecosystems and eVTOLs (electric vertical take-off and landing) is also catalyzing demand for ultra-lightweight, low-power, and modular avionics systems capable of supporting highly automated flight operations.

Technological investments from defense contractors and aerospace startups are intensifying R&D in AI-powered navigation, software-defined radios, and cybersecure onboard networks. Strategic collaborations between avionics manufacturers and cloud computing firms are reshaping data analytics, fleet management, and digital twin deployment. As aerospace stakeholders prioritize operational resilience, compliance, and technological agility, next-generation avionics will remain a cornerstone of the global aviation modernization roadmap.

SCOPE OF STUDY:

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

Segments:
Type (Management System Avionics, Communications System Avionics, Navigation System Avionics, Other Types); Application (Civil Aircraft, Military Aircraft)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 34 Featured) -

• BAE Systems plc
• Collins Aerospace
• Curtiss-Wright Corporation
• Diehl Aerospace GmbH
• Elbit Systems Ltd.
• Garmin Ltd.
• GE Aerospace
• Gogo Business Aviation
• Honeywell Aerospace
• Indra Sistemas S.A.
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Mercury Systems, Inc.
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Robotic Skies
• Safran S.A.
• Saab AB
• Thales Group
• Universal Avionics Systems Corporation

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