The avionics market is undergoing substantial growth and is expected to be worth $82.3 billion by 2030, according to a new report from research and management consulting firm MarketsandMarkets.
Market revenue for the industry this year is expected to reach $56.2 billion, and if MarketsandMarkets’ prediction holds true, the sector will see a compound annual growth rate of 7.9 percent over the coming five years.
Researchers said that the climb will be powered by advancements in digital technology like artificial intelligence (AI) and data analytics, increased demand for autonomous and connected aircraft, and the expansion of emerging markets.
Special mission aircraft were singled out for particular attention due to demand from governments, militaries, and private companies. These aircraft are mainly designed for surveillance, reconnaissance, and disaster response, and require complex sensors, communications equipment, and navigation systems to perform their tasks.
State and private buyers are deploying special mission aircraft in a growing number of operational environments, the report said, which will likely increase competition among manufacturers and stimulate research and development.
MarketsandMarkets is also predicting “substantial growth” in power and data management systems, driven by increasing demand for energy efficiency.
Despite promising developments around the world, North America is expected to remain the base of the avionics industry, mainly because it hosts the largest and most advanced companies, and demand for avionics retrofits in commercial and general aviation aircraft is high. Innovations in surveillance technology and satellite-based navigation systems by U.S. companies should also help North America keep its edge, the report said.
MarketsandMarkets identified RTX Corp. (formerly Raytheon), Honeywell International, L3Harris Technologies, General Electric, Garmin, Curtiss-Wright Corp., Thales, Northrop Grumman Corp., BAE Systems, and Safran, among others, as the major players in the avionics industry.
