[Avionics Today 05-08-2015] According to a new market research report by MarketsandMarkets, the commercial avionics systems market is expected to reach $23.72 billion by 2020. The market was estimated at $15.75 billion in 2014, at a high Compound Annual Growth Rate (CAGR) of 7.06 percent from 2014 to 2020, according to the report.
Increase in aircraft orders and deliveries across the globe are the major growth factors for the avionics systems market, which considers all the systems fitted in the cockpit of the aircraft, such as control, navigation, monitoring, communication, weather and anti-collision systems. The narrow-body aircraft are expected to have a high growth due to deliveries and orders during the forecast period. The market is also driven by the need for modern avionic systems, which is spurred by the increase in concern for flight safety and operational and maintenance costs.
Additionally, the growing need for real-time data has been a catalyst to boost the growth of the avionics systems market. The demand for NextGen avionics is majorly driven by the trends in the aviation industry where aircraft deliveries and aircraft in operations have always influenced the industry. The Automatic Dependent Surveillance-Broadcast (ADS-B) technology in avionics systems is an opportunity for manufacturers, however, adherence to mandatory certifications laid down by the aviation industry and training for pilots contribute to many challenges the market may face in coming years.
The North American region is estimated to account for the largest market share until 2020, followed by the European region. The Asia-Pacific region is projected to witness the highest number of aircraft deliveries than any other region during the forecast period, eventually driving the commercial avionics systems market.