Global Avionics Round-Up from Aircraft Value News (AVN)
The global avionics industry, valued at approximately USD 91.32 billion in 2023, is forecast to surge to USD 179.44 billion by 2032, growing at a robust compound annual growth rate (CAGR) of 7.67%, according to a new report by Fortune Business Insights. In 2023, North America emerged as the dominant regional market, holding a commanding 37.25% share of the global revenue.
Market Overview
The avionics sector is undergoing a transformation fueled by rapid technological innovation and a growing need for more sophisticated, reliable, and eco-efficient aviation systems. Fleet modernization efforts are accelerating, with airlines and manufacturers embracing integrated flight control systems, advanced navigation tools, and cutting-edge communication technologies.
The proliferation of Unmanned Aerial Vehicles (UAVs), along with the push toward automation and environmental sustainability, is propelling new investments into the sector. From fuel-efficient systems to reduced emissions avionics, the demand for greener, smarter technology is driving the next wave of growth in aerospace.
Industry Consolidation on the Rise
A major trend reshaping the global avionics landscape is the sharp increase in consolidation through mergers and acquisitions (M&As). Over the past decade, the number of independent avionics firms in the United States and globally has dwindled significantly, as larger companies acquire smaller players to gain technological capabilities, streamline operations, and achieve economies of scale.
This wave of consolidation is expected to intensify in 2025. As inflationary pressures tied to tariffs and supply chain disruptions from President Trump’s trade policies continue to squeeze margins, avionics companies are likely to seek mergers as a way to cut costs and maintain profitability. These deals aim to bolster Research and Development (R&D) efficiency, reduce overlapping operations, and strengthen bargaining power across the supply chain.
Market Segmentation Highlights
- Hardware Segment: Dominates the market and is forecast to maintain strong growth in 2025 and beyond, thanks to its role in trajectory calculation and multitasking capabilities essential to modern flight systems.
- Commercial Aircraft Segment: Expected to see rapid expansion as global air travel rebounds and demand for next-generation commercial jets surges.
- Aftermarket Segment: Continues to play a vital role, driven by fleet upgrades and retrofitting programs across the commercial aviation sector.
Regional Analysis
- North America: Remains a powerhouse, underpinned by a strong aerospace manufacturing base and rising demand for commercial jets. Major avionics firms headquartered in the U.S. reinforce the region’s dominance.
- Europe: Forecast to register significant growth, supported by the presence of global avionics giants and their diverse product lines.
- Asia Pacific and Rest of World: Gaining traction due to rising air traffic, expanding airline fleets, and increased investment in defense modernization programs.
Leading Companies in the Avionics Sector
- BAE Systems (U.K.)
- Cobham (U.K.)
- Raytheon Technologies (U.S.)
- Garmin (U.S.)
- General Electric (U.S.)
- Honeywell International (U.S.)
- L3Harris Technologies (U.S.)
- Meggitt (U.K.)
- Safran (France)
- Teledyne Technologies (U.S.)
- Thales Group (France)
- TransDigm Group (U.S.)
These companies are adopting aggressive strategies to stay competitive, ranging from M&As and product launches to strategic partnerships and global expansion initiatives.
This article originally appeared in our partner publication, Aircraft Value News.
John Persinos is the editor-in-chief of Aircraft Value News.