Avionics Market Report 2026

The avionics market size has grown strongly in recent years. It will grow from $90.5 billion in 2025 to $97.67 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to growing adoption of digital flight management and control systems in commercial aircraft, increased deployment of advanced navigation and surveillance avionics to meet regulatory requirements, modernization of legacy aircraft fleets driving replacement demand for cockpit display and weather control systems, rising production of spacecraft and satellites requiring specialized avionics subsystems, expansion of global air travel boosting installations of communication and health-monitoring avionics.

The avionics market size is expected to see strong growth in the next few years. It will grow to $128.1 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to increasing integration of next-generation display control systems with enhanced situational awareness features, rising demand for advanced weather sensing and predictive avionics to improve flight safety, growing adoption of integrated avionics suites in new-generation commercial and military aircraft, expanding investments in satellite and spacecraft programs requiring sophisticated avionics architectures, accelerating development of autonomous and semi-autonomous flight technologies driving advanced avionics requirements. Major trends in the forecast period include increasing integration of multi-function cockpit displays, rising adoption of advanced flight-management and health-monitoring systems, shift toward modular, upgradable avionics architectures, growing demand for enhanced communication and surveillance capabilities, expansion of avionics retrofitting and aftermarket support services.

The rising military expenditure is expected to drive the growth of the avionics market in the coming years. Military expenditure refers to the financial resources allocated by a nation or government for its armed forces and related operations. Military spending is increasing due to escalating geopolitical tensions and the growing need to modernize defense capabilities among major global powers. This expenditure supports avionics by funding the development, procurement, and deployment of advanced navigation, communication, and flight control systems for defense aircraft, enhancing operational efficiency and mission readiness. For instance, in April 2024, according to the Stockholm International Peace Research Institute, a Sweden-based research organization, global military spending reached approximately $2.29 trillion in 2022, rising to $2.44 trillion in 2023, reflecting a 6.8% year-over-year increase. Therefore, the rising military expenditure is propelling the growth of the avionics market.

Major companies in the fighter aircraft systems market are focusing on utilizing collaborative consortiums for propulsion and avionics development to improve performance, shorten development timelines, and accelerate next-generation fighter capabilities. Propulsion and avionics consortiums, which combine expertise from multiple aerospace and defense companies, help optimize engine performance, flight control systems, and electronic warfare capabilities, ensuring more advanced, reliable, and efficient fighter aircraft. For instance, in September 2025, Global Combat Air Programme (GCAP) partners launched dedicated propulsion and avionics consortiums aimed at developing technologies for next-generation fighter jets. Designed to meet the rising demand for cutting-edge fighter aircraft with superior speed, maneuverability, and mission effectiveness, the consortiums foster joint innovation, share technological expertise, and streamline system integration. The initiative leverages the combined capabilities of partner companies, enabling fighter aircraft that are more powerful, technologically advanced, and operationally superior than current platforms.

In July 2025, HEICO Corporation, a US-based electronics company, acquired Gables Engineering Inc. for an undisclosed amount. Through this acquisition, HEICO aims to strengthen its position in the avionics sector by enhancing high-margin component production capabilities and expanding its market presence. Gables Engineering Inc. is a US-based provider of avionics.

Major companies operating in the avionics market are Safran SA, Honeywell International Inc., Thales Group, L-3 Avionics Systems, Raytheon Technologies Ltd., GE Aviation Inc., BAE Systems plc, Meggitt plc, Rockwell Collins Inc., Panasonic Avionics Corporation, Garmin Ltd., Universal Avionics System Corporation, Airbus SE, The Boeing Company, Cobham Limited, Curtiss-Wright Corporation, Teledyne Technologies Inc., Raytheon Technologies Corp., L3Harris Technologies Inc., Leonardo S.p.A., Moog Inc., Esterline Technologies Corporation, Astronics Corporation, Elbit Systems Ltd., FLIR Systems Inc., Avidyne Corporation, Aspen Avionics Inc., FreeFlight Systems, Mid-Continent Instruments and Avionics, Bendix Aviation Corporation.

North America was the largest region in the avionics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the avionics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electronic components, sensors, and semiconductor assemblies have increased avionics production costs and extended lead times, disrupting procurement for commercial aviation, military platforms, and helicopter systems. Commercial aviation and OEM segments in North America, Europe, and Asia-Pacific are most affected, where reliance on imported high-precision electronics is highest. However, tariffs have also encouraged localized manufacturing, supply-chain diversification, and investment in regional avionics production capabilities, offering long-term resilience and competitive advantages.

The avionics market research report is one of a series of new reports that provides avionics market statistics, including avionics industry global market size, regional shares, competitors with an avionics market share, detailed avionics market segments, market trends and opportunities, and any further data you may need to thrive in the avionics industry. This avionics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

Avionics encompasses a combination of multiple display units integrated into aircraft to facilitate flight operations. Widely utilized in spacecraft, artificial satellites, and aircraft, avionics play a critical role in communication, navigation, and the management of various systems. The avionics system comprises diverse flight sub-systems, including health monitoring systems, flight management, flight control, navigation and surveillance systems, electrical and emergency systems, as well as communication and electronics systems.

The primary market segments for avionics are categorized into commercial aviation, military aviation, business jets, general aviation, and helicopters. Commercial aviation involves the use of aircraft for passenger and cargo transportation for non-military purposes. The various subsystems within avionics, such as flight management and control, health monitoring, electrical and emergency systems, communication and navigation, and surveillance, cater to a broad range of end-users, including original equipment manufacturers and the aftermarket.

The countries covered in the avionics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The avionics market consists of sales of weather control and display control. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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