The aircraft synthetic vision systems market is forecasted to grow at a CAGR of more than 2.8% during the forecast period (2021-2026).
The global aviation sector is undergoing an unprecedented disruption due to the COVID-19 pandemic. Though the sector is projected to recover in 2021, the recovery is expected to be uneven across the two constituent sectors. For instance, the commercial aviation sector has been significantly affected by the pandemic, resulting in a drastic reduction in passenger traffic, which in turn, has negatively affected aircraft demand. As a result, the commercial aviation sector is expected to recover slowly, as travel demand is projected to normalize to pre-COVID levels by 2023. However, the military aviation sector is expected to remain stable, and even grow as most of the countries have not reduced their defense budget and remain committed to sustaining their military capabilities. Nevertheless, due to the widespread disruption in the supply chain, some of the military aircraft programs could face minor cost escalations and delays in the short term.
Synthetic Vision Systems are designed to improve aircrew situational awareness, particularly during the approach and landing phase of flight. They are also very effective in improving flight safety, specifically regarding reducing the incidence of controlled flight into terrain (CFIT) events.
The aircraft synthetic vision systems market is driven by the increasing demand for new aircraft as part of the fleet expansion and modernization programs initiated by respective end-users in the military, commercial, and general aviation sectors. However, the inherent capital-intensive nature of the aviation electronics industry due to the high associated cost of R&D, and the recent COVID-19 induced disruption in the global electronics supply chain are some of the factors that hinder the growth of the market in focus during the forecast period.
Key Market Trends
Military End-user to Witness Higher Growth During the Forecast Period
The emerging geopolitical rift among rival nations has fostered the need for the induction of advanced military assets, including aircraft. The subsequent increase in defense expenditure also aims to accelerate ongoing and new procurement programs for new generation platforms. For instance, in May 2021, the US Air Force awarded a USD 14 billion contract to Lockheed Martin Corporation to produce 128 Block 70/72 jets on behalf of Bahrain, Slovakia, Bulgaria, Taiwan, and Morocco. Similarly, in January 2021, the Indian Ministry of Defense (MoD) cleared the purchase of 83 LCA MK1A Tejas light combat aircraft for USD 6.5 billion. Also, in July 2021, the UK MoD signed a USD 347 million agreement with Team Tempest to provide digital and physical infrastructure to develop the aircraft. Similar procurement initiatives are being undertaken by other nations across the globe. Since these new-generation military aircraft feature state-of-the-art synthetic vision systems that enable the pilot to have 360-degree situational awareness, the demand for new-generation military aircraft is expected to create a parallel demand for synthetic vision systems.
North America to Dominate the Market During the Forecast Period
The aerospace industry in the region is mature and strongly supported by a robust aviation base. Higher air traffic has resulted in the procurement of several aircraft by the regional and international airline operators in the region. Boeing, one of the major aircraft OEMs based in the US, generates a huge demand for aircraft fire protection systems. As the OEMs receive new orders for aircraft, the demand is simultaneously generated for commercial aircraft fire protection systems, as FAA mandates the installation of evacuation systems in all active aircraft. Factors such as the availability of raw materials, political stability, and low production costs have driven the establishment of new aerospace manufacturing facilities in the region. Also, fluctuations in aviation fuel prices have triggered a surge in demand for fuel-efficient new-generation aircraft worldwide.
Hence, aircraft OEMs have started beefing up their production capabilities to cope with the ever-increasing demand. In 2017, Airbus invested USD 300 million for the construction of a new assembly line at its Mobile Aeroplex facility in Alabama, US, for assembling the Bombardier C series (renamed A220) aircraft. The A220 features the electronic flight instrument systems designed by Collins Aerospace, a part of Raytheon Technologies Corporation. Nevertheless, the robust aviation infrastructure in the US has resulted in new orders being placed to address the increased passenger footfall. In June 2019, American Airlines agreed to purchase 50 A321XLRs to modernize its fleet. Likewise, Delta Airlines also placed an order for additional 5 A220-100 aircraft in June 2019.
Indigenous aircraft development programs are anticipated to bolster the business prospects of regional fire protection system manufacturers and integrators alike. For instance, as part of its Air Superiority 2030 program, the US Air Force (USAF) is developing a pair of two new high-tech fighter aircraft, dubbed the Penetrating Counter Air. The USAF expects to ramp up funding to USD 1.4 billion in FY20, and to USD 3.1 billion in 2022 for developing advanced air combat systems.
Major players in the aircraft synthetic vision systems market are Cobham Limited, Garmin Ltd, Honeywell International Inc., Thales Group, and Collins Aerospace (Raytheon Technologies Corporation). As synthetic vision systems (SVSs) become more mainstream, players in the market are refining their products to appeal to a broader range of customers. Along with general aviation operators, key targets of the players include the rotorcraft and commercial aviation markets. However, for commercial and general aviation users, in addition to providing situational awareness, the market players are also expected to design synthetic vision systems keeping in mind the potential for economic returns. The systems are required to be less prone to malfunction or breakdown, eliminating or reducing the need for frequent upgrades and maintenance, which may attract new customers for players, thereby, helping them gain higher market shares.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.2 Scope of the Study
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD million)
5.1.3 General Aviation
5.2 Display System
5.2.1 Primary Flight Display
5.2.2 Navigation Display
5.2.3 Heads-up and Helmet-mounted Display Systems
5.2.4 Other Display Systems
5.3.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.3.4 Latin America
18.104.22.168 Rest of Latin America
5.3.5 Middle-East and Africa
22.214.171.124 United Arab Emirates
126.96.36.199 Saudi Arabia
188.8.131.52 Rest of Middle-East and Africa
6.2 Company Profiles
6.2.1 Cobham Limited
6.2.2 Garmin Ltd
6.2.3 Honeywell International Inc.
6.2.4 Thales Group
6.2.5 Collins Aerospace (Raytheon Technologies Corporation)
6.2.6 Safran SA
6.2.7 Aspen Avionics Inc.
6.2.8 Avidyne Corporation
6.2.9 Elbit Systems Ltd
6.2.10 Mercury Systems Inc.
6.2.11 L3Harris Technologies Inc.
6.2.12 ENSCO Inc.
A selection of companies mentioned in this report includes:
- Cobham Limited
- Garmin Ltd
- Honeywell International Inc.
- Thales Group
- Collins Aerospace (Raytheon Technologies Corporation)
- Safran SA
- Aspen Avionics Inc.
- Avidyne Corporation
- Elbit Systems Ltd
- Mercury Systems Inc.
- L3Harris Technologies Inc.
- ENSCO Inc.