Commercial Aircraft Nextgen Avionics Market Report 2026

The commercial aircraft nextgen avionics market size has grown rapidly in recent years. It will grow from $3.76 billion in 2025 to $4.18 billion in 2026 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to increased adoption of advanced navigation and surveillance systems to meet evolving aviation safety standards, growing integration of digital health monitoring systems to improve aircraft reliability and maintenance efficiency, rising deployment of tactical avionics to enhance flight performance and situational awareness, expansion of in-flight entertainment systems to improve passenger experience and differentiate airline services, modernization of commercial aircraft fleets driving upgrades to next-generation avionics platforms.

The commercial aircraft nextgen avionics market size is expected to see rapid growth in the next few years. It will grow to $6.18 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to growing demand for nextgen communication technologies supporting real-time data exchange between aircraft and ground systems, increasing adoption of predictive health monitoring solutions enabled by analytics and connectivity, rising investment in enhanced in-flight entertainment experiences including personalized and bandwidth-intensive services, expanding integration of automation and advanced tactical systems to optimize fuel efficiency and reduce emissions, continued aircraft production and fleet renewal programs driving installation of next-generation avionics suites. Major trends in the forecast period include growing adoption of lightweight hybrid metals, rising use of corrosion-resistant alloy materials, increasing integration of high-temperature-resistant alloys, advancements in composite-metal bonded structures, development of next-generation fatigue-resistant structural materials.

The rise in air passenger traffic is expected to drive the growth of the commercial aircraft nextgen avionics market going forward. Air passenger traffic refers to both domestic and international travelers carried by airlines with national registrations. The increase in air passenger traffic is mainly due to the strong recovery of international tourism, as relaxed travel restrictions and renewed consumer confidence have encouraged more people to travel for leisure and business. Growing air passenger traffic increases the need for improved operational efficiency, safety, and airspace capacity, thereby supporting the development and implementation of next-generation avionics in commercial aircraft to enhance navigation accuracy, communication reliability, and overall flight performance. For example, in April 2024, according to the Bureau of Transportation Statistics, a U.S.-based government agency, U.S. airlines carried about 70 million scheduled service passengers (domestic + international) in January 2024, representing a 4% increase compared to January 2023. Therefore, rising air passenger traffic worldwide is fueling the growth of the commercial aircraft nextgen avionics market.

Leading companies in the commercial aircraft nextgen avionics market are concentrating on developing innovative next-generation systems to enhance safety, improve operational efficiency, reduce weight and power consumption, enable advanced connectivity and automation, and meet evolving regulatory requirements in the aviation industry. Next-generation systems refer to advanced technologies and solutions that offer significant improvements over current systems, often incorporating the latest innovations in design, functionality, and performance. For example, in June 2023, Embraer Services & Support, a Brazil-based aircraft company, introduced the next generation of its AHEAD (Aircraft Health Analysis and Diagnosis) system at the Paris Air Show. This advanced tool is designed to improve predictive maintenance capabilities for Embraer’s fleet, with a particular focus on commercial and executive jets.

In July 2024, Loar Holdings Inc., a US-based aerospace and defense company, acquired Applied Avionics, Inc. for $385 million. Through this acquisition, Loar Holdings Inc. aims to strengthen its product offerings and strategic position in the aerospace industry, with a focus on niche capabilities, proprietary products, and expanding its aftermarket solutions. Applied Avionics Inc., a US-based company, specializes in the manufacturing and supply of avionics system integration products for aircraft cockpits.

Major companies operating in the commercial aircraft nextgen avionics market are Cobham Limited, Curtiss-Wright Corp., General Electric Company, Honeywell International Inc., L3Harris Technologies Inc., Raytheon Technologies Corporation, Safran S.A, Teledyne Technologies Incorporated, Thales Group, Elbit Systems of America LLC, Esterline Technologies Corporation, Garmin International Inc., Panasonic Avionics Corporation, Universal Avionics Systems., BAE Systems plc, Garmin Ltd., Meggitt plc, UAVIONIX Corporation, CMC Electronics Inc., Astronics Corporation, GE Aviation LLC, Avidyne Corporation, Becker Avionics GmbH, Cobham Aerospace Communications, Comant Industries Inc., DAC International, FreeFlight Systems, Genesys Aerosystems, Honeywell Aerospace Ltd., Innovative Solutions & Support Inc., Mid-Continent Instruments and Avionics, NavWorx Inc., Sandel Avionics Inc.

Asia-Pacific was the largest region in the commercial aircraft nextgen avionics market in 2025. North America is expected to be the fastest growing region in the forecast period. The regions covered in the commercial aircraft nextgen 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 metals and advanced composite inputs have introduced cost pressures and supply delays in the commercial aircraft airframe materials market by increasing import duties on aluminum, titanium, and specialty alloys. These tariff-driven cost escalations have impacted the aluminum alloy, titanium alloy, and composite segments most significantly, with regions like North America, Europe, and Asia-Pacific facing disruptions depending on their reliance on imported raw materials. Although tariffs raise production expenditures, they have also encouraged localized manufacturing, strategic reshoring, and increased investment in domestic alloy and composite production capabilities, mildly benefiting long-term material availability and supply chain stability.

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

Commercial aircraft next-generation avionics comprise an integrated set of technologies, communication systems, and equipment that significantly transform aviation surveillance, navigation, and communication practices. This advancement enhances safety, reduces flight times, and decreases emissions by incorporating various modern technologies. The primary objective of commercial aircraft next-generation avionics is to support pilots in maneuvering more efficiently.

The key systems within commercial aircraft next-gen avionics include the flight management system, communication system, electric and navigation system, surveillance and emergency system, collision avoidance system, weather system, and others. Flight management systems are onboard multi-purpose navigation, performance, and aircraft operations computers designed to provide virtual data and operational coordination between closed and open aspects associated with an aircraft - from pre-engine start and takeoff to landing and engine shutdown. Installation stages include forward fit and retrofit, with applications in regional, narrow-body, and wide-body aircraft.

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

The commercial aircraft nextgen avionics market consists of sales of health monitoring, tactical system, and in-flight entertainment. 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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