Avionics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Avionics Market is projected to expand from USD 46.64 Billion in 2025 to USD 69.41 Billion by 2031, reflecting a CAGR of 6.85%. Avionics encompasses the electronic systems used in aircraft, satellites, and spacecraft to execute vital operations such as communications, navigation, and flight management. Market growth is chiefly underpinned by the demand for improved operational efficiency and strict compliance with advancing aviation safety regulations, which spurs the retrofitting of older fleets. Additionally, the continued resurgence of global air travel stimulates the manufacturing of new aircraft, necessitating advanced electronic suites. This strong demand is highlighted by recent industry metrics; the General Aviation Manufacturers Association reported that billings for general aviation aircraft rose to $31.2 billion in 2024.

Despite these positive indicators, the industry confronts substantial difficulties regarding supply chain dependability. A continuous scarcity of semiconductor chips and critical electronic components limits manufacturing capabilities and prolongs lead times. These logistical setbacks hinder vendors' capacity to meet delivery timelines and drive up production expenses, potentially obstructing the wider growth of the global avionics industry.

Market Drivers

The modernization of global military aviation and heightened defense expenditures act as major drivers for the avionics industry. Governments are placing a premium on enhancing airborne defense capabilities, such as sophisticated radar systems, electronic warfare suites, and secure communication networks, in response to escalating geopolitical tensions. This financial dedication supports the acquisition of new military platforms and the comprehensive upgrading of existing assets with digital cockpit technologies. The magnitude of this investment is significant; according to the North Atlantic Treaty Organization's 'Secretary General Annual Report 2024' released in April 2025, NATO Allies in Europe and Canada allocated a combined $486 billion to defense, marking a substantial real-term increase that directly aids avionics manufacturers supplying essential electronic infrastructure for modern combat readiness.

The growth and modernization of commercial aircraft fleets further accelerate market momentum as airlines aim to optimize flight operations and minimize carbon emissions. Carriers are actively retiring aging models in favor of fuel-efficient aircraft outfitted with integrated avionics that facilitate precision navigation and predictive maintenance. This replacement cycle guarantees a consistent flow of orders for original equipment manufacturers. According to Boeing's 'Commercial Market Outlook 2025-2044' published in June 2025, the global aviation sector is expected to demand 43,600 new commercial aircraft over the coming two decades to accommodate traffic growth and replacement requirements. Underscoring the vast scale of this opportunity for the avionics market, the report predicts the total active global commercial fleet will grow to exceed 49,600 aircraft by 2044.

Market Challenges

The Global Avionics Market is currently hindered by intense supply chain instability, particularly the enduring shortage of semiconductor chips and vital electronic components. This deficit directly constrains the manufacturing output of avionics suppliers, necessitating extended lead times for essential flight management and navigation suites. Because aircraft manufacturers are unable to complete assembly without these integral electronic systems, entire production lines are decelerated. This interruption creates a ripple effect that postpones revenue recognition for avionics providers and raises operational expenses, effectively impeding the market's capacity to fully benefit from the resurgence in air travel.

The scale of this production bottleneck is quantitatively demonstrated by recent industry statistics. As per the International Air Transport Association (IATA), the backlog of unfulfilled commercial aircraft orders hit a record high of over 17,000 units in 2024. This historic buildup of undelivered aircraft underscores the acuteness of the component shortage, as airframers remain unable to procure the requisite avionics and systems to finalize orders, thereby directly restricting the sector's immediate growth despite strong demand.

Market Trends

The development of avionics suites for Urban Air Mobility (UAM) and eVTOL platforms is establishing a unique high-growth sector dedicated to lightweight, streamlined, and highly automated flight management systems. In contrast to conventional commercial aircraft, these electric vehicles necessitate integrated avionics capable of managing battery distribution, electric propulsion, and eventually autonomous navigation within congested urban airspaces. This sector is swiftly moving from the prototyping phase to industrial-scale manufacturing, backed by significant capital investments designed to certify these innovative cockpit technologies. According to Archer Aviation's 'Q4 & FY 2024 Shareholder Letter' from February 2025, the company maintained a robust liquidity position with $834.5 million in cash and cash equivalents to sustain its manufacturing acceleration and certification initiatives.

Concurrently, the implementation of cyber-resilient avionics frameworks is emerging as a vital priority as aircraft connectivity expands through Wireless Avionics Intra-Communications (WAIC) and satellite linkages. The industry is transitioning from perimeter-based security measures to zero-trust architectures to ensure that mission-critical flight data is defended against complex digital threats aimed at airborne networks. This emphasis on hardening electronic infrastructure is necessitated by the incorporation of commercial-off-the-shelf components, which, although cost-efficient, bring new vulnerabilities that operators must address. According to SITA's '2024 North American Air Transport IT Insights report' released in May 2025, 77% of North American airlines listed cybersecurity among their top three IT priorities for 2025, underscoring the sector's urgency in managing these digital risks.

Key Players Profiled in the Avionics Market

• Honeywell
• Collins Aerospace
• Thales
• Garmin
• L3Harris
• Safran
• BAE Systems
• Curtiss-Wright
• Elbit Systems
• Raytheon

Report Scope

In this report, the Global Avionics Market has been segmented into the following categories:

Avionics Market, by System:

• Hardware
• Software

Avionics Market, by Platform:

• Commercial
• Military
• Business Jets
• General Aviation

Avionics Market, by End User:

• OEM
• Aftermarket

Avionics Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Avionics Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.