Next-Generation Avionics - Global Strategic Business Report

The global market for Next-Generation Avionics was valued at US$3.0 Billion in 2024 and is projected to reach US$5.0 Billion by 2030, growing at a CAGR of 8.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Next-Generation Avionics market.

Global Next-Generation Avionics Market - Key Trends & Drivers Summarized

What’s Driving the Shift Toward Next-Generation Avionics Systems in Aerospace?

The aviation industry is undergoing a significant transformation, with next-generation avionics playing a central role in enabling safer, smarter, and more efficient flight operations. Avionics, the electronic systems used in aircraft for communication, navigation, flight control, and systems monitoring, are evolving in response to the growing demand for fuel efficiency, airspace optimization, automation, and compliance with stricter global safety and environmental regulations. These systems are no longer viewed as static cockpit fixtures but as dynamic and upgradeable digital architectures supporting real-time decision-making and predictive operations.

Next-gen avionics are being rapidly adopted by both military and commercial aircraft platforms to address the increasing complexity of air traffic management, autonomous flight capabilities, and data-intensive missions. Modern avionics suites integrate advanced hardware-such as multifunctional displays, touchscreens, synthetic vision, and enhanced GPS-with powerful software solutions powered by artificial intelligence (AI), real-time data analytics, and cyber-resilient flight systems. In commercial aviation, this translates into better situational awareness, fuel economy, and reduced pilot workload, while in defense applications, these systems support high-speed data links, sensor fusion, and mission-critical communication in contested airspaces.

How Are Technology Convergences Redefining Avionics Capabilities?

The convergence of digital twin technology, edge computing, AI, and satellite-based navigation is redefining the functionality of avionics systems. Digital twin models are being embedded within avionics software, allowing aircraft systems to simulate performance scenarios, anticipate system failures, and suggest corrective actions in real-time. Meanwhile, edge AI enables onboard processing of vast data streams from radar, lidar, and environmental sensors, facilitating rapid, autonomous decision-making without reliance on ground control.

Advanced display systems now offer pilots 3D terrain mapping, synthetic vision overlays, and real-time weather visualization, improving situational awareness under low-visibility conditions. Communication technologies like satellite-based ADS-B (Automatic Dependent Surveillance-Broadcast), Controller-Pilot Data Link Communication (CPDLC), and space-based VHF data links are enabling global coverage and seamless interaction between aircraft and air traffic control systems, particularly important in polar routes and oceanic operations.

Open avionics architectures such as FACE (Future Airborne Capability Environment) and MOSA (Modular Open Systems Approach) are gaining traction across military and civil programs. These frameworks allow modularity, cross-platform software integration, and hardware scalability-key for rapid deployment of new features and mission upgrades. This is essential in an era when avionics systems need to keep pace with evolving airspace policies, cybersecurity threats, and urban air mobility (UAM) demands.

Which Aircraft Categories and Regions Are Accelerating Avionics Modernization?

The commercial aviation sector, led by OEMs such as Boeing, Airbus, and Embraer, is heavily investing in avionics upgrades across narrow-body, wide-body, and regional jets to meet rising expectations around fuel savings, in-flight connectivity, and maintenance optimization. Avionics modernization is also surging in general aviation, with business jets, turboprops, and light aircraft retrofitting older platforms with glass cockpits, touchscreen avionics, and digital autopilot systems to comply with NextGen and SESAR (Single European Sky ATM Research) initiatives.

Military aviation is another high-growth segment where avionics innovation is central to fleet recapitalization programs. Fighter jets, transport aircraft, and unmanned aerial systems (UAS) are integrating avionics that enable electronic warfare, GPS-denied navigation, secure datalinks, and multi-domain operations. Rotary-wing aircraft are also seeing enhanced mission management capabilities through advanced avionics.

Regionally, North America dominates due to strong investment in NextGen air traffic control infrastructure, military modernization, and a large installed base of aircraft. Europe follows closely with SESAR-led initiatives and rising demand for green aviation technologies. Asia-Pacific is emerging as a strategic market with expanding regional aviation networks, growing defense budgets, and increased aircraft manufacturing activities, especially in China, India, Japan, and South Korea. Latin America and the Middle East are focusing on upgrading aging fleets and improving cross-border airspace navigation systems.

What Is Fueling Growth in the Global Next-Generation Avionics Market?

The growth in the global next-generation avionics market is driven by several factors, including the need for real-time data processing, increasing air traffic density, heightened cybersecurity requirements, and the emergence of electric and autonomous aircraft. Airlines are under pressure to optimize fleet operations, reduce carbon emissions, and enhance passenger experience-all of which are supported by intelligent avionics platforms offering predictive maintenance, flight optimization, and seamless ground-to-air communication.

Government mandates and aviation authorities such as FAA, EASA, and ICAO are enforcing avionics-related compliance deadlines related to ADS-B, CPDLC, and Performance-Based Navigation (PBN), compelling both new installations and retrofit opportunities. The shift toward connected aircraft ecosystems and eVTOLs (electric vertical take-off and landing) is also catalyzing demand for ultra-lightweight, low-power, and modular avionics systems capable of supporting highly automated flight operations.

Technological investments from defense contractors and aerospace startups are intensifying R&D in AI-powered navigation, software-defined radios, and cybersecure onboard networks. Strategic collaborations between avionics manufacturers and cloud computing firms are reshaping data analytics, fleet management, and digital twin deployment. As aerospace stakeholders prioritize operational resilience, compliance, and technological agility, next-generation avionics will remain a cornerstone of the global aviation modernization roadmap.

Scope of the Report

The report analyzes the Next-Generation Avionics market, presented in terms of market value (USD). The analysis covers the key segments and geographic regions outlined below:

• Segments: Type (Management System Avionics, Communications System Avionics, Navigation System Avionics, Other Types); Application (Civil Aircraft, Military Aircraft).
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Management System Avionics segment, which is expected to reach US$2.3 Billion by 2030 with a CAGR of a 7.4%. The Communications System Avionics segment is also set to grow at 11.2% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $785.1 Million in 2024, and China, forecasted to grow at an impressive 8.7% CAGR to reach $798.2 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Next-Generation Avionics Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Next-Generation Avionics Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Next-Generation Avionics Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as BAE Systems plc, Collins Aerospace, Curtiss-Wright Corporation, Diehl Aerospace GmbH, Elbit Systems Ltd. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 34 companies featured in this Next-Generation Avionics market report include:

• BAE Systems plc
• Collins Aerospace
• Curtiss-Wright Corporation
• Diehl Aerospace GmbH
• Elbit Systems Ltd.
• Garmin Ltd.
• GE Aerospace
• Gogo Business Aviation
• Honeywell Aerospace
• Indra Sistemas S.A.
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Mercury Systems, Inc.
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Robotic Skies
• Safran S.A.
• Saab AB
• Thales Group
• Universal Avionics Systems Corporation

This edition integrates the latest global trade and economic shifts into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes historical analysis from 2015 to 2023.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025 (E), competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.