The global avionics market value reached around USD 76.74 Billion in 2024. The market is further projected for steady growth over the forecast period of 2025-2034 at a CAGR of 4.50% to reach value of around USD 119.17 Billion by 2034.
Avionics demand forecasts the incorporation of flight management systems in commercial and military aircraft.
The Asia Pacific region led in growth with a 60.7% increase in RPK and a 53.4% rise in ASK, achieving an 81.2% load factor, up 3.7 percentage points (PT). Europe held the largest market share at 30.8%, with a 12.5% increase in RPK and a load factor of 85.1%, reflecting a 0.1 PT improvement. North America followed with a 28.8% market share, 10.6% growth in RPK, and an 82.9% load factor.
The Middle East showed a 16.4% rise in RPK and a load factor of 78.2%, while Latin America saw a 16.3% increase in RPK, achieving an 82.7% load factor with a notable 4.2 PT rise. Africa experienced a 12.1% growth in RPK and an 18.7% increase in ASK, but the load factor decreased by 4.3 PT to 73.2%. These trends underscore the positive momentum in the air passenger market, with significant growth across most regions and improved load factors indicating effective capacity utilisation.
Further, the air passenger market is expected to witness an additional 3.92 billion passengers by 2040. The Asia Pacific region leads this expansion with a robust CAGR of 4.5%, expecting to add 2.53 billion passengers by 2040. North America and Europe are set to recover by 2023, with North America adding 558.5 million passengers at a 2.2% CAGR and Europe increasing by 701.4 million passengers at the same growth rate. Africa and the Middle East both exhibit a 3.6% CAGR, with Africa adding 169.7 million passengers and the Middle East contributing 264.1 million. Latin America & the Caribbean is forecasted to recover by 2023, with a 2.8% CAGR leading to an additional 304.0 million passengers. These avionics market trends indicate a positive outlook for the air travel industry, driven by strong growth in emerging markets and steady increases in mature markets, indicating a resilient recovery and long-term expansion.
Continuous innovations in digital flight decks, communication systems, and navigation technologies enhance aircraft efficiency and safety, driving avionics market demand.
Moreover, there is a growing affordability of helicopters for religious tourism in India. They are used to visit pilgrimage sites located in mountains or hostile zones and are likely to be a crucial driving factor for the market in the region. Furthermore, the avionics industry revenues are anticipated to be aided by the strong foothold of major players.
Global Avionics Market Growth
Hardware components of an aircraft, such as flight management systems and communication systems, are extremely crucial for safe and smooth flying. Flight management systems bolster the operational harmony between the integral elements of the aircraft linked with a flight from take-off to landing. A flight management system pre-programs the travel route of an aircraft which makes the journey accurate and timely.Avionics demand forecasts the incorporation of flight management systems in commercial and military aircraft.
Global Avionics Market Analysis
Meanwhile, communication systems are integral hardware in an aircraft as they improve the coordination between crew members and ground personnel. Therefore, the increasing need for efficient communication systems in commercial aircraft is anticipated to propel the avionics market growth.Global Avionics Industry Outlook
As per the International Air Transport Association (IATA), in December 2023, the global air passenger market exhibited robust growth, with a 25.3% year-on-year increase in revenue passenger kilometers (RPK) and a 24.1% rise in available seat kilometers (ASK), leading to an overall load factor (PLF) of 82.1%, thus boosting the growth of the avionics market.The Asia Pacific region led in growth with a 60.7% increase in RPK and a 53.4% rise in ASK, achieving an 81.2% load factor, up 3.7 percentage points (PT). Europe held the largest market share at 30.8%, with a 12.5% increase in RPK and a load factor of 85.1%, reflecting a 0.1 PT improvement. North America followed with a 28.8% market share, 10.6% growth in RPK, and an 82.9% load factor.
The Middle East showed a 16.4% rise in RPK and a load factor of 78.2%, while Latin America saw a 16.3% increase in RPK, achieving an 82.7% load factor with a notable 4.2 PT rise. Africa experienced a 12.1% growth in RPK and an 18.7% increase in ASK, but the load factor decreased by 4.3 PT to 73.2%. These trends underscore the positive momentum in the air passenger market, with significant growth across most regions and improved load factors indicating effective capacity utilisation.
Further, the air passenger market is expected to witness an additional 3.92 billion passengers by 2040. The Asia Pacific region leads this expansion with a robust CAGR of 4.5%, expecting to add 2.53 billion passengers by 2040. North America and Europe are set to recover by 2023, with North America adding 558.5 million passengers at a 2.2% CAGR and Europe increasing by 701.4 million passengers at the same growth rate. Africa and the Middle East both exhibit a 3.6% CAGR, with Africa adding 169.7 million passengers and the Middle East contributing 264.1 million. Latin America & the Caribbean is forecasted to recover by 2023, with a 2.8% CAGR leading to an additional 304.0 million passengers. These avionics market trends indicate a positive outlook for the air travel industry, driven by strong growth in emerging markets and steady increases in mature markets, indicating a resilient recovery and long-term expansion.
Continuous innovations in digital flight decks, communication systems, and navigation technologies enhance aircraft efficiency and safety, driving avionics market demand.
- Rising global air traffic and fleet expansions in commercial and military sectors boost demand for avionics systems, supporting market opportunities for upgrades and replacements.
- Stringent global safety standards necessitate advanced avionics systems integration, driving demand for upgrades like ADS-B and NextGen initiatives.
- Stringent aviation authority certifications increase the complexity and time required for system integration and upgrades, raising operational costs.
- Fluctuations in global production rates and order backlogs directly impact avionics market demand, susceptible to economic downturns.
- Incorporation of AI, IoT, and blockchain in avionics systems enhances data management and operational efficiency, fostering innovation in aviation technology.
- Increased defence budgets worldwide drive demand for advanced avionics systems, supporting growth through modernization and international collaborations.
- Growing connectivity exposes avionics systems to cybersecurity risks, including data breaches and vulnerabilities, posing significant threats to market stakeholders.
- High competition among avionics manufacturers intensifies price pressures and technological rivalry, compounded by saturation in certain product segments.
Key Players in the Global Avionics Market and their Key Initiatives
BAE Systems plc
- Introduced the next-gen Striker II helmet, enhancing pilot situational awareness with advanced augmented reality technology.
- Considering the avionics market dynamics and trends, the company partnered with Heart Aerospace to develop electric aircraft avionics.
CCX Technologies
- launched advanced cybersecurity solutions for avionics systems.
- Introduced portable avionics testers, simplifying maintenance and diagnostics for aircraft systems.
Safran Group
- launched the new-generation autopilot system to capture the avionics market opportunities.
- Invested in advanced data analytics for predictive maintenance, reducing downtime and maintenance costs.
Curtiss-Wright Corporation
- Launched a new rugged mission computer for advanced military and aerospace applications.
- Expanded its avionics product line with high-performance data recording solutions.
Global Avionics Industry Segmentation
“Global Avionics Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:Market Breakup on End-Use
- OEM
- Aftermarket
Market Breakup on system
- Hardware
- Flight Management Systems
- Communication Systems
- Navigation Systems
- Surveillance Systems
- Electrical Systems
- Emergency Systems
- Mission and Tactical Systems
- Inflight Entertainment Systems
- Health Monitoring Systems
- Collision Avoidance Systems
- Weather Systems
- Software
- Safety-Critical Airborne Software
- Mission Flight Management Software
- Flight Management Software
- Aircraft Health Diagnostic Software
- Training and Simulation Software
- Others
Market Breakup by Platform
- Commercial Aviation
- Business Jets and General Aviation
- Military Aviation
- Helicopters
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Avionics Market Share
The market in Asia Pacific is being driven by the robust expansion of medium and large businesses which are generating a high demand for helicopters and aircraft. Countries like China and India account for a combined share of approximately 20% of the global military spending. In this regard, these countries are likely to witness a significant demand for military aircraft, thereby, propelling the growth of the avionics industry.Moreover, there is a growing affordability of helicopters for religious tourism in India. They are used to visit pilgrimage sites located in mountains or hostile zones and are likely to be a crucial driving factor for the market in the region. Furthermore, the avionics industry revenues are anticipated to be aided by the strong foothold of major players.
Leading Companies in the Avionics Market
The company designs and manufactures military equipment like submarines and fighter jets, providing advanced technology solutions globally.- BAE Systems plc
- CCX Technologies
- Safran Group
- Curtiss-Wright Corporation
- Garmin Ltd
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Avionics Market Analysis
6 North America Avionics Market Analysis
7 Europe Avionics Market Analysis
8 Asia Pacific Avionics Market Analysis
9 Latin America Avionics Market Analysis
10 Middle East and Africa Avionics Market Analysis
11 Market Dynamics
12 Competitive Landscape
Companies Mentioned
- BAE Systems plc
- CCX Technologies
- Safran Group
- Curtiss-Wright Corporation
- Garmin Ltd
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 155 |
| Published | July 2025 |
| Regions Covered | Global |
| No. of Companies Mentioned | 5 |
