Attitude Heading Reference System Market Report 2025

The attitude heading reference system market size has grown rapidly in recent years. It will grow from $1.31 billion in 2024 to $1.47 billion in 2025 at a compound annual growth rate (CAGR) of 12.1%. The growth observed during the historic period can be credited to the expansion of commercial aviation, an increase in defense modernization initiatives, the growing use of inertial navigation systems, the development of marine navigation systems, and the advent of affordable sensor technologies.

The attitude heading reference system market size is expected to see rapid growth in the next few years. It will grow to $2.29 billion in 2029 at a compound annual growth rate (CAGR) of 11.7%. The projected growth during the forecast period can be attributed to the expanding applications of unmanned aerial vehicles, rising demand for autonomous vehicles, increased adoption in space exploration initiatives, the advancement of smart defense systems, and the integration with global navigation satellite systems. Key trends expected in the forecast period include technological progress in micro-electromechanical systems, ongoing innovations in gyroscopic technologies, the incorporation of fiber optic and ring laser gyroscopes, intensified research and development in autonomous systems, and the emergence of hybrid navigation solutions.

The increasing use of unmanned aerial vehicles is expected to drive the growth of the attitude-heading reference system market in the coming years. Unmanned aerial vehicles are remotely or autonomously operated aircraft used across a range of sectors, including agriculture, defense, logistics, and infrastructure, for tasks that demand precision, efficiency, and real-time information. The expansion of unmanned aerial vehicle applications is being fueled by the rising demand for aerial intelligence and automated functions, as industries seek safer, faster, and more cost-effective alternatives to traditional manned operations. The attitude heading reference system plays a key role in enabling unmanned aerial vehicles to maintain reliable orientation, heading, and navigation data, which is essential for stable and autonomous flight, especially in environments where global positioning systems are limited or unstable. For example, in June 2025, a report released by the UK Ministry of Defense revealed that the UK made a record investment of £350 million ($445 million) in 2024 to increase drone supplies to Ukraine, raising the target from 10,000 drones in 2024 to 100,000 drones in 2025. As a result, the growth in unmanned aerial vehicle applications is contributing to the expansion of the attitude-heading reference system market.

Key players in the attitude-heading reference system market are concentrating on the development of cutting-edge solutions, such as high-performance strap-down systems, to enhance orientation precision and dependability in dynamic settings. High-performance strap-down systems are inertial navigation systems that incorporate accelerometers and gyroscopes fixed directly to a platform, allowing them to measure movement and orientation without the use of gimbals. These systems provide accurate, real-time data on heading, pitch, and roll, significantly improving navigation accuracy in fields such as aerospace, defense, and unmanned systems. For instance, in May 2023, Inertial Labs Incorporated, a navigation and sensor technology firm based in the United States, introduced the AHRS-II-P, a new attitude and heading reference system. The AHRS-II-P includes high-performance gyroscopes and accelerometers, offers dual-antenna global navigation satellite system support, and is designed for platforms with constraints in space and weight. This system benefits users by delivering accurate attitude and heading data in fast-changing environments, minimizing signal drift over time, and enabling reliable navigation in areas with weak or obstructed positioning signals.

In September 2022, Parker-Hannifin Corporation, a U.S.-based company specializing in motion and control technologies, completed the acquisition of Meggitt PLC for approximately $7.2 billion (£6.3 billion). Through this acquisition, Parker-Hannifin significantly broadened its aerospace and defense portfolio by incorporating Meggitt’s proprietary technologies. This move enhanced Parker-Hannifin’s capabilities in aircraft and aero-engine components, increased its participation in long-cycle and resilient business sectors, and strengthened its position in growing areas such as electrification and low-carbon technology. Meggitt PLC is a UK-based aerospace and defense technology firm that provides attitude heading reference systems.

Major players in the attitude heading reference system market are Northrop Grumman Corporation, Honeywell International Inc., Thales S.A., Garmin Ltd., Trimble Inc., Moog Inc., Safran Electronics & Defense SAS, EMCORE Corporation, KVH Industries Inc., Silicon Sensing Systems Limited, Advanced Navigation Pty Ltd, Airmar Technology Corporation, Xsens Technologies B.V., Dynon Avionics Inc., iMAR Navigation GmbH, Septentrio N.V., VectorNav Technologies LLC, Gladiator Technologies, SBG Systems S.A.S., Anschütz GmbH.

North America was the largest region in the attitude heading reference system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in attitude heading reference system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the attitude heading reference system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

An attitude and heading reference system (AHRS) is an electronic device that delivers real-time data on an object's orientation within three-dimensional space, including roll, pitch, and yaw. It integrates inputs from gyroscopes, accelerometers, and magnetometers to accurately assess the object's attitude and heading, often supplemented by GPS to enhance precision. AHRS technology is extensively applied in fields such as aviation, aerospace, marine, and unmanned vehicle operations to aid navigation and control functions.

The primary products in the attitude and heading reference system market are analog and digital. An analog AHRS utilizes continuous electrical signals, along with gyroscopes and accelerometers, to provide real-time orientation and heading data, typically used in legacy or basic applications. These systems are employed in various areas such as manufacturing robotics, agricultural surveying, and marine navigation, and are adopted across multiple industries including civil aviation, military aviation, unmanned vehicles, marine, robotics, agriculture, and others.

The attitude heading reference system market research report is one of a series of new reports that provides attitude heading reference system market statistics, including the attitude heading reference system industry global market size, regional shares, competitors with the attitude heading reference system market share, detailed attitude heading reference system market segments, market trends, and opportunities, and any further data you may need to thrive in the attitude heading reference system industry. These attitude heading reference system 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.

The attitude heading reference system market consists of revenues earned by entities by providing services such as system integration services, calibration and testing services, software support and upgrades, technical support and maintenance, customization services. The market value includes the value of related goods sold by the service provider or included within the service offering. The attitude heading reference system market consists of sales of conventional attitude and heading reference systems, air data attitude and heading reference systems, positioning system aided attitude and heading reference systems strapdown attitude and heading reference systems, hybrid attitude and heading reference systems. 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 and 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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