Next-Gen Military Avionics Market Global Report 2026

The next-gen military avionics market size has grown strongly in recent years. It will grow from $36.73 billion in 2025 to $38.99 billion in 2026 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historic period can be attributed to the increasing modernization of military aircraft fleets, rising demand for advanced electronic warfare capabilities, growing adoption of digital avionics systems, increasing need for enhanced aircraft situational awareness, and expanding deployment of advanced mission systems.

The next-gen military avionics market size is expected to see strong growth in the next few years. It will grow to $48.67 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to increasing demand for mission-adaptive avionics architectures, rising need for greater onboard processing capabilities, growing demand for integrated multi-mission avionics systems, increasing requirements for resilient and reliable avionics, and expanding modernization of next-generation military aircraft. Major trends in the forecast period include increasing adoption of advanced digital avionics architectures, rising demand for high-performance onboard computing, growing integration of interconnected avionics systems, increasing demand for modular and upgradeable avionics, and rising focus on enhanced avionics reliability and mission adaptability.

The rising defense modernization programs are expected to propel the growth of the next-gen military avionics market going forward. Defense modernization programs are government-led initiatives to upgrade military capabilities through advanced technologies, modern equipment, and improved defense systems to strengthen national security and combat readiness. Defense modernization programs are increasing due to the growing threat of advanced and asymmetric warfare, encouraging governments to invest in next-generation military technologies and defense systems. These programs support the growth of next-generation military avionics by increasing investments in advanced aircraft upgrades and new defense platforms that require integrated digital avionics, AI-enabled mission systems, secure communications, advanced sensors, and electronic warfare capabilities. For instance, in March 2023, according to the Offices of the Under Secretaries of Defense (OUSD), a US-based Department of Defense authority, the FY 2024 Cybersecurity and Acquisition budget of $13.5 billion, aligned with the 2022 National Defense Strategy, was intended to strengthen ongoing initiatives under the Digital Modernization Strategy and the Department of Defense Cyber Strategy framework. Therefore, the rising defense modernization programs are driving the growth of the next-gen military avionics market.

Major companies operating in the next-gen military avionics market are concentrating on developing advanced systems, such as safety-critical multicore computing platforms, to increase processing performance, facilitate real-time parallel workload execution, improve system reliability, and support certification of mission-critical avionics applications. Safety-critical multicore computing platforms are advanced computing systems that employ multiple processor cores to execute critical avionics workloads simultaneously, helping increase processing speed, real-time performance, reliability, power efficiency, and safety certification for mission-critical aerospace and defense applications. For instance, in January 2026, Curtiss-Wright Corporation, a US-based aerospace and defense technology company, partnered with Green Hills Software LLC, a US-based software company, to introduce a high-performance commercial off-the-shelf solution for safety-critical avionics systems. The solution combines Curtiss-Wright’s V3-1222 3U VPX processing module, equipped with a 13th Gen Intel Core i7 processor, with Green Hills Software’s FACE-certified INTEGRITY-178 tuMP real-time operating system. The platform supports multicore processing, parallel workload execution, high-bandwidth data throughput, trusted computing, and multiple security levels for applications such as tactical radar, flight-control computers, and sensor fusion. The collaboration is expected to reduce integration complexity, speed deployment, and deliver reliable, high-performance computing capabilities for next-generation military avionics systems.

In November 2025, Collins Aerospace, a US-based aerospace and defense company and business of RTX Corporation that specializes in next-generation military avionics and open architecture systems for defense aircraft, partnered with the Royal Netherlands Air and Space Force (RNLASF) to establish a new military avionics service center in the Netherlands. Through this partnership, Collins Aerospace and RNLASF aimed to improve the operational readiness of European F-35 and CH-47F fleets, establish avionics repair and depot-level maintenance capabilities, enhance repair supply-chain management, strengthen technical skills and infrastructure in the Netherlands, and develop a regional lifecycle sustainment solution for European customers. Royal Netherlands Air and Space Force (RNLASF) is a Netherlands-based military organization responsible for the country’s air and space defense.

Major companies operating in the next-gen military avionics market are RTX Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems plc, General Dynamics Corporation, Thales Group, L3Harris Technologies, Honeywell International Inc., Safran, Leonardo S.p.A., Mitsubishi Electric Corporation, Elbit Systems Ltd., Saab AB, Israel Aerospace Industries Ltd., Moog Inc., Parker Hannifin Corporation, Aselsan Elektronik Sanayi ve Ticaret A.S., Bharat Electronics Limited, Curtiss-Wright Corporation, Hensoldt AG, General Atomics, Mercury Systems Inc., Diehl Stiftung & Co. KG.

North America was the dominant region in the next-gen military avionics market in 2025. Europe is expected to be the rapidly growing region in the forecast period. The regions covered in the next-gen military avionics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

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