Increase in the number of aircraft deliveries and rise in military aircraft spending by emerging economies are expected to drive the avionics market.
T he avionics market is projected to grow from USD 62.22 billion in 2016 to USD 92.85 billion by 2022, at a Compound annual growth rate (CAGR) of 6.90 per cent. On the other hand, regulatory framework pertaining to avionics subsystems act as one of the major restraints for the avionics market.
Based on subsystem, the avionics market has been segmented into flight control and management system, communication, navigation and surveillance systems, monitoring/glass cockpit, electrical and emergency systems, inflight entertainment, and mission/tactical system. The flight control and management system dominates the avionics market, in terms of market size, and is expected to continue its dominance over the next five years. This segment is also projected to grow at the highest CAGR during the forecast period. The key factor driving the growth of flight control and management system segment is increasing requirement of real-time flight plan information sharing.
Based on platform, the flight control and management system segment dominated the avionics market in 2016. This is mainly due to the increased demand for modernisation of avionics components in the avionics market.
Based on fit, the line-fit segment dominated the avionics market in 2016. This is due to the increase in number of aircraft being used by countries for commercial and military use worldwide.
Based on platform, the defense segment dominated the avionics market in 2016. This dominance is mainly attributed to the increase in the number of aircraft and defense deals across region such as Asia-Pacific and Europe. In addition, increase in budget allocation for defense equipment has contributed to the growth of the military segment of the avionics market.
North America dominated the avionics market in 2016. Countries in this region include the US and Canada. This market is estimated to grow majorly due to the increase in aircraft deliveries and rise in air passenger traffic. The US is expected to drive the North America avionics market.
Increasing vulnerability of avionics to cyberattacks and regulatory issues are expected to restrain the growth of the avionics market. Several major players are present in the avionics market, including Honeywell International Inc. (US), United Technologies Corporation (US), Thales Group (France), Rockwell Collins, Inc. (US), Thales Group (France), and Cobham Plc (UK), among others. Contracts and new product launches were the key growth strategy adopted by the major players in the avionics market.