Global Military Aircraft Avionics Market Share growing at a CAGR of 4.32%

Introduction

Military aircraft avionics are operational and combat-ready variants that focus on military aircraft's electronic systems and equipment. They consist of flight control, navigation functions, electro-optical and infrared threat sensors, activity monitors, countermeasures dispensers, secure tactical communications, weapons trackers, and additional electronic support, defense, and attack capabilities.

Military aircraft aid in the completion of missions, the monitoring and reporting of performance metrics, the discovery of new information, the operation within safety parameters, and the overall improvement of aircraft performance. They help replace conventional military aircraft radio communication systems with high-frequency (HF), very high frequency (VHF), and ultra-high frequency (UHF) systems for engine control, surveillance, geospatial intelligence, electronic warfare, and energy and power management.

Market Dynamics

Growth in the Global Defense Expenditure Drives the Global Market

The structure of international security systems has been undermined by rising hegemonism, unilateralism, and power politics, which have fueled ongoing global conflicts due to profound changes in the international strategic environment. The primary causes of the instability of the geopolitical landscape are contested territorial rights, political tensions, and the competition between military superpowers for global dominance.

In this regard, governments' most common response to enhance their respective nations' security is to increase their military spending. Despite the COVID-19 pandemic's economic impact in 2020 and 2021, global defense spending increased. According to SIPRI, global military expenditure increased by 0.7% from 2020 to 2021, reaching USD 2,113 billion. In 2021, global expenditures were 12 percent higher than in 2012. Thus, the increase in defense spending is currently the primary factor driving market expansion.

Shift in Focus Towards Next-Generation Aircraft Systems Creates Tremendous Opportunities

Several nations are developing and acquiring military aircraft of the next generation to modernize and expand their fleets in light of the escalating political tensions between nations and the conflicts that cross international borders. Major global superpowers are reorienting their military strategies to incorporate cutting-edge technologies like artificial intelligence (AI), quantum information, cloud computing, Big Data, and the Internet of Things (IoT) into aircraft to gain technological superiority over their adversaries. Unmanned Aircraft Systems (UAS) have the potential to revolutionize warfare and open up new avenues of conflict. They will be a crucial component of future military applications.

Regional Analysis

North America held the most significant market share and is anticipated to boost at a CAGR of 4.06% during the forecast period. Due to the United States' massive acquisition of military aircraft, North America dominates the military aircraft avionics market. The United States is the largest military spender in the world, spending USD 801 billion in 2021. Moreover, the US military is modernizing its existing fleet with advanced avionics to support a variety of missions. For instance, in February 2022, the USAF announced its intention to modernize 608 F-16 Block 40 and 50 aircraft as part of one of the largest modernization programs in history.

In addition, Canada has focused in recent years on modernizing its military aircraft fleet and reducing its reliance on the United States Air Force for certain aerial missions. The Canadian government announced plans to increase its defense budget in 2022. Canada has fallen short of the alliance's goal for its members to spend at least 2% of their GDP on defense over the past few years, with defense spending remaining approximately USD 22 billion. It is estimated that market expansion will be fueled by the investments made by North American nations to enhance their aerial capabilities.

Key Highlights

• The global military aircraft avionics market was valued at USD 96 billion in 2022. It is estimated to reach USD 51.15 billion by 2031, growing at a CAGR of 4.32% during the forecast period (2023–2031).
• Based on the subsystem, the global military aircraft avionics market is segmented into flight control systems, communication systems, navigation systems, monitoring systems, and other subsystems. The flight control system segment owns the highest market share and is estimated to exhibit a CAGR of 4.91% during the forecast period.
• Based on aircraft type, the global military aircraft avionics market is segmented into fixed-wing combat aircraft, fixed-wing non-combat aircraft, helicopters, and unmanned aerial vehicles (UAVs). The helicopter segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 3.97% over the forecast period.
• North America is the most significant global military aircraft avionics market shareholder and is anticipated to exhibit a CAGR of 4.06% during the forecast period.

Competitive Players

Competitive Players

The key players in the global military aircraft avionics market are Raytheon Technologies Corporation, Honeywell International Inc., Elbit Systems Ltd, Lockheed Martin Corporation, Thales Group, BAE Systems plc, Cobham PLC, Garmin Ltd, Moog Inc., Northrop Grumman Corporation, and others.

Recent Developments

Market News

• In April 2023, Lockheed Martin and GE Aerospace signed a global support agreement for F-35 avionics and electrical power systems.
• In September 2023, According to Taiwan-based media outlets, Taiwan's Air Force granted the go-ahead to upgrade the avionics systems of its 20 C-130 transport aircraft. The proposed upgrades are intended to preserve the performance and functionality of Taiwan's aging C-130 fleet.

Segmentation

Global Military Aircraft Avionics Market: Segmentation

By Subsystem

• Flight Control System
• Communication System
• Navigation System
• Monitoring System
• Other Subsystems

By Aircraft Type

• Fixed-wing Combat Aircraft
• Fixed-wing Non-Combat Aircraft
• Helicopters
• Unmanned Aerial Vehicles (UAVs)

By Regions

• North America
• Europe
• Asia-Pacific 
• Latin America
• The Middle East and Africa