The Total Addressable Market (TAM) for Commercial Aircraft NextGen Avionics was valued at USD 4.77 billion in 2021. It is projected to reach USD 9.46 billion by 2030, growing at a CAGR of 7.90% during the forecast period (2022-2030).
Next-generation avionics entails shifting from a terrestrial to a satellite-based air traffic management system. This is made possible by developing specialized uses for ubiquitous technologies like the global positioning system (GPS) and progress in fields like meteorology, computer networking, and aerial navigation. The amount of data the aviation sector uses to make crucial flying choices is growing significantly. In addition, new aircraft fleets are adopting the latest designs, equipped with cutting-edge technology that can provide excellent data collection and transmission.
In North America, efforts spearheaded by the Federal Aviation Administration (FAA) and Radio Technical Commission for Aeronautics (RTCA) have defined the avionics equipment components of next-gen avionics. They include utilizing already-installed or portable electronic flight bags (EFBs) as well as existing aircraft capabilities like GPS/WAAS, localizer performance with vertical guidance (LPV), area navigation (RNAV), terminal required navigation performance (RNP), vertical navigation (VNAV), and flight information system broadcast (FIS-B).
|Market Size||9.46 billion|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Rising Dependency on Avionics for making Critical Flying Decisions
Electronic systems of various types are used in every modern aircraft to carry out multiple tasks. Typically, more advanced aircraft need complicated electronic systems. Avionics are used in commercial airplanes and business jets for various purposes, including providing services, monitoring and reporting performance metrics, and operating within established safety parameters. Highly modern avionics systems also integrate various functions to improve performance, control costs, and make maintenance more accessible. This demonstrates the growing need for better electronics to be incorporated into commercial airplanes. As improved data communications make it easier for pilots and air traffic controllers to connect quickly, efficiently, and with less risk of miscommunication than radio communications over congested frequencies, electronic systems are becoming increasingly dependent on the data gathered by numerous sensors installed on an airplane. This is expected to drive market growth over the forecast period.
Cybersecurity Issues with Nextgen Avionics Systems
Modern airplanes are equipped with systems and networks that communicate data with air traffic controllers, pilots, maintenance teams, and passengers. As a result, if an aircraft's electronic systems are not adequately protected, they may be vulnerable to various potential cyberattacks. Numerous factors, such as failing to patch commercial software, malicious software uploads, outdated systems on antiquated aircraft, flight data spoofing, and unsecured supply chains, can lead to vulnerabilities. Wide-ranging cybersecurity measures have been implemented up until this point, and no cases of cyberattacks on an aircraft's avionics systems have occurred. But the rising interconnectedness of aircraft and other techniques, together with the evolving cyber threat landscape, could increase the security threats for aircraft over the forecast period.
Rising use of Artificial Intelligence (AI) and Machine Learning (ML)
Artificial intelligence (AI) and machine learning (ML) are widely adopted and used, particularly in the aviation industry. AI/ML has made tremendous strides in just a few years, which may be attributed to the rise in computer power and ability to gather and store enormous amounts of data, as well as the creation of ever-more-powerful algorithms and structures. Several businesses are modernizing their avionics systems to incorporate hardware and software from AI/ML. The workload for airplane pilots is steadily rising as the number of commercial aircraft keeps rising sharply. These trends suggest the need for enhanced artificial intelligence in automated systems, which would reduce the strain on the pilot and air traffic controllers by accurately interpreting real-time data instead of handing it off to the pilot for decision-making. This requirement is expected to drive the introduction of AI/ML in the cockpit over the forecast period.
The global commercial aircraft nextgen avionics market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
Asia-Pacific is the most significant shareholder in the global commercial aircraft nextgen avionics market and is expected to grow at a CAGR of 10% during the forecast period. It is anticipated that the commercial aircraft nextgen avionics market will grow quickly over the forecast period due to the region's increasing air traffic and increased demand for the modernization and upgrading of current aircraft infrastructure. Through the alliance, cooperation, and collaboration between the regional public, commercial, and government aviation sectors, cutting-edge aircraft technologies are anticipated to be created over time, which is expected to fuel market expansion throughout the region. China is a top location for technology innovation because of important aviation companies like Airbus and Boeing. In addition, Chinese businesses have changed their focus to deploying cutting-edge aircraft to fulfill China's rising transportation needs. These factors are expected to drive market growth over the forecast period.
North America is anticipated to increase at a CAGR of 6.7%, generating USD 2,188.8 million over the forecast period. The demand for efficient communication, surveillance, and navigation systems for civil aviation in North America, particularly in the U.S. and Canada, is expected to increase over time as a result of cutting-edge capabilities like autonomous technology of aerial systems, which is expected to benefit the commercial aircraft NextGen avionics market. NextGen involves developing and adopting ground-breaking technologies and airspace procedures after thorough safety testing. The implementation would require developing avionics technology to improve flight operations' efficacy, dependability, predictability, and sophistication. In addition, the U.S. Transport Canada hopes to raise awareness of civil aviation programs through its initiatives. It is anticipated that the modernization measures would result in Transport Canada Civil Aviation (TCCA) approving the Collins Aerospace Pro Line Fusion avionics update for Cessna Citation CJ1+ and Cessna Citation CJ2+ aircraft.
Europe's aviation business is sizable for airlines and suppliers of airline parts. Europe's aviation business is sizable for airlines and suppliers of airline parts. During the forecast period, it is anticipated that increased investment and R&D efforts in the commercial aviation sector will accelerate the development of power electronics, flight management systems, and communication systems. The German air traffic control corporation, DFS Deutsche Flugsicherung GmbH, unveiled a comprehensive modernization plan to improve and optimize the country's airspace and navigation system. In addition, the U.K. Government and the Civil Aviation Authority reaffirmed their commitment to airspace modernization in a joint statement in July 2020 in response to the increasing aviation traffic. The modernization plans include significantly rebuilding the terminal route network using precise satellite navigation and focusing on electronic surveillance technologies to encourage security and enable better integration of all airspace users.
The growth of the LAMEA commercial aircraft NextGen avionics market is anticipated to be aided by developed economies like Saudi Arabia and Qatar, as well as increased LAMEA nation investments in developing aircraft systems and components over the forecasted period. To study the market for electric aircraft, Embraer has teamed up with the Brazilian energy company EDP. Additionally, in recent decades, nations in Latin America, including Colombia, have been developing manned and unmanned aircraft technologies. It would cost money to equip these aircraft with NextGen avionics systems.
The global commercial aircraft nextgen avionics market is segmented by the system, installation stage, and aircraft type.
Based on the system, the global market is bifurcated into flight management systems, communication systems, electric and navigation systems, surveillance and emergency system, collision avoidance system, weather system, and others.
The flight management system segment is the highest contributor to the market and is expected to grow at a CAGR of 8.9% during the forecast period. A multi-purpose onboard performance, navigation, and aircraft operations computer known as a flight management system, or FMS, is created to deliver virtual data and operational synchronization between open and closed elements related to a flight, from the takeoff and before-engine-start phases to the landing stage and engine shut-down. Today's commercial and business airplanes almost universally include electronic flight instrument systems that take the place of older ones and flight deck displays. Given the predicted increase in international traffic levels, the nextgen interactive FMS is being developed to the demands of flight operators and pilots to provide flexibility and performance.
Data sharing is made possible by a communication system that uses an automated ground station network with built-in computers. In the past, it solely relied on Very High Frequency (VHF) channels, but now, alternative data transmission techniques are being deployed, significantly improving its geographic communications coverage. With the push of a button, pilots and controllers may communicate critical information, such as updated flight plans, clearances, and advisories, thanks to next-generation technology that supports radio voice communication.
Based on the installation stage, the global market is bifurcated into forward fit and retrofit.
The retrofit segment owns the highest market share and is expected to grow at a CAGR of 8.7% during the forecast period. Avionics equipment installed after initial production is included in retrofit sales. The FAA has rigorous requirements and mandates the installation of nextgen avionics systems on older aircraft. The Aircraft Electronics Association reported that the value of sales for retrofit avionics was USD 305,667,893. This market is predicted to expand significantly over the coming years due to the increasing number of aircraft that require avionics component upgrades.
Avionics hardware fitted by aircraft manufacturers during construction is referred to as forwarding fit. Production-level modern aircraft will come standard with nextgen avionics systems. The Aircraft Electronics Association's research estimates forward-fit avionics sales were USD 263,142,460. Avionics parts that are forward-fitted have better response times and are made for specific aircraft models.
Based on aircraft type, the global market is bifurcated into narrow body and wide body.
The narrow body segment is the highest contributor to the market and is expected to grow at a CAGR of 9.6% during the forecast period. One aisle of seats and often two to six seats per row are characteristics of narrow-body aircraft. Short-haul flights are the only ones for which narrow-body aircraft are intended. Narrow-body aircraft come in various designs, with the Airbus A320, Boeing 757, Boeing 707, Boeing 727, and Boeing 737 being some of the most popular. Long-range narrow-body aircraft are available from large manufacturers like Airbus and Boeing. For instance, the Airbus 321neoLR and the Boeing 737 MAX are the two most widely used narrow body aircraft with long-haul capabilities. The increased popularity of narrow body aircraft results from their greater efficiency and range.
A broader body with two or more aisles of seats is a characteristic of wide-body aircraft. Long-haul flights are ideal for wide-body aircraft. Such airplanes are built with a large fuselage to fit in several aisles and have more robust, larger engines than their narrow body equivalents. Wide body aircraft have more avionics fitted, and the increasing demand for these aircraft is anticipated to support the segment's growth throughout the projection period. A wide body aircraft is a high-yield option for commercial airlines on domestic routes, providing them with more earnings per available seat mile. Wide body aircraft also give airlines a significant advantage at airports with poor infrastructure usage, enabling them to transport more commuters to airports with constrained slots.
The global commercial aircraft nextgen avionics market’s major key players are