CHICAGO, June 19, 2025 /PRNewswire/ --The global avionics market is projected to be valued at USD 48.84 billion in 2024 and reach USD 85.29 billion by 2030, growing at a CAGR of 9.7% according to a new report by The Research Insights. Next-generation aircraft demands from commercial and military sectors are driving the significant transformation of the avionics market. The global expansion of air travel compels airlines to improve operational efficiency while reducing fuel consumption and enhancing passenger safety. Defense organizations are placing fleet modernization at the top of their agenda to preserve their strategic and technological advantage. The adoption of advanced avionics systems is receiving substantial growth due to these influential factors.
The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the avionics market growth of 9.7% comprises system, component, platform and geography which are expected to register strength during the coming years.
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Market Overview and Growth Trajectory:
Avionics Market Growth: According to an exhaustive report by The Research Insights, the Avionics Market is undergoing significant growth, driven by changing regulatory mandates that target airspace safety improvements along with airspace efficiency and surveillance enhancements. The worldwide deployment of Automatic Dependent Surveillance-Broadcast (ADS-B) systems stands out as a leading force in modern aviation trends. The FAA and EASA in the U.S. and Europe require aircraft operating in controlled airspace to have ADS-B Out systems installed. The implementation of new regulations has pushed commercial airlines along with business jet operators and general aviation fleets to quickly upgrade their avionics equipment.
Modernization of Military Aircraft: Military aircraft modernization efforts worldwide are fueling the rapid growth of the avionics market. Countries worldwide boost their military spending to enhance current aircraft capabilities alongside acquiring new planes due to increasing geopolitical tensions and changing defense strategies. The central component of these system updates is cutting-edge avionics technology. This situation creates a significant and ongoing supply chain for the avionics industry. Countries are both upgrading their legacy fighter jets and surveillance helicopters with advanced avionics while demanding top-tier technology in aircraft currently under development. The U.S., China, India along with multiple NATO members lead this modernization wave through their partnerships with defense contractors and avionics experts. The shift toward network-centric warfare based on electronic superiority will produce growing needs for secure and AI-enhanced avionics systems that can operate across different platforms. The avionics market functions as a vital strategic tool that empowers air defense systems beyond just a support role.
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Growth in Unmanned Aerial Vehicles (UAVs): Unmanned Aerial Vehicles (UAVs) have rapidly transformed aviation while simultaneously creating new opportunities for avionics market development. The application of UAVs has expanded beyond military reconnaissance to include uses in surveillance and agriculture as well as infrastructure inspection and emergency response activities and last-mile delivery operations. The expansion of UAV applications drive increased demand for specialized miniaturized avionics systems capable of autonomous flight operations and data transmission. The current rise in UAV deployment acts as a rapidly expanding dynamic sector within the avionics market. Defense and commercial industries invest heavily in the development of lightweight and power-efficient avionics systems which offer strong performance specifically for drones. Advanced avionics systems serve as a fundamental requirement across all UAV types from military drones like the MQ-9 Reaper to commercial quadcopters delivering packages. The UAV industry's expansion will accelerate as airspace regulations develop further and integration becomes more efficient. A core component of the advancing ecosystem the avionics market enables drones to achieve unprecedented levels of safety and intelligence while covering greater distances.
Navigation Systems Lead as the Backbone of Modern Avionics: Navigation systems have become the top choice in the avionics market because both commercial and military aviation sectors require improved precision, safety measures and automation functionality. The growing dependency on satellite navigation systems including GPS and GNSS together with INS requires modern aircraft to maintain uninterrupted real-time location and pathfinding capabilities throughout all flight operations. Next-generation aircraft alongside the rapid growth of Unmanned Aerial Vehicles (UAVs) drive quicker adoption of sophisticated navigation systems that work together with flight management systems (FMS), autopilot modules, and terrain awareness solutions to boost situational awareness while decreasing pilot workload. The requirement for performance-based navigation (PBN) and future air navigation systems (FANS) compliance forces airlines and defense forces to make updates to their existing systems. The aviation market continues to rely on navigation systems as a major source of revenue due to their innovative features which include enhanced redundancy and resistance to jamming/spoofing along with AI-based route optimization capabilities.
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Geographical Insights: The avionics market shows strong regional variations where North America dominates due to its developed aerospace infrastructure and leading industry players like Honeywell and Collins Aerospace combined with Garmin and early technology adoption including ADS-B and integrated modular avionics. The Asia Pacific region stands out as the most rapidly growing avionics market because of the swift domestic air travel expansion along with defense budget growth and indigenous aircraft development programs in nations including China, India, and South Korea. Europe sustains its powerful presence in the worldwide avionics market through the support from leading aircraft manufacturers like Airbus and Dassault Aviation.
Avionics Market Segmentation and Geographical Insights:
- Based on system, the market is divided into navigation systems, communication, flight management, traffic & collision management, weather and others. The navigation systems segment held the largest share of the avionics market in 2024.
- Based on component, the market is divided into hardware and software. The hardware segment held the largest share of the avionics market in 2024.
- Based on platform, the market is divided into commercial aviation, military aviation and business & general aviation. The commercial aviation segment accounted for a larger share of the avionics market in 2024.
- The avionics market is segmented into five major regions: North America; Europe; Asia Pacific; Latin America; Middle East & Africa.
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Key Players and Competitive Landscape:
The Avionics Market is characterized by the presence of several major players, including:
- Thales S.A.
- Honeywell International Inc.
- RTX Corporation
- L3Harris Technologies, Inc.
- Leonardo S.p.A.
- General Electric Company
- BAE Systems plc
- Northrop Grumman
- Elbit Systems Ltd.
- Safran S.A.
These companies are adopting strategies such as new product launches, joint ventures, and geographical expansion to maintain their competitive edge in the market.
Avionics Market Recent Developments and Innovations:
- In March 2025, Thales (France) signed an avionics support deal for Malaysia Airlines' new A330neos.
- In February 2025, GE Aerospace (US) was awarded a contract to provide performance-based logistics (PBL) avionics support for the F/A-18, AV-8B, and AH1-Z aircraft globally.
- In July 2024, L3Harris Technologies, Inc. (US) secured an avionics contract with Air India for next-generation voice and data recorders.
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Key Questions Addressed:
- What is the key opportunity in the avionics market?
The rise of electric vertical take-off and landing aircraft creates new demand for lightweight, high-performance avionics systems. - What is the expected market size for avionics market by 2030?
The expected market size for avionics is USD 85.29 Billion in 2030. - Which are the major platform where avionics is used?
Major platform includes commercial aviation, military aviation and business & general aviation. - Which system segment for avionics market has the potential to register the highest market share?
Navigation system segment for avionics market is expected to register highest market share of 35% in 2024. - Which region is estimated to witness a high demand for avionics over the forecast period?
Asia Pacific is estimated to witness a high demand for avionics growing at a CAGR of 11.3% over the forecast period - Who are the key players in avionics market?
The key players in the market are Thales S.A., Honeywell International Inc., RTX Corporation, L3Harris Technologies, Inc., Leonardo S.p.A., General Electric Company, BAE Systems plc, Northrop Grumman, Elbit Systems Ltd. and Safran S.A.
Conclusion:
The avionics market experiences a significant transformation due to combined influences from regulatory requirements and technological advancements alongside increased demands from commercial aviation and defense aviation sectors. The need for better situational awareness and operational safety combined with fuel efficiency requirements has made advanced avionics systems like Flight Management Systems (FMS), Electronic Flight Instrument Systems (EFIS), and Integrated Modular Avionics (IMA) indispensable for airlines and military operations. The rise in global defense budgets has enabled modernization projects which rely on avionics advancements to enhance combat readiness and communication systems. The fast-growing use of Unmanned Aerial Vehicles (UAVs) in surveillance, delivery services, and industrial sectors generates new requirements for compact intelligent avionics systems that support autonomous functioning. Navigation systems function as essential system components that integrate with comprehensive avionics suites to deliver real-time positioning and maintain terrain awareness and airspace efficiency. The combination of these elements is preparing the avionics market for ongoing expansion by prioritizing digitization and autonomy along with cybersecurity and global interoperability in its future development.
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The report from The Research Insights, therefore, provides several stakeholders-including component suppliers, avionics system manufacturers, OEMs, aircraft manufacturers, MRO providers and end users -with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.
With projected growth to US$ 85.29 billion by 2030, the Avionics Market represents a significant opportunity for component suppliers, avionics system manufacturers, OEMs, aircraft manufacturers, MRO providers, end-users, investors, industry stakeholders, and others. By staying abreast of market trends, embracing innovation, and focusing on quality and performance, companies can position themselves for success in this dynamic and evolving market landscape.
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