Customized Avionic Systems Market size is anticipated to reach USD 123 Billion by the end of 2036, growing at a CAGR of 7% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of customized avionic systems was over USD 52 Billion. The growing requirement for real-time data, in-flight entertainment services, growing aircraft deliveries, and the expansion of new nations are all contributing to the growth of the customized avionics system market. As per a report, while European rival Airbus (AIR.PA), opens a new tab, continued to be the top planemaker for the sixth consecutive year, Boeing (BA. N), opened a new tab to fulfill its goals for the delivery of jetliners and saw 70% increase in net orders in 2023, indicating robust demand for aircraft and air travel. The growth of aircraft manufacturers, who are now able to offer a greater variety of aircraft with advancements like bit-screen panel area units and upgraded GPS systems, is another factor driving the industry.
The aviation industry's growing concerns about operational effectiveness, economic & environmental performance, aircraft safety & security, and passenger comfort are driving the market for customized avionic systems. Furthermore, the employment of avionic systems in military and high-tech aircraft will support customized avionic systems market expansion and raise demand.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7% |
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Base Year Market Size (2023) |
USD 52 Billion |
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Forecast Year Market Size (2036) |
USD 123 Billion |
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Regional Scope |
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Platform (Fixed Wing Aircraft, Rotary Wing Aircraft)
Fixed wing aircraft for customized avionic systems market is expected to hold the largest share of 54% by the end of 2036. The growing need for commercial aircraft to carry passengers on international flights has led to a greater share held by the fixed wing aircraft category. Because more and more people are choosing to travel by air, industrialized nations like the US, Canada, and the UK have seen a notable growth in air traffic in recent years. For instance, in North America International passenger traffic surged by 117.2% in 2022, while overall passenger traffic increased by 33.3%. As a result, there is a steady increase in demand for aircraft, especially from airlines operating in emerging nations. Regular maintenance and repair operations are necessary due to the increasing number of aircraft in the commercial and defense sectors. Improvements in aerodynamics, materials, and avionics systems have also resulted in improved safety features, improved performance, and longer range. Therefore, all these factors are propelling the growth of fixed wing aircraft segment.
Application (Commercial Aircraft, Private Aircraft, Military Aircraft, Helicopters, Unmanned Aerial Vehicles)
The military aircraft segment in the customized avionic systems market is expected to hold a share of 37% during the forecast period. Over the course of the projected period, rising military spending around the globe is anticipated to fuel market expansion for military aircraft worldwide. Due to the constantly shifting international strategic landscape, increasing levels of unilateralism, hegemony, and power politics are undermining the structure of international security systems, which has resulted in numerous ongoing conflicts worldwide. As a result, military spending is rising globally to enhance national security. By acquiring new-generation military aircraft, many nations are concentrating on modernizing and growing their fleets of aircraft. These nations are becoming more proficient in fighting and aerial support due to their increasing technological advancements.
Our in-depth analysis of the global customized avionic systems market includes the following segments:
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Sub-segment Types |
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Platform |
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Application |
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North American Market Forecast
North American customized avionic systems market is expected to hold the largest share of 36% during the projected period. The United States of America, which possesses one of the largest fleets of both commercial and military aircraft worldwide, is a major factor contributing to its significant proportion of the North American avionic system industry. The country's need for avionic systems is mostly driven by the presence of large OEMs and important manufacturers. In addition, the region is seeing a sharp increase in the use of UAVs for non-military objectives. For instance, at present, the value of commercial UAV production for mini-UAVs is 58.4 million US dollars. Because of these considerations, the North American region holds a dominant stake in the worldwide market for customized avionic systems.
APAC Market Statistics
The customized avionic systems market in the Asia Pacific is expected to hold the second-largest share of 28% during the foreseen period. The market expansion is mostly attributable to the Asia Pacific region's increasing deliveries of commercial aircraft. This is due to the region's growing number of major aircraft original manufacturers as well as the fleet's expansion to accommodate the region's rising passenger volume. As per a report, Asia Pacific airlines experienced a dramatic comeback in H1 2023, with passenger volume rising by 125.5% over 2022 levels. The reopening of China, the largest passenger industry in the region, and the gradual resumption of foreign travel throughout the previous year were the main drivers of this resurgence. Furthermore, due to its immense size, China essentially exists as a separate entity inside the enormous Asia-Pacific region. Therefore, these factors are propelling the growth of the market in the region.
Author Credits: Rushikesh, Richa Gupta
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