In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Aircraft avionics include navigation, communication, display and management of various systems and more than hundreds of such systems are fitted in an aircraft which perform various individual functions. These systems can be simple as well as complex. Basically, the term avionics is a combination of the word aviation and electronics. The cockpit of an aircraft is the main location for the placement of the avionic equipment such as control, monitoring, communication, weather, navigation and anti-collision systems. Most of the aircrafts, power their avionics using 14 or 28 volt DC electrical systems, whereas aircrafts such as airliners or military combat aircrafts have AC systems operating at 400 Hz, 115 volts AC.
The Joint Planning and Development Offices has designed the roadmap for avionics in six areas which publishes routes and procedures i.e. improvement in navigation and routing, negotiated trajectories i.e. addition of data communications to create preferred routes, delegated separation i.e. enhancing the situational awareness on the bottom and within the air, permitting operations with weather constraints with less ground infrastructure.
The aircraft avionics market is anticipated to record a CAGR of around 4.86% over the forecast period i.e. 2019-2027. The market is segmented by platform, aircraft type, system and end user. By platform, the commercial aviation segment is anticipated to have significant growth on account of manufacturers who are currently focusing on avionics components to develop products which are more efficient, reliable and accurate. With continuous improvement in the software technologies, the work has become more user-friendly and helped in automation of various in-flight tasks to reduce the workload of the flight crew.
The aircraft avionics market is segmented by platform, system, aircraft type and end user. Based on platform, the market is segmented into commercial, military, business jets and general aviation. Based on system, the market is segmented into flight management system, communication and navigation system, health monitoring, electrical & emergency and software. On the basis of aircraft type, the market is segmented into fixed wing and rotary wing. Further, on the basis of end user, the market is segmented into OEM and aftermarket. The software segment is divided into hardware and software sub-segments, software sub segment is expected to grow at a very fast face owing to the wide usage of software in operating aircrafts to ease the work of the flight crew and other concerned authorities. CLICK TO DOWNLOAD FREE SAMPLE
With the continuous advancement in technology coupled with rising demand for aircrafts, there has been a demand for upgradation of software. Various developing economies are emphasizing on to strengthen their armed forces with the help of new technologies which is expected to boost the growth of the aircraft avionics market in the near future.
With an increasing demand for aircrafts, there has been a need for technological advancements in the navigation system to ease the work of the flight crew and also to streamline the operations. Various developing economies are stepping towards adoption of next- generation aircrafts which is expected to boost the growth of the aircraft avionics market.
Every economy functions differently and has different economic conditions which affects the cost of all the operations or steps to be carried out to cater to the budding needs of the market which leads to delay in the supply chains, thereby proving as a hindrance for the growth of the aircraft avionics market. Due to delay in supply chain from the initial stage, the whole process gets delayed thereby leading to late deliveries of the avionics to the required platforms which is anticipated to hamper the growth of aircraft avionics market.
Our-in depth analysis of the aircraft avionics market includes the following segments:
On the basis of regional analysis, the aircraft avionics market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to grow at a rapid pace on the back of increase in the number of deliveries of wide-body and narrow body aircrafts in the region. Further growing commercial applications and their utility in the defense sector to carry out the surveillance and transportation activities in the region is likely to boost up the growth in the region. Europe market is projected to expand owing to increasing commercial applications of the aircraft avionics in the region. Asia Pacific is expected to grow substantially attributing to its increased demand in the defense sector in order to strengthen the position of the armed forces and up-gradation of the existing technology in the region.
The aircraft avionics market is further classified on the basis of region as follows: