Commercial Aircraft Nextgen Avionics Market Outlook: Size, Share, Trends & Growth Analysis (2024-2029)
The report covers a comprehensive analysis segmented by System (Communication System, Flight Management System, Collision Avoidance System, Electric and Navigation System, Weather System, Surveillance and Emergency System, Others (Health Monitoring, Tactical System, In-flight Entertainment), By Installation Stage (Forward Fit, Retrofit), By Aircraft Type (Narrow Body, Wide Body), By Geography (North America, South America, Asia Pacific, Europe, the Middle East and Africa).
Commercial Aircraft Nextgen Avionics Market Snapshot
Commercial Aircraft Nextgen Avionics Market Overview
According to estimates, the global market for NextGen avionics for commercial aircraft is expected to reach $6.83 billion by 2029, from $4.43 billion in 2024. The NextGen avionics market for commercial aircraft is expected to grow at a compound annual growth rate (CAGR) of 9.04% between 2024 and 2029. The initiatives taken up by various government organizations to enhance the safety of aerospace has given rise to the dependency on commercial next generation avionics leading to the steady growth in its market. It enables the transition from a ground-based to a satellite-based air traffic control system along with the help of aviation specific commonly used technologies like global positioning systems that help in navigation, networking, and weather forecasting. The integration of advanced technologies with multiple systems requires huge investments in research and development which contributes to the excessive cost of these systems. Moreover, the time and generous sum of money involved in training its operators also acts as a deterrent in market growth. However, the increase in air passenger traffic globally has contributed immensely to the growth of the commercial aircraft next generation avionics market.
​​​Commercial Aircraft Nextgen Avionics Market Coverage
| Historical & Forecast Period | 2018-2029 |
| Base Year | 2023 |
| Forecast Period | 2024-2029 |
| Units | Billion US$ |
| Segments | System, Installation Stage, Aircraft Type |
| Geographies | North America, South America, Asia Pacific, Europe, The Middle East, Africa |
| Key Vendors | BAE Systems PLC, Cobham Ltd., General Electric Company, Honeywell International Inc., L3Harris Technologies Inc. |
Key Geographies of Commercial Aircraft Nextgen Avionics Market, 2023
Porter’s 5 Forces Analysis of Commercial Aircraft Nextgen Avionics Market
Commercial Aircraft Nextgen Avionics Market Trends
There have been tremendous changes taking place in the aviation industry over the years. The development of technology has played a pivotal role in improving the overall experience of passengers. The implementation of fly-by-wire systems has replaced conventional manual controls with electronic interfaces which have increased the accuracy and responsiveness of aircraft systems thereby offering better safety, smoother operation and providing better fuel economy.
Interfaces involved with application programming have become an important part in the aviation industry that has enabled different processes to share data and communicate effectively. With the advent of advanced cockpit systems equipped with digital displays, pilots now can access information easily. Also, the integration of artificial intelligence into aircraft systems have improved performance, safety, and efficiency by enhancing existing autopilot systems that are able to process advanced functions such as making quick decisions during uncertain flight situations. It has allowed aircraft health monitoring systems to detect issues before they become a major concern, adding to the safety of flights. The use of advanced air traffic management systems has enhanced the effectiveness of air traffic control through satellite navigation and automation which allows navigation with greater accuracy.
Commercial Aircraft Nextgen Avionics Market Driving Factors
NextGen avionics market is growing due to the increase in air passenger traffic including passengers carried by airlines globally. The growth of the middle-class population and further regional integration plays a key role in the growth of commercial aircraft NextGen avionics. The growing need for air cargo transportation has contributed to the rise of the commercial aircraft avionics industry. The growing popularity of online shopping has led to an increased need for cargo transportation as more merchants require shipping of goods to faraway customers, fueling the market for commercial aircraft avionics. This generates the need to manage air traffic effectively which is aided by using commercial NextGen avionics. This boosts the market for commercial aircraft NextGen avionics as it enables air traffic controllers and pilots to operate effectively and efficiently. It’s ability to proactively detect and identify weather conditions and other risks contributes to its growth in the market.
Source: Boeing
The fleet in the standard-body segment is expected to increase due to the growth of e-commerce networks driving up demand. More sustainable aircraft on the replacement side will enhance capacity further, as current conversions are bigger than most airplanes. Increasing the reach of fast transportation systems will stimulate development in the moderate market. The ongoing strong demand for widebody aircraft will continue, as they are essential for airlines due to their cost efficiency, usage capabilities, and long-distance flying capabilities. Hence, these factors also aid in driving the market for commercial aircraft next gen avionics.
Commercial Aircraft Nextgen Avionics Market Challenges
Despite having substantial benefits there are various challenges faced by the commercial NextGen avionics market. The inflated cost of equipment and software due to the huge investments required in research and development acts as a deterrent to its market growth. The integration of complex technologies with multiple systems further increases costs. Training people to operate these complex systems efficiently and effectively takes time. Hence, it can be said that the huge expenses incurred in set up and installation along with the time taken to effectively make them operational on a larger scale act as a major deterrent in its market growth.
The incorporation of Nextgen avionics has enhanced the effectiveness and security of air transportation. These interconnected systems have brought with them weaknesses that cybercriminals are eager to take advantage of. The industry faces high stakes due to the risk of unauthorized access to flight control systems, cyber-attacks on airlines, and breaches of airport cyber security.
The integration of technology in aviation has resulted in higher risks of cyber-attacks in flight control systems, passenger information, and airport cyber security. The possibility exists for these flight control systems to be hacked, which could endanger control systems and have severe implications for flight safety and national security. Cyberattacks could interrupt airline schedules, resulting in flight cancellations and affecting airport services, causing significant financial harm and dissatisfaction among passengers. Malicious software can penetrate aviation systems and undermine their operation, leading to compromised flight safety and significant operational disturbances. Insiders who are either malicious or careless could abuse their access rights to inflict substantial harm on aviation systems and data, posing a challenge to the market expansion of Nextgen avionics.
Commercial Aircraft Nextgen Avionics Market – Key Industry News
- In February 2024, Air India Ltd. will receive avionics hardware from RTX Corp. Air India has chosen RTX Corp., as a provider of comprehensive suite of avionics hardware for the expansion of its Boeing 737 MAX fleet.
- In November 2023, L3Harris Technologies Inc. will produce and deliver tech-solutions required to connect with land, space, sea, air, and cyber domains. The signing of an agreement was announced by L3Harris Technologies Inc., under which an associate of TJC L.P. would be acquiring L3Harris’ Commercial Aviation Solutions business for $800 million.
- In March 2023, Panasonic Avionics Corp. is investing in a software engineering laboratory with modern facilities in Pune, Maharashtra, India, with the capacity to test and build in-flight entertainment and communication systems for both twin and single aisle aircrafts.
Commercial Aircraft Nextgen Avionics Market Competitive Landscape
The participants in the global commercial aircraft NextGen avionics industry are always developing their strategies to preserve a competitive advantage. These companies primarily use acquisitions, R&D, partnerships, and technological launches. Several important entities in the global commercial aircraft NextGen avionics market include BAE Systems PLC, Cobham Ltd., General Electric Co., Honeywell International Inc., L3Harris Technologies Inc., and others. Manufacturers are making significant investments in the research and development of advanced avionics technology in response to the growing concern over cyber security threats.
Despite experiencing repeated periods of growth and decline, commercial aviation remains one of the most consolidated industries in the present day. The commercial next-gen avionics market is producing robust economic gains and long-lasting profits. Furthermore, the long-term economic growth is also backed by the growth of domestic markets, expansion of the middle-class population, further regional integration, and advancements in global commodity markets.
Commercial Aircraft Nextgen Avionics Market Company Share Analysis, 2023 (%)
Commercial Aircraft Nextgen Avionics Market – Key Companies
Reason to Buy from us
Table of Contents
| 1. Introduction | 1.1. Research Methodology 1.2. Scope of the Study |
| 2. Market Overview / Executive Summary | 2.1. Global Commercial Aircraft Nextgen Avionics Market (2018 – 2022) 2.2. Global Commercial Aircraft Nextgen Avionics Market (2023 – 2029) |
| 3. Market Segmentation |
3.1. Global Commercial Aircraft Nextgen Avionics Market by System 3.1.1. Communication System 3.1.2. Flight Management System 3.1.3. Collision Avoidance System 3.1.4. Electric and Navigation System 3.1.5. Weather System 3.1.6. Surveillance and Emergency System 3.1.7. Others (Health Monitoring, Tactical System, In-flight Entertainment) 3.2. Global Commercial Aircraft Nextgen Avionics Market by Installation Stage 3.2.1. Forward Fit 3.2.2. Retrofit 3.3. Global Commercial Aircraft Nextgen Avionics Market by Aircraft Type 3.3.1. Narrow Body 3.3.2. Wide Body |
| 4. Regional Segmentation |
4.1. North America 4.1.1. The U.S 4.1.2. Canada 4.1.3. Mexico 4.2. South America 4.2.1. Brazil 4.2.2. Argentina 4.2.3. Colombia 4.2.4. Chile 4.2.5. Rest of South America 4.3. Asia Pacific 4.3.1. China 4.3.2. India 4.3.3. Japan 4.3.4. South Korea 4.3.5. Rest of Asia Pacific 4.4. Europe 4.4.1. UK 4.4.2. Germany 4.4.3. Italy 4.4.4. France 4.4.5. Spain 4.4.6. Rest of Europe 4.5. The Middle East 4.5.1. Turkey 4.5.2. UAE 4.5.3. Saudi Arabia 4.5.4. Rest of the Middle East 4.6. Africa 4.6.1. Egypt 4.6.2. South Africa 4.6.3. Rest of Africa |
| 5. Value Chain Analysis of the Global Commercial Aircraft Nextgen Avionics Market | |
| 6. Porter Five Forces Analysis |
6.1. Threats of New Entrants 6.2. Threats of Substitutes 6.3. Bargaining Power of Buyers 6.4. Bargaining Power of Suppliers 6.5. Competition in the Industry |
| 7. Trends, Drivers and Challenges Analysis |
7.1. Market Trends 7.1.1. Market Trend 1 7.1.2. Market Trend 2 7.1.3. Market Trend 3 7.1.4. Market Trend 4 7.1.5. Market Trend 5 7.2. Market Drivers 7.2.1. Market Driver 1 7.2.2. Market Driver 2 7.2.3. Market Driver 3 7.2.4. Market Driver 4 7.2.5. Market Driver 5 7.3. Market Challenges 7.3.1. Market Challenge 1 7.3.2. Market Challenge 2 7.3.3. Market Challenge 3 7.3.4. Market Challenge 4 7.3.5. Market Challenge 5 |
| 8. Regulatory Landscape | |
| 9. Competitive Landscape |
9.1. BAE Systems PLC 9.2. Cobham Ltd. 9.3. General Electric Company 9.4. Honeywell International Inc. 9.5. L3Harris Technologies Inc. 9.6. Company 6 9.7. Company 7 9.8. Company 8 9.9. Company 9 9.10. Company 10 |
Commercial Aircraft Nextgen Avionics Market – Frequently Asked Questions (FAQs)
What is the current size of the global commercial aircraft NextGen avionics market?
The market size for the global commercial aircraft NextGen avionics market in 2024 is $4.43 Bn.
Who are the major vendors in the global l commercial aircraft NextGen avionics market?
The major vendors in the global commercial aircraft NextGen avionics market are BAE Systems PLC, Cobham Ltd., General Electric Company, Honeywell International Inc., L3Harris Technologies Inc.
Which segments are covered under the global commercial aircraft NextGen avionics market segments analysis?
This report offers in-depth insights into each system, installation stage, aircraft type.