Report

Global avionics market is projected to witness a CAGR of 8.73% during the forecast period 2025-2032, growing from USD 51.87 billion in 2024 to USD 101.28 billion in 2032F owing to advancements in technology and evolving demands across commercial, military, and unmanned aerial systems. Key trends include the integration of artificial intelligence (AI) and machine learning into flight management systems, enhancing real-time decision-making and operational efficiency. The rise of electric and hybrid-electric aircraft is prompting the development of avionics systems tailored for new propulsion methods. Furthermore, the growing emphasis on cybersecurity to protect increasingly digital and interconnected avionics architectures also transforms the market dynamics. The expansion of unmanned aerial vehicles (UAVs) and urban air mobility solutions is further diversifying avionics applications, necessitating adaptable and scalable systems to meet varied operational requirements.
For instance, in April 2025, De Havilland Aircraft of Canada (DHC) launched the development of a new avionics solution for the Dash 8-100 and 200 aircraft. In collaboration with its partners Universal Avionics and JANA Inc., DHC is working on an avionics enhancement designed to enhance navigational capabilities and bolster safety by offering pilots better situational awareness, thereby presenting an outstanding solution for existing operators.
Growth of Electric and Hybrid-Electric Aircraft Programs to Fuel the Avionics Market
The expansion of electric and hybrid-electric aircraft development drives the demand for advanced avionics systems tailored to support new propulsion architectures. Unlike traditional aircraft, these platforms require customized power management, battery monitoring, and integrated flight control solutions. Avionics vendors are focusing on lightweight, energy-efficient systems compatible with electric propulsion demands. As OEMs and startups accelerate certification and commercialization timelines for sustainable aircraft, avionics integration becomes a critical factor, pushing innovation and reshaping traditional avionics design standards.
The market is also fueled by advancements in advanced avionics and navigation systems, driven by enhanced navigation systems, such as GPS and satellite-based augmentation systems. These systems improve flight safety, precision, and efficiency while reducing fuel consumption and emissions. Governments and aviation regulatory bodies are allocating resources towards advanced technologies such as synthetic vision systems (SVS) and inertial navigation systems (INS) to comply with airspace modernization requirements.
For instance, in April 2025, Panasonic Avionics Corporation (PAC) launched Converix, an open and neutral application hosting platform. The company has also announced that Saudi Airlines (Saudia) will be the pioneer in implementing the solution throughout its fleet of 18 Boeing 787-9s and 21 Boeing 787-10s. Converix will enable airlines to track aircraft data, enhance crew operations, oversee cabin inventories, and streamline aircraft maintenance. By utilizing responsible artificial intelligence (AI), it can connect with more than 10,000 data points within an aircraft.
Transition to Next-Generation Air Traffic Management to Shape the Global Avionics Market
The global shift toward satellite-based and digital air traffic management systems-such as SESAR in Europe and Next Generation Air Transportation System (NextGen) in the United States is driving avionics upgrades across fleets. These programs require aircraft to be equipped with advanced communication, navigation, and surveillance (CNS) technologies to ensure interoperability and compliance. As aviation authorities mandate equipment like ADS-B Out and Controller-Pilot Data Link Communications (CPDLC) for controlled airspace access, avionics retrofitting is accelerating. This is pushing sustained aftermarket growth and influencing OEM avionics specifications for new aircraft deliveries. Avionics-related conventions and exhibitions fuel the market by fostering innovation, networking, and business growth. These events provide platforms to showcase cutting-edge technologies, generate leads, and form strategic partnerships. They also enhance brand visibility, offer competitive insights, and drive the adoption of new products, ultimately accelerating advancements and investments in the avionics sector.
For instance, in January 2025, the Aircraft Electronics Association (AEA) conducted the 68th AEA 2025, showcasing and launching new avionics products. AEM (Anodyne Electronics Manufacturing Corp.), AeroMech, AIR Quality Training, Amphenol CIT, and several other companies were present at the convention to showcase their aviation technology including avionics. Sponsored by Gogo Business Aviation, the opening session transformed into an essential showcase for AEA members and aviation media.
Commercial Aviation Segment Leads with Higher Demand
Commercial aviation dominates the global avionics market by platform category due to its expansive global demand and continuous technological advancements. Airlines prioritize equipping aircraft with state-of-the-art avionics systems to enhance safety, operational efficiency, and passenger experience. Modern avionics solutions, such as advanced navigation systems, real-time communication technologies, and automated flight controls, are critical for meeting regulatory requirements and addressing the increasing complexity of air traffic management.
The sector's focus on fuel efficiency and sustainability also drives investments in avionics innovations, including performance-based navigation and optimized flight planning systems. Additionally, the growing emphasis on communication and navigation further strengthens commercial aviation's leadership in this category by catering to evolving passenger expectations.
For instance, in July 2024, Air India and L3HARRIS Technologies announced an agreement wherein L3HARRIS Technologies will serve as the primary provider of the airline's B737-8 fleet's cutting-edge SRVIVR25 voice and data recorders. A strong future partnership is going to be established as 100 aircraft will be outfitted with L3Harris' state-of-the-art technology, with the potential for an additional 40 aircraft. Notably, this technology provides automatic distress tracking, enables prompt flight data recovery, and offers an environmentally friendly alternative with its Underwater Locator Beacon (ULB).
North America leads the Market with a Strong Presence in Aerospace Industry
North America maintains a leading position in the global avionics market, attributed to its robust aerospace industry, significant defense spending, and continuous technological innovation. The presence of major aircraft manufacturers and avionics suppliers fosters a dynamic ecosystem conducive to research and development. Government initiatives and military modernization programs further stimulate demand for advanced avionics systems. Additionally, the region's emphasis on integrating cutting-edge technologies, such as AI and cybersecurity measures, into avionics solutions underscores its commitment to maintaining operational superiority and safety standards. Furthermore, regional companies partner with the government to cater to commercial or military aviation.
For instance, in September 2023, Lockheed Martin Skunk Works partnered with the United States Air Force (USAF) and completed the first flight of the U-2 Dragon Lady's Avionics Tech Refresh (ATR) program. The new advanced capabilities were demonstrated during its first test flight with the U-2 comprising the ATR contract, including an updated avionics suite, modern cockpit, and mission computer.
Future Market Scenario (2025-2032F)
- Integration of AI is likely to enhance autonomous decision-making and predictive maintenance capabilities.
- Developing robust systems is anticipated to safeguard increasing cyber threats in digital flight operations.
- Adoption of open systems is enabling easier upgrades and interoperability across platforms.
Key Players Landscape and Outlook
Key players in the global avionics market focus on innovation, research, and development to address evolving industry demands. Their strategies emphasize creating advanced systems for connected aircraft, enhancing fuel efficiency, and integrating cutting-edge technologies like artificial intelligence and 5G connectivity. These players also prioritize compliance with stringent safety regulations while addressing cybersecurity vulnerabilities through robust encryption and monitoring protocols. Expanding regional presence and partnerships further bolster their growth, enabling them to cater to diverse markets. Overall, these strategies ensure competitive advantage, drive technological progress and support the increasing global demand for modernized aircraft systems.
For instance, in July 2023, Honeywell International Inc. introduced the KX 200 navigation and communications system tailored to fulfill the requirements of pilots using advanced cockpit technologies. This system serves as a straightforward upgrade for the older KX 155 and KX 165 models. The KX 200 features a fully digital design that enhances performance, boasts a user-friendly high-resolution color LCD display, includes a 50-channel memory preset capability, and is compatible with current indicators and installed BendixKing devices.