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Commercial Aircraft Avionics Market - Growth, Trends, and Forecasts (2020 - 2025)

ReportLinker
·4-min read

The commercial aircraft avionics market is anticipated to register a CAGR of 16. 08% during the forecast period. - The commercial aircraft avionics market is primarily dependent on the demand for new aircraft and upgrades of avionics for existing aircraft.

New York, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Commercial Aircraft Avionics Market - Growth, Trends, and Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05778192/?utm_source=GNW
The aviation industry is growing, and the procurement of new aircraft is being done on a large scale in all the regions of the world. This is generating a huge demand for the entire supply chain of the aircraft, which includes the avionic components.
- According to FAA, any airspace that requires the use of a transponder has been mandated to be equipped with a Version 2 ADS-B Out system before January 1st, 2020, which has resulted in several airlines retrofitting their avionics to comply with the new regulations. ADS-B upgrades are also mandated in Europe, with an extended deadline of January 2023. The retrofits of avionic systems are increasing in Europe and North America, due to these ongoing mandates.
- The COVID-19 pandemic has caused severe problems to the commercial aviation industry. While the reduced demand from airlines is expected to result in a reduced orders for new aircraft in the years to come, the disruptions in the already troubled supply chains, as witnessed in the second and third quarters of 2020 around the world, have posed more challenges to players in the market.

Key Market Trends
The Narrow-body Segment is Expected to Experience the Highest Growth

The narrow-body segment of the market currently dominates the market and expected to witness the highest growth in the market due to the growing demand for air travel and the expansion plans of LCC operators. The narrow-body aircraft models of aircraft OEMs such as Airbus and Boeing have been the most sold models compared to other aircraft types. The two Boeing 737 MAX crashes in 2019 led to the grounding of the aircraft by several countries and airlines and led to the cancellation of its orders and severely impacted the total deliveries of Boeing 737 MAX aircraft in 2019. However, in October 2020, the European Union Aviation Safety Agency (EASA) has approved the Boing 737 MAX airworthy for operations, and the Federal Aviation Administration (FAA) is currently reviewing the airworthiness of the aircraft. In addition to this, the introduction of new aircraft models such as COMAC C919 and Irkut MC-21 is expected to enter service during the forecast period. The aforementioned factors are anticipated to drive the growth of the segment in the coming years.

The Asia-Pacific Region is Expected to Experience the Highest Growth

The Asia-Pacific region currently dominates the market and is expected to continue its dominance during the forecast period. Also, the region is expected to witness the highest growth during the forecast period primarily due to the fast-growing aviation industry in China, India, and Thailand among others. The airlines in the region are undergoing fleet modernization and have huge order backlogs which are driving the growth of the market. For instance, in October 2019, IndiGo placed an order for 300 A320neo family aircraft to replace its older fleet. The new order took IndiGo’s total number of A320neo Family aircraft orders to 730. Also, some of the airlines in the region are enhancing the avionic systems in their aging aircraft fleet to maintain their airworthiness. In mid-2020, SF Airlines also selected Thales and ACSS (Aviation Communication & Surveillance Systems) to retrofit its entire fleet of 55 aircraft with new transponders offering ADS-B (Automatic Dependent Surveillance-Broadcast) capability. Such factors are expected to accelerate the growth of the market during the forecast period. In addition to the aforementioned factors, the introduction of new airlines into service in the region with robust expansion of plans of existing route-network is expected to support the growth of the market.

Competitive Landscape
The commercial aircraft avionics market is highly consolidated, with the majority of the share occupied by very few players. Collins Aerospace (Raytheon Technologies Corporation), General Electric Company, Honeywell International Inc., Safran SA, and Thales Group are the major players in the market. The market share of the active players is bolstered by the high delivery volumes of the commercial aircraft. Their market dominance is supported through relentless R&D of high-performance avionics components and subsystems that render their products superior, to ensure adherence to required safety standards. The availability of several variants and continuous product development cycles enable enhanced operating life of such systems. Although the market is dominated by international players, regional and foreign manufacturers are existent in the market and have small market shares due to the demand from retrofit segment of the market.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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Read the full report: https://www.reportlinker.com/p05778192/?utm_source=GNW

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