Market Overview

The global Commercial Aircraft NextGen Avionics market was valued at USD 4820.23 million in 2022 and expected to grow at a CAGR of 8.2% during the forecast period. Commercial aircraft NextGen Avionics refers to advanced avionics systems that are used in commercial aircraft to improve safety, efficiency, and performance. These avionics systems incorporate the latest technologies to enhance the functionality of the aircraft and provide pilots with greater situational awareness.

Some examples of NextGen Avionics systems include:

Automatic Dependent Surveillance-Broadcast (ADS-B): ADS-B is a surveillance technology that uses GPS to broadcast an aircraft's position to other aircraft and ground stations. This technology improves situational awareness for pilots and air traffic controllers and enhances safety.

Electronic Flight Bag (EFB): An EFB is an electronic device that replaces traditional paper-based flight manuals and other documents. EFBs provide pilots with real-time information and data that can improve decision-making and reduce workload.

Synthetic Vision System (SVS): An SVS is a technology that uses 3D terrain models to provide pilots with a virtual view of the environment. This technology improves situational awareness and can help pilots avoid obstacles and hazards.

Head-Up Display (HUD): A HUD is a transparent display that projects flight data onto the pilot's field of view. This technology allows pilots to view critical flight information without having to look down at the instrument panel.

Performance-Based Navigation (PBN): PBN is a navigation system that uses satellite-based technology to provide pilots with more accurate and precise information about their location and flight path. This technology can reduce flight times, fuel consumption, and emissions.

The adoption of NextGen Avionics is being driven by several factors, including the need to improve safety, reduce costs, and meet regulatory requirements. The use of advanced avionics systems is also expected to increase as airlines and operators seek to improve their competitiveness and efficiency.

Improving Safety: NextGen Avionics systems are designed to improve safety in commercial aviation. By providing pilots with better situational awareness, real-time information, and more accurate data, these systems can help prevent accidents and reduce the risk of incidents.

Meeting Regulatory Requirements: Regulatory bodies around the world are increasingly requiring the use of advanced avionics systems in commercial aircraft. For example, the FAA in the United States requires that all aircraft operating in certain airspace be equipped with ADS-B technology.

Cost: NextGen Avionics systems can be expensive to develop and implement, which can make them prohibitively expensive for some airlines and operators. The high cost of these systems could slow adoption rates and limit market growth.

Report Scope

Impact of COVID

The COVID-19 pandemic has had a significant impact on the commercial aviation industry, including the market for NextGen Avionics. The pandemic led to a decrease in air travel demand, which in turn resulted in a decline in orders for new aircraft and avionics systems.

The pandemic also led to disruptions in the supply chain and manufacturing processes for avionics systems, as travel restrictions and lockdowns affected the ability of suppliers and manufacturers to operate at full capacity.

However, the pandemic also highlighted the importance of advanced avionics systems in improving safety and efficiency in the aviation industry. As air travel resumes and recovers, there may be increased demand for NextGen Avionics as airlines and operators seek to modernize their fleets and improve their competitiveness.

In addition, some NextGen Avionics systems, such as ADS-B, are required by regulatory authorities in some regions. The implementation of these regulations may provide a boost to the market for NextGen Avionics as airlines and operators seek to comply with these requirements.

Overall, while the COVID-19 pandemic has had a negative impact on the commercial aviation industry and the market for NextGen Avionics, there is potential for a recovery in demand as the industry recovers from the effects of the pandemic.

Systems Insights

In terms of market share by systems, Flight Management System (FMS) is expected to account for the largest share. The FMS is a computerized system that automates a wide range of in-flight tasks, such as navigation, fuel management, and performance calculations. The FMS can improve the aircraft's efficiency, reduce pilot workload, and enhance safety. Additionally, the Communication System is expected to have a significant market share. The Communication System includes various technologies and equipment used for voice and data communications between the aircraft and ground-based systems, other aircraft, and air traffic control.

Electric and Navigation Systems, Surveillance and Emergency Systems, and Collision Avoidance Systems are also expected to have significant market shares. The Electric and Navigation System includes a range of systems used for electrical power generation and distribution, and aircraft navigation. The Surveillance and Emergency System includes various technologies and equipment used for aircraft tracking, identification, and emergency communication. The Collision Avoidance System is a safety system designed to prevent mid-air collisions.

The Weather System is also an important NextGen avionics system that provides critical information about weather conditions in the aircraft's flight path, enabling pilots to make informed decisions about routing and altitude changes.

Overall, the commercial aircraft NextGen avionics market is expected to see continued growth in the coming years, driven by increasing demand for advanced avionics systems and the trend towards automation and digitalization in the aviation industry. The market share of each avionics system in commercial aircraft production is likely to shift in response to changing consumer preferences and industry trends.

Installation Stage Insights

In terms of market share by installation stage, forward fit installations are expected to account for the largest share. This is mainly due to the fact that forward fit installations are carried out during the production of new aircraft, which typically have a longer lifespan than retrofit aircraft. Additionally, many airlines are increasingly opting for new aircraft with advanced avionics systems already installed, rather than retrofitting older aircraft.

However, retrofit installations are also expected to have a significant market share. Retrofit installations are carried out on existing aircraft to upgrade or replace older avionics systems with newer NextGen systems. This allows airlines to extend the lifespan of their existing aircraft and improve their performance, efficiency, and safety.

Aircraft Type Insights

In terms of market share by aircraft type, narrow-body aircraft are expected to account for the largest share. Narrow-body aircraft are smaller, single-aisle aircraft typically used for short to medium-haul flights. These aircraft are often used by low-cost carriers and regional airlines, which are more price-sensitive and have lower operating margins. As such, they may be more likely to invest in NextGen avionics systems to improve their operational efficiency and reduce costs.

Wide-body aircraft, on the other hand, are larger, twin-aisle aircraft typically used for long-haul flights. These aircraft are often used by major airlines and have higher operating margins. As such, they may be more likely to invest in NextGen avionics systems to enhance the passenger experience and improve safety.

However, the market share of NextGen avionics systems in narrow-body and wide-body aircraft may vary depending on factors such as airline preferences, route networks, and regional market conditions. For example, in emerging markets with rapidly growing air traffic, the demand for narrow-body aircraft with NextGen avionics systems may be higher than for wide-body aircraft.

Regional Insights

North America: The North American market is expected to be the largest market for NextGen Avionics due to the presence of major aerospace companies and airlines in the region. The FAA has also been driving the adoption of NextGen Avionics through regulations and incentives. The market in this region is expected to grow significantly in the coming years.

Europe: Europe is expected to be another major market for NextGen Avionics due to the presence of major aerospace companies and airlines in the region. The European Aviation Safety Agency (EASA) has been driving the adoption of NextGen Avionics through regulations and incentives. The market in this region is expected to grow steadily over the forecast period.

Asia-Pacific: The Asia-Pacific region is expected to be a fast-growing market for NextGen Avionics due to the growing demand for air travel in the region. The region has seen significant investment in aviation infrastructure and the adoption of NextGen Avionics is expected to increase over the coming years.

Rest of the World: The rest of the world market for NextGen Avionics includes regions such as the Middle East, Africa, and South America. While these regions are expected to see some growth in the adoption of NextGen Avionics, they may face some challenges due to factors such as economic instability, political uncertainty, and infrastructure limitations.

Competitive Analysis

Some of the major companies operating within the market are BAE Systems PLC, Cobham Limited, Curtiss-Wright, General Electric Company, Honeywell International Inc., L3Harris Technologies Inc., Raytheon Technologies Corporation, Safran, Teledyne Technologies Incorporated, and Thales Group.

Recent News

·         In February 2023, The Tata Group-owned Air India has announced its commitment to order 250 Airbus aircraft to boost its domestic and international operations. The commitment includes 140 A320neo and 70 A321neo single-aisle aircraft as well as 34 A350-1000 and six A350-900 wide-body jets that will mark a new era for the country as the all-new, long-range aircraft celebrates its debut in the Indian market.

·         In August 2022, Airbus, Boeing Expand Digital Commercial Airliner Cockpit Applications and Services

Why to buy this Report?

The report provides quantitative and qualitative aspect for the market in terms of value and volume, along with supporting market trends, challenges, restraints.

The report provides an in depth analysis from both production and consumption point of view at the regional and country level. Key Factors considered within the report scope are Production capacity by countries/regions, average price, consumption ratio, revenue earned and gross margin.

The report provides competitive analysis of around 30-50 companies operated in the market, these companies are bifurcated into niche players, the leaders and major contenders. The companies are analyzed in terms of following factors such as:

§  Business Model

§  Production Capacity, Revenue, Sales, Gross Margin

§  Key Business Strategy

§  SWOT Analysis

In terms of competitive landscape, the report provides distinctive factors that would help the end user in taking a key decision within the business:

§  Company Share Analysis from 2018-2022

§  Company Analysis by Revenue and Sales

§  Company Production Capacity, Gross Margin

§  Company Share Analysis by Application/End Use

§  Company Share Analysis by Product/Specification

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