The global avionics market is undergoing a major technological transformation driven by aircraft electrification, rising demand across commercial and military aviation, and rapid advancements in digital and software-defined aviation systems. Valued at US$ 69.8 billion in 2024, the industry is projected to surpass US$ 156.0 billion by 2035, expanding at a strong CAGR of 7.7% from 2025 to 2035. As aviation moves toward a more sustainable, highly automated, and data-driven era, avionics will continue to sit at the heart of aircraft innovation, safety, and operational efficiency.

Market Momentum: Growth Driven by Electrification & Aircraft Demand

The growth of the avionics market is deeply connected to the global push for electric, hybrid, and next-generation aircraft. Electrification is enabling aircraft manufacturers to reimagine propulsion systems, power distribution, thermal management, and flight control architectures. This shift creates new requirements for more intelligent, lightweight, and integrated avionics systems.

Simultaneously, the surge in commercial air travel—driven by expanding middle-class populations in Asia Pacific and recovering aviation markets post-pandemic—is increasing the demand for new aircraft. Defense modernization programs are also intensifying worldwide, accelerating procurement of fighter jets, surveillance aircraft, UAVs, and electronic-warfare platforms.

With avionics serving as the backbone of communication, navigation, monitoring, flight management, and mission execution, the market’s growth trajectory remains strong.

Analysts’ Viewpoint: A Sector on the Brink of Technological Leap

Industry analysts highlight the convergence of several powerful forces reshaping the avionics ecosystem:

1. Electrification as a Catalyst for Aerospace Evolution

The movement toward electric and hybrid-electric aircraft is pushing OEMs to adopt next-generation avionics capable of handling:

• Power management for electric propulsion
• Battery health monitoring
• Distributed propulsion control
• Real-time energy optimization

Emerging platforms like eVTOL aircraft, electric regional transport, and urban air mobility (UAM) are heavily reliant on complex avionics architectures to deliver autonomy, safety, and efficiency.

2. Growing Importance of Advanced Flight Control & Safety Systems

The rise of fly-by-wire, advanced autopilot, collision avoidance, and terrain awareness systems has increased the role of software-driven avionics. Enhancing pilot situational awareness through augmented reality headsets, smart flight displays, and AI-assisted flight monitoring is becoming industry standard.

3. Defense Modernization Boosting Mission Avionics

Military aircraft are equipped with mission-critical avionics enabling:

• Electronic warfare
• Targeting & surveillance
• Tactical communications
• Cyber-secure data links
• Real-time threat detection

These functionalities are essential for modern warfare and are driving the rapid expansion of Mission & Tactical Systems, which held a 36% market share in 2024, the highest among all system types.

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Avionics Market Introduction: Software-Driven Future of Flight

Avionics—“aviation electronics”—encompass all electronic systems used in aircraft and spacecraft, including:

• Engine & flight control systems
• Navigation & communication systems
• Surveillance, radar & weather systems
• Cockpit displays & flight recorders
• Threat detection & electronic warfare systems
• Power management & electrical distribution units

The aviation industry is moving toward software-centric architecture, where digital code, AI, cybersecurity, and data analytics drive performance. Modern aircraft increasingly feature digital twins, predictive maintenance algorithms, real-time diagnostics, and cloud-connected avionics.

UAVs, electric aircraft, and autonomous air taxis represent the next wave of aviation technologies, requiring avionics systems that are lighter, smarter, and more integrated than ever before.

Market Drivers: What’s Powering Avionics Adoption?

1. Aircraft Electrification Enables the Future of Air Travel

Electrification is reshaping how aircraft are designed, controlled, and powered. It requires avionics systems capable of:

• Monitoring distributed electric propulsion
• Managing electrical loads
• Ensuring battery safety
• Coordinating hybrid-electric powertrains

Electric aircraft rely extensively on digital controls—making avionics the most critical component in next-generation platforms.

2. Increasing Demand for Commercial & Military Aircraft

The continued rise in:

• Global air passenger traffic
• Fleet expansion by low-cost carriers
• Military aircraft procurement
• UAV and drone integration into airspace

is directly contributing to avionics upgrades and installations. Regulatory mandates for modernizing older aircraft fleets (FAA NextGen, EASA modernization) further accelerate demand for new avionics solutions.