Commercial Aircraft Nextgen Avionics Market Report 2025

The commercial aircraft nextgen avionics market size has grown rapidly in recent years. It will grow from $3.39 billion in 2024 to $3.79 billion in 2025 at a compound annual growth rate (CAGR) of 11.8%. The growth in the historic period can be attributed to increased air traffic, increased travel and tourism, population growth, rise in disposable income, growth of the aviation industry.

The commercial aircraft nextgen avionics market size is expected to see rapid growth in the next few years. It will grow to $5.81 billion in 2029 at a compound annual growth rate (CAGR) of 11.3%. The growth in the forecast period can be attributed to emerging market demand, fuel-efficient airframe designs, sustainable aviation materials, market entry of new players, and growing need for commercial aircrafts. Major trends in the forecast period include digital cockpit modernization, advancements in connectivity and communication, autonomous flight technologies, ai and machine learning, and advancements in human-machine interface (hmi).

The anticipated increase in air passenger traffic is poised to drive the growth of the commercial aircraft NextGen avionics market. Air passenger traffic, encompassing both local and foreign travelers, has been on the rise globally, necessitating effective air traffic management. Commercial aircraft NextGen avionics play a crucial role in this regard, providing air traffic controllers and pilots with proactive identification and resolution of weather and other hazards. For example, a report by the International Civil Aviation Organization (ICAO) in May 2022 indicated a substantial increase in air travelers, with 65% more passengers and 30% more aircraft departures between January and April 2022 compared to the same period in 2021. This surge in air passenger traffic globally serves as a driving force behind the growth of the commercial aircraft NextGen avionics market.

The rising demand for air cargo transportation is expected to drive the growth of the commercial aircraft nextgen avionics market in the coming years. Air cargo transportation involves the movement of goods, products, or cargo by air using aircraft. As the air cargo industry grows, advanced avionics systems become crucial for optimizing operations, ensuring cargo safety, and meeting regulatory standards. These systems provide real-time tracking, data connectivity, and operational flexibility, offering a competitive edge to airlines and cargo carriers. For example, in July 2024, The International Air Transport Association (IATA), a Canada-based trade association of global airlines, reported that total demand, measured in cargo tonne-kilometers, increased by 14.1% compared to June 2023 levels of 15.6% for international operations. This marked the seventh consecutive month of double-digit year-on-year growth. Total demand for the first half of the year rose by 13.4% compared to 2023, 4.3% compared to 2022, and 0.02% compared to 2021. Consequently, the growing demand for air cargo transportation is fueling the expansion of the commercial aircraft nextgen avionics market.

Technological advancement is a prominent trend gaining traction in the commercial aircraft next-gen avionics market. Leading companies in the market are adopting new technologies to maintain their competitive edge. The electric CityAirbus NextGen is an urban air mobility vehicle designed for zero-emission, quiet, and efficient urban flights, utilizing advanced electric propulsion technology for sustainable city transportation. For example, in March 2024, Airbus SE, a Netherlands-based commercial aircraft manufacturing company, publicly unveiled its fully electric CityAirbus NextGen prototype. The two-tonne CityAirbus, with a 12-meter wingspan, is built for an 80 km range and a cruise speed of 120 km/h, making it ideal for a variety of urban missions. This launch represents a major step in Airbus SE's efforts to revolutionize urban air mobility with sustainable, zero-emission transport solutions.

Leading companies in the commercial aircraft nextgen avionics market are concentrating on developing innovative next-generation systems to enhance safety, improve operational efficiency, reduce weight and power consumption, enable advanced connectivity and automation, and meet evolving regulatory requirements in the aviation industry. Next-generation systems refer to advanced technologies and solutions that offer significant improvements over current systems, often incorporating the latest innovations in design, functionality, and performance. For example, in June 2023, Embraer Services & Support, a Brazil-based aircraft company, introduced the next generation of its AHEAD (Aircraft Health Analysis and Diagnosis) system at the Paris Air Show. This advanced tool is designed to improve predictive maintenance capabilities for Embraer’s fleet, with a particular focus on commercial and executive jets.

In July 2024, Loar Holdings Inc., a US-based aerospace and defense company, acquired Applied Avionics, Inc. for $385 million. Through this acquisition, Loar Holdings Inc. aims to strengthen its product offerings and strategic position in the aerospace industry, with a focus on niche capabilities, proprietary products, and expanding its aftermarket solutions. Applied Avionics Inc., a US-based company, specializes in the manufacturing and supply of avionics system integration products for aircraft cockpits.

Major companies operating in the commercial aircraft nextgen avionics market include Cobham Limited, Curtiss-Wright Corp., General Electric Company, Honeywell International Inc., L3Harris Technologies Inc., Raytheon Technologies Corporation, Safran S.A, Teledyne Technologies Incorporated, Thales Group, Elbit Systems of America LLC, Esterline Technologies Corporation, Garmin International Inc., Panasonic Avionics Corporation, Universal Avionics Systems., BAE Systems plc, Garmin Ltd., Meggitt plc, UAVIONIX Corporation, CMC Electronics Inc., Astronics Corporation, GE Aviation LLC, Avidyne Corporation, Becker Avionics GmbH, Cobham Aerospace Communications, Comant Industries Inc., DAC International, FreeFlight Systems, Genesys Aerosystems, Honeywell Aerospace Ltd., Innovative Solutions & Support Inc., Mid-Continent Instruments and Avionics, NavWorx Inc., Sandel Avionics Inc.

Commercial aircraft next-generation avionics comprise an integrated set of technologies, communication systems, and equipment that significantly transform aviation surveillance, navigation, and communication practices. This advancement enhances safety, reduces flight times, and decreases emissions by incorporating various modern technologies. The primary objective of commercial aircraft next-generation avionics is to support pilots in maneuvering more efficiently.

The key systems within commercial aircraft next-gen avionics include the flight management system, communication system, electric and navigation system, surveillance and emergency system, collision avoidance system, weather system, and others. Flight management systems are onboard multi-purpose navigation, performance, and aircraft operations computers designed to provide virtual data and operational coordination between closed and open aspects associated with an aircraft - from pre-engine start and takeoff to landing and engine shutdown. Installation stages include forward fit and retrofit, with applications in regional, narrow-body, and wide-body aircraft.

The commercial aircraft nextgen avionics market research report is one of a series of new reports that provides commercial aircraft nextgen avionics market statistics, including commercial aircraft nextgen avionics industry global market size, regional shares, competitors with commercial aircraft nextgen avionics market share, detailed commercial aircraft nextgen avionics market segments, market trends, and opportunities, and any further data you may need to thrive in the commercial aircraft nextgen avionics industry. This commercial aircraft nextgen avionics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Asia-Pacific was the largest region in the commercial aircraft nextgen avionics market in 2024. North America is expected to be the fastest growing region in the forecast period. The regions covered in the commercial aircraft nextgen avionics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the commercial aircraft nextgen avionics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The commercial aircraft nextgen avionics market consists of sales of health monitoring, tactical system, and in-flight entertainment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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