Avionics Market

Avionics: The Technology that Powers Modern Aviation

Avionics refers to the electronic systems and devices used in aviation, including aircraft communications, navigation, and monitoring equipment. The term "avionics" is a portmanteau of "aviation" and "electronics." The technology has evolved significantly over the years and has played a critical role in improving flight safety, efficiency, and comfort. This essay explores the history of avionics, its various applications, and its impact on modern aviation.

The History of Avionics

Avionics has its roots in the early 20th century when radios were first used for communication between pilots and ground control. The first radios used in aviation were large, heavy, and had limited range. In the 1920s and 1930s, radio navigation systems were developed, such as the Radio Direction Finding (RDF) and the Very High-Frequency Omnidirectional Range (VOR), which allowed pilots to navigate more accurately.

The introduction of radar during World War II revolutionized aviation. It enabled aircraft to detect other aircraft and ground obstacles, even in low visibility conditions. After the war, the aviation industry continued to invest in avionics, and new technologies were developed, such as the Automatic Direction Finder (ADF), Distance Measuring Equipment (DME), and the Inertial Navigation System (INS).

In the 1980s, the Global Positioning System (GPS) was introduced, which made navigation even more precise and reliable. Today, avionics technology continues to advance rapidly, with new developments such as synthetic vision systems, satellite-based communication systems, and more.

Applications of Avionics

Avionics has many applications in aviation. Some of the most critical systems include:

• Flight management systems: These systems help pilots plan and navigate their flights, taking into account factors such as weather conditions, fuel consumption, and air traffic control.
• Communications systems: These systems allow pilots to communicate with air traffic control and other aircraft. They include radios, satellite phones, and text messaging systems.
• Navigation systems: These systems help pilots determine their position and navigate to their destination. They include GPS, VOR, and INS.
• Weather monitoring systems: These systems provide pilots with real-time weather information, including temperature, wind speed, and precipitation.
• Flight control systems: These systems help pilots control the aircraft, including the autopilot system and the flight control surfaces.

The Impact of Avionics on Aviation

Avionics has had a profound impact on aviation, improving safety, efficiency, and comfort. Some of the ways avionics has impacted aviation include:

• Improved safety: Avionics systems such as radar, GPS, and weather monitoring systems have significantly improved flight safety. Pilots can detect and avoid obstacles more easily, and they have access to real-time weather information to help them make better decisions.
• Increased efficiency: Flight management systems and other avionics technologies have made flying more efficient by optimizing routes, reducing fuel consumption, and improving scheduling.
• Enhanced comfort: Modern avionics systems, such as in-flight entertainment systems, provide passengers with a more comfortable and enjoyable flying experience.

Dynamics of Avionics Market

Drivers in Avionics Market

The avionics market is currently experiencing a surge in demand, driven by the increasing adoption of sophisticated flight management systems by aircraft OEMs. In recent years, aircraft manufacturers have been shifting towards a new connected and digital avionics design, with integrated systems having smaller modular form factors. This trend is not limited to military and commercial aviation, as evidenced by the increasing number of new avionics products launched by OEMs for general aviation platforms, particularly for light aircraft and business jets.

Honeywell has been a pioneer in the development of next-generation flight management systems (NG FMS), which have been optimized for future Air Traffic Management functionality, leading to improved fuel efficiency, reduced operating costs, reduced pilot workload, and improved safety. The NG FMS has been designed in a way that allows it to run the same core functionality on multiple platforms, paving the way for its integration into upcoming models of business jets and light aircraft.

The need to enhance the operational reliability of flight management systems in dense traffic areas has also led to extensive research and development. Thales, for example, has been working closely with ATR on new cockpit systems, including a modular avionics architecture that features a new cockpit equipped with five large LCD screens, an FMS, and a latest-generation autopilot.

The International Civil Aviation Organization (ICAO) has predicted that by 2035, both passenger and freight traffic will have doubled. The rise in the use of low-cost airlines, rising disposable income, and increasing population density are contributing to an increase in passengers globally. This has resulted in more deliveries of commercial aircraft, leading to the adoption of modern avionics to increase operational safety and fuel efficiency while reducing operating costs.

Flight management systems are critical components of an aircraft's hardware, supporting the operational cohesion of key aircraft components involved in a flight from take-off to landing. These systems pre-program an aircraft's travel route, ensuring accuracy and punctuality. Therefore, the predicted rise in the integration of flight management systems in commercial and military aircraft will be a key driver propelling the global avionics market over the forecast period.

Restraints in Avionics Market

The retrofitting of avionics systems can provide a cost-effective way for airlines to enhance the performance of their existing aircraft and extend their lifespan. This has created an opportunity for avionics manufacturers to collaborate with aviation service companies to integrate and install these systems to meet the demands of modern aviation. Furthermore, the increasing use of unmanned aerial vehicles (UAVs) in various industries and the rapid growth of the commercial space industry also present opportunities for avionics companies to develop and supply the necessary control and communication systems for these vehicles.

Opportunities in Avionics Market

The aviation industry is heavily regulated, with a focus on safety and efficiency. As such, companies that can develop advanced avionics systems that improve safety and efficiency, such as collision avoidance systems and automated flight control systems, have a significant opportunity to thrive in this market. The demand for modern avionics systems is expected to continue to grow as airlines and other operators seek to modernize their fleets, which presents an opportunity for avionics manufacturers to develop and supply these systems.

Challenges in Avionics Market

The proper usage of modern avionics systems requires extensive pilot training due to the high level of system complexity. These systems consist of several subsystems that collect data from embedded sensors, which is then displayed to the pilot through various onboard display systems. However, these displays can be vulnerable to signal errors and are complex, which can negatively impact situational awareness and increase pilot workload. Pilots must manage multiple goals, tasks, and make quick decisions, leading to instances of confusion with computer-generated messages. The Aero Peru Flight 603 incident is an example of this, where contradictory messages and inoperable instruments caused a mid-air collision.

Despite extensive training procedures implemented by airlines, the potential for computational errors and system malfunctions remains high in certain cases. The US National Transport Safety Board has recommended six measures to the Federal Aviation Administration regarding pilot training. These include testing pilots on their knowledge of avionics operations and malfunctions, as well as developing new guidance material for the new generation of avionics simulators. These measures aim to enhance pilot training and ensure proper usage of modern avionics systems.

Ecosystem of Avionics Market

In the avionics market ecosystem, key stakeholders include prominent avionics companies, private and small enterprises, distributors/suppliers/retailers, and end customers such as airlines, air forces, and MROs. Influencers in the market include investors, funders, academic researchers, distributors, service providers, and defence procurement authorities. The navigation segment is expected to hold the largest share of the avionics market during the forecast period. The avionics market is segmented by application, platform, and fit. The navigation segment is expected to lead the avionics market due to major airline players enhancing their existing aircraft fleet with the latest electronic equipment for better safety and fuel efficiency. The military segment registered the largest market share in terms of revenue during the forecast period, as rising defense budgets of military superpowers like the U.S., China, and Russia are expected to increase demand for military aircraft. Line-fit is expected to account for the largest share during the forecast period as a large part of the older generation light aircraft did not have the necessary wiring and electrical design for avionics upgrade, limiting the number of aircraft with provisions for avionics installation in the active fleet.

The global avionics market is categorized into several segments, including power and data management, communication, navigation, flight management, weather detection, and electric flight display, based on the system. According to market projections, the navigation segment demonstrated the most substantial revenue during the forecast period.

Air navigation pertains to the determination of a plane's position and direction on or above the Earth's surface. Avionics allows the use of Inertial Navigation Systems (INS), satellite navigation systems (such as GPS and WAAS), ground-based radio navigation systems (such as VOR or LORAN), or a combination of these to achieve this. With GPS, for instance, the flight crew receives position information automatically and via moving map displays.

Modern airplane navigation systems are comprised of numerous components, including magnetic field detectors, inertial navigation systems, and distance measuring apparatus. Basic navigational aids come standard even on small Visual Flight Rule (VFR) planes. In contrast, more sophisticated instruments and an instrument landing system are necessary for larger airliners.

It's worth noting that navigation is not limited to air travel. Aircraft on the ground also utilize information from equipment and other possible references to navigate during taxiing from the runway to the gate or other ground activities. As a result, the significance of systems that assist pilots with navigational tasks cannot be overstated.

The global avionics market can be segmented based on end-use into two categories: OEM and aftermarket. During the forecast period, the OEM segment is expected to hold the largest market share in terms of revenue. OEMs are in a significant position as they have complete control over the asset from design to manufacture and operating data, enabling them to modify the original maintenance plan based on data analysis. By collecting sufficient reliability data, OEMs can analyze performance and eliminate the requirement for unnecessary maintenance labor. The growth of the OEM segment is attributed to the increase in global deliveries of business jets and military aircraft. Moreover, the market is anticipated to expand due to ongoing R&D initiatives aimed at developing technologically advanced aviation computer components.

Regional Insights

During the forecast period, the North American market is expected to have the largest revenue share, driven by an increasing demand for advanced avionics systems in both military and commercial applications. The need for specialized avionics systems for military fighter jets, which are becoming increasingly sophisticated, is expected to fuel market growth. The United States is expected to dominate the region due to rising air travel, growing cargo importance, and increasing aircraft deliveries domestically. The market is also supported by strict regulations on aviation safety and an increase in MRO activities in the country.

In the Asia Pacific market, rapid revenue growth is anticipated due to significant advancements in aircraft navigation and communication systems, which are expected to prompt various militaries to modernize their avionics to ensure combat readiness. China is expected to lead the market with high CAGR growth as the country has a sizable number of airline operators seeking to expand their fleet and acquire new aircraft. For instance, China Southern Airlines plans to double its current number of aircraft to 2,000 by 2035. Additionally, the Chinese aerospace company COMAC is currently building the C919 narrow-body aircraft to compete with Airbus and Boeing.

In Europe, the avionics market is expected to register a moderate revenue growth rate over the forecast period. The development and integration of advanced avionic suites onboard aircraft (both linefit and retrofit) is expected to spur market growth in the region. The demand for avionics is also projected to rise due to planned purchases and deliveries of commercial aircraft by major airlines in the region to accommodate rising passenger traffic. Furthermore, the demand for military and private aviation aircraft is expected to support market expansion.

Dominating Companies in Avionics Market

• RAYTHEON TECHNOLOGIES CORPORATION
• CURTISS-WRIGHT CORPORATION
• HONEYWELL INTERNATIONAL INC.
• L3HARRIS TECHNOLOGIES INC.
• GENERAL ELECTRIC COMPANY
• SAFRAN SA
• BAE SYSTEMS PLC
• MOOG INC.
• MEGGITT PLC
• GARMIN LTD.
• CMC ELECTRONICS INC.
• CHELTON LTD.
• ASTRONAUTICS CORPORATION OF AMERICA
• UAVIONIX CORPORATION
• NORTHROP GRUMMAN CORPORATION
• UNIVERSAL AVIONICS SYSTEMS CORPORATION
• AVIDYNE CORPORATION
• ASPEN AVIONICS INC.
• DYNON AVIONICS INC.
• MGL AVIONICS
• SUZHOU CHANGFENG INSTRUMENTS CO., LTD.
• KANARDIA D.O.O.
• TALOS AVIONICS P.C.
• GRT AVIONICS
• TASKEM CORPORATION
• AVMAP S.R.L

Recent Developments in Avionics Market

• Honeywell Acquisition of TruTrak Flight Systems (2020): Honeywell Aerospace, a global provider of aircraft avionics, announced its acquisition of TruTrak Flight Systems, a manufacturer of autopilots for certified and experimental aircraft. The acquisition is part of Honeywell's strategy to expand its capabilities in the general aviation market.
• L3Harris Technologies Merger (2019): L3 Technologies and Harris Corporation, two leading defense contractors, merged to form L3Harris Technologies. The merger created a top 10 defense company with a broad portfolio of avionics, communication, and electronic warfare products and services.
• In 2020, Raytheon Technologies completed the merger of Raytheon Company and United Technologies Corporation (UTC), creating one of the largest aerospace and defense companies in the world. The new company, named Raytheon Technologies, includes Collins Aerospace, which is a leading provider of avionics and communications systems.
• In 2019, Collins Aerospace signed a strategic agreement with Boom Supersonic to develop the avionics system for its Overture supersonic commercial airliner. The partnership will help Boom Supersonic to bring its Mach-2.2 airliner to market, which is expected to reduce transoceanic travel times by half.
• In 2019, BAE Systems acquired Collins Aerospace's military Global Positioning System (GPS) business. The acquisition has enabled BAE Systems to expand its GPS offerings for military applications, including its next-generation Military Code (M-Code) GPS technology.
• In 2018, Rockwell Collins was acquired by United Technologies Corporation (UTC). The acquisition has enabled UTC to expand its presence in the aerospace industry, particularly in the avionics market.
• In 2018, Garmin acquired Flight Plan LLC, a leading provider of flight planning, scheduling, and tracking services for corporate and private aircraft operators. The acquisition has enabled Garmin to expand its aviation services offerings.
• In 2018, Safran Electronics & Defense signed a partnership agreement with Airbus to develop and supply the inertial measurement unit for the new Airbus A320neo airliner. The partnership has enabled Safran to strengthen its position in the commercial avionics market.
• Garmin and Embraer Partnership (2019): Garmin, a leading provider of avionics, and Embraer, a Brazilian aircraft manufacturer, announced a partnership to develop a new avionics suite for Embraer's Phenom 300E business jet. The suite includes Garmin's G3000 touchscreen avionics, which provide pilots with enhanced situational awareness and safety features.
• Collins Aerospace Acquisition of FlightAware (2018): Collins Aerospace, a subsidiary of United Technologies Corporation, acquired FlightAware, a global flight tracking and data analysis company. The acquisition enables Collins Aerospace to integrate FlightAware's real-time flight tracking data into its avionics products, improving safety and efficiency for airlines and air traffic controllers.
• Thales Acquisition of Gemalto (2018): Thales, a global leader in aerospace, defense, and security, acquired Gemalto, a digital security company. The acquisition enhances Thales' capabilities in digital identity and security, which are increasingly important for avionics systems and data protection.

Avionics has come a long way since its early days, and it continues to evolve rapidly. The technology has had a significant impact on aviation, improving safety, efficiency, and comfort. With new developments such as synthetic vision systems and satellite-based communication systems, avionics will continue to shape the future of aviation for many years to come.