Europe Aircraft Avionics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Europe Aircraft Avionics Market size is estimated at USD 18.46 billion in 2024, and is expected to reach USD 25.32 billion by 2029, growing at a CAGR of 5.37% during the forecast period (2024-2029).
Key Highlights
The development and integration of advanced avionic suites onboard aircraft (both line fit and retrofit) are expected to accelerate the growth of the avionics market in the Europe region. An increasing number of air travelers, rising spending on aviation infrastructure, and growing aircraft deliveries drive the market growth across the region. The planned orders and deliveries of commercial aircraft of major airlines in the European region will generate demand for avionics in the region.
Also, the demand for military aircraft, as well as private aviation in the region, is expected to bolster the growth of the market. The development of new and advanced avionics is generating the need to replace old avionics systems in older military aircraft. These new avionics suites support the aircraft to meet the newer generation battlefield requirements like long-distance target detection and tracking, stealth, and electronic warfare defense. Therefore, to stay abreast of adversaries, allied military forces are devising modernization plans to upgrade the avionics suites in the military aircraft.
Europe Aircraft Avionics Market Trends
The Commercial Aircraft Segment is Expected Witness Highest Growth During the Forecast Period
An increasing number of air passengers leads to demand for new aircraft, which in turn creates demand for various aircraft systems such as avionics, inflight entertainment and flight connectivity solutions, power systems, ADS-B, and others, hence driving the market growth across Europe.
Also, the European airlines have been granted a deadline extension on ADS-B compliance till 2023. While the new transition period has helped the airlines to schedule the avionics upgrades based on the demand for commercial flights, the existing surveillance technologies will be upgraded sometime during the first half of the forecast period. Hence, the projected growth in retrofit activity for the upgraded avionics is expected to generate revenues for the market in the region during the forecast period.
For instance, in September 2023, the Air France-KLM Group is planning to renew its long-haul fleet with a new order for 50 Airbus A350 widebodies, which includes both the A350-1000 and A350-900 models. Also, it will secure options on another 40 aircraft. The deliveries of the new A350s will start in 2026 and be completed by 2030. Also, the airline installed Intelsat‘s 2Ku high-speed satellite In-Flight Connectivity (IFC) service on 60 of its new A220-300 aircraft.
In May 2022, Panasonic Avionics Corporation was selected by Lufthansa Group to provide its NEXT in-flight entertainment (IFE) system and enhanced connectivity solutions for the airline's flagship Boeing B747-8 fleet. Panasonic Avionics’ NEXT IFE system will be retrofitted on Lufthansa’s 19 Boeing B747-8s, with the first started in the summer of 2024.
Thus, growing investments in the aviation sector due to the increasing number of air travelers and rising commercial aircraft deliveries create demand for advanced avionics, which drives market growth across the region.
The United Kingdom Dominates the Market During the Forecast Period
The United Kingdom has witnessed steady growth in air travelers in the last few years. The UK-based airlines transported 106 million passengers in 2022. In the past six years, passenger volume has steadily increased, growing by 23 percent. As per the data published by the Civil Aviation Authority (UK), EasyJet UK is the largest airline in the country, which transported around 33.12 million passengers in 2022.
Rising air traffic leads to growing demand for new commercial aircraft. Airlines in the UK are focusing on fleet expansion by purchasing new widebody and narrowbody aircraft to fulfill the demand of a growing number of air passengers. In May 2023, Global Airlines, a UK-based startup, received its first Airbus A380 aircraft. The airline plans to purchase a total of three Airbus widebody aircraft. Furthermore, in October 2023, EasyJet, the UK-based airline announced a deal with Airbus for 157 new short-haul aircraft for delivery from 2029. The deal also includes purchase rights for a further 100 in an agreement worth USD 19.9 billion.
RGV Aviation Limited is one of the leading glass cockpit avionics maintenance providers. The company is a dealer of major aircraft avionics OEMs such as Garmin Ltd., Avidyne, Mid-Continent, Aspen Avionics, PS-Engineering, Genesys AeroSystems Autopilots, and others. The company is an approved Avidyne authorized dealer and the only UK-approved Entegra Release 9 installer.
For instance, in July 2022, Jet2.com, an airline in the UK, selected THALES for the supply of flight management system (FMS) and integrated surveillance equipment (T3CAS) developed by ACSS, a joint venture company between L-3 Communications and Thales. Under the agreement, the company would supply its advanced avionics systems to the A321neo fleet of airlines. These solutions will contribute to flight path optimization and generate significant weight savings which helps to reduce the carbon footprint of the airline’s operations. The deliveries are planned from 2023 to 2029. Such developments drive the market growth across the United Kingdom.
Europe Aircraft Avionics Industry Overview
The European aircraft avionics market is semi-consolidated in nature, with a presence of few local and global players holding significant shares in the market. Some of the prominent players in the market are Safran, Cobham plc, LATECOERE S.A, L3Harris Technologies Inc., and RTX Corporation. RTX Corporation's subsidiary Collins Aerospace is the major avionics provider to major aircraft programs of commercial, military, and general aviation segments for aircraft OEMs like Airbus and Boeing as the major players in the market sign long-term contracts with the aircraft original equipment manufacturers (OEMs), which makes it difficult for new players to enter the line-fit segment of the market. However, the other global and regional players that provide connectivity solutions, gauges and indicators, GPS, jammers, and other control systems for various flight activities occupy a significant part of the retrofit segment of the market.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The development and integration of advanced avionic suites onboard aircraft (both line fit and retrofit) are expected to accelerate the growth of the avionics market in the Europe region. An increasing number of air travelers, rising spending on aviation infrastructure, and growing aircraft deliveries drive the market growth across the region. The planned orders and deliveries of commercial aircraft of major airlines in the European region will generate demand for avionics in the region.
Also, the demand for military aircraft, as well as private aviation in the region, is expected to bolster the growth of the market. The development of new and advanced avionics is generating the need to replace old avionics systems in older military aircraft. These new avionics suites support the aircraft to meet the newer generation battlefield requirements like long-distance target detection and tracking, stealth, and electronic warfare defense. Therefore, to stay abreast of adversaries, allied military forces are devising modernization plans to upgrade the avionics suites in the military aircraft.
Europe Aircraft Avionics Market Trends
The Commercial Aircraft Segment is Expected Witness Highest Growth During the Forecast Period
An increasing number of air passengers leads to demand for new aircraft, which in turn creates demand for various aircraft systems such as avionics, inflight entertainment and flight connectivity solutions, power systems, ADS-B, and others, hence driving the market growth across Europe.
Also, the European airlines have been granted a deadline extension on ADS-B compliance till 2023. While the new transition period has helped the airlines to schedule the avionics upgrades based on the demand for commercial flights, the existing surveillance technologies will be upgraded sometime during the first half of the forecast period. Hence, the projected growth in retrofit activity for the upgraded avionics is expected to generate revenues for the market in the region during the forecast period.
For instance, in September 2023, the Air France-KLM Group is planning to renew its long-haul fleet with a new order for 50 Airbus A350 widebodies, which includes both the A350-1000 and A350-900 models. Also, it will secure options on another 40 aircraft. The deliveries of the new A350s will start in 2026 and be completed by 2030. Also, the airline installed Intelsat‘s 2Ku high-speed satellite In-Flight Connectivity (IFC) service on 60 of its new A220-300 aircraft.
In May 2022, Panasonic Avionics Corporation was selected by Lufthansa Group to provide its NEXT in-flight entertainment (IFE) system and enhanced connectivity solutions for the airline's flagship Boeing B747-8 fleet. Panasonic Avionics’ NEXT IFE system will be retrofitted on Lufthansa’s 19 Boeing B747-8s, with the first started in the summer of 2024.
Thus, growing investments in the aviation sector due to the increasing number of air travelers and rising commercial aircraft deliveries create demand for advanced avionics, which drives market growth across the region.
The United Kingdom Dominates the Market During the Forecast Period
The United Kingdom has witnessed steady growth in air travelers in the last few years. The UK-based airlines transported 106 million passengers in 2022. In the past six years, passenger volume has steadily increased, growing by 23 percent. As per the data published by the Civil Aviation Authority (UK), EasyJet UK is the largest airline in the country, which transported around 33.12 million passengers in 2022.
Rising air traffic leads to growing demand for new commercial aircraft. Airlines in the UK are focusing on fleet expansion by purchasing new widebody and narrowbody aircraft to fulfill the demand of a growing number of air passengers. In May 2023, Global Airlines, a UK-based startup, received its first Airbus A380 aircraft. The airline plans to purchase a total of three Airbus widebody aircraft. Furthermore, in October 2023, EasyJet, the UK-based airline announced a deal with Airbus for 157 new short-haul aircraft for delivery from 2029. The deal also includes purchase rights for a further 100 in an agreement worth USD 19.9 billion.
RGV Aviation Limited is one of the leading glass cockpit avionics maintenance providers. The company is a dealer of major aircraft avionics OEMs such as Garmin Ltd., Avidyne, Mid-Continent, Aspen Avionics, PS-Engineering, Genesys AeroSystems Autopilots, and others. The company is an approved Avidyne authorized dealer and the only UK-approved Entegra Release 9 installer.
For instance, in July 2022, Jet2.com, an airline in the UK, selected THALES for the supply of flight management system (FMS) and integrated surveillance equipment (T3CAS) developed by ACSS, a joint venture company between L-3 Communications and Thales. Under the agreement, the company would supply its advanced avionics systems to the A321neo fleet of airlines. These solutions will contribute to flight path optimization and generate significant weight savings which helps to reduce the carbon footprint of the airline’s operations. The deliveries are planned from 2023 to 2029. Such developments drive the market growth across the United Kingdom.
Europe Aircraft Avionics Industry Overview
The European aircraft avionics market is semi-consolidated in nature, with a presence of few local and global players holding significant shares in the market. Some of the prominent players in the market are Safran, Cobham plc, LATECOERE S.A, L3Harris Technologies Inc., and RTX Corporation. RTX Corporation's subsidiary Collins Aerospace is the major avionics provider to major aircraft programs of commercial, military, and general aviation segments for aircraft OEMs like Airbus and Boeing as the major players in the market sign long-term contracts with the aircraft original equipment manufacturers (OEMs), which makes it difficult for new players to enter the line-fit segment of the market. However, the other global and regional players that provide connectivity solutions, gauges and indicators, GPS, jammers, and other control systems for various flight activities occupy a significant part of the retrofit segment of the market.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Application
5.1.1 Commercial Aircraft
5.1.2 Military Aircraft
5.1.3 General Aviation Aircraft
5.2 Geography
5.2.1 Europe
5.2.1.1 United Kingdom
5.2.1.2 France
5.2.1.3 Germany
5.2.1.4 Russia
5.2.1.5 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 L3Harris Technologies Inc.
6.1.2 Cobham plc
6.1.3 RTX Corporation
6.1.4 Honeywell International Inc.
6.1.5 LATECOERE S.A.
6.1.6 Safran
6.1.7 Diehl Stiftung & Co. KG
6.1.8 The General Electric Company
6.1.9 HR Smith Group of Companies
6.1.10 THALES
6.1.11 Northrop Grumman Corporation
6.1.12 Rohde & Schwarz GmbH & Co KG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Application
5.1.1 Commercial Aircraft
5.1.2 Military Aircraft
5.1.3 General Aviation Aircraft
5.2 Geography
5.2.1 Europe
5.2.1.1 United Kingdom
5.2.1.2 France
5.2.1.3 Germany
5.2.1.4 Russia
5.2.1.5 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 L3Harris Technologies Inc.
6.1.2 Cobham plc
6.1.3 RTX Corporation
6.1.4 Honeywell International Inc.
6.1.5 LATECOERE S.A.
6.1.6 Safran
6.1.7 Diehl Stiftung & Co. KG
6.1.8 The General Electric Company
6.1.9 HR Smith Group of Companies
6.1.10 THALES
6.1.11 Northrop Grumman Corporation
6.1.12 Rohde & Schwarz GmbH & Co KG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
