Top 3 trends fueling global aerospace avionics market outlook
Publisher : Fractovia | Published Date : 2019-12-20Request Sample
Aerospace avionics marker growth is bolstered considerably by surging levels of wealth in recent times coupled with growing global demand for advanced commercial and passenger aircrafts. Escalating passenger and cargo air traffic in regions like Asia Pacific and the Middle East is contributing heavily towards augmented demand for new aircrafts, in turn propelling the demand for advanced avionics systems.
Furthermore, the establishment of new routes and economical air travel solutions in the region has led to a significant rise in the production of low-cost carriers (LLC) over the last decade.
Aerospace avionics is an amalgamation of myriad systems designed to optimize in-flight and on-ground aircraft functions. Avionics is a vital component in aircraft systems owing to its ability to accumulate relevant information from all the other systems and subsequently provide the pilot with crucial operational data. Global aerospace avionics market demand has seen a considerable upsurge following the advent of neural sensing, motion planning and satellite-powered communication systems.
The U.S Federal Aviation Administration (FAA), which is responsible for the supervision of aircraft avionics application across the region has initiated several mandates for avionics installation and operation in new aircrafts and the aftermarkets, aimed at providing customers secure and seamless aircraft functions through enhanced avionics solutions.
Burgeoning demand for commercial aviation from thriving APAC tourism sector
According to the International Air Transport Association (IATA), the APAC passenger traffic is set to witness annual growth of over 4.7%. This growth is attributed to the rising air traffic levels in the region coupled with the steady advancement of the global economy, which will in turn fuel aerospace avionics market trends over the projected timeline.
The booming tourism industry is asserting a positive influence on the expansion of commercial aviation. According to the Boeing Outlook of 2019-2038, the APAC region is anticipated to generate over 17,000 aircraft deliveries in order to accommodate passenger growth.
Escalating wealth levels and subsequent demand for chartered airlines across the globe
As per the 2018 World Wealth report, the number of people with a net worth of over $50 million, aka ultra-wealthy individuals is set to witness an increase of over 43% by 2022 and those with over $500 million net worth, aka demi-wealthy individuals will rise by over 39% by 2022, thereby stimulating the aerospace avionics market forecast.
This massive upsurge in wealth levels will boost the business jet & general aviation market segment with an appreciable expected growth rate of over 4% by 2025. Industry demand will be further impelled by the growing number of air taxis and air charter firms across the world.
Rising demand for cost-effective aviation carriers from airline service providers and charter companies
Burgeoning production of low-cost aircrafts in emerging nations like China and India will significantly spur the demand for new air carriers. With regards to the end-use application landscape, the OEM segment of the overall aerospace avionics industry outlook is poised to amass substantial gains over the forecast timeline owing to the mounting number of orders from several airline charter companies and service providers. In fact, in August 2019, Air China awarded Chinese production firm COMAC a $1.33 billion contract to supply the 35 ARJ21-700 aircraft, the first of which is expected to be delivered by 2020.
According to estimates by a Global Market Insights, Inc. report, the aerospace avionics market size is anticipated to cross $94 billion by 2025.
