Commercial Aerospace Avionics Market to Hit USD 72 Billion by 2035

The value of the Commercial Aerospace Avionics Market Size in 2024 was 44.6 billion USD. By 2035, the Commercial Aerospace Avionics Market is projected to increase from 46.6 billion USD in 2025 to 72 billion USD. During the forecast period of 2025 to 2035, the Commercial Aerospace Avionics Market is anticipated to have a CAGR (growth rate) of approximately 4.4%.

Avionics—encompassing systems for flight control, navigation, communication, surveillance, and cockpit displays—lie at the heart of modern aircraft operations. In the commercial aerospace segment, demand spans new aircraft production (OEM) and upgrades or replacements in operating fleets (aftermarket). The landscape is segmented by system type (e.g. flight control, navigation), platform (fixed-wing, rotary, UAVs, regional jets, business jets), application (commercial, cargo, general aviation) and geography. North America currently holds a dominant share, while Asia-Pacific is rapidly emerging as a high-growth region spurred by expanding aviation infrastructure.

Growth Factors

Several interlocking forces are fueling this market’s ascent. First, the surge in global air travel is compelling airlines to expand and modernize their fleets, thereby increasing demand for advanced avionics capable of handling higher traffic densities. Legacy aircraft fleets are being upgraded to comply with stricter regulatory mandates and to enhance safety and reliability, pushing the aftermarket segment. Regulatory pressures from bodies such as the FAA and EASA increasingly demand more capable avionics architectures, especially in surveillance, navigation and connectivity systems. Meanwhile, technology trends like increased digitalization, artificial intelligence, and autonomous systems are opening doors for more intelligent avionics suites.

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Trends Shaping the Market

One notable trend is the shift toward open-architecture avionics systems, enabling easier upgrades, modular replacements, and cybersecurity flexibility—an approach championed in recent collaborations between major aerospace firms. Another key trend is the increasing integration of AI-driven predictive maintenance, allowing operators to anticipate failures, reduce downtime, and optimize costs. The rise of unmanned aerial vehicles (UAVs) and urban air mobility (UAM) platforms is also extending avionics demand into new dimensions. Further, lighter, more energy-efficient components are gaining favor in line with sustainability and weight-reduction imperatives. The growing significance of sensor fusion, connectivity, and advanced displays to aid situational awareness is also reshaping aircraft cockpits.

Opportunities in the Horizon

The avionics retrofit and upgrade market offers significant potential, particularly for older aircraft whose core systems are reaching obsolescence. Vendors providing scalable and modular upgrade paths stand to benefit. The growth in emerging markets—especially in Asia, Latin America, and the Middle East—offers fertile ground as regional carriers invest in fleet expansion and modernization. Collaboration with avionics startups, software firms, and specialists in cybersecurity or autonomy presents another opportunity to differentiate and capture adjacent value chains. Additionally, offering avionics platforms tuned for next-generation propulsion systems or eVTOL/air taxi applications could unlock new segments for early entrants.

Key Companies in the Global Commercial Aerospace Avionics Market include:

• Raytheon Technologies
• Rockwell Collins
• Airbus
• General Dynamics
• Thales Group
• Boeing
• Elbit Systems
• Northrop Grumman
• L3Harris Technologies
• Honeywell
• Safran
• Garmin

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Future Outlook

Looking ahead, the commercial aerospace avionics market is poised for steady and sustained growth. The projected CAGR of ~4.4 % between 2025 and 2035 suggests demand will remain resilient even amid cyclical pressures. As air travel recovers and expands into underserved markets, avionics vendors that innovate with software-defined systems, flexible architectures, and advanced analytics are likely to emerge as leaders. The balance between OEM and aftermarket segments will shift gradually, with retrofit demand remaining strong as a pathway to accelerate new capabilities across fleets. Regionally, Asia-Pacific is expected to outpace other regions in growth, while North America and Europe continue as hubs of high-end development and adoption. In sum, the commercial aerospace avionics market presents both a stable foundation and a canvas for disruptive innovation—and companies that navigate this juncture wisely are well positioned to define the next decade of flight.

Table of Contents

SECTION I: EXECUTIVE SUMMARY AND KEY HIGHLIGHTS

SECTION II: SCOPING, METHODOLOGY AND MARKET STRUCTURE

SECTION III: QUALITATIVE ANALYSIS

SECTION IV: QUANTITATIVE ANALYSIS

SECTION V: COMPETITIVE ANALYSIS ........

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