The aircraft communication system market is expected to grow from US$ 7.50 billion in 2022 to US$ 13.06 billion by 2028; it is anticipated to grow at a CAGR of 9.7% from 2022 to 2028.
The avionics segment in the aerospace industry is observing huge investments owing to the increasing need for technologically enhanced avionics in commercial and military aviation. Aircraft communication systems are an integral part of avionics, and their manufacturers are investing huge amounts in developing technologically robust systems. A few major avionics companies such as Honeywell International Inc., Collins Aerospace, and Thales Group are introducing the latest avionics technology to benefit the commercial aviation sector and the defense aviation sector. With the advent of SESAR and NextGen, the global avionics sector is transforming from ground-based systems to satellite-based ground station control systems. It is expected to head toward higher bandwidth, high speed, and compute-intensive avionics. Growth in demand for real-time data to enhance flight operations and enrich decision-making capabilities is boosting investments in the avionics sector for commercial and military aviation. These factors are catalyzing the aircraft communication system market growth. In addition, the avionics companies are investing in software-defined radios for SATCOM, which is anticipated to fuel the aircraft communication systems market to greater extent from 2017 to 2025. Moreover, investments are being made to enhance the communication radios for supersonic fighter jets and advanced commercial aircraft. The development of super high-frequency radio communication systems ranging from 3 GHz to 30 GHz is being developed along with extreme-high frequency radio communication systems ranging between 30 GHz to 300GHz for communication in fighter jets. These developments are expected to propel the aircraft communication systems market growth during the forecast period.
The US accounted for the largest share of the North America aircraft communication systems market in 2021. Retrofitting commercial and military aircraft with the latest technology is one of the major trends in the region, which is anticipated to boost the market from 2022 to 2028. Moreover, many aircraft component manufacturers are established in the region, resulting in huge revenue generation from the communication systems segment in the region. In addition, Boeing (the world’s largest aircraft manufacturer) is delivering a large numbers of aircraft integrated with enhanced technologies, which is also bolstering the market growth. Furthermore, various initiatives by the Federal Aviation Administration to increase aircraft safety by using technologically advanced communication systems are also driving the growth of the market in the region.
Strategic Insights
Regional Analysis of Aircraft Communication System Market
Europe holds second position in the global aircraft communication systems market and is expected to register a robust growth rate during the forecast period. Almost more than half of the metropolitan population across Western Europe utilize air transportation. Europe has a large fleet of commercial aircraft, along with military aircraft, offering lucrative business opportunities to the aircraft communication systems market players. Airbus, Dassault, BAE Systems, other major military manufacturers are going to generate a strong demand for aircraft communication systems. Moreover, the European community mandated the usage of controller-pilot data link communication systems on every aircraft flying through European airspace in 2020, which majorly bolsters the market growth. In addition, the Single European Air Traffic Management (ATM) Research (SESAR) is investing huge amounts in developing robust SATCOM technologies to ease the communication and navigation between the airborne pilot and ground station controller. Due to these factors, the aircraft communication systems market in Europe is expected to grow significantly during 2022–2028.
Lucrative Regions – Aircraft Communication System Market Share
Market Insights – Aircraft Communication System Market
Component-Based Insights
Based on component, the aircraft communication system market size is segmented into antennas, transponders, transceivers, and displays & processors. The transponders segment accounted for the largest market share in 2021. Transponders on aircraft assist in identifying and locating the aircraft on the air traffic control radar, and collision avoidance systems are developed so that transponders can transmit signals of collision detection. The transponders segment, based on component, held a significant share of the overall market revenue in 2021. The segment is anticipated to to account grow with a decent CAGR over the forecast period in the global aircraft communication system market size. Transponders can receive and transmit signals automatically. This factor is increasing the interest among the aircraft manufacturers to adopt the technology in place of two different segment—transmitter and responder. Due to these factors, the market in the transponders segment is growing rapidly.
Players operating in the aircraft communication system market are developing advanced and efficient products.
- In March 2019, Cobham Plc and Inmarsat announced the launch of SB-Helo X-Stream helicopter SATCOM. The system is designed to improve communication in helicopter operations.
- In February 2022, Thales Group and its partners received a contract to supply SATCOM solutions for military aircraft in France.
The aircraft communication system market is segmented into five major regions North America, Europe, Asia Pacific (APAC), the Middle East & Africa, and South America. In 2021, North America led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the aircraft communication system market from 2022 to 2028.
Honeywell International Inc, Northrop Grumman Corporation, General Dynamic Corporation, L3Harris Technologies Inc, Cobham Plc, Thales Group, Collins Aerospace, Viasat Inc, Elbit Systems Ltd., and Airbus SE are among the key global aircraft communication system market players.