Comprehensive Report on the Aerospace Electronics Market: Opportunities and Challenges

 Offering reliable and timely data, this report is a key resource for anyone building or refining their aerospace electronics industry roadmap.

What Is The Expected CAGR For The Aerospace Electronics Market Through 2025?
The aerospace electronics market size has grown strongly in recent years. It will grow from $93.16 billion in 2024 to $101.05 billion in 2025 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to increased global defense spending, rise in commercial air traffic, expanding satellite communication demands, rise in investments in space exploration programs, and escalating geopolitical tensions.

The aerospace electronics market size is expected to see strong growth in the next few years. It will grow to $138.71 billion in 2029 at a compound annual growth rate (CAGR) of 8.2%. The growth in the forecast period can be attributed to rising demand for next-generation aircraft, increasing emphasis on sustainable aviation, expanding global satellite launch activities, growing commercial space tourism prospects, and expanding investments in smart airport systems. Major trends in the forecast period include advancing miniaturization of electronic components, integrating autonomous flight control systems, enhancing power management technologies, adopting open-systems architecture, and photonic and quantum technologies.

Get your free sample today:
Aerospace Electronics Market Size| Market Report 2034 Sample

Which Key Factors Will Influence Aerospace Electronics Market Growth Over 2025-2034?
Rising investments in the defense sector are expected to propel the growth of the aerospace electronics market going forward. The defense sector refers to the industry and government organizations involved in the development, production, and support of military systems and services. Rising investments in the defense sector is due to increasing geopolitical tensions, as escalating threats from terrorism, cyberattacks, and regional conflicts compel countries to boost defense budgets for enhanced capabilities, and strategic deterrence. Aerospace electronics enhance the defense sector by enabling advanced communication, navigation, surveillance, and electronic warfare, thereby improving precision targeting, real-time data sharing, and overall mission effectiveness. For instance, in May 2025, according to the House of Commons Library, a UK-based research and information service, the UK’s defense expenditure is projected to grow from $62.16 billion (£53.9 billion) in 2023-24 to $65.61 billion (£56.9 billion) in 2024-25 and $68.96 billion( £59.8 billion) in 2025-26, reflecting an average annual real-terms increase of 2.4% over the period. Therefore, the rising investments in the defense sector are propelling the aerospace electronics market.

Comprehensive Segment-Wise Insights Into The Aerospace Electronics Market
The aerospace electronics market covered in this report is segmented –

1) By Product Type: Communication Systems, Navigation Systems, Flight Control Systems, Avionics, Power Management Systems
2) By Component: Sensors, Microcontrollers, Antennas, Display Systems, Computing Systems
3) By Application: Commercial Aviation, Military Aviation, Space Exploration, Unmanned Aerial Vehicles (UAVs)
4) By End-User: Original Equipment Manufacturer (OEM), Aftermarket

Subsegments:
1) By Communication Systems: Satellite Communication (SATCOM) Systems, VHF Or UHF Radio Systems, Data Link Communication Systems, Intercom Systems
2) By Navigation Systems: Global Positioning Systems (GPS), Inertial Navigation Systems (INS), Terrain Awareness And Warning Systems (TAWS), Automatic Direction Finders (ADF)
3) By Flight Control Systems: Fly-by-Wire (FBW) Systems, Autopilot Systems, Flight Management Systems (FMS), Automatic Flight Control Systems (AFCS)
4) By Avionics: Surveillance And Collision Avoidance Systems, Flight Data Recorders (FDR), Weather Radar Systems, Electronic Warfare Systems
5) By Power Management Systems: Power Distribution Units (PDU), Auxiliary Power Units (APU), Battery Management Systems (BMS), Power Conversion Units

What Are The Prominent Trends In The Aerospace Electronics Market?
Major companies operating in the aerospace electronics market are focusing on developing advanced products such as new hermetic packages to reduce weight and improve the durability of critical aerospace electronic systems in demanding environments. Hermetic packages refer to airtight enclosures used to protect electronic components from environmental factors such as moisture, gas, dust, and pressure. For instance, in September 2023, SCHOTT AG, a Germany-based multinational glass company, launched lightweight microelectronic packages specifically designed for the aerospace industry to meet the demanding requirements of aviation and space applications, where every gram of weight is critical for performance and cost efficiency. SCHOTT’s new lightweight microelectronic packages for aerospace achieve up to two-thirds less weight than traditional kovar-based packages by using aluminum as the primary material. Despite their reduced weight, these packages provide robust hermetic protection for sensitive avionics and electronics, ensuring long-term reliability in the demanding conditions of aerospace environments. They are highly versatile, suitable for a range of applications including microwave and RF packages, DC/DC converter packages, and hermetic sensor packages for both aircraft and satellites.

Analysis Of Key Players In Aerospace Electronics Market
Major Companies operating in the aerospace electronics market are RTX Corporation, The Boeing Company, Lockheed Martin, Airbus SE, Panasonic Holdings Corporation, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc., GE Aerospace, BAE Systems, Safran S.A., Eaton Corporation, Thales Group, L3Harris Technologies Inc., Parker Hannifin Corporation, Leonardo S.p.A., Ametek Inc., Elbit Systems, Teledyne Technologies Incorporated, TransDigm Group Incorporated

View the full aerospace electronics market report here:
Aerospace Electronics Market Size| Market Report 2034

What Are The Key Regional Trends In The Aerospace Electronics Market?
North America was the largest region in the aerospace electronics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aerospace electronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Contact Us:

The Business Research Company

Market Research Reports

Americas +1 310-496-7795
Asia +44 7882 955267 & +91 8897263534
Europe +44 7882 955267

Email: info@tbrc.info


Follow Us On:

LinkedIn: https://in.linkedin.com/company/the-business-research-company