Aircraft Computers Market Research Report and Outlook by 2028

The market for Aircraft Computers is anticipated to reach a valuation of approximately US$ 7,140.12 million by the year 2028, with a projected compound annual growth rate (CAGR) of 5.8% from 2022 through 2028.

The landscape of the aircraft computers market is evolving, involving various stakeholders such as component suppliers, manufacturers of aircraft computers, and end users. Key players are primarily positioned in the secondary tier of this ecosystem. Component suppliers provide essential items like actuators, sensors, and control systems to product manufacturers, who then create the final products. These products are subsequently supplied to aircraft manufacturers, maintenance, repair, and overhaul (MRO) service providers, commercial airlines, military organizations, and owners of business jets or helicopters. The presence of numerous aircraft original equipment manufacturers (OEMs) and a backlog of aircraft orders are expected to significantly contribute to the growth of the aircraft computers market in North America in the upcoming years. Furthermore, the increasing demand for aircraft computers in unmanned aerial vehicles (UAVs) is another factor propelling market expansion in this region.

As per the 2019 Boeing Commercial Market Outlook report, the Asia-Pacific (APAC) region is projected to account for approximately 40% of all new commercial aircraft deliveries over the next two decades. This increase in demand for air cargo in the region is expected to require over 1,000 dedicated freighters in the near future, with around two-thirds of these being conversions from passenger aircraft to freighters. Additionally, Boeing forecasts a 5.1% rise in the demand for aviation services in APAC, leading to a total expenditure of US$3,480 billion. Consequently, the thriving aviation industry in APAC presents substantial growth opportunities for the aircraft computers market.

The market analysis highlights prominent players in the aircraft computers sector, including BAE Systems, Garmin Ltd., General Electric, General Dynamics Mission Systems, Inc., Honeywell International Inc., Lockheed Martin Corporation, Raytheon Technologies, SAAB AB, Safran Group, and Thales Group.

In Europe, major charter service providers reported a rise in aviation traffic by approximately 20-30% in 2020 compared to 2019. Airlines in the region are responding to this heightened demand by expanding their fleets. For instance, Flexjet, part of the Directional Aviation group, obtained an Air Operator Certificate (AOC) for Malta in July 2021, facilitating a 40% fleet expansion in Europe during the first half of 2021. Such growth initiatives, along with advancements in computer technologies like virtual reality and artificial intelligence, are driving the demand for new aircraft and consequently boosting the aircraft computers market.

Boeing has secured orders for around 300 units of the latest generation of the 777 family, although it postponed the delivery of its first 777X aircraft until 2025. In May 2021, Airbus announced plans to achieve an average production rate of 45 aircraft per month for the A320 Family by the fourth quarter of 2021, which is expected to further enhance the growth of the aircraft computers market.

Airbus is set to ramp up its production rate to 64 aircraft per month by the second quarter of 2023, 70 aircraft per month by the first quarter of 2024, and 75 aircraft per month by 2024. Additionally, in May 2022, Qantas confirmed an order for 12 Airbus A350-1000 units for its ultra-long-haul Project Sunrise initiative, which is anticipated to further stimulate the growth of the aircraft computers market.

Boeing's Commercial Market Outlook for 2021-2040 predicts the delivery of a total of 43,610 aircraft over the next two decades, which includes 2,390 regional jets, 32,660 single-aisle aircraft, 7,670 widebody aircraft, and 890 freighters. This backlog of aircraft deliveries presents significant growth prospects for participants in the aircraft computers market throughout the forecast period.

The integration of connected electronic modules is allowing aviation operators to access, transmit, and analyze vital flight operation and maintenance data through innovative methods. In February 2022, Collins Aerospace launched a new power module designed to support open architecture applications, including mission computers, signal processors, aircraft communication, and radar systems. Similarly, Mercury Systems, Inc. introduced the FIOVU-2180 and CIO10-2080 6U OpenVPX avionics modules in February 2022, which are ideal for mission-critical applications such as flight computing, platform management, and artificial intelligence (AI). Thus, the growing adoption of electronic modules within the aviation sector is creating promising growth avenues for the aircraft computers market.

The expansion of the aircraft computers market is driven by several factors, including the rising demand for in-flight entertainment, an increase in aircraft renewals, and a surge in aircraft deliveries. The growing number of passengers and aircraft is also fueling the demand for in-flight entertainment systems. Moreover, the increasing installation of Wi-Fi on aircraft, coupled with passengers carrying multiple digital devices, is enhancing the in-flight experience. In March 2022, Safran Passenger Innovations launched RAVE OS, a modern software platform featuring a user-friendly interface. Therefore, the growing adoption of in-flight entertainment systems is introducing new trends within the aircraft computers market.

The aircraft computers market is analyzed based on components, types, platforms, and fit types. In terms of components, the market is divided into hardware and software. By type, it includes flight controls, utility controls, engine controls, mission computers, and flight management computers. The platform segmentation consists of fixed-wing aircraft, rotary-wing aircraft, and unmanned aerial vehicles (UAVs). The fit type categorization includes line fit and retrofit.

The aircraft computers market is segmented into five key regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America held the largest market share, followed closely by APAC. Furthermore, APAC is projected to exhibit the highest CAGR in the aircraft computers market from 2022 to 2028.