Market Overview:
The global aircraft electrical system market is projected to grow to USD 27.29 billion by 2027, with a steady compound annual growth rate (CAGR) of 5.83%. This growth is driven by increasing defense budgets among major economies, according to a report by Fortune Business Insights™ titled “Aircraft Electrical System Market Size, Share & Industry Analysis, By Platform (Fixed-Wing and Rotary Wing), By Component (Generators, Conversion Devices, Distribution Devices, Battery Management Systems, and Others), By Application (Power Generation Management, Flight Control & Operation, Cabin System, Configuration Management, and Air Pressurization & Conditioning), By Technology (Conventional, Electric, and Others), By End User (OEM and Aftermarket) and Regional Forecast, 2020-2027”.
Informational Source:
https://www.fortunebusinessinsights.com/aircraft-electrical-system-market-104822
Key Companies:
- United Technologies Corporation (U.S.)
- Safran (France)
- Pioneer Magnetics (U.S.)
- Nabtesco Corporation (Japan)
- Honeywell International Inc. (U.S.)
- GE Aviation (U.S.)
- Eaglepicher Technologies, LLC (U.S.)
- Carlisle Interconnect Technologies (U.S.)
- Avionic Instruments, LLC (U.S.)
- Amphenol Corporation (U.S.)
- Thales Group (France)
- Radiant Power Corporation (U.S.)
- PBS Aerospace (U.S.)
- Meggitt (U.K.)
- Hartzell Engine Technologies (U.S.)
- Esterline Technologies (TRANSDIGM GROUP) (U.S.)
- Crane Aerospace & Electronics (U.S.)
- BAE Systems (U.K.)
- Astronics Corporation (U.S.)
- Ametek (U.S.)
Key Drivers:
Several countries have significantly boosted their military spending in response to heightened security threats. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached USD 1,917 billion in 2019, with the US, China, India, Russia, and Saudi Arabia being the top spenders, accounting for 62% of the total. This increased investment in defense technologies enhances the capabilities of the military, navy, and air forces, where advanced aircraft electrical systems play a crucial role in improving aircraft management and pilot efficiency.
Market Value and Report Highlights:
In 2019, the global aircraft electrical system market was valued at USD 19.95 billion. The report provides:
- Detailed analysis of market growth drivers.
- In-depth segmentation of the market.
- Comprehensive study of regional market prospects and competitive landscape.
- Thorough assessment of market challenges.
Challenges:
Impact of COVID-19 on Air Travel
The COVID-19 pandemic has severely impacted the aviation industry, with travel restrictions and safety concerns causing a massive drop in air travel. According to a September 2020 report by Airports Council International (ACI) World, global air passenger traffic was expected to decline by 58.4% year-on-year in 2020. The International Civil Aviation Organization (ICAO) projected a reduction of 2.893 billion air travelers in 2020 and an additional decline of 1.261 billion in the first half of 2021, leading to a potential loss of USD 391 billion for airlines in 2020 and further losses between USD 148 billion and USD 182 billion from January to June 2021. This significant decrease in air travel is likely to impact airlines' investment plans in modernizing their fleets, thereby affecting the aircraft electrical system market growth.
Regional Insights:
North America
North America, with a market size of USD 8.41 billion in 2019, is expected to lead the global market. This dominance is attributed to a robust domestic airline network in the US and Canada, high defense spending by the US government, and rapid adoption of advanced aircraft technologies by both countries' air forces.
Europe
In Europe, market growth is driven by the UK's adoption of next-generation power management systems for commercial aircraft and the region's preference for lightweight airplanes.
Asia Pacific
The Asia Pacific market will grow due to rising air travel demand in India and China and the expansion of the commercial airline industry in China.
Competitive Landscape:
Advancements and Market Competition
The market is highly competitive, with key players continuously developing advanced aircraft electrical solutions. This innovation strengthens their product portfolios and supports the aviation industry's growth.
Recent Developments:
- November 2020: Carlisle Interconnect Technologies expanded its range of interconnect solutions for next-generation air mobility applications.
- August 2020: BAE Systems announced the development of new power sources for small electric aircraft, aiming to replace traditional aircraft engines and improve energy and power management systems.
