Aircraft Communication Systems Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 5.37 Billion |
| Market Size (2029) | USD 8.40 Billion |
| CAGR (2024 - 2029) | 9.37 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Aircraft Communication Systems Market Analysis
The Aircraft Communication Systems Market size is estimated at USD 5.37 billion in 2024, and is expected to reach USD 8.40 billion by 2029, growing at a CAGR of 9.37% during the forecast period (2024-2029).
- The surge in global air passenger traffic has encouraged the procurement of new-generation commercial aircraft. Furthermore, the evolution of technology has expanded the application scope of military aviation, leading to substantial growth in the demand for aircraft communication systems. These systems are used for monitoring and directing aircraft mid-flight in conjunction with other systems, such as navigation and flight management.
- Aviation authorities worldwide are mandating the adoption of certain communication technologies and protocols to enhance air traffic management and safety. The rise in demand for in-flight entertainment and connectivity services from passengers also pushed airlines to upgrade their communication systems.
- The technological shift towards integrating advanced systems into an aircraft for performance and safety enhancement has resulted in the gradual development of sophisticated onboard communication systems, such as the aircraft communications addressing and reporting system (ACARS). As ACARS becomes a standard part of the cockpit installation of an aircraft, the growth prospects of the market are anticipated to be positive during the forecast period.
Aircraft Communication Systems Market Trends
Commercial Aircraft Segment to Dominate Market Share During Forecast Period
- The commercial aircraft segment represented a significant share of the aircraft communication systems market in the base year, mainly because commercial aircraft deliveries outnumbered those of military aircraft.
- According to the International Civil Aviation Organization (ICAO), air passenger traffic is projected to reach approximately 10 billion by 2040, with an estimated 90 million commercial aircraft departures worldwide each year. This underscores the need to introduce numerous new commercial aircraft during the forecast period. Consequently, many airline operators have launched ambitious fleet modernization initiatives to increase revenue per aircraft while also improving market share and sustainability.
- For instance, Airbus projected a prospective market for 1,880 aircraft deliveries to Indian airline operators by 2040 to support the rapid expansion of the Indian aviation industry. Since aircraft communication systems are vital for maintaining constant contact between pilots and air-traffic control (ATC) ground stations, new-generation aircraft are expected to integrate sophisticated communication systems like WebCS.
- Furthermore, the emergence of satellite communication systems is anticipated to increase the adoption of advanced aircraft communication systems to enhance onboard safety and pilots' situational awareness. These developments are likely to stimulate market growth during the forecast period.
North America to Register Highest Growth During the Forecast Period
- The North American aircraft communication systems market is experiencing growth due to the robust aviation infrastructure in the region. The US and Canada, which are technologically advanced countries with mature markets, are included in this region. There has been a rapid increase in the demand for new aircraft, both commercial and military, which has created a parallel requirement for investments in airframe systems and associated component manufacturing sectors.
- In addition, the presence of several prominent aircraft system designers and integrators in the region has led to substantial funds being channeled into the development of advanced communication technologies. This, in turn, has encouraged tier-1 and tier-2 component suppliers to enhance their offerings and reduce the overall cost of ownership of their products, making them more attractive for integration into the aircraft models of major original equipment manufacturers (OEMs) in the region.
- For instance, in March 2023, the US Air Force (USAF) awarded Boeing a USD 184 million contract to improve the advanced communications capabilities of the KC-46A Pegasus tanker aircraft. The recently signed contract aims to improve the data and communications connectivity provided by the Pegasus aircraft to joint and allied forces, improving their battle-space situational awareness.
- During the forecast period, several new routes are being considered for launch, which has a positive outlook for the market. Prominent carriers, such as American Airlines and Air Canada, have already launched or are considering launching new routes to address the growing demand for air travel.
Aircraft Communication Systems Industry Overview
The aircraft communications systems market is semi-consolidated, with several players holding significant shares. Prominent players in the market include Honeywell International Inc., Northrop Grumman Corporation, Thales Group, L3Harris Technologies Inc., and General Dynamics Corporation. Innovation is crucial for players to gain a competitive edge over their rivals and ensure sustainability.
For instance, in January 2023, Northrop Grumman Corporation was awarded a contract worth USD 464.4 million by the Air Force Life Cycle Management Center to provide support for the E-11A aircraft program. The contract is scheduled to be completed by January 2028. As per the terms of the contract, Northrop will provide Battlefield Airborne Communications Node E-11A (BACN E-11A) platform maintenance and main operating base contractor logistics support establishment.
Vendors in the market focus on designing, engineering, and manufacturing high-performance communication systems for aircraft. As a result, the market is directly affected by economic factors and trends that impact the aerospace industry, including the possible consolidation of the market through backward integration activities of aircraft original equipment manufacturers (OEMs).
Aircraft Communication Systems Market Leaders
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L3Harris Technologies, Inc.
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Honeywell International Inc.
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General Dynamics Corporation
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Northrop Grumman Corporation
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THALES
*Disclaimer: Major Players sorted in no particular order
Aircraft Communication Systems Market News
July 2023: Elbit Systems Ltd. announced a USD 114 million contract with an Asian-Pacific country to supply two long-range patrol aircraft (LRPA) outfitted with an advanced and comprehensive mission suite. The contract will be completed over a five-year period.
April 2022: Northrop Grumman signed a contract with IntelliDesign, an Australian electronics engineering business, for the design and manufacturing of hardware for Secure Communications Solutions (SCS) devices.
February 2022: THALES secured a contract to supply satellite stations to the French Ministry of Defense (MoD). These stations, the Phénix MRTT1 tanker aircraft, will enable internet connections anywhere in the world and will be resistant to jamming in adverse electromagnetic environments.
Aircraft Communication Systems Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Components
- 5.1.1 Transponder
- 5.1.2 Display and Processor
- 5.1.3 Antenna
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5.2 Aircraft Type
- 5.2.1 Commercial Aircraft
- 5.2.2 Military Aircraft
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.2 Germany
- 5.3.2.3 France
- 5.3.2.4 Italy
- 5.3.2.5 Russia
- 5.3.2.6 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 Japan
- 5.3.3.4 South Korea
- 5.3.3.5 Australia
- 5.3.3.6 Rest of Asia-Pacific
- 5.3.4 Latin America
- 5.3.4.1 Brazil
- 5.3.4.2 Mexico
- 5.3.4.3 Rest of Latin America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 United Arab Emirates
- 5.3.5.3 Turkey
- 5.3.5.4 South Africa
- 5.3.5.5 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Honeywell International Inc.
- 6.2.2 Northrop Grumman Corporation
- 6.2.3 THALES
- 6.2.4 Raytheon Technologies Corporation
- 6.2.5 L3Harris Technologies, Inc.
- 6.2.6 General Dynamics Corporation
- 6.2.7 Iridium Communications Inc.
- 6.2.8 Kratos Defense & Security Solutions Inc.
- 6.2.9 ViaSat Inc.
- 6.2.10 Rohde & Schwarz GmbH & Co. KG
- 6.2.11 Gogo Inc.
- 6.2.12 Elbit Systems Ltd.
- 6.2.13 BAE Systems plc
- 6.2.14 Cobham Limited
- 6.2.15 Garmin Ltd.
- 6.2.16 Orbit Communications Systems Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Aircraft Communication Systems Industry Segmentation
The aircraft communication system includes the components and sub-systems providing communication between aircraft and ground station and cabin communications and announcement systems. The system is also responsible for recording communications and cabin audio. Aircraft communication systems play a critical; role in enhancing flight safety and efficiency. Airlines and aviation authorities were increasingly investing in advanced communication solutions to improve situational awareness and reduce the risks of accidents.
The aircraft communication systems market is segmented by components and aircraft type. By components, the market is segmented into transponder, display and processor, and antenna. By aircraft type, the market is segmented into commercial aircraft and military aircraft. By geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.The report also covers the market sizes and forecasts for the aircraft communication systems market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
The market sizing and forecasts have been provided in value (USD).
| Components | Transponder | |
| Display and Processor | ||
| Antenna | ||
| Aircraft Type | Commercial Aircraft | |
| Military Aircraft | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Mexico | ||
| Rest of Latin America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| South Africa | ||
| Rest of Middle-East and Africa |
Aircraft Communication Systems Market Research FAQs
How big is the Aircraft Communication Systems Market?
The Aircraft Communication Systems Market size is expected to reach USD 5.37 billion in 2024 and grow at a CAGR of 9.37% to reach USD 8.40 billion by 2029.
What is the current Aircraft Communication Systems Market size?
In 2024, the Aircraft Communication Systems Market size is expected to reach USD 5.37 billion.
Who are the key players in Aircraft Communication Systems Market?
L3Harris Technologies, Inc., Honeywell International Inc., General Dynamics Corporation, Northrop Grumman Corporation and THALES are the major companies operating in the Aircraft Communication Systems Market.
Which is the fastest growing region in Aircraft Communication Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Aircraft Communication Systems Market?
In 2024, the North America accounts for the largest market share in Aircraft Communication Systems Market.
What years does this Aircraft Communication Systems Market cover, and what was the market size in 2023?
In 2023, the Aircraft Communication Systems Market size was estimated at USD 4.87 billion. The report covers the Aircraft Communication Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Aircraft Communication Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Aircraft Communication Systems Industry Report
Statistics for the 2024 Aircraft Communication Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Aircraft Communication Systems analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
