Market Trends of Aircraft Communication Systems Industry
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.
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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.
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