Aircraft Computers Market Size, Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, Poland, Belgium, Netherlands, Russia, Japan, China, India, South Korea, Malaysia, Sri Lanka, Brazil, Argentina, UAE, South Africa, Saudi Arabia), Growth Potential, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI4749
Aircraft Computers Market size is expected to grow significantly during the forecast period driven by rising integration of various communication and navigation technologies for commercial and military application in aviation industry. Efforts taken by major industry players to gain technological expertise will support market competitiveness.
The rise in aircraft delivers by major aircraft manufacturers and their efforts to reduce backlog orders will support the market dynamics. For instance, in 2018, Airbus delivered 800 aircraft with a total backlog of 7,577 aircraft. In 2019, Airbus delivered 863 aircraft with the total backlog orders reduced to 7,482 aircraft. Meanwhile, the company was also able to gain new orders of 768 aircraft.
Increasing geopolitical conflicts and rising defense budget allocation to improve technological superiority and establish global dominance will support the aircraft computers market growth. Various defense organizations including Defense Advanced Research Projects Agency (DAPRA) and Defense Research and Development Organization (DRDO) in collaboration with major industry players are engaged in research & development of new technologies, improving the market statistics.
Stringent government regulations toward airworthiness of the commercial aviation will govern the market growth. Formulation of new regulations to integrate latest technologies and computer systems to improve safety in the aviation sector will support the growth of aftermarket players. Contrary to this, failure of computer systems can result in the ban of operational model, impacting major losses to market players. For instance, in March 2019, aviation authorities across the globe grounded Boeing 737 MAX after two consecutive plane crashes due to a glitch in the computer system.
The sudden outbreak of COVID-19 will impose a moderate market slowdown and is expected to recover quickly post pandemic. Immediate restrictions imposed on international and domestic trade & tourism will significantly hamper the aviation industry. Temporary shutdown of various aircraft manufacturing facilities will limit the market growth, negatively impacting the market. The rise in the requirement of military aircraft in ready to operate condition due to increasing geopolitical tension across the globe will support the market positively, mitigating the negative impacts.
Military aircraft in the market will hold a significant market share over the coming years. Continuous requirement to develop new computer systems to eliminate cyber-attacks and improve operations is supporting the market growth. Identification of various glitches and limitations in existing computer systems are posing a demand for development and integration of new systems. For instance, in May 2019, a question was raised on Dassault's flight computer's behavior installed on Mirage 2000 as it crashed while taking off in Bangalore airport of India. A Court of Inquiry (CoI) responsible for investigating the case confronted the possibility of a glitch in computer system, which kicked in without any warning or command and changed the direction of the aircraft nose. Four such incidents have already happened in the past.
The narrow body aircraft in the aircraft computers market will witness highest growth rate over the forecast timeframe supported by the widespread adoption of Low-Cost Carrier (LCC) model of operation. In LCC, major focus is placed on reducing the operational cost of an aircraft to minimize rates of flight tickets. Narrow body aircraft are used extensively for LCC models as they have minimal operational cost. With rise in inflight passengers across the globe, airline operators are increasing their fleet capacity, supporting the market growth. For instance, in October 2019, Indigo placed an order of 300 A320 neo aircraft worth USD 33 billion to cater to the rise in demand. It is one of the biggest orders for Airbus from a single airline operator.
The component segment will encompass engine control, flight control, mission computers, and utility controls. The engine control will witness significant market growth over the forecast timeframe. Ongoing technological developments in engine to improve its operational efficacy will pose a demand for enhance computer system, supporting the market growth. For instance, in March 2020, Rolls Royce introduced an engine control capability at Purdue university. The capability will be used to test electronic engine controllers for engines competing for the U.S. Air Force (USAF) B-52 program.
The North America aircraft component market will capture significant market share between 2020 and 2026 supported by the presence of major aircraft component manufacturers in the U.S. Global market players with their headquarters in the U.S. encompass Curtiss Wright, United Technologies, Rockwell Collins, and Northrop Grumman. Significant focus of the government and defense organizations to modify & upgrade their existing military aircraft and integrate them with latest technologies is allowing the country to spend extensively on defense vertical, driving the market positively. For instance, in February 2020, USD 740.5 billion budget was passed by the U.S. government for defense and national security. The resource is expected to focus on four major areas including improvement of military readiness & investment in the modernization of a more lethal force, increase alliances & attract new partners, department reforms for greater performance, and support service members of individuals.
The Asia Pacific aircraft computers market will witness significant growth over the forecast timeframe due to the rise in requirement of narrow body aircraft for commercial aviation and increasing acquisition of defense aircraft by various countries owing to ongoing geopolitical disputes. The introduction of LCC models in commercial aviation has significantly reduced the cost of air travel. Increasing GDP and per capita income of individuals across Asia Pacific are reducing rates of air travel, augmenting the market growth.
Long-term Indefinite Delivery Indefinite Quantity (IDIQ) contract to upgrade existing computer system is the primary market strategy practiced by various industry players. This strategy allows the company to secure its market share within the coming years. For instance, in July 2019, Northrop Grumman received an IDIQ contract worth USD 104 million from the U.S. navy. The company will be responsible for manufacturing, delivery, and retrofitting of mission computer systems to UH-1Y, AH-1Z, and UH-60V aircraft. The contract will conclude by 2023. Major industry players operating in the aircraft computers market encompass BAE Systems, Cobham, Curtiss-Wright, Esterline Technologies, Honeywell International, Rockwell Collins, Saab, Safran, Thales Group, and United Technologies.
Market, By Operation, 2015 - 2026 (USD Million)
Market, By Type, 2015 - 2026 (USD Million)
- Narrow body aircraft
- Wide body aircraft
- General aviation aircraft
Market, By Component, 2015 - 2026 (USD Million)
- Engine control
- Flight control
- Mission computers
- Utility controls
Market, By End-Use, 2015 - 2026 (USD Million)
The above information has been provided for the following regions and countries:
- North America
- New Zealand
- South Korea
- Latin America
- South Africa
- Saudi Arabia
- BAE Systems
- Esterline Technologies
- Honeywell International
- Rockwell Collins
- Thales Group
- United Technologies
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