Airline fleet orders and delivery backlogs drive avionics market
As aircraft original equipment manufacturers (OEMs) with large delivery backlogs ramp up their production rates to cope with the strong demand for aircrafts, the need for line-fit avionics systems is intensifying and service opportunities are increasing.
Frost & Sullivan's 'Global Commercial Avionics Market', finds that the market earned revenues of $7.78 billion in 2013 and estimates this to reach $10.27 billion in 2023. The study covers communication, navigation, surveillance and integrated systems.
“Mandates issued to improve air traffic management in an increasingly busy airspace are driving innovation and forcing airlines to replace out-dated avionics systems with newer technologies,” said Frost & Sullivan Aerospace & Defence Consultant Thomas Saquer. “Besides, participating in international regulatory initiatives is essential if avionics system manufacturers wish to shape the future of the market, but they also need to bring innovative products to the market not just to comply with regulations but also to stand apart from the competition.”
However, some airlines that have struggled to make robust profits due to the recent economic turmoil, rising fuel prices, and competitive pressures will have little incentive to invest in innovative avionics systems. They are also unlikely to retrofit their used aircrafts with optional avionics systems.
As aircraft OEMs prefer to deal with a few suppliers to handle large work packages, it is also important for avionics systems manufacturers globally to get recognised at the earliest stage of new programmes to win contracts.
