Aircraft Communication System Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

Coverage: Aircraft Communication System Market covers analysis by Type (VHF/UHF/HF Radios, Data Links, and SATCOM), Components (Antennas, Transponders, Transceivers, and Displays & Processors), and Aircraft Type (Commercial Aircraft and Military Aircraft), and Geography (North America, Europe, Asia Pacific, and South and Central America)

Publication Month : Feb 2024

  • Report Code : TIPTE100000793
  • Category : Aerospace and Defense
  • Status : Upcoming
  • No. of Pages : 148
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The aircraft communication system market is expected to grow from US$ 7.50 billion in 2022 to US$ 13.06 billion by 2028; it is anticipated to grow at a CAGR of 9.7% from 2022 to 2028.

The avionics segment in the aerospace industry is observing huge investments owing to the increasing need for technologically enhanced avionics in commercial and military aviation. Aircraft communication systems are an integral part of avionics, and their manufacturers are investing huge amounts in developing technologically robust systems. A few major avionics companies such as Honeywell International Inc., Collins Aerospace, and Thales Group are introducing the latest avionics technology to benefit the commercial aviation sector and the defense aviation sector. With the advent of SESAR and NextGen, the global avionics sector is transforming from ground-based systems to satellite-based ground station control systems. It is expected to head toward higher bandwidth, high speed, and compute-intensive avionics. Growth in demand for real-time data to enhance flight operations and enrich decision-making capabilities is boosting investments in the avionics sector for commercial and military aviation. These factors are catalyzing the aircraft communication system market growth. In addition, the avionics companies are investing in software-defined radios for SATCOM, which is anticipated to fuel the aircraft communication systems market to greater extent from 2017 to 2025. Moreover, investments are being made to enhance the communication radios for supersonic fighter jets and advanced commercial aircraft. The development of super high-frequency radio communication systems ranging from 3 GHz to 30 GHz is being developed along with extreme-high frequency radio communication systems  ranging between 30 GHz to 300GHz for communication in fighter jets. These developments are expected to propel the aircraft communication systems market growth during the forecast period.

The US accounted for the largest share of the North America aircraft communication systems market in 2021. Retrofitting commercial and military aircraft with the latest technology is one of the major trends in the region, which is anticipated to boost the market from 2022 to 2028. Moreover, many aircraft component manufacturers are established in the region, resulting in huge revenue generation from the communication systems segment in the region. In addition, Boeing (the world’s largest aircraft manufacturer) is delivering a large numbers of aircraft integrated with enhanced technologies, which is also bolstering the market growth. Furthermore, various initiatives by the Federal Aviation Administration to increase aircraft safety by using technologically advanced communication systems are also driving the growth of the market in the region.

Strategic Insights

Regional Analysis of Aircraft Communication System Market 

Europe holds second position in the global aircraft communication systems market and is expected to register a robust growth rate during the forecast period. Almost more than half of the metropolitan population across Western Europe utilize air transportation. Europe has a large fleet of commercial aircraft, along with military aircraft, offering lucrative business opportunities to the aircraft communication systems market players. Airbus, Dassault, BAE Systems, other major military manufacturers are going to generate a strong demand for aircraft communication systems. Moreover, the European community mandated the usage of controller-pilot data link communication systems on every aircraft flying through European airspace in 2020, which majorly bolsters the market growth. In addition, the Single European Air Traffic Management (ATM) Research (SESAR) is investing huge amounts in developing robust SATCOM technologies to ease the communication and navigation between the airborne pilot and ground station controller. Due to these factors, the aircraft communication systems market in Europe is expected to grow significantly during 2022–2028.

Lucrative Regions – Aircraft Communication System Market Share

Lucrative Regions – Aircraft Communication System Market Share

Market Insights – Aircraft Communication System Market

Component-Based Insights

Based on component, the aircraft communication system market size is segmented into antennas, transponders, transceivers, and displays & processors. The transponders segment accounted for the largest market share in 2021. Transponders on aircraft assist in identifying and locating the aircraft on the air traffic control radar, and collision avoidance systems are developed so that transponders can transmit signals of collision detection. The transponders segment, based on component, held a significant share of the overall market revenue in 2021. The segment is anticipated to to account grow with a decent CAGR over the forecast period in the global aircraft communication system market size. Transponders can receive and transmit signals automatically. This factor is increasing the interest among the aircraft manufacturers to adopt the technology in place of two different segment—transmitter and responder. Due to these factors, the market in the transponders segment is growing rapidly.

Players operating in the aircraft communication system market are developing advanced and efficient products.

  • In March 2019, Cobham Plc and Inmarsat announced the launch of SB-Helo X-Stream helicopter SATCOM. The system is designed to improve communication in helicopter operations.
  • In February 2022, Thales Group and its partners received a contract to supply SATCOM solutions for military aircraft in France.

The aircraft communication system market is segmented into five major regions North America, Europe, Asia Pacific (APAC), the Middle East & Africa, and South America. In 2021, North America led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the aircraft communication system market from 2022 to 2028.

Honeywell International Inc, Northrop Grumman Corporation, General Dynamic Corporation, L3Harris Technologies Inc, Cobham Plc, Thales Group, Collins Aerospace, Viasat Inc, Elbit Systems Ltd., and Airbus SE are among the key global aircraft communication system market players.


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REGIONAL FRAMEWORK
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Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, Components, and Aircraft Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

The List of Companies

1. Cobham Plc
2. Honeywell International Inc.
3. Harris Corporation
4. General Dynamics Corporation
5. L-3 Technologies Inc.
6. Northrop Grumman Corporation
7. Thales Group
8. Raytheon Company
9. Rockwell Collins
10. Viasat Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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