Aircraft Communication System Market Growth Analysis | 2021-2026

Market Insights

The aircraft communication system market was estimated at USD 2.3 billion in 2020 and is projected to grow at an impressive CAGR of 6.3% during 2021-2026 to reach USD 3.2 billion in 2026.

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What is an aircraft communication system?

An aircraft communication system is a system used to facilitate communication between the crew and the ground, other aircraft, and air traffic control using components like radios, antennas, transceivers, etc. The communication system allows pilots to receive and transmit important information during all phases of the flight.

The aircraft communication system uses various frequencies and protocols, such as Very High Frequency (VHF), and High Frequency (HF) to enable communication over short and long distances ensuring safe and efficient air traffic management. The system is highly regulated and must meet stringent safety and performance standards to ensure the safety of all involved.

Market Dynamics

The aircraft communication system market is bolstered by several factors. Here are a few key drivers-

• Growing demand for new aircraft: Boeing foresees demand for >41,000 new airplanes by 2041, and Airbus predicts emerging economies to represent 50% of new aircraft demand over the next 20 years. Such increasing numbers are driving the need for advanced communication systems to improve safety and efficiency.
• Increasing Air Traffic: According to IATA, international traffic reached 152.7% of the 2021 levels in 2022. As air traffic continues to grow, communication systems need to be more efficient to handle the increased demand for aircraft communications.
• Technological Advancements: Advances in technology are driving the development of more advanced communication systems, such as satellite-based communication, which offer improved performance and reliability.
• Government Regulations: Government regulations regarding safety and performance standards for aircraft communication systems are driving the need for more advanced and reliable communication systems.
• Cost Savings: Advanced communication systems can provide cost savings for airlines by improving operational efficiency, and safety, and reducing delays. For instance, Inmarsat's SB-S system can reduce airlines’ overall communication costs while improving safety, efficiency, and reliability. Also, the service can reduce operational costs and increase efficiency by eliminating the need for expensive hardware and software installations.

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Segments Analysis

By Platform Type

Based on the platform type, the aircraft communication system market is segmented as commercial aircraft, military aircraft, and government aircraft. As commercial aircraft face a momentary hurdle due to the pandemic, the military aircraft segment is likely to remain relatively unflinching. Early signs of healing are discernible – The lift of FAA’s B737max grounding order (Nov. 2020) and Airbus’ highest delivery figures (Oct. 2020), since before the onset of the pandemic. The commercial aircraft segment to fuel the market in the long term, logging the fastest recovery, owing to strong order backlogs of 12,498 (Airbus: 7,377 and Boeing: 5,121) aircraft as of October 2020.

By Aircraft Type

Based on the aircraft type, we have segmented the market as manned aircraft and unmanned aircraft. Manned aircraft are expected to remain the dominant segment in the market, whereas unmanned aircraft to heal at a faster pace during the forecast period. Several new policies and procedures by the FAA are underway to address and accommodate the growing need for unmanned aircraft in civil aerospace, creating a pool of opportunities within the unmanned aircraft segment in the long run.

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Regional Insights

All regions are anticipated to mark grave declines in 2020. With the strong presence of leading players, North America and Europe are expected to hold the largest chunk of the market during the forecast period. The USA is likely to assert an undeniable dominance globally. Asia-Pacific is expected to take the fastest path towards healing, with the highest long-term CAGR, rapidly moving uphill in the long term. Other key factors likely to cause a stir in the region’s market are the opening of assembly plants of Boeing and Airbus in China and the upcoming indigenous aircraft program (C919). India is the new growth engine, actively developing policies to welcome companies willing to move away from China.

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Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories.

By Platform Type

• Commercial Aircraft
• Military Aircraft
• Government Aircraft

By Aircraft Type

• Manned Aircraft
• Unmanned Aircraft

By Sub-Platform Type

• Civil Manned Aircraft
• Military Manned Aircraft
• UAV

By End-User Type

• OE
• Aftermarket

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, The UAE, Saudi Arabia, and Others)

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Key Players

The aircraft communication system market was highly concentrated in 2019 with the top five players capturing a massive chunk of the market. The major companies are performing mergers & acquisitions to quickly gain a larger chunk of the market as well as to tap the growing opportunities in this briskly expanding market. A few of the significant movements in the market were the acquisition of Rockwell Collins by UTC (2017) for US$ 30 Bn and taken over of Cobham plc. by Advent Inc. in 2020.

The supply chain of this market comprises component suppliers, service suppliers, system suppliers, aircraft OEMs, airline companies, aircraft leasing companies, and MRO companies.

The key players in the aircraft communication system market are-

• Honeywell International, Inc.
• Cobham plc.
• Collins Aerospace (Rockwell Collins)
• L3Harris Technologies, Inc.
• Thales Group, etc

The key players are shifting their focus towards restructuring and re-strategizing in order to cope with the challenges at hand. However, rapid advancements in the communication system and infrastructure, coupled with a continuous drive towards betterment and high-performance solutions have been the key strategies adopted by the major players to gain a competitive edge in the market.

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Report Features

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s aircraft communication system market realities and future market possibilities for the forecast period of 2021 to 2026.

The report estimates the short- as well as long-term repercussions of the COVID-19 pandemic on the demand for aircraft communication systems at the global, regional, as well as country level. Also, the report provides the possible loss that the industry will register by comparing pre-COVID and post-COVID scenarios. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies in order to expedite their growth process.

What Deliverables Will You Get in this Report?

Research Methodology

For calculating the market size, our analysts follow either Top-Bottom or Bottom-Top approach or both, depending upon the complexity or availability of the data points. Our reports offer high-quality insights and are the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

We leverage a multitude of authenticated secondary sources, such as company annual reports, government sources, trade associations, journals, investor presentations, white papers, and articles to gather the data.

More than 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts are usually executed to obtain qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.