Global Aircraft Electrical Systems Market Outlook
Revenue, 2024
$28.7B
Forecast, 2034
$52.4B
CAGR, 2025 - 2034
6.2%
The Aircraft Electrical Systems industry revenue is expected to be around $30.5 billion in 2025 and expected to showcase growth with 6.2% CAGR between 2025 and 2034. Their widespread usage is highlighted by the fact that they are essential for a range of applications including engines systems and flight instruments to illumination and entertainment systems on board aircrafts. Showcasing their vital contribution, to the evolution of modern air travel experience.
Airplane electrical systems consist of parts such as power generation and distribution systems along with conversion and storage systems included as well. With the improvements in electronic devices and the increasing interest in electric and hybrid airplanes to reduce environmental harm there is a noticeable shift in market trends, towards more efficient, dependable and lightweight systems.
Market Key Insights
- The Aircraft Electrical Systems market is projected to grow from $28.7 billion in 2024 to $52.4 billion in 2034. This represents a CAGR of 6.2%, reflecting rising demand across Power Generation and Distribution, Testing and Troubleshooting and In-Flight Entertainment and Connectivity.
- Honeywell International Inc, Safran S.A, Thales Group are among the leading players in this market, shaping its competitive landscape.
- U.S. and UK are the top markets within the Aircraft Electrical Systems market and are expected to observe the growth CAGR of 4.0% to 6.0% between 2024 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 7.1% to 8.6%.
- Transition like Shift towards More Electric Aircraft has greater influence in United States and United Kingdom market's value chain; and is expected to add $1 billion of additional value to Aircraft Electrical Systems industry revenue by 2030.
- The Aircraft Electrical Systems market is set to add $23.7 billion between 2024 and 2034, with industry players targeting DC & Power Conversion Devices Components projected to gain a larger market share.
- With Advancements in more electric aircraft technology, and Increasing demand for new aircrafts, Aircraft Electrical Systems market to expand 82% between 2024 and 2034.
Opportunities in the Aircraft Electrical Systems
The aviation industry is also starting to incorporate panels and other sources of renewable energy, for power generation.
Growth Opportunities in North America and Europe
North America is a player in the aerospace industry and is home to many aircraft manufacturers and airlines. Issued by Articulating the need for aircraft alongside the upgrade of military aircraft has driven growth in the Aircraft Electrical Systems market. However recent market changes have been influenced by competition in pricing and technology. Significant growth prospects are present, in replacement markets, sustainability efforts and the increasing manufacture of hybrid aircraft.
In Europe's Aircraft Electrical Systems market is well backed by an aircraft manufacturing industry led by major players such as Airbus. The region also thrives due to rising defense expenditures and the embrace of cutting edge aerospace technologies. However cutthroat competition and regulatory constraints create challenges for the market. There are prospects in the trend, towards greener and more fuel efficient aircraft models.
Market Dynamics and Supply Chain
01
Driver: Advancements in More Electric Aircraft Technology, and Impact of Regulatory Requirements
The increasing need for Electric Aircraft technology has also greatly influenced and boosted growth inthe Aircraft Electrical Systems market sector. The integration of this technology improves aircraft efficiency by substituting numerous hydraulic and pneumatic systems, with electrically powered systems. This shift leads to aircraft weight, better fuel economy and lower maintenance expenses. The strict regulations imposed by governments and international bodies to carbon emissions are also spurring the evolution of environmentally friendly electrical systems in the aviation sector. These rules are also pushing for progress, in aircraft systems to create more energy efficient planes for the future.
The need for air travel worldwide is also on the rise. This is also leading to an increase in orders for new aircraft as older planes are also replaced with more modern and fuel efficient ones The Aircraft Electrical Systems market is also expanding due to this surge, in demand.
02
Restraint: High Production Costs
One major challenge affecting the Aircraft Electrical Systems market is the nature of production and upkeep costs involved in the process. From development and assembly to installation and upkeep of these systems requires substantial financial investments that may not always be, within reach for companies to manage efficiently. This ultimately hampers firms ability to scale up production significantly and could potentially impede market expansion.
03
Opportunity: Advanced Battery Technologies and Electrification of Flight
The emergence of cutting edge battery technologies offers an advantage in the Aircraft Electrical Systems industry as it provides high potential for enhancing fuel efficiency and performance with lightweight and energy rich power sources. As of now Lithium ion batteriesre widely employed but newer innovations such as solid state batteries hold the promise of even more significant advantages. Research is actively exploring eco battery alternatives that could have broad implications, in aviation as well.
The airline sector is putting focus on sustainability by working to reduce its environmental impact through various means such as exploring electric power options for planes like hybrid and all electric aircraft models which offer promising advancements, in aircraft electrical systems design including power distribution setups and energy storage solutions.
04
Challenge: Technological Complexities
One significant challenge arises from the technical details of these systems, in aviation industry advancements and updates are ongoing keeping pace with these changes and innovations can be quite challenging this continuous technological progress strains resources significantly potentially hindering market expansion.
Supply Chain Landscape
1
Raw Materials Procurement
Alcoa CorporationNorsk Hydro ASA
2
Component Manufacturing
United TechnologiesSafran Group
3
Electrical System Assembly
Honeywell International Inc.Thales Group
4
Installation & Maintenance
The Boeing CompanyAirbus S.A.S
1
Raw Materials Procurement
Alcoa CorporationNorsk Hydro ASA
2
Component Manufacturing
United TechnologiesSafran Group
3
Electrical System Assembly
Honeywell International Inc.Thales Group
4
Installation & Maintenance
The Boeing CompanyAirbus S.A.S
Use Cases of Aircraft Electrical Systems in Power Generation & Distribution
Power Generation and Distribution : The electrical systems of aircraft are essential for powering and managing functions of the plane such as flight controls and in flight lighting and cabin temperature regulation. They are known for their reliability and effectiveness in maintaining operations during flights. The key players, in this field include GE Aviation and Honeywell International.
In-Flight Entertainment and Connectivity : Enhanced Aircraft Electrical Systems provide passengers with a selection of in flight entertainment and consistent connectivity throughout their journey on board an aircraft. The systems make sure that movies, games and music can be streamed seamlessly well as access to Wi Fi services. This offers added benefits for aviation companies. Key players, in this field are Thales Group and Panasonic Avionic Corporation.
Testing and Troubleshooting : The Aircraft Electrical Systems also help in testing and solving issues with the aircrafts electrical parts as needed for maintenance and repair work crucial for ensuring flight safety early detection and prevention of faults provides an edge by reducing the risk of unexpected technical problems during flights Rockwell Collins and Meggitt PLC are major players leading innovation, in this sector
Recent Developments
The market for Aircraft Electrical Systems has witnessed technological progress in recent times with a focus on improving efficiency and reliability of systems being a key goal of these advancements. A major breakthrough, in this regard is transitioning from hydraulic and pneumatic systems to advanced more electric aircraft technology. The design of Electric Aircraft aims to decrease weight of aircraft while enhancing performance by optimizing electric system functionality.
December 2024 : AeroDynamic Solutions has unveiled a lineup of eco friendly aircraft electrical systems aimed at cutting down on carbon footprint.
October 2024 : Honeywell Aerospace achieved an advancement in creating lightweight and high powered electrical systems that are expected to boost energy efficiency, for major commercial airlines.
July 2024 : Collins Aerospace from Raytheon Technologies has unveiled a cutting edge aircraft system that smoothly adjusts to changes, in voltage and frequency. This advancement is designed to improve the reliability and safety of flights.
Impact of Industry Transitions on the Aircraft Electrical Systems Market
As a core segment of the Aviation & Aerospace industry,
the Aircraft Electrical Systems market develops in line with broader industry shifts.
Over recent years, transitions such as Shift towards More Electric Aircraft and Emergence of High-density Battery Solutions have redefined priorities
across the Aviation & Aerospace sector,
influencing how the Aircraft Electrical Systems market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift towards More Electric Aircraft
The aviation sector is undergoing a shift towards More Electric Aircraft as it advances. This change brings about benefits such as reduced aircraft weight leading to fuel consumption while also enhancing reliability and cutting maintenance costs. The rising preference for systems over hydraulic or mechanical ones has prompted significant research and development investments in electric power technologies by key industry players—driving expansion, in the Aircraft Electrical Systems market. This industry transition is expected to add $1 billion in the industry revenue between 2024 and 2030.
02
Emergence of High-density Battery Solutions
The Aircraft Electrical Systems market is experiencing changes, with the increasing popularity of electrification. This transformation is leading to the innovation and acceptance of high capacity battery solutions.