North America Aerospace Avionics Market value is estimated to be over USD 23 billion in 2018 and is expected to register a lucrative growth between 2019 and 2025 with a CAGR of over 3%.

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The profound growth in the market can be attributed to the increasing demand for advanced avionics systems for commercial & military applications. Technological advancements in military fighter jets demand highly advanced custom avionics, which will support market growth. For instance, in August 2018, Rockwell Collins and Elbit Systems together demonstrated Gen III Helmet-Mounted Display System (HMDS) exclusively for F-35 fighter jets.

The commercial aviation segment in the market will capture a maximum market share of over 40% in 2018 with a growth of around 3%. The growth can be attributed to the rising demand of replacing existing outdated avionics systems and increasing aircraft deliveries. Changes in avionics regulations by FAA to improve air safety and airworthiness will also positively impact market growth. For instance, FAA mandated integration of Automatic Dependent Surveillance-Broadcast (ADS-B) in aircraft that requires Mode C transponder by January 1^st, 2020.

The business jet & general aviation segment in the market is expected to show a maximum growth rate of over 4% during the forecast timeframe of 2019 - 25. The rise can be attributed to the demand from business jet owners to keep their aircraft integrated with latest technologies. The private aircraft operators and business jet lease companies prefer to keep their aircraft in the most updated conditions, propelling market growth. Inclination of High Net Worth Individuals (HNWI) toward the purchase of business jet will also positively impact the market.

The U.S. held a market share of over 90% in 2018 due to increasing number of air travel, cargo moment, and increased aircraft deliveries within the country. Changing regulations and presence of major aircraft & component manufacturers along with a significant number of airline operators are contributing positively to the market growth. Stringent regulations on airworthiness of avionics systems and rise in MRO activities within the U.S are catering to the growth of aftermarket segment in the market.

The regional players are using joint venture & collaboration strategies for the development of advanced aerospace avionics components. New industry players are coming up with new ideas and grabbing significant seed funding from major industry participates, spearheading technological developments. For instance, in January 2019, a 2014-startup Boom Supersonic received a series B funding of USD 100 million. The company plans to develop a commercial airliner with a capability to operate at a speed of Mach 2.2 and plans to start operations by 2023. Such innovations will require a completely new set of aerospace avionics, thus opening new business verticals. Some of the major industry players in the market include Boeing, Pratt and Whitney, GE Aviation, Collins Aerospace, and United Technologies.