Aircraft Electrical Systems Market

Market Insights

Global Demand Analysis & Sales Opportunities in Aircraft Electrical Systems Market 

• The annual demand for aircraft electrical systems was USD 3.6 billion in 2024 and is expected to reach USD 3.9 billion in 2025, up 6.8% than the value in 2024.
• During the forecast period (2025-2034), the aircraft electrical systems market is expected to grow at a CAGR of 3.2%. The annual demand will reach USD 5.2 billion in 2034.
• During 2025-2034, the aircraft electrical systems industry is expected to generate a cumulative sales opportunity of USD 46.4 billion, which is almost 3 times the opportunities during 2019-2024.

High-Growth Market Segments: 

• North America is expected to remain the largest market for aircraft electrical systems.
• By system type, Electrical distribution system is expected to remain the largest segment of this market during the forecast period..
• By aircraft type, Commercial aircraft is expected to remain the most dominant as well as the fastest-growing aircraft type in the market during the forecast period.

Market Statistics 

Have a look at the sales opportunities presented by the aircraft electrical systems market in terms of growth and market forecast.

Market Dynamics

Introduction:

An aircraft electrical system is a crucial component of an aircraft that provides electrical power to various electrical systems and equipment onboard. The system includes generators or alternators, batteries, wiring, switches, and other electrical components that work together to supply electrical power to the aircraft's essential systems and equipment.

The electrical system is responsible for powering critical systems such as communication, navigation, lighting, and instrument panels. It also provides power for the aircraft's avionics, which includes computers, sensors, and other electronic equipment used for monitoring the aircraft's performance.

Market Drivers:

• The aircraft electrical systems market is driven by factors such as the need for efficient new-generation aircraft and innovations in electric power plants. Expansion in the commercial aviation industry increases its market, due to increasing air travel and growth in the defense industry and expenditures.
• Advances in lightweight electrical vehicles’ automotive electronics that lead to high-performance efficiency, cut emissions. However, there are some drawbacks such as increased regulation standards and high costs of development. The market driver relating to aircraft efficiency is the quest to have more electric aircraft to enhance fuel efficiency thus reducing the effects on the environment.

Market Trends:

• Shift towards More Electric Aircraft (MEA): Increasing the adoption of electrical systems in place of pneumatic and hydraulic systems in order to reduce weight and increase efficiency.
• Advanced Power Distribution Systems: Development of advanced power distribution and management systems to maximize energy efficiency and improve reliability.
• High-Voltage Systems: There is a growing trend to use higher voltage systems (270V DC, 540V DC, etc.) in order to accommodate the rising demand for power and reduce wiring weight.
• Integration of Sustainable Power Sources: The growing popularity of alternative energy sources for disaster mitigation and auxiliary power units, such as solar power and fuel cells.
• Enhanced Battery Technologies: Advancements in energy storage and electric propulsion systems with developments in lithium-ion and emerging battery technologies.
• Predictive Maintenance and Health Monitoring: AI and IoT integration for electrical system predictive maintenance and real-time monitoring, improving reliability and reducing downtime.

The industry's focus on sustainability, efficiency, and cutting-edge technologies in aircraft electrical systems is reflected in these general trends.

Segment Analysis

System Trends

"The electrical distribution system accounted for the largest market share."

• The aircraft electrical systems market is classified as electrical generation systems, electrical distribution systems, electrical conversion systems, and electrical storage systems. Among different electrical systems, the electrical distribution system accounted for a revenue share of more than 40% in 2024, owing to the fact that they are the primary source of electrical power in an aircraft.
• In addition to that, the development of high-thrust aircraft engines, an increase in the demand for greater efficiency, and the development of highly integrated electrical power generation systems are expected to drive growth during the forecast period.

Aircraft Trends

"The commercial aircraft segment accounted for the largest market share."

• The market is segmented into commercial aircraft, regional aircraft, general aviation, helicopters, military aircraft, and UAVs. Commercial aircraft is expected to remain the dominant as well as the fastest-growing segment of the market, and it held a revenue share of more than 55% in 2024.
• Commercial aircraft registered an enormous decline in the year 2020, factored by the struggling industry, paired with the pandemic’s impact. Now, it is anticipated that the aircraft type will mark excellent growth in order to heal up the losses endured during 2020, leading to extraordinary growth in the near future. Upcoming aircraft programs, such as C919 and MC-21, are likely to give additional impetus to the demand for electrical systems in the coming years.

Regional Insights

"North America accounted for the largest market share."

• North America is expected to remain the largest market for aircraft electrical systems and it held a revenue share of more than 45% in 2024. This region is home to a large number of aircraft industry stakeholders. Most of the major players are either headquartered in the region or have a manufacturing base in the region to serve the huge demand.
• Europe, on the other hand, is the second-largest market after North America. The region is the home of Airbus stakeholders. Airbus has already revealed its plans for rapidly increasing the production rates of its key aircraft programs in the near future, asserting the entire region’s recovery trajectory in the near future.
• Asia-Pacific remains the hotspot of the aerospace industry for all systems/components. All the leading OEMs and tier players have already moved into some of the preferred locations, especially in China, India, and Japan, for the manufacturing/assembly of parts/systems/aircraft. Furthermore, huge efforts exerted by Chinese, Indian, and Japanese conglomerates about the development of aircraft indigenously further blossom the demand for electrical systems in the coming years.

Competitive Landscape

The competitive landscape of electrical systems varies from system to system. Also, it is being noticed that all the major players are not into all types of electrical systems, changing the competitive landscape from system to system. Overall, it is a convoluted process to manufacture electrical systems and requires huge expertise to supply systems for the aerospace industry.

The following are the key players in the aircraft electrical systems market:

• Thales Group

• Crane Aerospace & Electronics

• Safran Group

• Collins Aerospace (Raytheon Technologies Corporation)

• Honeywell International Inc.

• GE Aviation

• AMETEK.Inc.

• Skurka Aerospace, Inc

• Astronics Corporation

• Meggitt PLC

Note: The above list does not necessarily include all the top players in the market.

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Recent Developments

• March 2023: BAE Systems and Heart Aerospace to collaborate on battery for the electric airplane. The program will leverage more than 25 years of BAE Systems' expertise in electrifying large, heavy-duty industrial vehicles. Today, the company has over 15,000 power and propulsion systems operating in service across the globe.
• March 2023: Collins Aerospace has made some huge investments into the main facility in Jamestown which shows the company is growing, according to Bill Seekins, facilities and operations excellence manager.
• May 2022: Astronics Corporation, a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, announced today that it has expanded its CorePower product portfolio and capabilities to address the needs of the emerging electric aircraft industry. The aerospace industry today is making significant investments in More Electric Aircraft (MEA) architectures, including specifically electric propulsion and electric vertical take-off and landing (eVTOL) aircraft.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 15 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 aircraft electrical systems market is segmented into the following categories.

Aircraft Electrical Systems Market, by System Type

• Electrical Generation Systems
• Electrical Distribution Systems
• Electrical Conversion Systems
• Electrical Storage Systems

Aircraft Electrical Systems Market, by System Type

• Commercial Aircraft
• Regional Aircraft
• General Aviation
• Helicopter
• Military Aircraft
• UAV

Aircraft Electrical Systems Market, by Region

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

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s aircraft electrical systems market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is 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.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

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.

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