Aircraft Communication Systems Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 12.12 Billion |
| Market Size (2030) | USD 17.38 Billion |
| Growth Rate (2025 - 2030) | 7.48% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Aircraft Communication Systems Market Analysis by Mordor Intelligence
The aircraft communication systems market size reached a value of USD 12.12 billion in 2025 and is projected to achieve a market size of USD 17.38 billion by 2030, reflecting a 7.48% CAGR. The main growth catalyst is increasing demand for uninterrupted, secure, and multi-orbit connectivity across commercial, defense, and emerging urban-air-mobility fleets. Airlines are re-positioning connectivity from a cost center to a revenue service, while defense programs continue to upgrade tactical datalinks and satellite terminals for contested environments. Rapid digitalization of cockpit avionics, regulatory mandates such as CPDLC and ADS-B Out, and AI-driven spectrum management are stimulating investment across all aircraft classes. Consolidation among connectivity suppliers—seen in Gogo’s Satcom Direct purchase—and sustained fleet growth in Asia-Pacific further reinforce momentum for the aircraft communication systems market.
Key Report Takeaways
- By component, antennas led with 39.89% of the aircraft communication systems market share in 2024, whereas displays and processors are forecasted to expand at a 9.67% CAGR to 2030.
- By aircraft type, commercial aviation held 53.67% revenue share in 2024; urban-air-mobility platforms are projected to register the fastest 11.45% CAGR through 2030.
- By system, radio communication accounted for 39.54% share of the aircraft communication systems market size in 2024, while ACARS is advancing at an 8.32% CAGR.
- By connectivity technology, SATCOM commanded a 40.85% share of the aircraft communication systems market size in 2024, and 5G air-to-ground solutions are set to grow at a 7.76% CAGR.
- By geography, North America contributed a 35.85% share in 2024, whereas Asia-Pacific is the fastest-growing region, with an 8.42% CAGR to 2030.
Global Aircraft Communication Systems Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| SATCOM-enabled in-flight connectivity surge | +1.2% | North America and Europe, spreading globally | Medium term (2-4 years) |
| Mandatory ADS-B Out and CPDLC compliance timelines | +0.8% | US and Europe leadership, global adoption | Short term (≤ 2 years) |
| Expansion of APAC narrowbody aircraft fleet | +1.0% | Asia-Pacific core, MEA spill-over | Long term (≥ 4 years) |
| Military fleet retrofit programs for secure comms | +0.9% | North America and Europe, allied nations | Medium term (2-4 years) |
| Software-defined radio integration across avionics | +0.7% | Global early military uptake | Long term (≥ 4 years) |
| AI-driven cognitive radios for dynamic spectrum use | +0.6% | North America and Europe pilot sites | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
SATCOM-enabled in-flight connectivity surge
Airlines are transitioning to multi-orbit architectures that combine LEO, MEO, and GEO capacity to eliminate latency gaps while preserving global reach. Delta Air Lines selected a Hughes multi-orbit solution for more than 400 aircraft, reflecting a paradigm shift toward viewing broadband connectivity as strategic infrastructure. ThinKom’s Ka2517 antennas have logged 17 million flight hours with 98% availability across 1,550 aircraft, proving interoperability and reliability.[1]ThinKom Solutions, “Ka2517 Antenna Flight Hours Milestone,” thinkom.com These service upgrades underpin revenue-sharing business models that encourage fleet-wide adoption of high-throughput links, reinforcing top-line growth for the aircraft communication systems market.
Mandatory ADS-B Out and CPDLC compliance timelines
ADS-B Out and domestic CPDLC are now required across US airspace, compelling airlines to retrofit VDL Mode 2 radios and communication management units. Parallel European mandates extend to autonomous distress tracking for aircraft above 27,000 kg from January 2025.[2] International Civil Aviation Organization, “Global Aeronautical Distress and Safety System Requirements,” icao.int Honeywell’s PM-CPDLC Supplemental Type Certificate offers a ready pathway to compliance using VHF Data Link radios and CMUs. Compulsory timelines accelerate near-term adoption cycles, lifting the demand for aircraft communication systems.
Expansion of APAC narrowbody aircraft fleet
Airbus forecasts Asia-Pacific’s aircraft services market to jump from USD 52 billion in 2025 to USD 129 billion by 2043, supported by roughly 19,500 new deliveries.[3]Airbus, “Global Services Forecast 2025–2043,” airbus.com As low-cost carriers grow, weight- and power-efficient antennas, processors, and VHF/SATCOM hybrids are prioritized. Chinese 5G air-to-ground trials and India’s secure radio roll-outs further elevate regional demand, translating into the fastest aircraft communication systems market growth rate.
Military fleet retrofit programs for secure communications
L3Harris’s USD 999 million contract for MIDS JTRS terminals underscores ongoing Link-16 upgrades, including concurrent-multiple-reception for higher data fidelity. Northrop Grumman’s USD 3.5 billion TACAMO program introduces next-generation strategic communication aircraft with Collins Very Low Frequency systems. Continuous retrofit funding sustains medium-term momentum, adding resilience to the aircraft communication systems market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Certification and DO-178/DO-254 cost burden | -0.9% | Stricter in North America and Europe | Medium term (2-4 years) |
| Cyber-vulnerabilities in IP-based avionics networks | -0.7% | Global, defense-focused concern | Short term (≤ 2 years) |
| RF spectrum congestion and interference risk | -0.6% | Dense urban regions worldwide | Long term (≥ 4 years) |
| Semiconductor supply shortages for RF chipsets | -0.8% | Global, niche aviation parts | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Certification and DO-178/DO-254 cost burden
DO-178C and DO-254 verification costs rise sharply for multi-core and AI-enabled avionics. Collins Aerospace’s Mosarc architecture—recently cleared by the FAA—shows a 75% processing uplift without proportional certification costs, yet overall expense remains a headwind. Smaller OEMs face resource constraints, partially tempering the aircraft communication systems market in the medium term.
Cyber-vulnerabilities in IP-based avionics networks
The US GAO urges the FAA to bolster cybersecurity oversight of connected flight decks, citing new attack surfaces introduced by IP links.[4]US Government Accountability Office, “Aviation Cybersecurity: FAA Should Strengthen Oversight,” gao.gov Honeywell and the European Space Agency are developing quantum-key-distribution satellites to secure data paths. Elevated risk perceptions slow adoption of open-architecture communication suites, marginally reducing near-term growth for the aircraft communication systems market.
Segment Analysis
By Component: Antennas hold the lead while processing power accelerates
Antennas captured 39.89% of the aircraft communication systems market share in 2024, led by electronically steered arrays designed for multi-orbit satellites. Satcom Direct's Plane Simple Ka-band ESA exemplifies a high-gain, low-profile design favored on long-haul fleets. The displays and processors category is forecasted to grow at a 9.67% CAGR through 2030, underpinned by Collins Aerospace's FAA-certified multi-core chips that lift cockpit computing capacity by 75%. The aircraft communication systems market size for displays and processors is on a steeper trajectory than legacy hardware. Transponders maintain steady demand as late-adopters meet ADS-B mandates, while communication management units (CMUs) gain from CPDLC roll-outs. Military counter-measure radios and SWaP-optimized SDR modules round out component demand, extending the breadth of the aircraft communication systems market.
A historical look shows hardware-centric growth, which has given way to software-defined functionality. Thales' FlytX tactile display reduces size and power by 30% and supports incremental certification, illustrating how modularity reshapes upgrade cycles. As modular avionics proliferate, procurement volumes migrate from fixed antennas toward processing platforms, keeping lifecycle revenues balanced across the aircraft communication systems market.
Note: Segment shares of all individual segments available upon report purchase
By Aircraft Type: Commercial fleets dominate as eVTOL ramps up
Commercial jets generated 53.67% of 2024 revenue as airlines prioritized broadband connectivity and regulatory compliance. Boeing’s plan to acquire Spirit AeroSystems signals greater vertical control of avionics integration, which should streamline communication-system fit-outs across narrowbody production lines. Urban-air-mobility (UAM) programs are projected to post an 11.45% CAGR, the fastest in the aircraft communication systems market, driven by Honeywell’s Anthem flight deck on Vertical Aerospace’s VX4.[5]Honeywell Aerospace, “Anthem Flight Deck Fact Sheet,” honeywell.com Military aircraft funding remains significant, illustrated by the E-130J TACAMO and Link-16 modernization contracts. Business aviation adds incremental volume through long-range cabin SATCOM upgrades, such as Bombardier’s multi-year agreement with Honeywell. Regional jets sustain demand across the expanding APAC fleet, while unmanned systems integrate advanced SDRs and AI processors, deepening tactical use cases within the aircraft communication systems market.
By System: Radio communication’s lead narrows as ACARS modernizes
Traditional VHF/HF voice radio still accounts for 39.54% of 2024 revenue, but capacity limits and rising data needs are steering growth toward IP-enabled messaging. ACARS over IP is the fastest-growing system at 8.32% CAGR, with airlines exploiting broadband links to lower HF charges and improve dispatch efficiency. The aircraft communication systems market size for ACARS solutions will expand in line with air-ground digitization initiatives. Interphone, digital audio, and tactical datalink systems also benefit from SDR roadmaps that enable multi-waveform support in a single LRU. The shift from circuit-switched to packet-based architectures underpins a steady reallocation of spending within the aircraft communication systems market.
Note: Segment shares of all individual segments available upon report purchase
By Connectivity Technology: SATCOM maintains scale while 5G ATG gains pace
SATCOM retained a 40.85% share of the aircraft communication systems market size in 2024 across L, Ku, and Ka bands. Viasat’s Amara platform layers dual-beam connectivity across LEO, MEO, and GEO orbits for 2028 entry, signaling continued SATCOM primacy. However, 5G air-to-ground networks are forecasted to grow at 7.76% CAGR, especially in regions where high-density terrestrial towers can service narrow-body fleets cost-effectively. VHF data link remains foundational for ATC voice backup, while tactical waveforms such as Link-16 and Protected Tactical Waveform expand defense usage. Hybrid architectures that switch between ATG and satellite links based on cost and latency optimize total cost of ownership, elevating technology diversity across the aircraft communication systems market.
Geography Analysis
North America retained 35.85% of 2024 revenue thanks to FAA modernization programs and sustained military spending. The FAA’s telecommunication infrastructure overhaul across 4,600 ATC facilities continues, providing a robust domestic market for radios, datalinks, and spectrum-management upgrades. US defense contracts—including a USD 269 million BACN task order—reinforce procurement visibility through 2027.
Asia-Pacific is the fastest-growing region, increasing at an 8.42% CAGR through 2030. Aircraft communication systems market investments mirror rising fleets in China, India, and Southeast Asia. China Telecom is piloting nationwide 5G air-to-ground coverage with fewer than 1,000 towers, while India is fitting Vayulink secure radio networks onto its expanding fighter inventory. Regional carriers like Thai Airways have adopted SES multi-orbit connectivity, highlighting commercial pull for advanced SATCOM.
Europe maintains a solid position owing to stringent regulatory leadership. ICAO’s updated future air navigation standards mandate cyber-resilient data exchange, spurring adoption of encrypted link management. Thales and Spire Global are deploying 100+ satellites to deliver space-based ADS-B surveillance, slated for 2027 service entry. Airbus HBCplus offers integrated multi-orbit terminals that reduce drag and fuel burn, underlining OEM-level influence on the aircraft communication systems market.
South America, the Middle East, and Africa contribute moderate but growing demand, leveraged by fleet renewals and strategic defense projects. Owing to sparse terrestrial infrastructure, hybrid ATG/SATCOM solutions appeal in these geographies, sustaining a globally diversified growth pattern for the aircraft communication systems market.
Competitive Landscape
The aircraft communication systems market is moderately concentrated. Honeywell’s USD 1.9 billion acquisition of CAES adds 2,200 RF engineers and electronic warfare capabilities, bridging antenna design and secure communication payloads. Gogo’s USD 375 million purchase of Satcom Direct consolidates business-aviation connectivity, targeting USD 890 million combined revenue and 24% EBITDA margins. Raytheon’s Collins Aerospace division differentiates on certified multi-core processing power, opening new revenue in avionics computing.
Defense-focused suppliers such as L3Harris extend Navy programs while experimenting with LEO Link-16 satellites to harden tactical networks. Peraton Labs showcases AI-based spectrum tools that could disrupt conventional fixed-frequency planning. Across commercial, business, and emerging UAM sectors, competition centers on integrating multi-orbit links, certifying SDR architectures, and securing semiconductor supply.
Supply-chain resilience is now a competitive metric. OEMs and Tier-1s diversify chip fabrication partners and maintain higher safety stocks to navigate RF component shortages. Collectively, these moves indicate an industry seeking agility while addressing the increasingly complex requirements of the aircraft communication systems market.
Aircraft Communication Systems Industry Leaders
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Honeywell International Inc.
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RTX Corporation
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L3Harris Technologies, Inc.
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Thales Group
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ViaSat Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Airbus Defence & Space secured a contract with Thales to provide a safety satellite communication (satcom) system to be integrated into the A400M military transport aircraft.
- May 2025: Honeywell's JetWave™ X satellite communication system will upgrade the US Army's Airborne Reconnaissance and Electronic Warfare System (ARES) through L3Harris Technologies (L3Harris).
- September 2024: Viasat, Inc. received a USD 33.6 million contract from the US Air Force Research Laboratory (AFRL) under the Defense Experimentation Using Commercial Space Internet (DEUCSI) program. The contract focuses on developing and delivering Active Electronically Scanned Array (AESA) systems to enhance satellite communications capabilities for tactical aircraft, including rotary wing platforms.
- April 2024: L3Harris Technologies signed an agreement with Air India to supply SRVIVR25 Voice and Data Recorders for the airline's B737-8 fleet. The contract includes equipment installation for 100 aircraft, with a potential extension to cover 40 additional planes.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the aircraft communication systems market as all new airborne hardware and embedded software that enable voice or data exchange between an aircraft, ground stations, and other airframes, covering radios (VHF, HF, UHF), SATCOM terminals, antennas, audio integrating units, communication management units, and related recorders. According to Mordor Intelligence, retrofitted equipment is included when it is sold as complete kits by OEMs or licensed integrators, while purely ground-based ATC infrastructure and cabin Wi-Fi routers sit outside the scope.
Scope exclusion: ground network equipment, stand-alone passenger entertainment routers, and loose spares are not counted.
Segmentation Overview
- By Component
- Transponders
- SATCOM Terminals
- Antennas
- Displays and Processors
- Communication Management Units
- Other Components
- By Aircraft Type
- Commercial Aircraft
- Narrowbody
- Widebody
- Regional Jets
- Business Jets
- Military Aircraft
- Fighter
- Transport
- Special-mission
- Unmanned Aerial Vehicles (UAVs)
- Urban Air Mobility/eVTOL
- Commercial Aircraft
- By System
- Radio Communication System
- Interphone Communication System
- Passenger Address System
- Digital Radio and Audio Integrating Management System
- Aircraft Communications Addressing and Reporting System (ACARS)
- By Connectivity Technology
- SATCOM (L/Ku/Ka-band)
- VHF/HF Voice
- Air-to-Ground (ATG/5G-ATG)
- Tactical Data Links (Link-16, MADL)
- By Geography
- North America
- United States
- Canada
- Mexico
- Europe
- United Kingdom
- Germany
- France
- Italy
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Rest of South America
- Middle East and Africa
- Middle East
- Saudi Arabia
- United Arab Emirates
- Rest of Middle East
- Africa
- South Africa
- Rest of Africa
- Middle East
- North America
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts interviewed avionics engineers at leading OEMs, MRO managers across North America, Europe, and Asia Pacific, and civil-military air-traffic specialists to verify certification lead times, average selling prices, and retrofit cycles. These conversations also tested early observations on SATCOM demand swings and the cost impact of DO-178C software upgrades.
Desk Research
We started with public domain datasets such as FAA ADS-B equipage registers, EASA certification lists, ICAO fleet statistics, and ITU radio-spectrum filings, which helped us profile the active and upcoming fleet that must upgrade or fit communications gear. Trade bodies, namely the Aircraft Electronics Association, Aerospace Industries Association, and the International Air Transport Association, provided shipment, retrofit, and delivery ratios by platform class.
Company 10-Ks, investor decks, and press releases clarified revenue shares for major avionics vendors, while import-export logs from Volza and tender notices from Tenders Info highlighted regional procurement spikes. Select proprietary snapshots from D&B Hoovers and Dow Jones Factiva filled financial gaps. The sources cited here are illustrative; our analysts reviewed many additional publications during validation.
Market-Sizing & Forecasting
A top-down fleet build-up, linking yearly aircraft deliveries, active inventory, and mandatory retirements, sets the initial demand pool, which is then cross-checked through selective bottom-up roll-ups of sampled vendor sales and channel checks. Key variables include average line-fit attach rate, mandated ADS-B or CPDLC compliance timelines, SATCOM penetration in wide bodies, defense retrofit budgets, and silicon lead-time trends that cap shipment volumes. We forecast value using multivariate regression, relating unit shipments and weighted average selling prices to macro drivers such as passenger RPK growth and defense capital outlay, before running scenario analysis for semiconductor shortages.
Data Validation & Update Cycle
Outputs pass two levels of analyst review, where anomalies versus historical ratios trigger re-contact with sources; flagged variances above three percent are reconciled before sign-off. Reports refresh every twelve months, and we issue interim recalculations if material regulations, program cancellations, or major contract wins arise.
Why Mordor's Aircraft Communication Systems Baseline Commands Reliance
Published estimates often diverge because each firm chooses distinct component sets, retrofit cut-offs, and price assumptions. We state up front which technologies we count, refresh models annually, and anchor values to verifiable fleet and certification data.
Key gap drivers include: some studies limit scope to civil aircraft, others bundle connected cabin routers, several apply flat ASP escalators, and update cadences vary, causing currency year mismatches.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 12.12 B | Mordor Intelligence | - |
| USD 9.80 B | Global Consultancy A | excludes military retrofits and values units at constant 2021 prices |
| USD 17.12 B | Industry Journal B | merges cabin connectivity hardware and uses higher SATCOM ASP inflation |
In summary, our disciplined variable selection, annual refresh, and dual-level validation give decision-makers a balanced baseline that is traceable to concrete fleet data and reproducible with clear steps.
Key Questions Answered in the Report
What is the current size of the aircraft communication systems market?
The market is valued at USD 12.12 billion in 2025 and is expected to reach USD 17.38 billion by 2030, representing a 7.48% CAGR.
Which component segment is growing the fastest?
Displays & processors are forecasted to grow at a 9.67% CAGR through 2030, driven by FAA-certified multi-core processing platforms that boost cockpit computing by 75%.
Why is Asia-Pacific the fastest-growing region?
Fleet expansion, 5G air-to-ground trials and increased defense spending push Asia-Pacific to an 8.42% CAGR, outpacing other regions.
How are regulatory mandates influencing demand?
Mandatory ADS-B Out and CPDLC timelines compel airlines to equip VDL radios and CMUs, accelerating near-term spending on compliant communication solutions.
What technologies are challenging SATCOM’s dominance?
5G air-to-ground networks are the fastest-growing connectivity technology, offering low-latency broadband that complements multi-orbit satellite links.
What is the main cybersecurity concern with modern avionics networks?
IP-based connectivity introduces new attack vectors, prompting initiatives such as quantum-key-distribution satellites and FAA oversight enhancements to secure data paths.
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