Aircraft Electrical Systems Market Size
Market Overview
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 27.50 Billion |
| Market Size (2030) | USD 37.86 Billion |
| Growth Rate (2025 - 2030) | 6.60% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
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 Electrical Systems Market Analysis
The Aircraft Electrical Systems Market size is estimated at USD 27.50 billion in 2025, and is expected to reach USD 37.86 billion by 2030, at a CAGR of 6.6% during the forecast period (2025-2030).
The global aviation industry is experiencing a robust recovery and transformation, evidenced by the International Air Transport Association's report showing global passenger traffic increasing by 26.2% annually as of July 2023, reaching 95.6% of pre-pandemic levels. This resurgence has catalyzed unprecedented fleet expansion initiatives across major carriers, exemplified by American Airlines' March 2024 commitment to 115 Boeing 737-10 aircraft and Emirates' landmark November 2023 order for 90 Boeing 777 aircraft valued at $52 billion. These developments signal a broader industry shift toward modernizing aircraft fleets with advanced aircraft electrical systems that can support increasingly sophisticated avionics and onboard technologies.
The industry's trajectory is being fundamentally reshaped by environmental sustainability imperatives, with the International Council on Clean Transportation's analysis indicating that electric aircraft could reduce CO2 emissions by 49% to 88% compared to conventional fossil-fueled aircraft. This transition presents both opportunities and challenges, as current battery technology limitations necessitate innovative solutions—with studies showing that over 1,500 tons of lithium-ion batteries would be required to achieve the same power output as fuel in a typical short-haul jet. This technological gap is driving intensive research and development efforts in high-density battery solutions and advanced power electronics, crucial for the aircraft electrification market.
The landscape of aerospace electrical systems is evolving rapidly with the integration of sophisticated power distribution networks capable of routing power around localized faults to maintain a continuous supply to critical systems. Major aerospace manufacturers are increasingly focusing on developing distributed propulsion systems that are electrically powered, with onboard electrical power generation capacity escalating to 1.5 MVA. This evolution is accompanied by a proliferation of new electric generators and power electronic equipment installations within airframes, reflecting the industry's move toward more electric architecture.
The market is witnessing a significant shift in power storage and conversion technologies, with solid-state batteries emerging as a promising solution expected to be widely adopted by 2030. Aircraft manufacturers are actively exploring hybrid-electric systems as an intermediate step toward fully electric aircraft, particularly for regional and short-haul operations. This transition is supported by strategic partnerships and investments, exemplified by Riyadh Air's 2023 contract for 72 Boeing 787-9 aircraft, demonstrating the industry's commitment to incorporating advanced aircraft electrical systems in next-generation aircraft designs. The global aircraft electrical systems market size is poised for substantial growth, driven by these advancements and the increasing demand for sustainable aviation solutions.
Aircraft Electrical Systems Market Trends
Optimized Aircraft Performance Through Usage of More Electric Technology
The aviation industry is witnessing a transformative shift from conventional power systems to more electric technology, driven by the pressing need for enhanced aircraft performance and operational efficiency. Traditional aircraft systems rely on a combination of pneumatic, hydraulic, mechanical, and aircraft electrical systems, which present several operational challenges including low fuel conversion efficiency, potential leakage of corrosive fluids, and increased fire risks. The transition to more electric technology enables aircraft manufacturers to replace approximately 11% of hydraulically controlled systems with electric alternatives, resulting in significant weight reduction through the elimination of hydraulic reservoirs and associated components. This architectural transformation has been evidenced by recent developments, such as AutoFlight's achievement in February 2023, where their Gen4 eVTOL electric aircraft completed a groundbreaking 250-kilometer flight on a single charge, demonstrating the viability of advanced aviation electrical systems in aviation applications.
The integration of more electric technology is revolutionizing aircraft design and performance optimization through distributed propulsion systems and enhanced power generation capabilities. Current aircraft developments are trending towards increased onboard electrical power generation capacity of up to 1.5 MVA, facilitating the installation of new electric generators and power electronic equipment within the airframe. This evolution is supported by significant industry initiatives, such as Evfly's March 2023 contract with AutoFlight for 205 Prosperity I and Prosperity Cargo aircraft, highlighting the growing confidence in electric aviation solutions. The advancement in battery technology is playing a crucial role, with industry leaders projecting that achieving a power density of 400 Wh/kg in aircraft batteries will accelerate the electrification of aircraft. Furthermore, the development of solid-state batteries, including magnesium-based, lithium-based, and sodium-ion variants, is expected to provide enhanced benefits such as longer lifecycles and increased energy density, with adoption anticipated by 2030. These technological advancements are complemented by the development of specialized aircraft electric motors market designed specifically for aviation applications, offering improved power output in the 100 kW range while meeting stringent safety requirements and addressing heat rejection challenges inherent to electric propulsion systems.
The global more electric aircraft systems market is poised for significant growth as these advancements continue to unfold, driven by the increasing demand for efficient and sustainable aviation solutions.
Segment Analysis: System
Energy Storage Segment in Aircraft Electrical Systems Market
The energy storage segment dominates the aircraft electrical systems market, commanding approximately 45% market share in 2024. This segment's prominence is driven by the increasing development of hybrid-electric and full-electric aircraft that require advanced energy storage solutions, including batteries, supercapacitors, and hydraulic accumulators. The segment's leadership position is further strengthened by the growing emphasis on sustainable aviation and the need for reliable backup power systems. Modern aircraft designs incorporating "more electric" and "fully electric" concepts require large battery packs ranging from tens of kWh for urban aviation to hundreds or thousands of kWh for commercial aviation, making the aircraft energy storage system market critical. Major manufacturers are investing heavily in developing innovative energy storage technologies with improved energy density, safety features, and thermal management capabilities to meet the evolving requirements of next-generation aircraft.
Power Distribution Segment in Aircraft Electrical Systems Market
The power distribution segment is emerging as the fastest-growing segment in the aircraft electrical systems market, projected to grow at approximately 8% during 2024-2029. This rapid growth is attributed to the increasing complexity of modern aircraft designs that necessitate advanced and responsive power distribution networks capable of routing power around localized faults to maintain a continuous power supply. The segment's growth is further fueled by the integration of sophisticated power distribution systems required for voltage-critical avionics systems in evolving electric aircraft. Leading manufacturers are developing innovative solutions such as primary power distribution units, AC/DC secondary power distribution systems, and advanced circuit breaker panels to meet the demanding requirements of next-generation aircraft. The trend toward more electric aircraft architecture and the need for efficient power management systems is expected to continue driving significant investments in power distribution technologies.
Remaining Segments in Aircraft Electrical Systems Market
The power generation and power conversion segments play vital roles in completing the aircraft electrical systems ecosystem. The aircraft power generation systems market, which includes integrated drive generators, constant speed drives, and auxiliary power units, forms the backbone of aircraft electrical power systems by providing the primary source of electrical power. Meanwhile, the aircraft power conversion systems market focuses on transforming electrical power between different forms to enable efficient power utilization across various aircraft systems. Both segments are experiencing technological advancements driven by the industry's shift toward more electric aircraft architecture, with manufacturers developing more efficient and lighter components to improve overall system performance and reduce fuel consumption. These segments continue to evolve with the integration of advanced materials and smart technologies to meet the increasing power demands of modern aircraft.
Segment Analysis: Platform
Commercial Aviation Segment in Aircraft Electrical Systems Market
The commercial aviation segment dominates the aircraft electrical systems market, commanding approximately 66% market share in 2024. This dominance is primarily driven by the significant recovery in global air passenger traffic and subsequent fleet expansion plans by major airlines worldwide. Major commercial airlines are actively modernizing their fleets with next-generation aircraft that incorporate advanced electrical systems. For instance, in March 2024, American Airlines committed to 115 Boeing 737-10 aircraft, while Air India's massive order of 470 Boeing and Airbus aircraft in 2023 demonstrates the robust demand. The segment is also witnessing rapid growth with an expected CAGR of around 7% from 2024 to 2029, driven by the increasing adoption of more electric aircraft (MEA) technology, rising focus on fuel efficiency, and growing emphasis on reducing emissions in commercial aviation. The development of hybrid-electric and all-electric propulsion systems for commercial aircraft is further accelerating the demand for sophisticated electrical systems in this segment.
Military Aviation Segment in Aircraft Electrical Systems Market
The military aviation segment represents a significant portion of the aircraft electrical systems market, with ongoing modernization programs and increasing defense budgets worldwide driving growth. The segment is experiencing steady expansion as armed forces across the globe focus on upgrading their existing fleets with advanced electrical systems and procuring new aircraft with enhanced capabilities. The integration of sophisticated electronic warfare systems, advanced avionics, and increased power requirements for modern military aircraft is driving the demand for more robust and efficient electrical systems. Recent developments include Canada's procurement of P-8A Poseidon aircraft worth USD 5.9 billion and various other military modernization programs across different regions. The segment's growth is further supported by increasing investments in unmanned aerial vehicles (UAVs) and next-generation fighter aircraft programs that require advanced electrical systems for enhanced performance and capabilities.
General Aviation Segment in Aircraft Electrical Systems Market
The general aviation segment plays a vital role in the aircraft electrical systems market, encompassing business jets, private aircraft, and small commercial aircraft. This segment is witnessing transformation through the integration of advanced electrical systems, particularly in business aviation where demand for sophisticated avionics and cabin management systems continues to grow. The segment is experiencing significant developments in electric and hybrid-electric propulsion systems for smaller aircraft, with various manufacturers focusing on developing environmentally friendly solutions. The increasing adoption of electric vertical takeoff and landing (eVTOL) aircraft and the growing demand for private aviation services are creating new opportunities for electrical system manufacturers in this segment.
Aircraft Electrical Systems Market Geography Segment Analysis
Aircraft Electrical Systems Market in North America
North America represents a crucial market for aircraft electrical systems, driven by the presence of major aerospace manufacturers, extensive commercial aviation networks, and significant military aerospace activities. The United States and Canada form the backbone of this regional market, with both countries demonstrating strong capabilities in aerospace manufacturing and maintenance, repair, and overhaul (MRO) services. The region's market is characterized by substantial investments in research and development, particularly in advanced electrical systems for next-generation aircraft, including hybrid and all-electric platforms.
Aircraft Electrical Systems Market in United States
The United States dominates the North American aircraft electrical systems market, holding approximately 80% of the regional market share in 2024. The country's market leadership is supported by the presence of major aerospace manufacturers and a robust supply chain network. The US aerospace and defense market is experiencing a revolutionary shift driven by rapid technological advancements in areas such as artificial intelligence, advanced materials, and autonomous systems. The highest number of commercial and military aircraft fleets and rising aircraft modernization programs from airlines continue to drive the growth of the market in the United States.
Aircraft Electrical Systems Market in Canada
Canada demonstrates the highest growth potential in North America, with a projected CAGR of approximately 6% during 2024-2029. The country's aviation sector is witnessing remarkable development, particularly in the implementation of hybrid-electric aircraft technologies. Canada's air transportation industry contributes significantly to its economy, with several airlines actively modernizing their fleets. The country is actively working on implementing hybrid-electric aircraft technology, with companies like Pratt & Whitney Canada leading development efforts in hybrid-electric propulsion technology. The rising demand for advanced aircraft electrical systems to improve overall performance and achieve zero carbon emissions continues to drive market growth across the country.
Aircraft Electrical Systems Market in Europe
Europe maintains a strong position in the global aircraft electrical systems market, supported by its advanced aerospace manufacturing capabilities and significant investments in research and development. The region's market is characterized by the presence of major aircraft manufacturers and tier-1 suppliers across the United Kingdom, France, Germany, and Spain. European countries are actively pursuing initiatives to develop more electric aircraft technologies and sustainable aviation solutions, driving innovation in aircraft electrical systems.
Aircraft Electrical Systems Market in France
France leads the European market, commanding approximately 26% of the regional market share in 2024. The country's dominant position is anchored by the presence of major aircraft manufacturers like Airbus and Dassault Aviation. France has been a global focus for aviation, with its national airline Air France making significant contributions to the industry. The country's aerospace sector benefits from substantial government support and investment in research and development, particularly in electric and hybrid-electric aircraft technologies.
Aircraft Electrical Systems Market in United Kingdom
The United Kingdom demonstrates strong growth potential in Europe, with a projected CAGR of approximately 5% during 2024-2029. As the European industry with the most small and medium-sized enterprises in aerospace, the UK continues to drive innovation in the aircraft electrical systems market. The country's aviation industry is undergoing significant transformation with the arrival of new low-cost carriers and increasing demand for narrowbody aircraft. The UK's commitment to developing next-generation aircraft electrical systems is further supported by its robust aerospace research and development infrastructure.
Aircraft Electrical Systems Market in Asia-Pacific
The Asia-Pacific region represents a dynamic market for aircraft electrical systems, characterized by rapid growth in commercial aviation and increasing defense modernization programs. Countries including China, India, Japan, and South Korea are making significant strides in aerospace manufacturing capabilities and technological advancement. The region's market is driven by increasing air passenger traffic, fleet expansion plans by major airlines, and growing investments in military aviation.
Aircraft Electrical Systems Market in China
China leads the Asia-Pacific market as the largest country by market size. The country's dominance is supported by its position as a major international hub for both business and leisure travel, with extensive investments in aerospace manufacturing capabilities. China's aviation sector is experiencing significant growth, driven by increasing domestic air travel demand and ambitious plans for developing new-generation aircraft, including electric and hybrid platforms.
Aircraft Electrical Systems Market in South Korea
South Korea emerges as the fastest-growing market in the Asia-Pacific region. The country's aircraft electrical systems market is experiencing rapid growth driven by increasing air travel demand and significant investments in aerospace technology development. South Korea's focus on developing indigenous aircraft programs and modernizing its military fleet continues to create substantial opportunities for advanced electrical systems implementation.
Aircraft Electrical Systems Market in Latin America
The Latin American aircraft electrical systems market is characterized by growing commercial aviation activities and military modernization programs across Brazil, Mexico, and Argentina. Brazil emerges as the largest market in the region, driven by its robust aerospace manufacturing sector and the presence of major aircraft manufacturers. Mexico demonstrates the fastest growth potential, supported by its expanding aerospace industry and increasing aircraft orders from commercial airlines. The region's market is particularly driven by the modernization of existing aircraft fleets and the growing demand for new commercial aircraft to serve expanding air routes.
Aircraft Electrical Systems Market in Middle East and Africa
The Middle East and Africa region presents significant opportunities in the aircraft power distribution systems market, with Saudi Arabia, the United Arab Emirates, and South Africa as key markets. Saudi Arabia maintains the largest market share in the region, supported by ambitious aviation sector expansion plans and significant investments in both commercial and military aircraft. The UAE shows the fastest growth potential, driven by its position as a major international aviation hub and continuous investments in aerospace infrastructure. The region's market is characterized by substantial fleet expansion programs by major carriers and increasing focus on developing maintenance, repair, and overhaul (MRO) capabilities.
Aircraft Electrical Systems Industry Overview
Top Companies in Aircraft Electrical Systems Market
The aircraft electrical systems market is characterized by intense competition among established aerospace and defense conglomerates that are driving innovation through significant R&D investments. Companies are focusing on developing advanced power distribution and electrical systems for aerospace, more electric aircraft technologies, and energy-efficient solutions to meet evolving industry demands. Strategic partnerships and collaborations with technology providers are becoming increasingly common as firms seek to enhance their capabilities in electric propulsion and power management systems. Market leaders are expanding their global footprint through regional manufacturing facilities and service centers while simultaneously strengthening their aftermarket support networks. The industry is witnessing a strong push towards the development of integrated electrical systems that can support the growing electrification trends in both commercial and military aviation sectors.
Consolidated Market Led By Global Players
The aircraft electrical systems market exhibits a relatively consolidated structure dominated by large multinational corporations with diverse aerospace portfolios. These major players leverage their extensive research capabilities, established customer relationships, and comprehensive product offerings to maintain their market positions. The industry has high barriers to entry due to stringent certification requirements, substantial capital investments needed for R&D, and the complexity of aerospace-grade electrical systems development. Recent years have witnessed strategic acquisitions aimed at expanding product portfolios and gaining access to new technologies, particularly in the areas of power electronics and energy storage solutions.
The competitive dynamics are further shaped by the presence of specialized component manufacturers who focus on specific niches within the electrical systems ecosystem. These companies often become strategic acquisition targets for larger conglomerates looking to strengthen their technological capabilities or expand their product range. The market has seen several notable mergers and acquisitions, particularly involving companies with expertise in advanced electrical systems, power distribution technologies, and electric propulsion solutions. This consolidation trend is expected to continue as companies seek to build comprehensive electrical systems capabilities to address the growing demand for more electric aircraft architectures.
Innovation and Integration Drive Market Success
Success in the aircraft electrical systems market increasingly depends on companies' ability to develop integrated solutions that address the industry's shift towards more electric aircraft platforms. Market leaders are investing heavily in next-generation power management technologies, advanced materials, and smart electrical systems that offer improved efficiency and reduced maintenance requirements. Companies that can demonstrate expertise in system integration, while maintaining strong relationships with aircraft manufacturers and offering comprehensive aftermarket support, are better positioned to capture market opportunities. The ability to provide scalable solutions that can be adapted across different aircraft platforms while meeting stringent safety and reliability requirements has become a critical differentiator.
For new entrants and smaller players, success lies in identifying and developing specialized capabilities in emerging technology areas such as electric propulsion systems, advanced battery technologies, or smart power distribution solutions. Building strategic partnerships with established aerospace manufacturers and maintaining strong intellectual property portfolios are essential for long-term success. The market's future competitive landscape will be shaped by companies' ability to navigate regulatory requirements, particularly those related to safety certification and environmental sustainability. Those who can effectively balance innovation with regulatory compliance while maintaining cost competitiveness will be better positioned to capture growth opportunities in both commercial and military aviation sectors. The onboard power system market is also seeing similar trends as companies strive to innovate and integrate solutions that meet the industry's evolving needs.
Aircraft Electrical Systems Market Leaders
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General Electric Company
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Honeywell International Inc.
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RTX Corporation
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Amphenol Corporation
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THALES
- *Disclaimer: Major Players sorted in no particular order
Aircraft Electrical Systems Market News
May 2024: Bell Textron awarded Safran a contract to supply starter-generation systems for the US Army's upcoming Future Long Range Assault Aircraft (FLRAA) program. The agreement specifies an advanced high-voltage system from Safran, which is tailored to meet the evolving electrical demands of military aircraft.
August 2023: Astronics Corporation secured a contract from Bell Textron. The deal encompassed system integration services, power system design, and preliminary flight hardware deliveries for Bell's V-280 Valor aircraft, part of the US FLRAA program.
Aircraft Electrical Systems Industry Segmentation
An aircraft electrical system refers to the network of electrical components and circuits that provide power and control various electrical functions within an aircraft. An aircraft electrical system consists of four essential sub-systems, namely power generation, distribution, conversion, and storage. The emergence of the electric aircraft concept revolutionized the conventional aircraft electrical power architecture.
The aircraft electrical systems market is segmented by system, platform, and geography. By system, the market is segmented into power generation, power distribution, power conversion, and energy storage. By platform, the market is segmented into commercial aviation, military aviation, and general aviation. The report also covers the market sizes and forecasts for the aircraft electrical systems market in major countries across different regions. For each segment, the market size and forecast are provided in terms of value (USD).
| System | Power Generation | ||
| Power Distribution | |||
| Power Conversion | |||
| Energy Storage | |||
| Platform | Commercial Aviation | ||
| Military Aviation | |||
| General Aviation | |||
| Geography | North America | United States | |
| Canada | |||
| Europe | United Kingdom | ||
| France | |||
| Germany | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Latin America | Brazil | ||
| Mexico | |||
| Rest of Latin America | |||
| Middle East and Africa | Saudi Arabia | ||
| United Arab Emirates | |||
| Israel | |||
| Rest of Middle East and Africa | |||
| Power Generation |
| Power Distribution |
| Power Conversion |
| Energy Storage |
| Commercial Aviation |
| Military Aviation |
| General Aviation |
| North America | United States |
| Canada | |
| Europe | United Kingdom |
| France | |
| Germany | |
| Russia | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| Rest of Asia-Pacific | |
| Latin America | Brazil |
| Mexico | |
| Rest of Latin America | |
| Middle East and Africa | Saudi Arabia |
| United Arab Emirates | |
| Israel | |
| Rest of Middle East and Africa |
Aircraft Electrical Systems Market Research FAQs
How big is the Aircraft Electrical Systems Market?
The Aircraft Electrical Systems Market size is expected to reach USD 27.50 billion in 2025 and grow at a CAGR of 6.60% to reach USD 37.86 billion by 2030.
What is the current Aircraft Electrical Systems Market size?
In 2025, the Aircraft Electrical Systems Market size is expected to reach USD 27.50 billion.
Who are the key players in Aircraft Electrical Systems Market?
General Electric Company, Honeywell International Inc., RTX Corporation, Amphenol Corporation and THALES are the major companies operating in the Aircraft Electrical Systems Market.
Which is the fastest growing region in Aircraft Electrical Systems Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Aircraft Electrical Systems Market?
In 2025, the North America accounts for the largest market share in Aircraft Electrical Systems Market.
What years does this Aircraft Electrical Systems Market cover, and what was the market size in 2024?
In 2024, the Aircraft Electrical Systems Market size was estimated at USD 25.68 billion. The report covers the Aircraft Electrical Systems Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Aircraft Electrical Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
