Market Trends of Aircraft Electrical Systems Industry
Commercial Aviation Segment Will Showcase Remarkable Growth During the Forecast Period
Passenger traffic is gradually recovering from the impact of the pandemic and is expected to surpass the pre-pandemic levels by the end of 2023. The recovery is attributed to growing domestic travel across the globe. With the growing domestic passengers, the demand for commercial aircraft is expected to witness robust growth in the coming years, with a subsequent demand impact on the aircraft's electrical systems. During 2022, Airbus and Boeing delivered 663 and 480 aircraft, respectively, signifying a significant growth over the 2021 figures, marred by widespread bottlenecks and production delays due to supply chain disruptions.
Several new aircraft orders are expected to be placed during the forecast period, driving the demand for integrated systems and subsystems, including electrical systems. Moreover, the rise of electric propulsion technology is being explored in the commercial aviation sector. Electrically powered aircraft contain the potential to reduce greenhouse gas emissions and noise pollution compared to traditional jet engines. Electric motors, batteries, and advanced power management systems are being developed to support electric propulsion in commercial aircraft.
Currently, hybrid-electric systems, combining traditional combustion engines with electric motors, are being explored as an intermediate step toward fully electric aircraft. For instance, in March 2023, Evfly gave a contract to 205 Prosperity I and Prosperity Cargo aircraft to AutoFlight. In February 2023, AutoFlight tested its Gen4 eVTOL electric aircraft with a record-breaking 250 km flight on a single charge on a circuit. Gen4 aircraft is equipped with the latest avionics and also uses third-party avionics to record and verify the distance covered on the independent system 'Foreflight.'
North America to Dominate Market Share in the Aircraft Electrical Systems Market
North America is projected to continue its dominance in terms of market share due to the presence of a well-flourished aviation industry, the highest number of commercial and military aircraft fleets in the US, and rising aircraft modernization programs from airlines, driving the growth of the market.
Furthermore, the US has the highest number of airports in the world. There are around 19,919 total airports within the US, including international airports, private airports, and regional public airports. Thus, growing commercial and military aircraft fleets and rising expenditure on aircraft modernization programs lead to increasing demand for advanced electrical systems, hence driving the market growth.
For instance, in January 2023, the US Air Force Life Cycle Management Center signed an eight-year contract worth USD 900 million with five companies to provide wiring harnesses and kit assemblies for the Air Force F-16 combat jet fleet. Also, in March 2022, Boeing and Safran signed contracts for electrical wiring. The contract covers the Boeing P8, B787 Dreamliner, B767-2C, B767 Freighter, B737 MAX, B777, and B777-X aircraft. On this note, in 2021, Safran produced more than 225,000 electrical wire assemblies for B767 Freighter and B737, B777, and B787 aircraft, signifying a high-demand scenario with the evolution and adoption of more electric architecture in the aviation sector.
