USD 21.7 billion
Report ID:
SQMIG20E2127 |
Region:
Global |
Published Date: May, 2025
Pages:
193
|Tables:
91
|Figures:
71
Global Aircraft Electrical Systems Market size was valued at USD 21.7 billion in 2023 and is poised to grow from USD 23.61 billion in 2024 to USD 46.36 billion by 2032, growing at a CAGR of 8.8% during the forecast period (2025-2032).
The worldwide move towards sustainability and cost-effectiveness in the aviation industry is pushing the move towards More Electric Aircraft (MEA). MEA technology substitutes conventional mechanical, hydraulic, and pneumatic systems with sophisticated electrical systems, which lower aircraft weight, enhance fuel efficiency, and decrease maintenance expenses. The move is largely prompted by the fact that it helps airlines adhere to tight carbon emission regulations and minimize operating expenses. With major aircraft producers such as Airbus and Boeing designing MEAs for both military and commercial use with greater frequency, the need for advanced and efficient aircraft electrical systems burgeons at a tremendous rate, driving the growth of the worldwide market.
Technological advancements in power electronics have emerged as a key trend driving the global aircraft electrical systems sector. High-efficiency power converters, inverters, and solid-state devices enable aircraft to handle increased electrical loads with minimal loss of energy and improved thermal performance. These technologies facilitate variable frequency systems and high-voltage architectures and enable it to be possible to power more onboard systems electrically without added weight or compromised safety. As a result, aircraft designers can incorporate more electric functions—such as electric propulsion and environmental control systems—while meeting strict reliability and performance standards. This technological progress plays a key role in the continued growth and evolution of the aircraft electrical systems market.
What is the Benefit of Using AI Based Design Tools in Aviation?
Artificial Intelligence (AI) is indirectly driving the growth of the aircraft electrical systems market by making design, monitoring, and predictive maintenance smarter. AI algorithms process large amounts of data from sensors embedded in electrical components to forecast failures, maximize performance, and minimize downtime. This predictive function induces airlines to use more sophisticated electrical systems for better reliability and safety. Also, AI-based design tools assist designers in simulating and optimizing electrical system architecture to minimize development time and maximize system efficiency. One significant development is the use of AI by Rolls-Royce to monitor electric propulsion systems in real-time as a way of supporting the development of smart, all-electric aircraft solutions.
In January 2025, Honeywell and NXP Semiconductors broadened their collaboration to create AI-based technologies for the aviation industry, with a view to autonomous flying. The partnership combines Honeywell's Anthem avionics system with NXP's computing solution for improving the planning and management of flights. The project aims at implementing NXP's autonomy architecture, initially intended for the automotive industry, for airborne use, thus enhancing the functionality of aircraft electrical systems.
Market snapshot - 2025-2032
Global Market Size
USD 21.7 billion
Largest Segment
Generator
Fastest Growth
Battery
Growth Rate
8.8% CAGR
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Global Aircraft Electrical Systems Market is segmented by Platform, Component, Application, Technology, End User and region. Based on Platform, the market is segmented into Fixed-Wing and Rotary-Wing. Based on Component, the market is segmented into Generators, Conversion Devices, Distribution Devices, Battery Management Systems and Others. Based on Application, the market is segmented into Power Generation Management, Flight Control & Operation, Cabin System, Configuration Management and Air Pressurization & Conditioning. Based on Technology, the market is segmented into Conventional, Electric and Others. Based on End User, the market is segmented into OEM and Aftermarket. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Based on the global aircraft electrical systems market forecast, generator component is witnessing continuous domination in the industry through the development of high-speed, lightweight, and more efficient power generation systems to meet the electrical demands of modern aircraft. With the rise of More Electric Aircraft (MEA), generators are essential for powering critical systems previously driven by hydraulics or pneumatics. Its dominance stems from being the primary source of onboard power, making it indispensable in both conventional and electric aircraft configurations.
The battery segment is expected to be the most rapidly growing segment in the global aircraft electrical systems market, as the aviation sector is making a transition towards electric and hybrid-electric aircraft. Lithium-ion batteries and new solid-state batteries possess more energy density, less weight, and greater efficiency, which are necessary for green aviation.
The power generation system is leading the charge toward innovation within the global aircraft electrical systems market, as it is influenced by the trend within the industry toward More Electric Aircraft (MEA) and hybrid-electric propulsion. These have involved recent innovations in the form of lightweight, high-efficiency generators and integration with smart monitoring technologies that improve performance and reliability. This system dominates the market since it's the key supplier of onboard electrical power, crucial in powering essential systems in conventional and new-generation aircraft, thus providing operational efficiency and facilitating the shift towards sustainable aviation.
The power distribution system is set to emerge as the highest-growing segment in the global aircraft electrical systems market, fueled by the aviation sector's trend of adopting More Electric Aircraft (MEA) and hybrid-electric propulsion. This shift requires sophisticated power distribution networks that can handle enhanced electrical loads effectively and provide faultless power delivery to vital systems.
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As per the global aircraft electrical systems market analysis, North America dominates the industry owing to its robust aerospace manufacturing industry and high military and commercial aviation activities. The region enjoys persistent R&D efforts by prominent companies such as Boeing and Honeywell, fueling advancements in power generation and distribution systems. The stringent environmental laws and increasing trend towards More Electric Aircraft (MEA) fuel the market adoption, turning North America into a central hub for sophisticated aircraft electrical system development and implementation.
The United States dominates North America’s aircraft electrical systems market due to its extensive aerospace manufacturing industry and leading companies like Boeing and Lockheed Martin. Having the world's biggest commercial and military aircraft fleets, the demand for advanced electrical systems is strong. Ongoing R&D investments, particularly in hybrid-electric and all-electric aircraft technologies, propel development to maintain the U.S. as the region's key market driver.
Canada plays a growing role in North America’s aircraft electrical systems market, propelled by advancements in hybrid-electric propulsion. The likes of Pratt & Whitney Canada are leading the way in effective power systems for aircraft modernization. Efforts to focus on sustainable aviation and the growing uptake of electric and hybrid technologies in the country are widening its market share, underpinning consistent growth in the regional electrical systems market.
Europe holds a significant share in the global aircraft electrical systems market, driven by leading aerospace manufacturers such as Airbus and Rolls-Royce. The region’s focus on developing More Electric Aircraft (MEA) and hybrid-electric propulsion technologies accelerates demand for advanced electrical systems. Strong government support for sustainable aviation, coupled with stringent environmental regulations, fuels innovation and adoption. Europe’s well-established aerospace infrastructure and R&D capabilities make it a vital hub for aircraft electrical systems development.
Germany is a major contributor to the Europe’s aircraft electrical systems market, driven by aerospace leaders like Lufthansa Technik and MTU Aero Engines. It focuses on innovations in power generation and electrical distribution systems. Germany’s commitment to sustainability and strong aerospace infrastructure supports the advancement of electric and hybrid aircraft technologies, boosting its role in the global market.
France commands a significant share of the Europe’s aircraft electrical systems market with key players like Airbus and Dassault Aviation. Strong government backing and investments in R&D, especially in hybrid-electric propulsion, drive France’s leadership in aircraft electrical systems. The country’s established aerospace ecosystem and Air France’s presence further enhance its market contribution.
The UK shows robust growth potential supported by a high number of aerospace SMEs fostering innovation in electrical systems. Increasing demand for narrowbody aircraft and new low-cost carriers drive market expansion. The UK’s strong aerospace R&D capabilities accelerate the development of next-generation aircraft electrical systems, solidifying its global market position.
Asia Pacific is rapidly emerging as a key region in the global aircraft electrical systems market, fueled by expanding commercial aviation and increasing defense expenditures. Growing airline fleets and rising demand for More Electric Aircraft (MEA) drive investments in advanced electrical systems. Strong manufacturing capabilities in countries like China, Japan, and India, coupled with government initiatives supporting sustainable aviation, position Asia Pacific as a fast-growing hub for innovation and market expansion.
Japan is actively investing in sustainable aviation, focusing on hybrid and electric aircraft technologies. Companies like Mitsubishi Heavy Industries and Kawasaki Heavy Industries are developing advanced electrical systems for both commercial and military applications. The Japanese government has allocated significant funding to support electric aircraft development, aiming to reduce emissions and enhance energy efficiency in the aviation sector. These efforts position Japan as a key player in the global market.
South Korea is experiencing rapid growth in Asia Pacific’s aircraft electrical systems market, driven by increasing air travel demand and significant investments in aerospace technology development. The country's focus on developing indigenous aircraft programs and modernizing its military fleet creates substantial opportunities for advanced electrical systems implementation. Companies like Korea Aerospace Industries are at the forefront of these developments, contributing to the market's expansion.
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Shift to More Electric Aircraft
Rising Demand for Fuel Efficiency and Sustainability
Technical Challenges in System Integration
Limited Skilled Workforce
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The global aircraft electrical systems market outlook is highly competitive, with key players like Honeywell International, Safran, Collins Aerospace, and Thales Group driving innovation. Companies focus on strategic partnerships, mergers, and extensive R&D to enhance product portfolios and develop more electric and hybrid propulsion systems. For example, Honeywell invests heavily in smart electrical power management, while Safran emphasizes sustainable aviation solutions through collaborative aerospace ventures, strengthening their market positions worldwide.
The global aircraft electrical systems market is witnessing rapid startup growth focused on electrification, lightweight components, and smart power management. These startups bring agile innovation, accelerating advances in hybrid and electric propulsion technologies. Their breakthroughs in energy-efficient systems push sustainability goals and disrupt traditional aerospace supply chains, driving faster adoption of eco-friendly aircraft electrical systems and transforming market dynamics.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global aircraft electrical systems industry is undergoing a transformative shift driven by sustainability and efficiency demands. More Electric Aircraft (MEA) technology is revolutionizing aviation by replacing conventional mechanical systems with advanced electrical components, resulting in lighter, more fuel-efficient aircraft. Innovations in power electronics and AI-enabled smart power management are enhancing reliability and operational performance while reducing development time and costs.
Leading aerospace players and emerging startups alike are accelerating the adoption of hybrid and electric propulsion systems, reflecting strong regional growth, especially in North America, Europe, and Asia Pacific. Regulatory pressures and technological advancements are fostering continuous innovation, positioning aircraft electrical systems as pivotal to the future of eco-friendly, cost-effective aviation, ultimately propelling market expansion and reshaping the industry’s sustainability trajectory.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 21.7 billion |
Market size value in 2032 | USD 46.36 billion |
Growth Rate | 8.8% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Aircraft Electrical Systems Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Aircraft Electrical Systems Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Aircraft Electrical Systems Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Aircraft Electrical Systems Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Aircraft Electrical Systems Market size was valued at USD 20.38 Billion in 2023 poised to grow from USD 22 Billion in 2024 to USD 20.51 Billion by 2032, growing at a CAGR of 7.93% in the forecast period (2025-2032).
The global aircraft electrical systems market outlook is highly competitive, with key players like Honeywell International, Safran, Collins Aerospace, and Thales Group driving innovation. Companies focus on strategic partnerships, mergers, and extensive R&D to enhance product portfolios and develop more electric and hybrid propulsion systems. For example, Honeywell invests heavily in smart electrical power management, while Safran emphasizes sustainable aviation solutions through collaborative aerospace ventures, strengthening their market positions worldwide. 'Honeywell International (USA)', 'Safran (France)', 'Collins Aerospace (USA)', 'Thales Group (France)', 'Rockwell Collins (USA)', 'GE Aviation (USA)', 'Moog Inc. (USA)', 'Eaton Corporation (USA)', 'Liebherr Aerospace (Germany)', 'Meggitt PLC (United Kingdom)', 'Parker Hannifin Corporation (USA)', 'Zodiac Aerospace (France)', 'BAE Systems (United Kingdom)', 'UTC Aerospace Systems (USA)', 'Leonardo S.p.A. (Italy)'
The aviation industry's transition to More Electric Aircraft increases demand for advanced electrical systems. MEA technology replaces traditional hydraulic and pneumatic systems with electrical ones, enhancing fuel efficiency, reducing maintenance, and lowering emissions. This shift drives growth in electrical power generation, distribution, and management components.
Electrification Driving Aircraft Modernization: The shift towards More Electric Aircraft (MEA) is a major trend, with airlines and manufacturers adopting advanced electrical systems to replace hydraulic and pneumatic components. This transition enhances fuel efficiency, reduces emissions, and lowers maintenance costs, accelerating the demand for innovative aircraft electrical solutions.
Why is North America Considered a Hub for Advanced Aircraft Electrical Systems?
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Report ID: SQMIG20E2127
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