Aircraft Electrical Systems Market Size

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.