The Nexus of Avionics, Artificial Intelligence, and Aircraft Values
Global Avionics Round-Up from Aircraft Value News (AVN)
As AI systems enhance the operational performance of aircraft, demand for such planes is surging, driving up base values and lease rates.
The global avionics market is on track for major multiyear growth. What’s more, artificial intelligence (AI)-infused avionics upgrades already are influencing aircraft base values and lease rates.
According to new research released in September 2024 by Fortune Business Insights, the global avionics market size was valued at USD 91.32 billion in 2023 and is projected to grow from USD 99.33 billion in 2024 to USD 179.44 billion by 2032, for a compound annual growth rate (CAGR) of 7.67% during the forecast period. North America dominated the avionics market in 2023 with a market share of 37.25% (see chart).
The avionics market’s growth is driven by technological advancements, as well as increasing revenue opportunities in international routes. Moreover, the rising procurement of next-generation military aircraft, both for transport and combat operations, is further accelerating market expansion during the forecast period. Innovations in military aviation typically spill over into the civilian sector, making commercial and defense aerospace two sides of the same coin.
Many avionics advancements in commercial aircraft got their start through military research and development. Global military budgets are ballooning, fueled during the past two years by increasing superpower rivalry and the Russia-Ukraine war. The U.S. spends by far more on defense than any other country. Avionics capabilities are expanding in tandem with these expenditures.
The avionics market is divided into two primary categories: hardware and software. In 2023 and so far into 2024, hardware has maintained a leading market share due to its multitasking capabilities, such as trajectory prediction and route guidance. Many original equipment manufacturers (OEMs) have introduced new high-performance hardware solutions for both commercial and military aviation.
However, the software segment is projected to experience the highest CAGR in the coming years. This surge is driven by the increasing integration of software in avionics to enhance flight operations. Many OEMs are forming partnerships and joint ventures to develop the most advanced avionics software solutions.
The AI revolution…
A megatrend reshaping avionics is the integration of AI. Avionics systems powered by AI are revolutionizing the way aircraft are flown, introducing unprecedented levels of automation, decision-making, and predictive capabilities.
According to Precedence Research, the global AI in aviation market size was estimated at USD 653.74 million in 2021 and it is expected to surpass around USD 9.98 billion by 2030 with a CAGR of 35.38% from 2022 to 2030 (see chart).
Recent developments in avionics and information technology have greatly minimized the need for manual inputs and actions by pilots, particularly for routine tasks. Pilots now spend more time overseeing, managing, and programming control panels within the cockpit, rather than focusing on the traditional hands-on flying of the aircraft.
AI-infused avionics are poised to further streamline operations, improve safety, and optimize fuel efficiency. Leading-edge avionics can help reduce fuel burn, which in turn reduces carbon emissions and helps aircraft meet new and stringent “green” regulations.
As AI systems enhance the operational performance of aircraft, demand for such planes is surging, driving up base values and leasing prices.
Conversely, older aircraft lacking these capabilities may see depreciation, pushing down their value in the secondary market. This trend is likely to redefine the competitive landscape in aviation, positioning AI-enabled aircraft as the future standard for both commercial and military aviation.
This article also appears in the October 7 issue of our partner publication Aircraft Value News.
Editor’s Note: To watch a video presentation on this avionics-related topic, visit https://www.aircraftvaluenews.com/video/
The post The Nexus of Avionics, Artificial Intelligence, and Aircraft Values appeared first on Avionics International.
—————
Boost Internet Speed–
Free Business Hosting–
Free Email Account–
Dropcatch–
Free Secure Email–
Secure Email–
Cheap VOIP Calls–
Free Hosting–
Boost Inflight Wifi–
Premium Domains–
Free Domains