Market Trends of Aircraft Autopilot System Industry
Commercial Segment to Dominate Market Share
As per ICAO estimates, the demand for air transport will likely increase by 4.3% YoY on average over the two decades. To address the passenger traffic growth, airline operators have initiated procurement drives for new-generation aircraft. Airbus and Boeing exceeded 1,000 aircraft deliveries in 2022, and both plan to ramp up more deliveries in 2023. In 2022, Boeing received 561 orders for B737 MAX, 213 for widebodies, and 78 for Boeing’s freighter line. Boeing also received 50 orders for 777-8 Freighter aircraft. Collins Aerospace's avionics division provides an ADF 900 automatic direction finder for Airbus A320, A330, A350 A380, Boeing B737, and B767 aircraft. It also supplies Automatic flight control systems with redundant digital autopilot to Boeing B777 aircraft. Garmin is the supplier of autopilot systems for Airbus A220 aircraft.
The dominant aviation regulatory agencies, such as the Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA), have mandated installing autopilot systems in commercial aircraft to address several safety concerns. For instance, in August 2023, Aspen Avionics and Trio Avionics released an affordable digital autopilot/electronic flight display (EFIS) system with combined packages of Aspen Evolution E5 flight display and Trio Pro Pilot autopilot for more than 12 general aviation aircraft models. Similarly, in August 2023, in a demo flight in a Eurocopter AS350 B2, Garmin showcased its GFC 600H autopilot system. Garmin is working to receive supplemental-type certificate (STC) approvals for the GFC 600H system.
Asia-Pacific Region to Lead the Market in the Forecast Period
According to Airports Council International (ACI), the Asia-Pacific region is expected to have an aircraft movement share of 45.2% in the year 2041, from 32.5% in the year 2021. China is anticipated to become the world's largest aviation market in terms of air traffic. During the same period, India is anticipated to develop into the world's third-largest aviation market, while other countries, such as Indonesia and Thailand, are forecasted to enter the top 10 global markets. The demand for new aircraft is driven by the ever-growing passenger traffic in the region.
On account of the profound changes in the international strategic landscape, the configuration of the international security system has been undermined by the growing regional conflicts. To enhance military prowess, several countries, such as China and India, have resorted to new procurements to effectively respond to security threats and accomplish urgent, critical, and dangerous strategic missions. For instance, in August 2023, the Indian Air Force plans to give a contract of USD 8 billion for 100 Mk1A variants of Light Combat Aircraft (LCA) to Hindustan Aeronautics Limited (HAL). The Mk1A version is equipped with modern avionics, radar, electronic warfare suite, and missile capabilities.
Modern fighter aircraft are equipped with advanced autopilot systems and flight computers for augmenting the overall situation awareness of the pilot. An increase in demand for aircraft is anticipated to bolster the business prospects of the market players in the region during the forecast period. While numerous military aircraft prototypes are being developed, several military procurement programs are currently underway to cater to the global demand for military aircraft. Military fighter aircraft manufacturers are trying to enhance their production capabilities to ensure timely deliveries.
