Aircraft Communication System Market Size, Share & Industry Analysis, By Component (Antenna, Transponder, Receiver, Transmitter, Transceiver, Display & Processor, Radio Tuning Unit), By System (Radio Communication, Passenger Address System, Interphone Communication System), By Connectivity (SATCOM, VHF/UHF/L Band, HF), By Fit Type (Line Fit & Retro Fit), By Platform (Fixed-wing [Commercial & Military Aircraft], Rotary-wing [Commercial & Military Helicopter], & Unmanned Aerial Vehicles [Fixed Wing & Rotary Wing UAVs]), & Regional Forecast, 2024-2032

The global aircraft communication system market size was valued at USD 15.90 billion in 2023. The market is projected to grow from USD 17.12 billion in 2024 to USD 33.51 billion by 2032, exhibiting a CAGR of 8.8% during (2024-2032). North America dominated the aircraft communication system market with a market share of 33.08% in 2023.

The aircraft communication system, also known as aircraft communication (ACARS), is a combination of an audio integrating system, communication radios, radio tuning system, cockpit voice recorder, and static dischargers. It includes an electronic component and subsystem. They provide air-to-ground communication and in-flight cabin communication.

The factors that are expected to drive the market growth are the use of Software Defined Radio (SDR) in aircraft for satellite communication and the advancement in data link connectivity. Moreover, increased demand for satellite-based navigation systems and wireless aircraft communication systems in the aviation industry is anticipated to further boost market growth.

Increasing commercialization of drones or Unmanned Aerial Vehicles (UAVs) is one of the lucrative opportunities in the aircraft communication (ACARS) market. For instance, in April 2019, Honeywell International Inc. extended a contract with OJets to provide in-flight connectivity services for business aircraft.

The Russia-Ukraine war has significantly impacted the aircraft communication system market, particularly by heightening the emphasis on secure and resilient communication technologies. The conflict has disrupted global supply chains, causing delays and increased costs for aviation components, including communication systems. Additionally, the need for enhanced security measures has spurred demand for advanced, tamper-proof communication systems to ensure reliable operation amidst geopolitical tensions. The war also led to restricted airspaces and altered flight routes, necessitating more robust and adaptable communication infrastructures to maintain safety and operational efficiency in affected regions.

Aircraft Communication System Market Trends

Airborne Wireless Network (AWN) Technologies to Boost Market Growth

New technologies in wireless communication provide safe and efficient aviation operations. Airborne Wireless Network (AWN) is developing a high-performance communication system to offer cost-efficient wireless broadband service in the aircraft. AWN is helping to create a high-speed broadband airborne wireless network by connecting to multiple aircraft information. If used as a mesh network, it will act as an airborne router. AWN is sending and receiving broadband signals from one aircraft to another and creating a technologically advanced digital information superhighway in the sky. The introduction of these above mentioned technologies is slated to drive market growth in the future.

Increasing Demand for 5G High-Speed In-flight Internet Connectivity to Surge Market Growth

5G in aviation has a key role in in-flight internet connectivity. It is considered to be one of the leading market trends. 5G technology provides high-speed internet service in comparison with the conventional 4G LTE service. The technologically advanced Ku antenna is used for in-flight 5G connectivity. Increasing demand for Ku-based aircraft antennas for high-speed internet connectivity is expected to boost market growth. American Airlines, for instance, is providing in-flight entertainment, such as access to live TV channels to the passengers by using the Gogo 2Ku satellite connectivity.  In April 2022, Collins Aerospace received a contract to develop a Very Low Frequency (VLF) communication system for the E-6B Recapitalization Program (E-XX) within the framework of the Navy's Take Charge and Move Out (TACAMO) Weapons System. The agreement involves conducting developmental design and risk reduction engineering efforts for the modernization of the airborne VLF system in support of the capability requirements of the Airborne Strategic Command, Control, and Communications Program Office (PMA-271).

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Aircraft Communication System Market Growth Factors

Increase in Aircraft Deliveries Due to Increase in Air Travel to Propel Market Growth

The increasing number of aircraft deliveries is playing a crucial role in the growth of the market. For instance, till 2019, Airbus S.A.S planned to deliver 863 commercial jet deliveries. The increasing demand for aircraft is responsible for the procurement of audio integrating system, aircraft antenna, cockpit voice recorder, and static dischargers.

In commercial aircraft such as Airbus A320 and Boeing 767, multiple aircraft antennas are used for in-flight broadband communication, such as the AV‐530 aircraft antenna, which is majorly used in aircraft for in-flight broadband communication. The antenna has the ability to operate at altitudes up to 50,000 ft. The increasing demand for military helicopters, commercial aviation, and regional jets is accountable for the procurement of aircraft antennas. The growing demand for aircraft antennas for usage in the next-generation fighter aircraft program is poised to propel the military aircraft communication system market growth during the forecast period

Use of Software Defined Radio for Satellite Communication to Spur Growth

Software Defined Radio (SDR) is a radio communication hardware system. These hardware systems are enabled with a software application and create digital infrastructure in the aircraft communication systems. They are used to perform radio operations over aircraft computing platforms, such as flight control systems and avionics. In radio operation, SDR is used to decode the receiving radio signal. These signals provide accurate information about the aircraft’s operations to the pilot. Moreover, SDR is increasing the efficiency of radio communication systems in the aviation sector. The increasing demand for Software Defined Radio in the aviation sector is estimated to propel market growth during the forecast period.

RESTRAINING FACTORS

High Development Cost of Aircraft Communication Systems May Restrict Growth

High development cost associated with building robust aircraft communication systems is a primary factor hampering the growth of the market. These systems consist of highly expensive aircraft antenna, communication radio, and technologically advanced audio integrated system. Rapidly changing technology in the aircraft antenna market is accountable for replacing the conventional antennas in the communication system. Furthermore, issues related to the availability of radio spectrum from the government regulating authorities for a longer period restrain market growth.

Aircraft Communication System Market Segmentation Analysis

By Component Analysis

Antennas Dominates with Their Increasing Demand for Wireless Communication Systems

By component, the market is classified into antenna, transponder, receiver, transmitter, transceiver, display & processor, radio tuning unit, Software Defined Radio (SDR), and others. The antenna segment holds the largest aircraft communication system market share and is estimated to be the fastest-growing segment during the forecast period, owing to their increasing use in the aviation industry. They are also used to establish in-flight communication. The AV-17 RAMI antenna, for instance, is used to provide a radiation pattern for air-to-ground communication and the AV-529 RAMI antenna is used for in-flight broadband communication.

The transponder segment is expected to grow significantly over the forecast period. Development of advanced transponders with ADS-B (Automatic Dependent Surveillance-Broadcast) capability, which provides real-time aircraft position information, is driving market growth. A transponder is a wireless communication system used in air navigation to emit a coded signal in response to an interrogating received signal. For instance, in February, 2020, uAvionix Corporation specializes in creating innovative avionics products has launched its latest innovation, the tailBeaconX, a Mode S Extended Squitter (ES) ADS-B OUT transponder, expanding its lineup for General Aviation (GA) and Urban Air Mobility (UAM). Designed to meet global air traffic management, surveillance system requirements, the tailBeaconX addresses both current and upcoming ADS-B mandates. The new transponder integrates seamlessly with the uAvionix AV-20-E and AV-30-E Electronic Flight Instrument Systems (EFIS), enabling transponder control through these popular multi-function displays. This advancement positions uAvionix at the forefront of aviation technology, providing enhanced compliance and functionality for modern aviation needs.

By System Analysis

Radio Communication Segment Led Driven by Increasing Use in the Commercial Aviation Sector 

Based on system, the market is classified into radio communication, passenger address system, interphone communication system, cockpit voice recorder, and others. The radio communication segment accounted for the largest market share in 2023 and is predicted to be the fastest-growing segment during the forecast period. This growth is attributable to the increasing use of radio communication in commercial aircraft, military aircraft, business jets, and others. Communication radio and radio tuning systems include Very High Frequency (VHF) and High Frequency (HF) transceivers. These transceivers are used for long-range voice communication.

The Cockpit Voice Recorder (CVR) segment is expected to grow significantly over the forecast period. Regulatory bodies such as ICAO have set stringent requirements for CVR installation and performance. Updated regulations often require newer, more capable systems, which is anticipated in driving the market demand. The Cockpit Voice Recorder (CVR) continuously records radio communications and flight crew conversations. The CVR is installed in the aircraft equipment compartment. It contains one battery unit, acoustic beacon, and water-activated switch. It is capable of storing 120 minutes of analog data. For instance, in 2023, The Federal Aviation Administration (FAA) proposed to extend the cockpit voice-recording requirement to 25 hours for all newly manufactured aircraft.

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By Connectivity Analysis

SATCOM to Witness Accelerated Growth Fueled by Increasing Deployment in the Aircraft

Based on connectivity, the market is categorized into Satellite Communication (SATCOM), high frequency (HF), VHF/UHF/L Band, and data link. The SATCOM segment is anticipated to exhibit the fastest growth during the forecast period and accounted for the largest market share in 2023. This growth is attributable to the increasing use of satellite voice communication and data communication services in the aircraft. A software defined radio enables the design of satellite communications solutions. They also help complete several tasks associated with communication radio, such as changing frequencies, modulation schemes, and data rates. HF antenna and VHF antenna are used to generate radio communication between aircraft and earth-based communication stations.

The VHF/UHF/L Band segment is projected to register significant growth during the forecast period. The growth is attributed to numerous applications of UHF antennas in commercial aircraft, business jets, regional jets, and others. These antennas are mainly used in the aircraft communication system for in-flight television broadcasting, as UHF and HF waves are suitable for line-of-sight applications that require high-end accuracy.

By Fit Type Analysis

Rising Number of Commercial UAV Deliveries to Expedite the Line Fit Segment Expansion

Based on fit type, the market is bifurcated into line fit and retro fit. The line fit segment dominated the market during the forecast period due to the increasing number of military and commercial Unmanned Aerial Vehicle (UAV) deliveries across the globe over the past few decades. The growth of the segment is further attributable to the technological advancements in communication radio and aircraft antenna in the commercial and military aviation sectors. An increase in commercial aircraft deliveries and high demand for advanced aircraft communication systems are driving the growth of the line fit segment.

The retro fit segment is anticipated to register a significant growth during the forecast period. This growth is attributed to the upgradation to the next generation of aircraft antennas, such as 5G antennas in the commercial aviation sector from several airlines across the globe.

By Platform Analysis

Increasing Aircraft Deliveries to Bolster the Fixed-wing Segment Growth

By platform, the market is segmented into fixed-wing, rotary-wing, and unmanned aerial vehicles (UAV). The fixed-wing segment consists of commercial aircraft, and military aircraft. The fixed-wing segment is expected to experience the fastest growth during the forecast period. It can be ascribed to the increasing number of commercial aircraft deliveries across the globe. Commercial aircraft, such as Boeing 787, Airbus A320, and Airbus 380, use several aircraft antennas and communication radio.

The rotary-wing segment is further classified into commercial helicopter and military helicopter. The rotary-wing segment is poised to show significant growth during the forecast period. Military helicopters and commercial helicopter use a Global Positioning System (GPS) antenna for surveillance & reconnaissance. The increasing use of GPS, HF & VHF antennas, and communication radios in commercial and military helicopters is slated to support the growth of the segment during the forecast period.

REGIONAL INSIGHTS

The aircraft communication system market has been segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

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North America is expected to hold the largest market share during the forecast period. Increasing air passenger traffic in the U.S. and high demand for UAVs in the region are expected to boost growth. The presence of key players in North America, which includes Harris Corporation, Lockheed Martin Corporation, and Northrop Grumman Systems Corporation, is also projected to propel market growth.

Asia Pacific is likely to witness significant growth during the forecast period owing to the increasing utilization of UAVs and 3D-printed aircraft antennas in China. According to the global aircraft market forecast published by Airbus S.A.S, from 2019 to 2037, China will need more than 7,000 passenger aircraft with a valuation of USD 1,060 million. Increasing investments from private firms, coupled with supportive aviation policy from the governments of several nations across Asia Pacific is slated to propel market growth.

Europe is estimated to be the fastest-growing region during the forecast period as increasing investments in the field of military UAVs for battlefield operations are poised to help boost growth. In the U.K., the increasing use of GPS antennas in helicopters for Search and Rescue (SAR) operations is anticipated to accelerate market growth.

The Middle East & Africa and Latin America are likely to register remarkable growth during the forecast period. This growth is attributable to the increasing use of helicopters in the Middle East & Africa for oil & gas exploration. The increasing use of helicopters for commercial applications in Latin America is anticipated to contribute to growth of the market.

List of Key Companies in Aircraft Communication System Market

Cobham Plc Offers a Wide Array of SATCOM and Datalink Antennas to Boost its Position

The leading players in the aircraft communication system industry include the Cobham, General Dynamics Corporation, Thales Group and Harris Corporation. Cobham Plc specializes in designing and manufacturing aircraft antennas for various platforms, including general aviation, helicopters, business jets, regional jets, medium-range, long-range, and wide-body aircraft. The company provides an extensive range of antennas, including datalink and SATCOM antennas, VHF antennas, and Narrow Cast datalink solutions, enabling reliable communication across diverse aviation sectors.

LIST OF KEY COMPANIES PROFILED:

• Cobham Plc (U.K.)


• General Dynamics Corporation (U.S.)


• Thales Group (France)


• Harris Corporation (U.S.)


• United Technologies Company (U.S.)


• Honeywell International Inc. (U.S.)


• Iridium Communications Inc. (U.S.)


• l3harris technologies (U.S.)


• Lockheed Martin Corporation (U.S.)


• Northrop Grumman Systems Corporation (U.S.)


• Raytheon Company (U.S.)


• Rohde & Schwarz GmbH & Co KG (Germany)


• Viasat, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2024: BAE Systems was granted a contract by the U.S. Department of Defense for the purchase of hardware components, repair services, and technical/engineering/logistic support for the AN/ARC-231/A Multi-mode Aviation Radio Suite. The total value of the contract was around USD 459 million.


• April 2024: The SAOC announced plans to utilize a modified and reinforced version of a commercial derivative aircraft with a modular open system approach. This approach will integrate contemporary, secure communication, and planning features. The ground support system for the SAOC will include training equipment for aircrews, mission crews, and maintainers, and essential support equipment and system integration laboratories.


• February 2024: Intelsat secured a new contract from the U.S. Air Force Research Laboratory to develop and test multi-orbit Satellite Communications (SATCOM) systems on various Air Force aircraft. As the operator of one of the world's largest integrated satellite and terrestrial networks, the company strives to offer government, NGO, and commercial customers seamless and secure satellite-based communications through its next-generation worldwide network and managed services.


• January 2024: Axnes received an assignment to supply its PNG WICS technology to the UK Ministry of Defense (MOD) for the Puma HC Mk2 platform. The PNG WICS is intended to improve the aircraft’s communication systems for Search and Rescue (SAR) tasks and human external cargo (HEC) missions. The Axnes PNG system enables Puma to comply with all UK/European standard requirements for two-way radio communication for HEC operations.


• November 2023: Embraer has delivered its fifth upgraded EMB 145 AEW&C aircraft, designated as the E-99M, to the Brazilian Air Force (FAB). This enhanced aircraft is equipped to perform Airborne Early Warning and Control (AEW&C) functions and is also capable of participating in intelligence, surveillance, and airborne reconnaissance missions. The aircraft will feature new Electronic Warfare (Non-Communication - NCOM) systems, a new IFF Transponder, seven software-defined V/UHF radios, a new Mission Audio system with VoIP technology, a new Mission Audio and Data recorder, and an updated Data Link function integrated into a new architecture.

REPORT COVERAGE

An Infographic Representation of Aircraft Communication System Market

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The aircraft communication system market research report offers qualitative and quantitative insights into the market and a detailed analysis of market size and growth rate for all possible segments. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption trends of the market by individual segments, recent industry developments such as partnerships, mergers, acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

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