Global Aircraft Synthetic Vision Market 2023-2030

Global Aircraft Synthetic Vision Market 2023-2030

Global Aircraft Synthetic Vision Market Size, Share & Trends Analysis Report by Application (Commercial, Military, and General Aviation), and by Display System (Primary Flight Display, Navigation Display, and Heads-up & Helmet-Mounted Display Systems) Forecast Period (2023-2030)

The global aircraft synthetic vision market is anticipated to grow at a CAGR of 3.2% during the forecast period (2023-2030). An aircraft synthetic vision system (SVS) is a technology that provides pilots with a virtual, computer-generated view of the external environment, enhancing situational awareness during flight. It utilizes 3D terrain, obstacles, and other navigation data to create a visual representation on the flight deck displays, even in low-visibility conditions.

The global aviation sector faced considerable challenges due to the COVID-19 pandemic. The pandemic had a significant impact on the commercial aviation sector, leading to a notable reduction in passenger and cargo traffic, and a downturn in demand for airport equipment. According to the 2022 report of the International Air Transport Association (IATA), the aviation industry suffered losses of $175 billion in 2020 and $104 billion in 2021 respectively. As per the 2023 report from IATA, the industry is expected to regain profitability in 2023, rebounding from the loss of $175 billion in 2020. Anticipated total airline revenue is projected to reach approximately 93% of the 2019 level, accompanied by operating profits amounting to $22.4 billion. The increase in air passenger traffic noted in 2022 continued its momentum in the first quarter of 2023. Industry-wide revenue passenger kilometers (RPKs) reached 88% of pre-pandemic levels by March 2023. Also, all regions demonstrated improvements, highlighting the resilience of the broad-based gradual recovery. With the rapid growth of passenger traffic and revenue of the aviation industry, aircraft deliveries are also growing globally which is driving demand for synthetic vision systems. As per IATA, aircraft deliveries are expected to experience a rapid recovery in 2023, with a projected total of 1,540 aircraft scheduled for delivery, indicating a substantial increase of 300 units (24%) compared to 2022. Based on current estimates, these deliveries are anticipated to surpass the levels observed in 2019. The year-on-year (YoY) increase in 2023 is primarily attributed to heightened orders from North America and Europe, with deliveries showing a substantial YoY growth of 32% and 33%, respectively.

Segmental Outlook

The global aircraft synthetic vision market is segmented by technology and airport terminal type. By application, the market is sub-segmented into commercial, military and general aviation. By display system, the market is sub-segmented into primary flight display, navigation display and heads-up & helmet-mounted display systems. As with rapid growth in the aviation industry, the demand for synthetic vision systems is growing globally. Among the display systems, the demand for primary flight display is expected to grow globally owing to factors such as growth in commercial aircraft deliveries, and technological advancements among others. With rapid growth, market players are also focusing on technological advancements in primary flight displays and collaboration with aviation companies. For instance, in June 2023, IntelliSense Systems, Inc. introduced the Primary Flight Display 12 x 9 (PFD–1209), a 15-inch display with vFusion capabilities, UXGA (1600 x 1200) pixel resolution, dual-mode backlight, and night-vision compliance. According to the company, the system is certified to Design Assurance Level (DAL) A, the highest safety assurance level for airborne electronic hardware and software. These attributes enhance sustainability and reliability while reducing the cost of ownership, making the PFD-1209 suitable for military or commercial programs. Also, in July 2023, VoltAero collaborated with Avidyne to provide a custom avionics suite for its Cassio 330 hybrid-electric aircraft which includes Quantum 14-inch displays in a dual primary flight display/multi-function display.

The Military Industry is Expected to Contribute Significantly to the Global Aircraft Synthetic Vision Industry.

The military sector is expected to contribute significantly to global synthetic vision systems owing to changing geopolitical conditions such as the Russia-Ukraine war and, the Israel-Hamas war resulting in rapid growth of defense expenditure globally. According to the Stockholm International Peace Research Institute (SIPRI), Global military spending rose by 3.7% in real terms in 2022, reaching $2,240 billion. Europe’s defense expenditure increased rapidly in the last 30 years. The top three spenders in 2022 were the US, China, and Russia contributed to 56% of the world's total military expenditure. With growing military expenditure, countries are increasingly focusing on procurement and R&D of advanced defense equipment, including synthetic vision systems. For instance, in August 2023, The U.S. Navy avionics team secured two production lots of third-generation helmet-mounted displays for the Lockheed Martin F-35 joint strike fighter in a $347.4 million order. This advanced helmet-mounted display was developed through a collaboration between Collins Aerospace and Elbit Systems of America which functions as the primary display system for the pilot.

Regional Outlook

The global Aircraft synthetic vision market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among regions, North America holds a significant share of the global aircraft synthetic vision market. North American region has a significant presence in the global aircraft synthetic vision industry. As per IATA, North American carriers accounted for 28.9% of industry RPKs in 2022 versus 22.3% in 2019. Also, in terms of financial performance, the region was the first market to return to profitability in 2022 (estimated at $9.1 billion), and the North American revenue is expected to grow further in 2023, delivering a net profit of $11.5 billion. With rapid growth in the commercial aviation industry of the region, the regional airline industries are focusing on fleet expansion which is further expected to drive the synthetic vision systems market. According to the IATA, North America (primarily the US) is expected to be the recipient of a third of the deliveries, with a Y-O-Y increase in 2023 expected to be 33%. Apart from this, the US is the world’s biggest military spender. In 2022 military spending reached $877 billion and is expected to grow due to changing geopolitical conditions. With growing military expenditure, the region is focusing on R&D and procurement of advanced equipment including synthetic vision systems by collaboration with regional defense companies. For instance, in November 2023, the US Navy initiated improvements to the helmet-mounted components of the F/A-18 and EA-18G aircraft in collaboration with Collins Elbit Vision Systems. Under this development, the company will focus on streamlining future updates and addressing obsolescence with greater ease, in part by integrating a high-definition day and night color display within the helmet's design.

The Aircraft synthetic vision Market is Expected to Grow Significantly in the Asia Pacific Region

Asia Pacific is expected to be the fastest-growing market for the aircraft synthetic vision industry. Owing to the rapid growth in the regional aviation industry, growing support from regional governments to domestic aircraft manufacturing and growing defense expenditure are expected to drive the regional aircraft synthetic vision market. As per the 2023 data of IATA, Asia-Pacific airlines saw a 105.8% increase in international passenger market in July 2023 traffic compared to July 2022, which is the highest among all regions. With growing demand, aircraft deliveries are also expected to grow in the region. According to the IATA, the Asia-Pacific region is expected to contribute significantly (24%) to global aircraft deliveries in 2023 mainly in India and China. Also, the regional economies are focusing on domestic aircraft manufacturing which will contribute to the growth of the regional aircraft synthetic vision market. In October 2022, the Indian Air Force, Tata Advanced Systems Limited (TASL) and Airbus Defense & Space, S.A., Spain launched the C-295 transport aircraft manufacturing facility in Vadodara, Gujarat. Under the contract, 16 aircraft will be delivered in flyaway condition by Airbus between September 2023 and August 2025, and 40 will be manufactured in India by the TATA Consortium.

Market Players Outlook

The major companies serving the global aircraft synthetic vision market are Thales S.A., Collins Aerospace, Safran SA, and Aspen Avionics Inc. among others. The companies are increasingly focusing on mergers and acquisitions and R&D to cater growing demand for synthetic vision systems in the aviation industry. For instance, in April 2023, L-3 Communications completed the acquisition of Avionics Systems, a former Goodrich Corp. division. The total value of the transaction is approximately $188 million in cash. According to the company, the new division will develop advanced cockpit avionics systems, including the SmartDeck integrated flight controls and display system, which incorporates technologies from products such as SkyWatch and SkyWatch HP collision avoidance, Stormscope weather mapping, LandMark terrain awareness and the GH-3100 electronic standby instrument system. SmartDeck will also feature L-3's Highway in the Sky and Synthetic Vision technologies.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the aircraft synthetic vision market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.