Aircraft Electrical System Market By Component Type (Generators, Conversion Devices, Distribution Devices, Battery Management Systems, Wiring and Connectors); By System Type (Power Generation, Power Conversion, Power Distribution, Energy Storage); By Platform (Commercial Aviation, Military Aviation, Business Jets, Urban Air Mobility and eVTOL, Unmanned Aerial Vehicles); By End User (OEMs, MROs); By Geography, Segment Revenue Estimation, Forecast, 2024–2030.

Introduction And Strategic Context

The Global Aircraft Electrical System Market will witness a robust CAGR of 6.8%, valued at $23.7 billion in 2024 , expected to appreciate and reach $35.2 billion by 2030 , confirms Strategic Market Research.

 

Aircraft electrical systems are the backbone of power generation, distribution, conversion, and storage across both commercial and military aviation platforms. These systems enable essential functionalities, including avionics, flight controls, lighting, environmental systems, and more recently, electrically driven propulsion and hybrid-electric architectures. The rapid electrification of aircraft and increasing integration of more-electric and all-electric components are fundamentally redefining the power requirements and configurations of modern aircraft.

 

The strategic significance of this market stems from its centrality to ongoing innovation in next-gen aircraft design. The shift towards more-electric aircraft (MEA) is driven by the dual imperatives of improving fuel efficiency and reducing carbon emissions. As regulators such as EASA , FAA , and ICAO impose increasingly stringent sustainability mandates, OEMs and Tier-1 suppliers are rapidly investing in higher-voltage systems, battery-based architectures, and decentralized power solutions.

 

In parallel, the rise of unmanned aerial vehicles (UAVs) , urban air mobility (UAM) , and hybrid-electric propulsion systems is expanding the application range of electrical systems well beyond traditional aircraft. Power management, redundancy, and system integration have become key technological battlegrounds.

 

Key macro drivers include:

• Decarbonization pressures across the aerospace sector

• Growth in global passenger traffic , especially from APAC and Middle East

• Defense modernization programs involving electric combat and surveillance aircraft

• Rapid electrification of regional jets and short-haul aircraft driven by energy storage improvements
   

Stakeholders in the ecosystem include:

• OEMs (e.g., Boeing, Airbus, Embraer)

• Tier-1 suppliers (e.g., Safran , Collins Aerospace, GE Aerospace)

• Defense agencies and military contractors

• Aviation regulators

• Battery and semiconductor companies

• Investors focused on sustainable aviation

The transition toward digital, lightweight, and modular power systems is not merely technical—it's a fundamental rethinking of aircraft design, operating economics, and emissions profiles.

 

Market Segmentation And Forecast Scope

The aircraft electrical system market is structured along multiple dimensions that reflect the complex and evolving ecosystem of aerospace power systems. For this analysis, the market is segmented by Component Type , System Type , Platform , End User , and Geography .

By Component Type

• Generators

• Conversion Devices (Inverters, Rectifiers, Transformers)

• Distribution Devices (Relays, Circuit Breakers, Contactors)

• Battery Management Systems

• Wiring & Connectors

Generators represent the largest share in 2024 , contributing approximately 29% of total market revenue. This dominance is due to the reliance on engine-driven power generation in both commercial and military platforms. However, battery management systems are the fastest-growing segment, expected to grow at over 9.1% CAGR , propelled by rising adoption of electric propulsion and distributed energy storage systems.

 

By System Type

• Power Generation

• Power Conversion

• Power Distribution

• Energy Storage

The power distribution segment is emerging as the most strategically vital area, as it enables high-voltage, lightweight wiring architectures in MEA configurations. Advanced distribution systems with intelligent monitoring and redundancy are becoming essential in next-gen aircraft.

 

By Platform

• Commercial Aviation (Narrow-body, Wide-body, Regional Jets)

• Military Aviation

• Business Jets

• Urban Air Mobility (UAM) / eVTOL

• Unmanned Aerial Vehicles (UAVs)

Commercial aviation currently commands the largest revenue share, accounting for nearly 47% of global demand. However, UAM/ eVTOL platforms are projected to expand rapidly, driven by aggressive electrification efforts and urban transport transformation initiatives.

 

By End User

• Original Equipment Manufacturers (OEMs)

• Aftermarket / Maintenance, Repair, and Overhaul (MRO)

OEMs are the dominant buyers in 2024, but the aftermarket segment is gaining traction as airlines and defense operators upgrade legacy fleets with high-efficiency electrical systems to meet emissions and operational benchmarks.

 

By Geography

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

While North America maintains technological leadership, Asia Pacific is the fastest-growing region due to strong aircraft deliveries, infrastructure modernization, and indigenous aviation programs in China, India, and Southeast Asia.

Strategically, suppliers are shifting toward modular, scalable systems that can accommodate both traditional and electric aircraft architectures—enabling faster certification, interoperability, and platform flexibility.

 

Market Trends And Innovation Landscape

The aircraft electrical system market is undergoing a transformative shift, characterized by a convergence of electrification, digitalization, and modularization. This evolution is not only changing the nature of aerospace power systems but also redefining how future aircraft are designed, integrated, and maintained.

1. Acceleration Toward More-Electric and All-Electric Aircraft (MEA/AEE)

A major industry shift is the replacement of mechanical, pneumatic, and hydraulic subsystems with electrically driven equivalents. Components like electrically actuated brakes, power-by-wire flight controls, and electric environmental control systems are becoming the new standard.

Experts project that the MEA configuration can reduce aircraft operating costs by up to 10% and cut emissions by over 15% in single-aisle fleets.

Notable programs driving this trend include:

• Airbus ZEROe and Boeing Sustainable Flight Demonstrator

• U.S. DoD efforts to develop electric-powered ISR drones for silent, long-endurance missions

• Hybrid-electric regional jets (e.g., from Heart Aerospace and Embraer)

 

2. Energy Storage and Battery Innovation

Breakthroughs in high-power, aviation-grade lithium-sulfur and solid-state batteries are reshaping the storage architecture of aircraft. These new chemistries offer higher energy density, enhanced thermal stability, and lighter weight.

• Companies like Ampaire and Rolls-Royce Electrical are leading pilots of hybrid propulsion

• Active research into high-voltage (up to 1,000V) battery systems is enabling longer-range electric flight

“We are on the verge of deploying battery systems that are 40% lighter and 60% more energy-dense than previous generations,” notes an engineer at a Tier-1 aerospace supplier.

 

3. Integrated Power Management & Health Monitoring

There’s an increasing push for digital twin-based power systems that can simulate load profiles, predict failures, and optimize energy routing in real-time. Advanced electrical systems now include built-in diagnostics , real-time voltage analytics , and thermal overload protection algorithms .

Key innovations:

• Use of silicon carbide ( SiC ) and gallium nitride ( GaN ) in power electronics for higher efficiency

• Distributed Energy Networks (DENs) with microcontrollers managing zonal power

 

4. Strategic Collaborations and M&A Activity

The competitive landscape is seeing a wave of partnerships between traditional aerospace OEMs and energy storage innovators. This collaborative approach enables better integration of high-performance batteries, semiconductors, and embedded control systems.

Recent developments include:

• Safran acquiring startup Orolia to enhance electrical timing and diagnostics

• Collins Aerospace partnering with Eaton to co-develop modular power conversion systems

• Joint ventures between GE Aerospace and HyPoint on hydrogen-electric propulsion

 

5. Regulatory and Testing Advancements

Regulatory bodies like EASA and FAA are accelerating certification pathways for new electrical subsystems, especially for urban air mobility platforms and small electric aircraft. Simulation-based validation, software-defined control layers, and AI-based fault prediction are becoming essential to system approval.

The innovation edge in electrical systems now lies not just in physical components, but in software-defined behavior and digital safety logic.

 

Competitive Intelligence And Benchmarking

The aircraft electrical system market is marked by intense competition, with a mix of legacy aerospace giants, specialized power system vendors, and emerging innovators in electrification. The competitive dynamics revolve around technology integration, system reliability, platform compatibility, and the ability to support next-gen aircraft architectures like MEA and eVTOLs .

Below is a strategic benchmarking of the top industry players:

1. Safran Electrical & Power

A global leader in aerospace power systems, Safran provides a full suite of generation, conversion, and distribution solutions. Its edge lies in modularity and integration, particularly for MEA programs in Europe. The company has focused heavily on lightweight wiring , smart contactors , and energy management systems for commercial and defense platforms.

Strategic Play: Deep involvement in the Airbus A320neo and Dassault Falcon electrical ecosystems gives Safran a stable OEM pipeline.

 

2. Collins Aerospace (Raytheon Technologies)

As part of RTX , Collins Aerospace offers highly integrated power conversion, battery systems, and advanced electrical distribution networks. Its strength lies in end-to-end vertical integration and global reach, serving nearly all major commercial aircraft platforms. Recent investment in next-gen circuit protection and distributed electrical architectures highlights a move toward smarter systems.

Strategic Play: Its collaboration with Eaton boosts its capabilities in electrical load management and system diagnostics.

 

3. GE Aerospace

Through its electrical power division, GE Aerospace is pioneering high-voltage, hybrid-electric propulsion systems. Its extensive R&D in electrical generators , inverters , and thermal management positions it well for the electrified aviation transition.

Strategic Play: Joint ventures with NASA and HyPoint indicate a long-term bet on hybrid-electric propulsion for regional jets and military applications.

 

4. Honeywell Aerospace

Known for its control electronics and avionics, Honeywell also delivers reliable power distribution and conversion hardware. It is actively investing in urban air mobility and electric aircraft , with a focus on lightweight inverters, auxiliary power units, and compact energy systems.

Strategic Play: Supplies the electrical backbone for several leading eVTOL prototypes , including those by Lilium and Vertical Aerospace .

 

5. Thales Group

Thales specializes in electrical systems for both civil and military platforms, with a growing footprint in intelligent power distribution units (PDUs) . The company leverages its software and cybersecurity capabilities to deliver digitally resilient power architectures .

Strategic Play: Strong presence in Europe’s defense electrical retrofit market through integrated power and avionics solutions.

 

6. Meggitt (acquired by Parker Hannifin)

While traditionally known for sensors and thermal systems, Meggitt offers niche power systems, especially for small and mid-size aircraft. The Parker acquisition strengthens its power conversion capabilities, particularly for distributed propulsion aircraft.

Strategic Play: Targeting regional aviation and drones with efficient, compact power control modules.

 

7. Amphenol and TE Connectivity

While not system integrators, these firms dominate the connectors, harnessing, and interconnect market. Their innovations in high-voltage, lightweight wiring and shielded connectors are critical enablers for MEA and all-electric aircraft.

Strategic Play: Focused on platform-agnostic component scalability and high-thermal-performance interfaces .

In this competitive arena, companies that blend digital intelligence with power reliability—while enabling scalability for future aircraft classes—are likely to lead the next decade of aerospace electrification.

 

Regional Landscape And Adoption Outlook

The aircraft electrical system market shows varied regional growth trajectories shaped by factors such as aerospace manufacturing intensity, government policy, technology development, and defense modernization. Below is a breakdown of the key adoption patterns and market drivers across major regions.

North America

North America remains the largest and most mature market for aircraft electrical systems, accounting for approximately 37% of global revenue in 2024 . The U.S. dominates due to the presence of leading OEMs like Boeing, Lockheed Martin , and Raytheon Technologies , alongside critical Tier-1 suppliers such as Collins Aerospace and Honeywell .

Government programs such as NASA’s Electrified Aircraft Propulsion (EAP) initiative and strong Department of Defense investment in electric ISR drones and hybrid tactical aircraft further bolster innovation.

The U.S. ecosystem is deeply integrated across commercial, defense, and emerging UAM sectors, making it the epicenter of full-stack electrical system development.

 

Europe

Europe is a strategic growth zone, with regional giants like Airbus , Safran , and Thales spearheading the shift to more-electric and hybrid-electric aircraft . European regulatory leadership—through entities like EASA and Clean Aviation Joint Undertaking —is accelerating adoption through funding and technology mandates.

Countries like France , Germany , and the UK are advancing electrical subsystems for both commercial and military applications. For instance, Airbus ZEROe aims to develop a hydrogen-electric commercial aircraft by 2035, with significant electrical system requirements.

Europe’s sustainability-driven policy and investment framework is creating fertile ground for modular, ultra-lightweight, and software-controlled power architectures.

 

Asia Pacific

Asia Pacific is the fastest-growing regional market , projected to expand at a CAGR of 8.5% from 2024 to 2030 . The region’s growth is led by aggressive aircraft fleet expansion , especially in China, India , and Southeast Asia , driven by rising middle-class air travel and infrastructure upgrades.

China has prioritized domestic aerospace production, with programs like the COMAC C919 and its military electric UAVs. India is investing in both civil aviation modernization and electrical subsystems for HAL’s next-gen fighter platforms.

However, much of the region still depends on imported high-voltage components, presenting a white space opportunity for local manufacturing and joint ventures.

“Asia-Pacific is now where North America was 20 years ago in electrification, but the growth runway is far steeper due to urban demand and policy reform,” notes an aviation economist in Singapore.

 

Middle East & Africa (MEA)

Though still in a nascent stage, the MEA region is seeing gradual adoption of advanced aircraft systems as national carriers like Emirates , Qatar Airways , and Etihad expand and renew their fleets. Defense-focused programs in Saudi Arabia and UAE are also investing in electrically enhanced ISR drones and retrofitted aircraft .

However, limited domestic production capacity and weak MRO infrastructure constrain deeper system-level adoption.

 

Latin America

Adoption in Latin America remains modest, driven mostly by aircraft imports and limited OEM activity. Brazil’s Embraer stands out as a significant player, especially with its investment in hybrid-electric regional aircraft and future urban air mobility solutions under the Eve Air Mobility brand.

Cost sensitivity, limited R&D funding, and lack of regulatory momentum are key restraints, though targeted innovation hubs in Brazil and Chile are promising signs.

The regional battle lines are defined not just by aerospace capability but by willingness to embrace radical change. Nations investing in clean aviation infrastructure, electrical R&D, and certification streamlining will shape the next wave of aerospace leadership.

 

End-User Dynamics And Use Case

The aircraft electrical system market is shaped by a diverse end-user base, each with unique priorities around performance, cost, maintenance, and regulatory compliance. Understanding how these stakeholders engage with and deploy electrical systems is critical to identifying demand drivers and value opportunities.

1. Original Equipment Manufacturers (OEMs)

OEMs such as Airbus, Boeing, Embraer , and Lockheed Martin are the primary customers for integrated electrical systems during new aircraft production. Their focus is on:

• Lightweight and scalable architectures to reduce fuel consumption

• Platform-wide system integration for digital management and redundancy

• Electrification-readiness , especially for future models (e.g., A320XLR, Boeing T-7 Red Hawk)

OEMs increasingly demand modular components (generators, distribution units, BMS) that can adapt across aircraft families and comply with evolving certification standards. Lifecycle cost optimization and ease of integration into digital aircraft control systems are becoming critical purchase criteria.

 

2. Maintenance, Repair, and Overhaul (MRO) Providers

As commercial and military fleets age, MRO organizations play a growing role in upgrading legacy systems with modern electrical components. Key demands include:

• Retrofit kits for older airframes

• Diagnostic tools for predictive maintenance

• Standardized, interoperable connectors and power modules

Aftermarket demand is strong in regions with older fleets—particularly Africa, South America, and Southeast Asia —where cost-effective electrical upgrades can extend aircraft service life and reduce unplanned downtime.

 

3. Defense Agencies and Military Contractors

Defense agencies seek high-reliability, low-thermal-signature electrical systems for fighter jets, UAVs, and surveillance aircraft. Emphasis is placed on:

• High-redundancy systems for mission-critical platforms

• Power-hardened components for electronic warfare

• Lightweight energy storage systems for stealth and endurance

Military programs also require custom voltage control systems , EM shielding , and ruggedized connectors suitable for high-altitude and extreme conditions.

 

4. Business Jet Operators

Operators of premium aircraft like the Gulfstream G700 or Dassault Falcon 10X prioritize:

• Noise-free cabin environments

• Smart electrical systems for lighting, air conditioning, and entertainment

• On-demand electrical power control for luxury services

With expectations rising among high-net-worth passengers, manufacturers are integrating digitally managed power zones , leading to growing demand for software-defined electrical subsystems .

 

5. Urban Air Mobility (UAM) and eVTOL Operators

This segment represents the most disruptive end-user group , with novel power requirements and aggressive timelines. Operators like Joby Aviation , Volocopter , and Lilium demand:

• Compact, high-efficiency electrical propulsion systems

• Next-gen battery integration

• Autonomous power management units

Given their certification hurdles and safety constraints, UAM developers are tightly partnered with electrical subsystem vendors to co-develop next-gen flight-safe architectures.

 

Use Case: Electrification Retrofit for Legacy Jets in Asia

A leading MRO firm in South Korea partnered with a Tier-1 supplier to retrofit the electrical distribution system of aging Boeing 737NG aircraft. The retrofit involved replacing analog breakers with smart contactors and integrating real-time voltage monitoring sensors. The upgrade reduced unplanned power failures by 40% and extended the aircraft’s expected service life by seven years, while meeting new regional compliance standards.

This case illustrates the rising demand for intelligent, plug-and-play electrical upgrades that enhance reliability and align with emerging sustainability mandates.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

The aircraft electrical system market has witnessed a series of critical milestones across product development, strategic partnerships, and technology demonstration. These recent events highlight the industry's commitment to next-gen aviation power solutions:

• Safran and Airbus launched a joint program to develop electrical wiring systems optimized for the Airbus ZEROe hydrogen-electric aircraft, targeting 2035 readiness.

• Collins Aerospace unveiled a new 1MW electric motor for hybrid-electric regional aircraft, designed to be integrated with advanced inverters and battery systems.

• GE Aerospace and NASA completed ground testing of a hybrid-electric propulsion system for single-aisle aircraft, achieving significant efficiency improvements.

• Honeywell Aerospace introduced a scalable battery energy storage system designed specifically for urban air mobility and short-haul aircraft.

• Thales launched a next-generation electrical distribution unit embedded with AI fault prediction algorithms for civil aviation platforms.

 

Opportunities

• Urban Air Mobility (UAM) Electrification
  The rise of eVTOL aircraft is creating unprecedented demand for compact, lightweight, and high-efficiency electrical systems. Companies that can offer vertically integrated propulsion, distribution, and BMS solutions for UAM will have a first-mover advantage.

• Hybrid-Electric Propulsion Development
  With aircraft OEMs investing in 19–100 seat regional hybrids, there is a massive opportunity for suppliers specializing in multi-voltage conversion systems , thermal management , and intelligent switching architectures .

• Aftermarket Upgrades and Retrofits
  As legacy fleets age, especially in developing markets, there’s growing demand for modular electrical retrofits to improve efficiency, reduce downtime, and meet modern compliance standards—without replacing entire airframes.

 

Restraints

• High Capital Costs and ROI Delays
  Advanced electrical systems—especially those using SiC semiconductors and aerospace-grade batteries—remain expensive. OEMs and operators face long ROI periods, deterring adoption in price-sensitive segments.

• Certification and Testing Bottlenecks
  New electrical subsystems must undergo exhaustive testing and validation under aviation authority guidelines. Certification delays for hybrid-electric and UAM systems remain a major bottleneck in scaling deployment.

 

While the technology landscape is accelerating, commercial success will hinge on scalable cost models, rapid certification, and ecosystem-level collaboration between OEMs, suppliers, and regulators.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 23.7 Billion
Revenue Forecast in 2030	USD 35.2 Billion
Overall Growth Rate	CAGR of 6.8% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Component, By System Type, By Platform, By End User, By Geography
By Component	Generators, Conversion Devices, Distribution Devices, Battery Management Systems, Wiring & Connectors
By System Type	Power Generation, Power Conversion, Power Distribution, Energy Storage
By Platform	Commercial Aviation, Military Aviation, Business Jets, Urban Air Mobility, UAVs
By End User	OEMs, MROs
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, UAE, etc.
Market Drivers	Electrification of aviation platforms, battery and power electronics innovation, retrofitting of legacy fleets
Customization Option	Available upon request