The Global Aircraft Central Processing Unit (CPU) Market is expected to grow at a CAGR of around 4.46% during the forecast period, 2022-27, says MarkNtel Advisors in their recent research report. The key factors contributing to the growth of the aircraft CPU in the global market are rising defense modernization plans, growing air passengers around the world, etc. According to the World Bank, in 2015, there were 3.466 billion air passengers, but that number increased to 4.588 billion in 2019. However, air travel decelerated to 1.809 billion in 2020 due to COVID-19 restrictions and severely impacted the demand for commercial aircraft from major airlines across the globe. But later, in 2021, several airlines around the globe experienced an increase in air traffic, as per the International Air Transport Association (IATA), due to the relaxation in the lockdown norms.
In parallel with the modernization of the defense industry, the need for Maintenance, Repair, and Overhaul (MRO) of existing & aging aircraft has increased as well. The pressing need to modernize the air fleet in order to adopt the latest technologies such as electronic warfare systems, inertial navigation systems, AESA radar systems, advanced avionics systems, digital test systems, flight control, sonar systems, etc., have increased the demand for aircraft CPUs in both new aircrafts & older generation aircraft overhauling. These trends have resulted in the integration of updated processors, thereby contributing to the demand for MRO services for CPUs.
For instance, in 2021, Israel signed a deal worth around USD50 million to upgrade the Kfir multirole combat aircraft fleet of Sri Lanka. Israel Aerospace Industries (IAI) would replace the Kfir aircraft’s basic avionics with the advanced 4+ generation fighter aircraft avionics. Hence, the increasing manufacturing & MRO of aging aircraft would propel the demand for the aircraft CPU market during the forecast period, further states the recent research report, "Global Aircraft Central Processing Unit (CPU) Market Analysis, 2022-27."
Single-core Processors Held a Significant Market Share Due to Simpler Rules & Regulations
Based on CPU type, the market bifurcates into single-core, dual-core, and multi-core. Among the three, single-core processors held a considerable market share during the historical period, owing to the government's strict certification process for using multi-core processors in aircraft. Therefore, companies are still preferring to use single-core processor CPUs in aircraft. Further, the high costs of installation & replacement of processors have also slowed the growth of multi-core processors in the market, which further supported the use of single-core processors by aircraft manufacturers.
North America Held a Considerable Market Share in the Global Aircraft CPU Market
Based on the region, North America holds a major market share of the Aircraft CPU market, owing to the presence of various aircraft Original Equipment Manufacturers (OEMs) such as Boeing, Raytheon Technologies, Lockheed Martin, Bombardier, etc., in the region. These companies are also some of the major manufacturers for the military aircraft segment. With the growing domestic as well as export demand for military jets the demand for the Aircraft CPU market. For instance, in December 2021, Israel & the US signed an agreement governing the acquisition of 12 Lockheed Martin-Sikorsky CH-53K helicopters at a cost of USD3 billion.
Furthermore, the rising air traffic, tourism, etc., around the world have boosted the market growth, as the majority of the commercial aircraft used by developing countries such as India, China, etc., are manufactured by North American companies. Moreover, the rising demand for noise-free aircraft, personalized fast vehicles due to increasing road traffic, and increasing eVTOL used for cargo purposes are propelling the demand for eVTOL in the North American market. For instance, in 2020, UAV Factory, a US-based Original Equipment Manufacturer (OEM), launched a Penguin C Mk2 System, a VTOL UAV. Its entire system consists of 3x high-performance, 3x Air Vehicles, 1 MIMO Tracking Antenna, etc.
Hence, the rising dominance of the North American aircraft manufacturers globally is expected to largely support the revenue escalation of aircraft CPUs in the region, reveals MarkNtel Advisors in their recent research report, " Global Aircraft Central Processing Unit (CPU) Market” Analysis, 2022-2027."
According to MarkNtel Advisors, the leading players in the Global Aircraft Central Processing Unit (CPU) Market are Pythium Technology Co., Ltd., NXP Semiconductors N.V., L3Harris Technologies, Inc., ARM Ltd., Intel Corporation, Qualcomm Inc., Advanced Micro Devices, Inc.
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