Military avionics retrofits project 7.2% CAGR amid record 2025 defense spend

Aircraft Avionics Market 2025 to 2032: Semiconductor Supply Chains, Platform Recapitalisation and the Global Race for Certified Avionics →

What Changed

Global defense spending hit a record $2.89 trillion in 2025, triggering aggressive procurement of next-generation systems like AESA radar. While commercial avionics remain dominated by line-fit OEM installations, aging military and commercial fleets are driving a massive aftermarket retrofit cycle. This upgrade segment is now projected to grow at a strong 7.2% CAGR.

At a Glance

Severity

Low

Likelihood

High

Spend Exposed

—

Add your annual spend to quantify exposure:

Confidence

95%

Recommended Actions 1

Prioritize retrofit vendor slot allocations

Securing installation capacity early protects fleets against surging military and commercial demand for aftermarket upgrades.