AVIATION CYBER SECURITY MARKET ANALYSIS

Aviation Cyber Security Market Size and Trends

Global aviation cyber security market is estimated to be valued at USD 9.45 Bn in 2024 and is expected to reach USD 14.64 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.

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Increasing volume of air traffic and rising focus on strengthening aviation security are some of the key factors contributing to the growth of the aviation cyber security market. The aviation cyber security market is expected to witness significant growth over the forecast period. This can be attributed to the growing number of cyber threats endangering flight safety and security. Moreover, aviation companies such as Airbus, BAE Systems, Inc., F-Secure, etc. are increasingly adopting cyber security solutions to protect critical assets and sensitive data from cyber-attacks. Wide adoption of internet of things technologies has also made the aviation industry more susceptible to cyber-crimes.

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Insights by Deployment Type: Ease of Access and Scalability Drive the Demand for Cloud/Hosted Solutions

In the terms of deployment type, the cloud/hosted segment is estimated to hold the highest share of the market of 72.2% in 2024. Cloud/hosted cyber security platforms provide aviation companies easy access to advanced security features without having to invest heavily in own infrastructure and personnel. The cloud model allows scaling security capabilities upwards or downwards easily based on real-time needs and threats. This flexible, scalable nature of cloud/hosted deployment attracts many aviation organizations, as their network size, traffic volume, and risk exposure are constantly evolving.

Insights by Security Type: Focus on Application Security to Safeguard Critical Operational Technology

In the terms of security type, the cloud security segment is estimated to hold the highest share of the market of 34.6% in 2024, owing to aviation's growing reliance on software applications for flight and mission-critical operations. With digital transformation underway, traditional aircraft, and air traffic control systems are increasingly integrated with new technologies like IoT, cloud, mobile, etc. This exposes legacy operational technology (OT) to new vulnerabilities that can be exploited through applications. For example, cybercriminals may target air traffic management software, in-flight entertainment interfaces, or aircraft control apps to potentially cause safety risks, data leaks or service disruptions.

Insights by Services: Rising Security Threats Drive the Demand for Managed Solutions

In terms of services, the managed security solutions segment is estimated to hold the highest share of the market of 67.3% in 2024 owing to the growing complexity of aviation cyber risks that require continuous monitoring and response expertise. The aviation sector currently faces an extremely dynamic threat landscape involving nation-state actors, hacktivists, insider threats, and financially-motivated cybercriminals. At the same time, traditional perimeter-based security models are becoming obsolete as networks extend into cloud, mobile, and IoT domains.

Regional Insights

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Regional Analysis: Global Aviation Cyber Security Market

Dominating Region: North America

North America is expected to hold the greatest revenue share, accounting for 33.2% in 2024. The region’s dominance in the aviation cyber security market can be attributed to strong government initiatives to enhance aviation security. Several regulations have been implemented in the region to protect critical aircraft systems and infrastructure from cyber threats. Major players including Airbus, BAE Systems, Inc., F-Secure, and General Dynamics Corporation in North America are at the forefront of developing innovative cyber security solutions for the aviation industry.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth in the aviation cyber security market. This can be accredited to increasing air passenger traffic coupled with robust domestic aviation markets in countries like China and India. Substantial investments by leading Asia Pacific-based airlines to upgrade fleets with digitalized aircraft will augment cyber security requirements. Additionally, developing cyber norms in the region will help foster market growth over the coming years.

Aviation Cyber Security Market Outlook for Key Countries

U.S.: In the U.S. is dominated by top players Airbus, BAE Systems, Inc., F-Secure, General Dynamics Corporation  supplying advanced security technologies to military and commercial aircraft.

China: In the China is growing rapidly with the development of the domestic aviation industry. Chinese companies are increasingly collaborating with global cyber security vendors.

Japan: In the Japan continues to lead in cyber security for aircraft systems and avionics, backed by the country's expertise in electronics and networking solutions.

U.K.: In the U.K. is supported by partnerships between aerospace majors and cyber technology providers to strengthen aviation infrastructure security.

Germany: Germany-based firms supply critical cyber security components for aircraft systems worldwide. The country is also working on new regulations for aircraft monitoring networks.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Aviation Cyber Security Market Players

Established Players:

R&D Investment: Leading companies are investing heavily in research and development to introduce advanced security solutions. For instance, Boeing spends over US$ 1 billion annually on R&D to develop cutting-edge cyber security systems and services for aircraft.

Strategic Partnerships: Major players are forming strategic alliances to gain wider access to new technologies and augment product portfolios. For example, Airbus formed a partnership with Collins Aerospace to integrate enhanced identity management and network security solutions across its aircraft fleet.

Global Expansion: Top companies are expanding their international foothold through new regional offices and distribution centers. Lockheed Martin recently opened facilities in Australia, Germany, and Canada to cater to the growing aviation security demand.

Mid-Level Players:

Cost-effective Solutions: Medium players deliver cost-competitive offerings by leveraging economical production techniques and customizable features. Frequentis, for one, provides modular security management platforms tailored to specific airline budgets and network sizes.

Collaborations: Companies also partner with smaller technology firms and universities to complement in-house R&D capabilities. BAE Systems has ongoing collaboration programs that support joint research activities in fields like digital identity and encryption.

Small-Scale Players:

Niche Specialization: New entrants capitalize on untapped vertical market segments through specialized product categories. Nozomi Networks focuses solely on industrial control system security for small airports and business jet operators.

Technology Adoption: Small businesses adopt emerging technologies to bring novel services to market before larger rivals. Anthropic develops generalized AI solutions for autonomous security incident response across aviation.

Local Alliances: Startups form local supply agreements to gain initial customer traction. Senseye signed procurement deals with several Canadian aircraft lessors for its IoT-based aircraft monitoring system.

Emerging Startups in the Global Aviation Cyber Security Market

Innovative Technologies:

Examples: Startups like Shield AI have built self-learning models that can autonomously identify cyber-attacks using natural language processing. Another example is Ultralytic which develops anti-drone defenses using laser technologies.

These startups aim to disrupt existing surveillance and perimeter security approaches through advanced connectivity and autonomy. Their success could redefine sector security frameworks.

Sustainable Solutions:

Examples: Prismatic has developed a zero-knowledge encryption platform that aims to reduce energy consumption during data transmission, storage, and processing. Another startup called Athena Security uses Blockchain to securely track carbon offsets from aircraft fleets.

Such innovations may help lower environmental impact while strengthening access control and records management. This aligns with industry priorities around sustainability and green operations.

Market Contribution:

Niche Markets: Some startups target niche problems, like Secured Signals with its AR/VR-based crew training simulations for cyber hygiene. This solves a specific training gap.

Collaborations: Startup partnerships can spur fresh innovations at scale. For example, Shield AI partners with major airlines to test solutions securing aircraft communication network.

Aviation Cyber Security Industry News

• In April 2024, Thales Group, a global technology leader in defense, aerospace, security, and digital identity solutions, announced plans to establish a full-service avionics Maintenance, Repair, and Overhaul (MRO) facility in Gurgaon, India, set to open by March 2025. This facility aims to cater to the needs of Indian airlines like Air India and IndiGo, which require consistent maintenance and upgrades for their avionics systems. Additionally, Thales intends to more than double its engineering workforce in India over the next two years to meet rising international demand for its cybersecurity and aviation solutions.
• In September 2023, Everbridge Inc launched the Everbridge 360 critical event management and public warning software at GSX 2023. The new platform integrates risk intelligence, communications, collaboration, and coordination into one interface and gives some key benefits, such as faster critical communications and higher organizational performance with fewer errors, as well as increased speed to onboard users. This, in all, is about enhancing operational resilience through smooth app transitions and faster responses during critical events.
• For instance, in December 2022, Motorola Types, Inc., a company specializing in innovative type design and font creation, acquired Rave Mobile Safety, an umbrella of software services providers, and has added it to its lineup. Rave Mobile Safety provides a cloud-native and flexible platform to support emergency management for state and municipal governments, businesses, and hospitals.

Key Takeaways from Analyst

• The global aviation cyber security market is poised to grow significantly over the coming years. With growing digitization of various aviation operations and processes, the risk of cyber threats is also increasing rapidly. The adoption of internet of things technologies in aircrafts has made them more vulnerable to cyber-attacks. This will drive demand for advanced cyber security solutions in the industry. However, the lack of resources and expertise in cyber security can restrain growth prospects to some extent.
• North America currently dominates the aviation cyber security market and is expected to continue its leading position given the large fleet size and advanced technologies adopted in the region. However, Asia Pacific is likely to emerge as the fastest growing regional market. This can be attributed to increasing air passenger traffic, growing procurement of new aircrafts, and improving focus on cyber security by major Asian economies like China and India.

Market Report Scope

Market Dynamics

Market Driver - Increasing Number of Control Modules in Vehicles

As the aviation industry moves towards more automation and integration of complex systems, the number of electronic control modules installed in modern aircrafts is rising at a tremendous pace. Earlier aircraft designs had relatively fewer electronic control units to manage discrete functions like engine control, cabin pressure control, navigation aids, etc. For example, the Boeing 777 uses around 200 computers to control various aircraft functions compared to just few in older aircraft models.

Market Challenge - Fluctuations in Global Automotive Production

One of the major challenges currently being faced by the global aviation cyber security market is the fluctuations in global aviation production. The market has witnessed significant decline in new aircraft deliveries owing to the ongoing COVID-19 pandemic. The pandemic has severely impacted the airlines business globally with declining passenger traffic and revenues. According to statistics from the European Automobile Manufacturers Association, car production in the European Union was down by over 25% in 2020 compared to 2019 and it improved only slightly by under 1% in 2021.

Market Opportunity - Automotive DC-DC Converter Manufacturers to Offer Innovative and Efficient Solutions

With the increasing adoption of connectivity solutions, the electrification of aircraft systems and use of critical digital platforms, the threat from cyber-attacks is increasing continuously in the aviation industry. This presents a big opportunity for the cyber security solution providers to develop innovative and tailored solutions according to the changing requirements of aircraft OEMs and airlines. In May 2023 The United Nations Conference on Trade and Development (UNCTAD) estimates, global investments in digital infrastructure will increase from US$ 600 billion annually in 2020 to US$ 750 billion by 2023. They can focus on developing solutions integrated with aircraft power distribution and management systems. 

Market Segmentation

•  Deployment Type Insights (Revenue, USD, 2019 - 2031)
• • Cloud/Hosted
  • On-Premise
•  Security Type Insights (Revenue, USD, 2019 - 2031)
• • Application Security
  • Cloud Security
  • Content Security
  • Endpoint Security
  • Network Security
  • Wireless Security
•  Services Insights (Revenue, USD, 2019 - 2031)
• • Managed Security Solutions
  • Training
  • Consulting
• Regional Insights (Revenue, USD, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Airbus
  • BAE Systems, Inc.
  • F-Secure
  • General Dynamics Corporation
  • Harris Corporation
  • Palo Alto Networks, Inc.
  • Thales
  • Rockwell Collins, Inc.
  • Raytheon Company