The Aerospace and Defence Head-Up Display Market size is forecast to reach $3.9 billion by 2026, growing at a CAGR of 10.5% in the period 2021-2026. The growth of the Aerospace and Defence Head-Up Display Market is mainly attributed to increased passenger traffic, which is leading to growing production of aircrafts. For instance, revenue from aircrafts exports increased from $143.17 billion in 2017 to $156.61 billion in 2019 for the U.S. The Aerospace and Defense HUD Market is anticipated to immensely benefit from emergence of smart devices such as Garmin Head up Display (HUD) and SmartView Synthetic Vision, which has further elevated demand for head up displays in the aerospace sector. The need for improved aircraft steering, Instrument landing system have propelled the adoption of Synthetic vision systems such as Aerospace and Defense HUD.
Key players including BAE Systems, Thales Group, Collins Aerospace, Elbit Systems and Excelitas Technologies Corp accounted for around 70% of the total market share in 2018, with contracts and partnerships being adopted as key strategies.
The major driving factor in the Aerospace and Defense HUD Market is increased investments in the aerospace sector during the forecast period. In this sector, head up displays are being deployed to aid pilots in estimating the path of the aircraft and thereby enhancing flight control and aircraft steering through synthetic vision systems. This has compelled aircraft manufacturers to integrate advanced features such as head-up display in aircrafts which improve Display luminance.
Head up displays are being majorly deployed in small and mid-size aircrafts owing to their compactness, high accuracy sensors and cost efficient relay optics that are used to project the HUD image to the pilot. This has driven demand for projector units which hold the largest market share of around 25% in the components segment.
North America is the largest market for Aerospace and Defense HUDs, accounting for around 43% of the global market share in 2020 owing to increased demand for precise situational awareness in military aircrafts. The head up displays deploy an algorithm to calculate the optimum flare maneuver required for ensuring a smooth landing on the runway. This feature helps pilots avoid stressful maneuvers on unfamiliar sloped runways or during nighttime approach landings.
Aerospace and Defence Head-Up Display Market Segment Analysis – By Technology
Optical waveguide head up displays is a major segment, accounting for around 62% in the Aerospace and Defense HUD market globally in 2020. They find application in the aviation sector owing to the advantages they offer in terms of data projection, easy installation and cost efficiency. In recent years, increased investments in the aerospace sector globally have fuelled demand for head up displays for aircraft steering and instrument landing systems. The U.S. has encouraged NATO countries to expand their aerospace and military expenditure. As a result of this, in 2019, the government of France has announced expansion of its military and aerospace expenditure to 2% of GDP. Moreover, the U.K. Ministry of Defense signed a deal with California-based General Atomics worth $125m to supply drones equipped with head up displays for the U.K. defense sector.
Aerospace and Defence Head-Up Display Market Segment Analysis – By End Use Industry
One of the significant growth factors for the Aerospace and Defense HUD market is the deployment of HUDs in civil aircrafts. The civil aviation segment for the Aerospace and Defense HUD market is poised to grow at a CAGR of 13.2% in the forecast period 2021-2026. Research is being carried out to design innovative HUD interfaces aiming to reduce operator distraction and improve performance. Boeing has introduced its 787 advanced flight deck, incorporating head up displays, that integrates dual global positioning system receivers with triple-redundant flight management systems that enhances precise flight vision through aircraft steering and instrument landing systems. Additionally, recently issued regulations have significantly fuelled demand for head up displays in the aerospace arena. Civil Aviation Administration of China has mandated adoption of head up displays to facilitate enhanced projection of data in Chinese airlines by 2025. Such initiatives have propelled demand for head up displays in the aerospace sector.
Aerospace and Defence Head-Up Display Market Segment Analysis – By Geography
North America holds a dominant share of 43% in the head up display market in 2020, which can be attributed to increased investments in the aerospace sector. According to the Aerospace Industries Association, aerospace exports in U.S. have increased by 26% from $113 billion in 2012 to $154 billion in 2019. In 2019, the Canadian Department of National Defense awarded a contract worth $14.5m to Marconi Aerospace Defense Systems to develop and integrate vision imaging systems and head-up displays for the Canadian CH-146 Utility Tactical Transport Helicopter (UTTH). Developments such as these present excellent growth opportunities for the Aerospace and Defense HUD market in the North American region.
Aerospace and Defence Head-Up Display Market Drivers
Increased Investments In The Aerospace Sector
In the military and defense aviation sector, there has been a significant increase in the deployment of head up displays. This rise is attributed to the capability of HUDs to direct the pilot’s vision outside the aircraft and provide all the necessary flight information to the pilot. This results in an increase in overall efficiency and safety, which are essential considerations for the defense and military sectors. Moreover, demand for real-time monitoring of data by on-board instruments such as head up displays for improved aircraft steering and instrument landing systems in military aircrafts has consequently led to increased investments for deployment of head up displays in the aerospace sector. For instance, the Italian Ministry of Defense increased its investment on surveillance drones from $506m in 2016 to $991m in 2019. These drones incorporate head up displays, which is consequently boosting demand for head up displays in the aerospace sector.
Rise In Production Of Civil Aircrafts
As per the International Air Transport Association, passengers travelling by domestic airlines globally increased from 561 billion in 2018 to 589 billion in 2019. The rise in passenger traffic globally has subsequently called for an increase in production of civil aircrafts. According to the International Air Transport Association (IATA), approximately 39,000 aircrafts are estimated to be produced by 2027. This is anticipated to significantly increase demand for head up displays in civil aircrafts. Moreover, companies are focusing on developing innovative head up displays for enhancing precision within aircrafts. Netherlands-based Airbus SE has been developing an enhanced flight vision system (EFVS) to be equipped on its aircrafts still under production. This research is aimed at improving airport access for aircrafts, with the help of head up displays, regardless of weather or landing aids on the ground.
Aerospace and Defence Head-Up Display Market Challenges
In military applications, head up displays need to display the relevant information within a desired time frame. However, system delays often occur as a result of several factors including sensor delay, system processing speed and display update rate. Regardless of the source, the overall system delay results in the presentation of information that is inconsistent with the aircraft’s current state, further leading to errors in flight operation and reduced overall efficiency.
Aerospace and Defence Head-Up Display Market Landscape
Partnerships and acquisitions along with contracts and up gradation are key strategies adopted by players in the Aerospace and Defense HUD market. In 2018, the market for the Aerospace and Defense HUDs remained consolidated, with the top 10 players accounting for approximately 90% of market share. The major players in the Aerospace and Defense HUD Market include BAE Systems, Thales Group, Collins Aerospace, Elbit Systems, Excelitas Technology Corp, Honeywell Aerospace and Garmin Ltd.
- In July 2019, Leonardo S.p.A. signed a contract worth €300mwith the Armaments and Airworthiness Department of the Italian Ministry of Defense, aimed at supplying 13 M-345 High Efficiency Trainers (HET) equipped with head up displays.
- In February 2019, Continental AG increased its investment in DigiLens Inc. from the $25m it had invested in 2016. This investment is targeted at developing a waveguide head up display that fulfills requirement of applications across industries such as aerospace, automotive and others.