Throughout the history of modern avionics,
innovation has played a fundamental role in enabling safer, more
efficient aircraft. Today, the avionics industry must face major
challenges, including an unprecedented demand for consumer flying,
increasingly restrictive airspaces, as well as the need for highly
effective tactical systems. This article will explore recent
developments in aviation electronics and present the R&D tax credit
opportunity available for companies engaged in taking avionics
technology to new heights.
The Research & Development Tax Credit
Enacted in 1981, the federal
Research and Development (R&D) Tax Credit allows a credit of up to
13% of eligible spending for new and improved products and processes.
Qualified research must meet the following four criteria:
New or improved products, processes, or software
Technological in nature
Elimination of uncertainty
Process of experimentation
Eligible costs include employee
wages, cost of supplies, cost of testing, contract research expenses,
and costs associated with developing a patent. On December 18,
2015, President Obama signed the bill making the R&D Tax Credit
permanent. Beginning in 2016, the R&D credit can be used to offset
Alternative Minimum tax and startup businesses can utilize the credit
against $250,000 per year in payroll taxes.
All Eyes on Avionics
Electronic systems used on
aircraft, satellites, and spacecraft are generally referred to as
avionics. Often consisting of highly complex solutions, such systems
enable a variety of functionalities, from communications and
navigation, to black boxes and collision-avoidance mechanisms.
Responsible for what could be
considered the “brains” of aerospace vehicles, the avionics industry is
experiencing significant growth and thus attracting a great number of
new and traditional players. At times, avionics systems and their
servicing agreements can be more profitable than the original aircraft
sale itself, as technological improvements and their ensuing upgrades
generate long-term aftermarket revenue.
In September 2017, United
Technologies Corp. announced the $30 billion takeover of Rockwell
Collins, a leader in avionics and high-integrity technology. This
happened just a few months after Rockwell Collins acquired Wellington,
Florida-based B/E Aerospace, manufacturer of aircraft cabin interior
products and services. The megadeal has been seen as part of a trend
within the aerospace industry, wherein equipment manufacturers try to
reduce costs and control more of their supply chains by entering the
quest for digitally enhanced aircraft.
Another recent example is
American multinational Boeing Co., which announced the creation of an
avionics group to design and manufacture aircraft controls and
electronics. The unit will compete with Boeing’s current suppliers,
developing systems for military, civil, and space vehicles. The plane
maker’s initiative is seen as an effort to reduce costs, increase value
for customers, and guarantee revenue from services. Boeing’s research
priorities going forward are expected to include autonomous taxi and
flight control technology, machine learning, and high-integrity
systems.
Growth
Opportunities for the Avionics Industry
Faced with an all-time high in
consumer flying, countries around the globe strive to implement safer
and more efficient airspace systems while airlines try to maximize
returns by reducing aircraft downtime. The avionics industry has
a prominent role to play in this new era of air travel, enabling access
to real-time data that can enhance flight operations and improve
decision-making. According to a recently published report by Frost
& Sullivan, the commercial avionics market was worth $12.74 billion
in 2016 and should reach $16.65 billion by 2030. An expected delivery
of over 38 thousand commercial and business aircraft over this period
represents significant growth opportunities for avionics suppliers, as
does the modernization of legacy fleets. Major drivers of growth
include a shift towards the Internet of Things, the implementation of
avionics systems for next-generation aircraft and new regulatory
requirements, along with a growing demand for integrated modular
avionics.
Military avionics is also a
promising area, as electronic systems play an increasingly crucial role
in combat operations, through advanced communication, navigation, and
surveillance functionalities. The use of military unmanned aerial
vehicles and the replacement of old analog systems are major
opportunities. According to a recent study by Orbis Research, the
global military and defense avionic systems market will experience an
8.92 percent compound annual growth rate through 2020.
Hallmarks of Modern Avionics
Modern avionics systems aim
to provide a combination of technology, features, and capabilities that
enhance the flight experience. Innovative compute-intensive,
high-speed, and high-bandwidth solutions allow for longer, safer, and
more efficient flights in any airspace or weather condition. The
following paragraphs present some of the hallmarks of modern avionics:
I.
Integration and Versatility: Modern cockpit environments
integrate a variety of aircraft systems, giving access to a wealth of
information, including real-time sensor, navigation, and terrain data.
Integration is accompanied by versatility - modern avionics systems are
easily adaptable, allowing for the incorporation of new
functionalities. This is especially true for the addition of avionics
applications that are tailored to specific needs, such as traffic
surveillance and communication between pilots, passengers, and crews.
II. Advanced Navigation and Situational Awareness: Synthetic
vision systems and advanced mapping functionalities increase
situational awareness and safety regardless of outside visibility.
Interactive moving maps with 2D and 3D versions along with synthetic
vision solutions that provide an intuitive depiction of key flight
information reduce pilots’ workload by simplifying instrument flying
and eliminating poor visibility as a safety factor. Using GPS and
inertial reference systems as well as information from various
databases, such as geographical, hydrological, and terrain data, these
advanced systems can revolutionize navigation.
III.
Flight Planning and Communication: According to new regulation,
aircraft must be equipped with Automatic Dependent
Surveillance-Broadcast (ADS-B) to fly most controlled airspace starting
January 1, 2020. This satellite-based surveillance technology enables
real-time precision, shared situational awareness, and an array of
advanced applications for both pilots and controllers. ADS-B services
for traffic control, weather, and flight information can yield great
improvements in aviation safety and efficiency.
IV.
Advanced User Interface and Cutting-edge Displays: Display
functionality and configuration can greatly impact the pilot’s
workload. Innovative avionics systems offer user-friendly,
multi-function, customizable displays that facilitate access to
information. High-definition, touchscreen, and scalable window views
are just a few examples of recent trends in cockpit systems.
Pervading each one of these
hallmarks, there are new technologies that promise to change the face
of avionics. The Internet of Things (IoT), augmented reality, and new
software development tools are important examples of groundbreaking
trends in the aerospace industry. The following sections present the
most recent developments in these areas.
The
Internet of Aircraft Things
The expanding IoT has allowed for
virtual-world capabilities to meet real world needs. It has created
major innovation opportunities in variety of industries, avionics being
no exception. Fleet modernization has given access to massive
amounts of data that can revolutionize aircraft maintenance, repair,
and operations (MRO). Equipment manufacturers, engine makers, sensor
suppliers, and software firms are joining forces to harness cloud
computing, IoT, and data analytics capabilities in the development of
an interconnected approach to aircraft monitoring.
Smart sensors play a crucial role
in enabling intelligent aircraft health monitoring systems (AHMS).
Equipped with advanced storage and internal processing capabilities,
these sensors help detect potential faults as soon as they appear.
Custom algorithms and application programmable interfaces further
optimize operations. Common challenges when it comes to sensing data
input include improved accuracy, speed, and responsiveness of the
systems to rapidly changing stimuli.
According to Aviation Today,
while the number of faults that could be detected in a Boeing 767 in
the 1980s was 9,000, intelligent sensors can now detect 45,000 faults
in the same aircraft. Next-generation AHMS track and process
information regarding temperatures, pressures, multiple types of
low-end and high-end rotor speeds and vibration, along with several
equipment-generated reports. Developing new and improved ways to
acquire, transfer, and transform this data into actionable information
is a major challenge and a particularly promising area for innovation
within the avionics industry.
The AHMS market is expected to be
worth $4.7 billion by 2021, as big data becomes the basis for
condition-based and predictive maintenance. By transforming
raw data into actionable information, next-generation MRO systems could
contribute to preventing cancelations, improving safety, reducing fuel
consumption, and enhancing overall passenger and crew experience.
The identification of relevant
patterns and detection of early signs of potential problems can enable
airlines to act preventively and avoid costly downtime. Also,
IoT-enabled systems open the way for a “prescriptive” approach to MRO.
In other words, operators can not only detect the possibility of
failure but also receive information on the best way to tackle the
necessary maintenance tasks. Innovative, analytical systems are
incorporating “what-if” functions that assess how different scenarios
could affect operations and prescribe maintenance activities that
optimize reliability and asset uptime. Information provided may include
the optimal time to execute repairs, the best sequence of tasks to
perform, etc.
A growing number of original
equipment manufacturers (OEM) and avionics software companies are
incorporating IoT capabilities into their products, particularly for
aircraft health monitoring and efficiency-enhancing applications. The
following paragraphs present innovative efforts in this domain:
Airbus and Palantir:
European multinational corporation Airbus has recently worked with Palo
Alto, California-based Palantir Technologies in the development of a
secure, cloud-based platform designed to work as a single access point
to data from a variety of sources, including work orders, spares
consumption, components data, fleet configuration, and on-board sensor
data. Skywise is a customizable, health-monitoring platform that allows
force’s easy visualization and analysis of large-scale data that has
traditionally been hosted in isolated servers. The centralization of
operational reports, technical documentation, and real-time sensor data
in a single API allows for more efficient flight-ops analytics,
predictive maintenance, and troubleshooting. Early adopters include
Emirates, which already experienced 1 percent increase in operational
reliability, and EasyJet, which deployed a customized solution focusing
on predictive action towards its top 100 operational issues.
Skywise applications enable quick reporting of key metrics, flight path
visualization, and component reliability tests, among various other
functionalities. Future features will include an idle factor
optimization tool that prevents the overuse of fuel on descent and
approach.
Honeywell
Aerospace: Headquartered in Morris Plains, New Jersey, Honeywell
is a leading supplier of sensors, propulsion engines, cockpit and cabin
electronics, wireless connectivity services, and logistics for the
aerospace industry. In August 2017, the software-industrial company
announced a new line of self-diagnosing, proximity sensors designed to
improve the performance of aircraft systems and reduce unnecessary
costs related to false readings. The Integral Health Monitoring series
detects when a sensor has been damaged or is malfunctioning in any way.
It can be integrated into various aircraft systems, including flight
controls, evacuation locks, and landing gear. Honeywell has also
recently introduced the Linear Variable Differential Transformers for
continuous position monitoring in harsh environments. The new sensors
can be integrated into engine mechanisms, pilot controls, and
nose-wheel steering applications.
Pratt & Whitney:
Headquartered in East Hartford, Connecticut, Pratt & Whitney has
demonstrated the value of incorporating advanced sensing capabilities
into aerospace equipment. The Geared Turbo Fan engine is equipped with
5,000 sensors that generate up to 10 GB of data per second. This
massive amount of information is used to identify patterns of demand
and adjust the engine’s thrust levels. As a result, there have been
considerable reductions in fuel consumption as well as performance
improvements in engine noise and emissions. P&W has developed
a major aftermarket digitalization initiative aimed at providing
predictive analytics and tools for customer support. The EngineWise
uses the company’s eFAST aircraft health monitoring system to enable
worldwide, real-time communication with customers.
Rolls-Royce and
Microsoft: Among the world’s largest aircraft engine
makers, British multinational Rolls-Royce has partnered with Microsoft
to improve its data collection methods. The company’s health monitoring
system oversees more than 13,000 engines in service at approximately
9,000 commercial flights per day. It uses Microsoft’s Azure cloud
platform and Azure IoT to collect and aggregate data and the Cortana
Intelligence Suite to transform it into actionable information.
The partnership aims to create an intelligent engine that optimizes
fuel efficiency, minimizes risks, and improves maintenance. This is
made possible by unprecedented connectivity that allows for continuous
interaction with a support ecosystem, that includes information on
weather conditions, airport infrastructure, taxiing and turnaround
times, etc.
Gulfstream, General
Electric, and AT&T: GE Aviation has recently announced a
partnership with AT&T IoT solutions to connect the on-board and
off-board portions of PlaneConnectHTM, the AHMS on Gulfstream business
jets. AT&T ensures that aircraft can wirelessly and securely send
data from all seven continents to Gulfstream Technical Operations. This
enhanced connectivity enables speedier diagnostics, fleet-wide
comparisons and trending, and transient issue visibility, among many
other benefits.
Avionica: Miami,
Florida-based Avionica offers ruggedized service units that interface
with all major OEM flight data recorders, providing data download and
real-time, engineering unit data monitoring. With over 3 thousand hours
of data capacity, Avionica’s miniQAR is among the world’s smallest and
most powerful Quick-Access Recorders. In addition to supporting
different types of data and distinct communication protocols, the
miniQAR can be easily integrated into the aircraft without the need for
tools or modifications. Aiming to eliminate the cost and delay often
associated with data transferring, Avionica also offers the lea
secureLINK, which enables wireless, encrypted communication, and the
satLINK MAX, which provides up to four channels of satellite-based
voice and data communication. Founded in 1992, this innovative company
has worked with various airlines, including Icelander, Kallita Air, Air
Greenland, and Cathay Pacific.
Augmented
Reality
The exponential growth in
commercial aviation has been accompanied by ever more complex aircraft,
capable of flying more routes and greater distances. The ongoing
expansion in global air passenger numbers has led to a surge in demand
not only for equipment but also for skilled workforce that can ensure
the maintenance and repair of growing fleets. According to Airbus, over
33 thousand new aircraft will be needed globally by 2035. However, the
supply of qualified engineers is unlikely to keep pace.
Augmented reality stands out as
promising way to bridge this gap between a growing fleet and a limited
pool of skilled workers. Advanced technology can provide on-demand
expertise, allowing technicians to give remote guidance to onsite
operators anywhere in the globe. Wearable augmented reality systems
enable a new form of immersive communication, which could considerably
increase maintenance efficiency and promote major cost savings.
Provider of software solutions
for companies in the aviation and defense industries, Itasca,
Illinois-based IFS has partnered with Swedish XMReality to develop a
remote guidance system for telepresence and data transmission. Their
aim is to integrate augmented reality into the field, allowing support
technicians at base to watch, show, and guide maintenance processes
through augmented hands and tools. Key challenges include preserving
spatial awareness, which is a fundamental aspect of maintenance in
tight spaces, and ensuring that the necessary evidence is gathered for
compliance reasons.
This kind of technology is
particularly interesting for the defense sector, as it enables
real-time delivery of expertise in even the most remote locations.
Civil aviation is also expected to take advantage of this kind of
system, particularly in high-demand areas that lack qualified workers,
such as the Middle East and Asia-Pacific regions. Both the military and
civil segments can also benefit from new and improved training
capabilities, particularly with flight simulations.
In addition to maintenance
applications and training, augmented reality can optimize operations
and enhance situational awareness. For instance, Forth Worth,
Texas-based Bell Helicopter aims to take augmented reality technology
to helicopter operations. In recent years, helicopters have undergone
radical changes to remain up-to-date with safety regulations,
longevity, quality improvements, and advanced military
applications. In this context, the company recently unveiled the
FCX-001, a concept helicopter equipped with a virtual cockpit that will
allow pilots to “control the aircraft with the aid of augmented reality
and an artificial intelligence computer assistance system (…) in the
role of safety and mission officer, while the computer assistance
system flies with them.”
San Diego, California-based Aero
Glass is also a pioneer in bringing augmented reality to the world of
avionics. Founded in 2014, the company has created an application to
display safety and navigation information in 360 degrees 3D augmented
reality through smart glasses. It takes the pilot’s eyes off of the
traditional avionics displays and takes them outside the cockpit, where
relevant information can be seen in an organic manner. Aero Glass’s
head-worn display project has received funding from the European
Union’s Horizon 2020 program.
A similar concept can easily make
its way to general aviation, with solutions such as the innovative FlyQ
Insight App. Created by aviation software firm Seattle Avionics, which
is located in Woodinville, WA, the application allows pilots to see
approximate airport positions by pointing their iPhone or iPad cameras
out the windscreen. The app’s patent-pending algorithms merge
geographic data with live video feeds to provide direction and distance
information on nearby airports. It is the first affordable augmented
reality system for the general aviation market.
Avionics
Software Development
Avionics software is yet another
key element for aircraft safety and efficiency both in commercial and
military segments. Innovative tools for avionics software development
promise to dramatically reduce the costs and time involved in creating
and testing new applications.
Performance Software
Corp.: Specialized in real-time embedded avionics systems and
full-lifecycle software solutions, Phoenix, Arizona-based Performance
has developed an innovative way to develop and test avionics software.
The company’s JETS Virtual platform creates direct replicas of target
hardware, allowing software developers to work with virtualized
versions of the systems they are designing for. This custom interaction
reduces the time necessary to test and certify software applications.
ENSCO Avionics:
For over 30 years ENSCO has developed sophisticated airborne systems
for the aerospace industry. The Endicott, New York-based company
focuses on safety and mission-critical software as well as programmable
hardware engineering solutions. ENSCO’s iData Tool suite is an
innovative solution for software display development. The
commercial-off-the-shelf, human machine interface toolkit facilitates
the creation and deployment of embedded display applications that work
across platforms (including cockpit displays, situational awareness,
simulation, command and control, etc). Their objective is to go beyond
final display development, by enabling a collaborative path towards the
optimal design, from concept to prototyping, development, and training.
The data-driven solution offers advanced features, including seamless
integration for 2D and 3D digital moving maps and 3D views.
Core Avionics &
Industrial Inc.: Based in Tampa, Florida, CoreAVI offers
products and services designed to enable complex graphics processors
for safety-critical and high-reliability systems. In addition to
providing high-level safety certification, CoreAVI graphics are aligned
with Future Airborne Capability Environment (FACE) standards.
Established in 2010, the Open Group FACE Consortium aims to create
uniform, open standards to avionics systems, designed to increase
affordability, support interoperability, and foster innovation.
CoreAVI’s ongoing product development initiatives aim to promote the
reuse of technology by advancing modular and interoperable open
architecture.
Fleet Modernization Efforts
In addition to being up to
date with the technological trends presented so far, the ability to
integrate modern avionics systems into legacy aircraft also stands out
as a vital skill for competitive avionics companies. There is growing
demand for innovative solutions that can extend the lifespan of
aircraft and guarantee long-term efficiency, while ensuring compliance
with new regulations.
Over the next decade, two major
programs aimed at transforming airspace and air traffic management are
set for completion. In Europe, the Single European Sky Initiative will
coordinate the design, management, and regulation of airspace. The SES
2+ legislative package will incorporate new technology, regulations,
and air traffic management techniques to enable standardized and
efficient air travel throughout Europe. Similarly, in the U.S., FAA’s
NextGen aims to implement a new national airspace system until 2025. In
addition to the migration to a satellite-based air traffic control
system, the program will provide technological support for
performance-based navigation and introduce a new, digital communication
system between controllers and pilots.
Ongoing modernization programs
illustrate the role of avionics in making room for legacy aircraft in
the future of aviation. For instance, United Parcel Service has
recently launched the A300 cockpit modernization program, an effort to
upgrade the embedded computing architecture of its 52 Airbus A300
freighters. Working in partnership with Airbus and Honeywell, UPS will
add an advanced flight management system, a new integrated standby
instrument system, a central maintenance system, and new liquid crystal
displays in place of the current cathode ray tube cockpit displays. The
new avionics package will be based on the Honeywell Primus Epic suite
and will include a satellite-based augmentation system-capable GPS, as
well as the ability to fly LPV and RNP AR routes. Different from the
current system, which uses individual components for aircraft
functions, the new configuration will have processor cards installed in
a cabinet, which allow for greater flexibility when incorporating new
functionalities.
Another interesting example is
Lockheed Martin’s C-5 modernization program. Capable of carrying more
cargo and traveling farther distances than any other aircraft, the C-5
Galaxy is Air Force’s largest and only strategic airlifter. First
introduced in the late sixties, however, the C-5 required significant
modernization in order to preserve its relevance and extend its service
life well into de 21st century. The new C-5M is the result of a
comprehensive program in which avionics played a major role. Upgrades
included a new, modern cockpit with a digital, all-weather flight
control system and autopilot; a new communications suite; flat-panel
displays; and enhanced navigation and safety equipment. In addition to
serving as the digital backbone of other reliability and re-engining
efforts, avionics enhancements, such as the integrated datalink
capabilities, predictive flight performance cues and situational
awareness displays, also greatly ease crew workload and improve overall
situational awareness.
Conclusion
Avionics have a major role
to play in the modern aerospace industry. New technologies, including
the Internet of Things, augmented reality, and advanced software
development tools can revolutionize the way aircraft are operated,
generating significant safety and efficiency gains. Avionics companies
have considerable growth opportunities at hand, both in the commercial
and military sectors, particularly as new regulations call for
comprehensive fleet modernization efforts. R&D tax credits are
available to support innovative companies determined to lead the way
into the future of aviation.
