Of Trends Broken

On 31 May 2023, the AEA released its First Quarter 2023 Avionics Market Report. In the year’s first three months, total worldwide business and general aviation avionics sales brought in revenues of $777,640,387.48 as reported by the 22 avionics concerns participating in the report’s compilation

Founded in 1957 to educate, communicate, and advocate for businesses that manufacture, support, and install aircraft electrical components and avionics, the Aircraft Electronics Association (AEA) represents nearly 1,300 member companies in more than forty countries.

The antecedent figure represented a 22.6-percent increase in total sales compared to 2022’s first-quarter haul of $634,546,020.43. The increase was driven primarily by a 32.1-percent increase in forward-fit sales compared to 2022’s first quarter.

However, first-quarter 2023 sales decreased 2.1-percent sequentially from 2022’s fourth quarter, thereby snapping a streak of ten consecutive quarters of increasing sales.

Reported dollar-amounts—which derive of net sales price, not manufacturer's suggested retail price—include: all business and general aviation aircraft electronic sales, including all component and accessories in cockpit/cabin/software upgrades/portables/certified and noncertified aircraft electronics; tip-to-tail hardware; batteries; and chargeable product upgrades from the participating manufacturers. The dollar-amounts do not include repairs and overhauls, extended warranty, or subscription services.

Of the more than $777-million in first-quarter 2023 sales, 39.9-percent was attributable to the retrofit market—which is to say, avionics equipment installed after original production. Conversely, over the same timeframe, forward-fit sales—avionics equipment installed by airframe manufacturers during original production—accounted for 60.1-percent of sales.

According to those reporting companies that separated their total sales figures between North America (U.S. and Canada) and the remainder of the world’s markets, 74.5-percent of 2023’s first-quarter avionics sales volume was ascribable to deals struck in the U.S. and Canada, while the remaining 25.5-percent derived of other international markets.

All dollar amounts noted are U.S. dollars. The number of companies participating in the AEA Avionics Market Report may change on a quarterly and/or annual basis. Such changes most often result from mergers and acquisitions or the addition of new companies to the body of participating concerns. Any comparative analysis of the data ought account for the described variance.

The AEA Avionics Market Report should not be construed a predictive indicator of future industry sales activity. The circumstances discussed in the report may not occur in future time periods. Ergo, actual sales figures could differ materially as a result of known and unknown risk factors and uncertainties affecting the AEA Avionics Market Report and the companies participating therein. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made. What’s more, the Aircraft Electronics Association and the companies participating in the AEA Avionics Market Report undertake no obligation to publicly update or revise any forward-looking statement—whether as a result of new information, future events, or otherwise.

AEA President and CEO Mike Adamson stated: "This quarterly report offers mixed results, as the industry posted a lower dollar amount in sales when compared to the fourth quarter of last year, while at the same time reporting an increase in sales of more than 22-percent compared to the first three months of 2022. Also of note, the industry garnered the largest forward-fit sales volume in the history of the report with more than $467-million in avionics sales to OEMs. It is only the second time that quarterly sales have topped $400-million in that category."

The AEA introduced its Avionics Market Report on 26 March 2013, during the 56th annual AEA International Convention & Trade Show in Las Vegas, Nevada.

Prior to 2012, no effort had been made to quantify the true scope, scale, and dollar-value of the business and general aviation avionics market. The business of producing the AEA Avionics Market Report was undertaken in April 2012, at which time the AEA—for purpose of creating a tool germane to gauging market share—formed an ad hoc committee comprising representatives of the industry’s preeminent avionics manufacturers.

To ensure confidentiality, those companies participating in the AEA Avionics Market Report submit their respective sales figures to an independent third-party firm retained to produce subject report.

FMI: https://aea.net/marketreport