Total 2023 Sales to Date Exceed $1.6-Billion

The Aircraft Electronics Association (AEA) has released its second-quarter 2023 Avionics Market Report. In the first six months of the year, total worldwide business and general aviation avionics sales amounted to $1,601,414,712.48, or more than $1.6-billion as reported by participating companies.

Second-quarter sales increased 5.9-percent sequentially from the first-quarter of 2023. During the second-quarter months of April, May, and June, sales increased 16.2-percent compared to the same time frame one year ago. With more than $823-million in sales during the second-quarter, the figure marked the highest quarterly sales volume in the history of the report and represented a 19.2-percent increase in total sales compared to the first six months of 2022, which was driven by a 31.7-percent increase in forward-fit sales compared to the same time frame one year ago.

The term forward-fit denotes avionics equipment installed by airframe manufacturers during original production. Conversely, the term retrofit describes avionics equipment installed after host aircrafts’ original production.

2023’s second-quarter saw the industry garner the largest quarterly forward-fit sales volume in the history of the report with more than $490-million in avionics sales to OEMs. On only two previous occasions have quarterly forward-fit sales topped $400-million.

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 $1.6-billion in sales during the first six months of 2023, 40.2-percent came from the retrofit market, while forward-fit sales amounted to 59.8-percent of first-quarter sales.

According to contributing companies that segregated their North American (U.S. and Canada) sales figures from those of other international markets, 72.9-percent of the sales volume in the first six months of 2023 occurred in North America, while 27.1-percent took place in other international markets.

AEA president and CEO Mike Adamson stated: "This quarterly report makes clear that industry is seeing a recent surge in forward-fit sales, which has topped more than $400 million in three of the past four quarters. The retrofit market appears to have more modest growth with a 4.5% year-over-year increase in sales."

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. Participation may vary as a function of mergers and acquisitions and new companies partaking in the reporting process. Any comparative analysis of the presented data should take this variance into consideration.

The AEA Avionics Market Report should not be considered a predictive indicator of future industry sales activity. The circumstances by which the report’s dollar values were occasioned may not occur in the future, and actual sales, revenues, and profits could differ materially as a result of known and unknown risk factors and uncertainties affecting the avionics market, the AEA Avionics Market Report, and the companies that participate in such. Forward-looking statements—one and all—cannot be guaranteed, and pertain only to circumstances extant on the day subject statements are made.

FMI: www.aea.net