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Thu, Nov 10, 2016

AEA Unveils Third-Quarter 2016 Avionics Market Report

Total Sales Exceed $1.6 Billion In First Nine Months Of 2016, But Still Down Over Previous Year

The Aircraft Electronics Association has released its third-quarter 2016 Avionics Market Report.

In the first nine months of the year, total worldwide business and general aviation avionics sales amounted to $1,664,109,078.49, or more than $1.6 billion as reported by the participating companies.

The report indicated a 6.2 percent decrease in year-over-year sales compared to the first nine months of 2015 amount of $1,774,430,593.32.

Sales during the third-quarter months of July, August and September were $548,849,118.30, a 5.7 percent decrease compared to the 2015 third-quarter sales of $581,810,699.00.

The dollar amount reported (using net sales price, not manufacturer's suggested retail price) includes: all business and general aviation aircraft electronic sales -- including all component and accessories in cockpit/cabin/software upgrades/portables/certified and noncertified aircraft electronics; all hardware (tip to tail); batteries; and chargeable product upgrades from the participating manufacturers. The amount does not include repairs and overhauls, extended warranty or subscription services.
 
Of the more than $1.6 billion in sales during the first nine months of 2016, 53.2 percent came from forward-fit (avionics equipment installed by airframe manufacturers during original production) sales, or more than $884 million.

By contrast, the retrofit (avionics equipment installed after original production) market amounted to 46.8 percent of sales during the first nine months of the current year, or more than $779 million.
 
According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 66.6 percent of sales in the first nine months occurred in North America (U.S. and Canada), while 33.4 percent took place in other international markets. 

"It is disappointing that total worldwide sales have decreased in each of the first three quarters of the current year compared to those same time frames one year ago," said AEA President Paula Derks. "Although the U.S. market has seen the equipage pace pick up slightly for avionics installations to meet the FAA's ADS-B Out mandate, that has not translated into an uptick in overall avionics sales. Last year, the strongest period for sales was the fourth quarter, so it will be interesting to note whether that late-year surge continues again this year."

(Source: AEA news release)

FMI: www.aea.net/marketreport

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