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Wed, Sep 03, 2014

AEA Announces Second-Quarter 2014 Avionics Market Report

Total Sales Exceed $652 Million For Three-Month Period

The Aircraft Electronics Association has released its second-quarter 2014 Avionics Market Report. In the three-month period of April, May and June 2014, total worldwide business and general aviation avionics sales amounted to $652,127,054.68.

The figure represented a 2.7 percent increase in sales compared to the second-quarter 2013 amount of $635,201,160.49 as reported a year ago by the participating companies. The amount of sales also marked a slight uptick in total sales from the first three months of the year, as first-quarter sales amounted to $651,748,994.12.
 
Combined with the first-quarter sales figures, total worldwide sales now exceed $1.3 billion through the first six months of the year, a 6.8 percent increase when compared to the first six months of 2013.

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/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 $652 million in total sales in the second quarter, $333,657,572.91 came from forward-fit (avionics equipment installed by airframe manufacturers during original production) sales and comprised 51.2 percent of total sales. Retrofit (avionics equipment installed after original production) sales amounted to $318,469,481.77, comprising 48.8 percent of total sales.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 62.7 percent of the sales volume occurred in North America (U.S. and Canada), while 37.3 percent took place in other international markets.
 
"It will be interesting to observe total sales figures in the years ahead, particularly as we get closer to the 2020 ADS-B Out mandate in the U.S. and the fact that several avionics manufacturers recently introduced new ADS-B solutions for the business and general aviation marketplace," said Paula Derks, AEA president.

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

Prior to 2012, there never had been an effort to capture the true dollar size of the business and general aviation avionics market. The concept to produce the AEA Avionics Market Report began in April 2012, when the AEA formed an ad hoc committee comprised of representatives of avionics manufacturers to create a tool for strategic planning and examining market share.

"This report provides valuable information to promote the business and general aviation avionics industry to investors and inform elected officials of its global economic value," Derks said.

FMI: www.aea.net

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