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Wed, May 27, 2020

AEA Unveils First-Quarter 2020 Avionics Market Report

Total Sales Exceed $660 Million In First Three Months Of 2020 -- 8.8% Down Over 1Q/19

The Aircraft Electronics Association released its first-quarter 2020 Avionics Market Report.

In the first three months of the year, total worldwide business and general aviation avionics sales amounted to $660,428,548.41, or more than $660 million as reported by the participating companies. The figure represented an 8.8% decrease in total sales compared to the first-quarter 2019 amount of $724,168,387.64, or more than $724 million. It also ended a streak of 12 consecutive quarters with a reported increase in year-over-year sales. However, this year's first-quarter sales showed a 3.2% increase compared to the same period two years ago in 2018, when sales were $639,796,979, or more than $639 million.

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 $660 million in first-quarter 2020 sales, 52.3% came from the retrofit market (avionics equipment installed after original production), while forward-fit sales (avionics equipment installed by airframe manufacturers during original production) amounted to 47.7% of first-quarter sales.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 75.2% of the first-quarter sales volume occurred in North America (U.S. and Canada), while 24.8% took place in other international markets.

"With the passing of the Jan. 1, 2020, deadline to equip aircraft with ADS-B Out avionics in the United States, the end to 12 consecutive quarters of sales growth may not come as a surprise," said AEA President and CEO Mike Adamson.

"We also don't yet know the full extent and global impact of the economic damage caused by the COVID-19 pandemic near the end of the first quarter and how it will weigh on the industry and our market figures going forward. The continued operations of business and general aviation could provide a silver lining while commercial aviation remains at a near standstill worldwide."

Below is a review of the year-end totals for the eight-year history of the AEA Avionics Market Report. Participating companies began separating total sales into retrofit/forward-fit sales in 2013.

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.

FMI: www.aea.net, www.aea.net/marketreport

 


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