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Thu, Apr 09, 2015

AEA Unveils 2014 Year-End Avionics Market Report

Total Year-End Sales Exceed $2.5 billion, A 4 Percent Increase From 2013

The Aircraft Electronics Association released its 2014 year-end Avionics Market Report during the 58th annual AEA International Convention & Trade Show at the Gaylord Texan Convention Center in Dallas, Texas.

Total worldwide business and general aviation avionics sales for the year amounted to $2,527,567,302.42, or more than $2.5 billion. The figure represented a 4 percent increase in sales compared to the previous year as reported by the participating companies in 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/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 $2.5 billion in total sales, 51.4 percent came from forward-fit (avionics equipment installed by airframe manufacturers during original production) sales. The forward-fit market accounted for 54 percent of total sales a year ago in 2013.

The retrofit (avionics equipment installed after original production) market amounted to 48.6 percent of total sales for the year, a slight increase from the 46 percent market share for retrofit sales in 2013.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 62.6 percent of the 2014 sales volume occurred in North America (U.S. and Canada), while 37.4 percent took place in other international markets.

"The report indicates modest year-over-year growth in sales for the second straight year," said AEA President Paula Derks when unveiling the 2014 data at the AEA Convention's state of the industry session on April 9. "This is only the third year of the report's existence, but it is beginning to establish a solid baseline to better evaluate and compare data in the years ahead. Interestingly, the year-end report noted that more than 37 percent of avionics sales took place outside the United States and Canada, which is another indicator that the business and general aviation industry truly is an international market. Also of note is the fact that the first six months of 2014 contributed to a little more than half of the year's total sales volume when compared to the third and fourth quarters. This may be worth watching in future years to determine if there exists some seasonality in sales trends within the course of a single year."

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

FMI: www.aea.net/marketreport

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