AEA Unveils Third-Quarter 2016 Avionics Market Report

Total sales exceed $1.6 billion in first nine months of 2016

LEE'S SUMMIT, MISSOURI, Nov. 8, 2016 -- The Aircraft Electronics Association 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. 

First nine months of 2016 worldwide business and general aviation avionics sales

Quarter
Retrofit
Forward-fit
Total Sales
1Q 2016 $256,462,826.30 $309,635,879.66 $566,098,705.96
2Q 2016 $253,257,536.12 $295,903,718.11 $549,161,254.23
3Q 2016 $269,885,089.70 $278,964,028.60 $548,849,118.30
YTD 2016 $779,605,452.12 $884,503,626.37 $1,664,109,078.49

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.

First nine months of worldwide business and general aviation avionics sales

 
2015
2016
% Change
Retrofit
$862,847,527.79
$779,605,452.12
-9.6%
Forward-fit
$911,583,065.53
$884,503,626.37
-3.0%
YTD
$1,774,430,593.32
$1,664,109,078.49
-6.2%

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.  

2016 Percentage of Total Sales by Market

Quarter Retrofit Forward-fit
1Q 2016 45.3% 54.7%
2Q 2016 46.1% 53.9%
3Q 2016 49.2% 50.8%
YTD 2016 46.8% 53.2%

2016 Percentage of Total Sales Worldwide

Quarter U.S./Canada Other International
1Q 2016 64.9% 35.1%
2Q 2016 68.7% 31.3%
3Q 2016 66.1% 33.9%
YTD 2016 66.6% 33.4%

"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."   

More information about the AEA Avionics Market Report is available online at www.aea.net/marketreport

History and Background Information:
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 when the report was first introduced.

Avionics Market Report LogoTo ensure confidentiality, the participating manufacturing companies submit their sales figures to an independent third-party firm retained to produce the AEA Avionics Market Report. The companies currently participating in the report include:

  • ALTO Aviation
  • Anodyne Electronics Manufacturing Corp.
  • Appareo Systems
  • Aspen Avionics
  • BendixKing
  • Cool City Avionics
  • FreeFlight Systems
  • Garmin
  • Genesys Aerosystems
  • Gogo Business Aviation
  • Honeywell Business & General Aviation
  • Jupiter Avionics
  • Latitude Technologies
  • L-3 Aviation Products
  • Mid-Continent Instruments and Avionics
  • PS Engineering
  • Rockwell Collins
  • Sandia Aerospace
  • Shadin Avionics
  • Trig Avionics
  • Universal Avionics Systems Corp. 

The number of companies that participate in the AEA Avionics Market Report may change on a quarterly and/or annual basis. This may occur due to mergers and acquisitions during the year along with new companies participating in the reporting process. Any comparative analysis of the data should take this variance into consideration.

All dollar amounts noted are U.S. dollars. The AEA Avionics Market Report should not be considered a predictive indicator of future industry sales activity. The circumstances discussed in the report may not occur in future time periods, and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting the AEA Avionics Market Report and the companies that participate in the report. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made, and the Aircraft Electronics Association, along with the participating companies in the AEA Avionics Market Report, undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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