Worldwide avionics sales up 15.5 percent over last year

Total sales exceed $2 billion in first nine months of 2018

LEE'S SUMMIT, MISSOURI, Nov. 19, 2018 -- The Aircraft Electronics Association released its third-quarter 2018 Avionics Market Report. 

In the first nine months of the year, total worldwide business and general aviation avionics sales amounted to $2,001,676,685.92 or more than $2 billion as reported by the participating companies.

First nine months of 2018 worldwide business and general aviation avionics sales

Quarter
Retrofit
Forward-fit
Total Sales
1Q 2018 $363,700,344.00 $276,096,635.00 $639,796,979.00
2Q 2018 $396,641,672.62 $285,463,039.27 $682,104,711.89
3Q 2018 $386,439,399.33 $293,335,595.70 $679,774,995.03
YTD 2018 $1,146,781,415.95 $854,895,269.97 $2,001,676,685.92

The figure represented a 15.5 percent increase in year-over-year sales compared to the first nine months of 2017 amount of $1,732,915,016.06.

Sales during the third-quarter months of July, August and September in 2018 were $679,774,995.03, a 15.6 percent increase compared to the 2017 third-quarter sales of $587,941,517.

Year-to-date, both the retrofit and forward-fit markets have seen double-digit increases in sales compared to the first nine months of 2017. The forward-fit market was up 16.6 percent compared to a year ago, while the retrofit market has increased 14.7 percent.

First nine months of worldwide business and general aviation avionics sales

 
2017
2018
% Change
Retrofit
$999,890,063.89
$1,146,781,415.95
14.7%
Forward-fit
$733,024,952.17
$854,895,269.97
16.6%
YTD
$1,732,915,016.06
$2,001,676,685.92
15.5%

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 billion in sales during the first nine months of 2018, 57.3 percent 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 42.7 percent of sales.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 77.7 percent of sales in the first nine months of 2018 occurred in North America (U.S. and Canada), while 22.3 percent took place in other international markets.

2018 Percentage of Total Sales by Market

Quarter Retrofit Forward-fit
1Q 2018 56.8% 43.2%
2Q 2018 58.1% 41.9%
3Q 2018 56.8% 43.2%
YTD 2018 57.3% 42.7%

2018 Percentage of Total Sales Worldwide

Quarter U.S./Canada Other International
1Q 2018 76.1% 23.9%
2Q 2018 77.6% 22.4%
3Q 2018 79.3% 20.7%
YTD 2018 77.7% 22.3%

"With robust growth in sales during the first nine months of the year, industry is on pace to produce the largest dollar amount of year-end avionics sales since the reporting process began back in 2012," said AEA President Paula Derks. "We have now seen seven-straight quarters of positive year-over-year sales growth dating back to the end of 2016, and it's an encouraging sign for the industry that sales are strong in both the forward-fit and retrofit markets."

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

Yearly Totals

Year Retrofit Forward-fit Total Sales % Change From
Previous Year
2017 $1,342,516,992.84 $984,335,543.95 $2,326,852,536.79 +2.9%
2016 $1,117,656,848.00 $1,143,877,972.00 $2,261,534,820.00 -6.4%
2015 $1,187,389,485.21 $1,229,049,502.21 $2,416,438,987.42 -4.4%
2014 $1,228,201,491.23 $1,299,365,811.19 $2,527,567,302.42 +4.0%
2013 $1,114,263,226.00 $1,315,035,458.50 $2,429,298,684.50 +9.0%
2012 N/A N/A $2,229,317,197.54 N/A

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:

  • ACR Artex
  • ALTO Aviation
  • Anodyne Electronics Manufacturing Corp.
  • Appareo
  • Aspen Avionics
  • BendixKing
  • Blue Avionics
  • Cobham Aerospace Communications
  • FreeFlight Systems
  • Garmin
  • Genesys Aerosystems
  • Gogo Business Aviation
  • Honeywell Business & General Aviation
  • Jupiter Avionics
  • Latitude Technologies
  • L3 Commercial Aviation
  • Mid-Continent Instruments and Avionics
  • PS Engineering
  • Rockwell Collins
  • Sandia Aerospace
  • Shadin Avionics
  • Trig Avionics
  • uAvionix
  • 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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Founded in 1957, the Aircraft Electronics Association represents nearly 1,300 member companies in more than 40 countries, including government-certified international repair stations specializing in maintenance, repair and installation of avionics and electronic systems in general aviation aircraft. The AEA membership also includes manufacturers of avionics equipment, instrument repair facilities, instrument manufacturers, airframe manufacturers, test equipment manufacturers, major distributors, engineers and educational institutions.

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