AEA unveils third-quarter 2020 Avionics Market Report

Total sales exceed $1.6 billion in first nine months of 2020

LEE'S SUMMIT, MISSOURI, Nov. 9, 2020 -- The Aircraft Electronics Association released its third-quarter 2020 Avionics Market Report.

In the first nine months of the year, total worldwide business and general aviation avionics sales amounted to $1,670,804,856.73, or more than $1.6 billion as reported by the participating companies.

First nine months of 2020 worldwide business and general aviation avionics sales

Quarter
Retrofit
Forward-fit
Total Sales
1Q 2020 $345,650,537.69 $314,778,010.72 $660,428,548.41
2Q 2020 $267,757,102.73 $222,952,080.59 $490,709,183.32
3Q 2020 $296,692,116.00 $222,975,009.00 $519,667,125.00
YTD 2020 $910,099,756.42 $760,705,100.31 $1,670,804,856.73

The figure represented a 27% decrease in total sales compared to the first nine months of 2019. During the third-quarter months of July, August and September, sales decreased 33.4% compared to the same time frame one year ago.

However, sales in the third quarter of 2020 were up 5.9% compared to the second quarter of this year, with retrofit sales up 10.8% over the second quarter.

First nine months of worldwide business and general aviation avionics sales

 
2019
2020
% Change
Retrofit
$1,208,828,187.38
$910,099,756.42
-24.7%
Forward-fit
$1,078,873,395.67
$760,705,100.31
-29.5%
YTD
$2,287,701,583.05
$1,670,804,856.73
-27.0%

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 2020, 54.5% 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 45.5% of sales.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 73.7% of the year-to-date sales volume occurred in North America (U.S. and Canada), while 26.3% took place in other international markets.

2020 Percentage of Total Sales by Market

Quarter Retrofit Forward-fit
1Q 2020 52.3% 47.7%
2Q 2020 54.6% 45.4%
3Q 2020 57.1% 42.9%
YTD 2020 54.5% 45.5%

2020 Percentage of Total Sales Worldwide

Quarter U.S./Canada Other International
1Q 2020 75.2% 24.8%
2Q 2020 73.9% 26.1%
3Q 2020 71.6% 28.4%
YTD 2020 73.7% 26.3%

All dollar amounts noted are U.S. dollars. 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.

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.

"The significant contraction of industry sales during the last six months has been driven by the international health crisis," said AEA President and CEO Mike Adamson. "However, we are encouraged with the direction of activity in the retrofit market, which is up nearly 11% over second-quarter total sales. In addition, the overwhelming majority of AEA member shops and manufacturers are continuing their essential operations, and many are reporting customer backlogs that extend several weeks and into next year."

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.

Yearly Totals

Year Retrofit Forward-fit Total Sales % Change From
Previous Year
2019 $1,657,413,394.00 $1,348,426,111.00 $3,005,839,505.00 +10.2%
2018 $1,556,360,964.00 $1,172,296,145.00 $2,728,657,109.00 +17.3%
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.

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
  • Collins Aerospace
  • FreeFlight Systems
  • Garmin
  • Genesys Aerosystems
  • Gogo Business Aviation
  • Honeywell Business & General Aviation
  • Jupiter Avionics
  • L3Harris Technologies
  • Mid-Continent Instruments and Avionics
  • PS Engineering Inc.
  • Sandia Aerospace
  • Shadin Avionics
  • Trig Avionics Limited
  • Universal Avionics, an Elbit Systems Co. 

 

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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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