LEE’S SUMMIT, Missouri — In 2016, business and general aviation avionics sales topped $2.2 billion, according to the 2016 year-end Avionics Market Report just released by the Aircraft Electronics Association.
Total worldwide business and general aviation avionics sales for the year amounted to $2,261,534,820, which represents a 6.4% decrease in sales compared to 2015.
It was the lowest dollar amount of reported sales since 2012, which was the first year the AEA began tracking sales.
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. It does not include repairs and overhauls, extended warranty, or subscription services.
Of the more than $2.2 billion in sales in 2016, 50.6% came from forward-fit (avionics equipment installed by airframe manufacturers during original production) sales, or more than $1.14 billion. That marked the lowest dollar amount of forward-fit sales recorded in the last four years, according to AEA officials.
By contrast, the retrofit (avionics equipment installed after original production) market showed an increase in its percentage of total sales for the fourth straight year. Retrofit sales amounted to 49.4% of sales in 2016, while the retrofit market accounted for 49.1% of total sales in 2015, 48.6% in 2014; and 45.9% percent in 2013.
According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 66.3% of the 2016 sales volume occurred in North America, while 33.7% took place in other markets.
“It is disappointing that total worldwide sales have decreased in each of the last two years,” said AEA President Paula Derks. “However, we did see some progress made in the fourth quarter. This marks the second straight year where the fourth quarter was the strongest period for sales, so it will be interesting to observe whether those late-year surges continue into future years.
“We are also seeing an increasing amount of sales taking place in the retrofit market, which increased its percentage of total sales for the fourth straight year,” she continued. “In fact, the fourth quarter of 2016 was only the second quarterly period where the majority of sales took place in the retrofit market.”
The AEA introduced its first 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, according to AEA officials. 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.
To 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 participating in the report include:
- ALTO Aviation
- Anodyne Electronics Manufacturing Corp.
- Aspen Avionics
- Cool City Avionics
- FreeFlight Systems
- Genesys Aerosystems
- Gogo Business Aviation
- Honeywell Business & General Aviation
- Jupiter Avionics
- Latitude Technologies
- L3 Aviation Products
- Mid-Continent Instruments and Avionics
- PS Engineering
- Rockwell Collins
- Sandia Aerospace
- Shadin Avionics
- Trig Avionics
- Universal Avionics Systems Corp.