LEE'S SUMMIT, MISSOURI, Aug. 15, 2016 -- The Aircraft Electronics Association released its second-quarter 2016 Avionics Market Report.
In the first six months of the year, total worldwide business and general aviation avionics sales amounted to $1,115,259,960.19, or more than $1.1 billion as reported by the participating companies.
The report indicated a 6.5 percent decrease in year-over-year sales compared to the first six months of 2015 amount of $1,192,619,894.32.
Sales during the second-quarter months of April, May and June were $549,161,254.23, a 9.3 percent decrease compared to the 2015 second-quarter sales of $605,519,681.40.
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 $1.1 billion in sales during the first six months of 2016, 54.3 percent came from forward-fit (avionics equipment installed by airframe manufacturers during original production) sales, or more than $605 million.
By contrast, the retrofit (avionics equipment installed after original production) market amounted to 45.7 percent of sales during the first six months of the current year, or more than $509 million.
According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 66.8 percent of sales in the first six months occurred in North America (U.S. and Canada), while 33.2 percent took place in other international markets.
"With so many new and innovative avionics products introduced to the general aviation market in the first half of the year, it is disappointing to see decreasing sales figures compared to the first six months of 2015, particularly in the retrofit market," said AEA President Paula Derks. "The lower sales figures are somewhat surprising given the fact that the deadline to equip aircraft flying in U.S. controlled airspace with ADS-B Out avionics is only 40 months away, and the fact that we have seen a slight uptick in the ADS-B equipage pace this year. It will be interesting to see future sales reports following the recent AirVenture Oshkosh event that brought even more avionics products to market, along with the FAA's ADS-B Rebate program expected to begin later this year."
More information about the AEA Avionics Market Report is available online at www.aea.net/marketreport.
