Retrofit Market Boosts Avionics Sales by 4.1 Percent Over First Nine Months of Last Year

LEE'S SUMMIT, MISSOURI, Nov. 16, 2017 -- The Aircraft Electronics Association released its third-quarter 2017 Avionics Market Report. 

In the first nine months of the year, total worldwide business and general aviation avionics sales amounted to $1,732,915,016.06, or more than $1.73 billion as reported by the participating companies. 

The figure represented a 4.1 percent increase in year-over-year sales compared to the first nine months of 2016 amount of $1,664,109,078.49. 

Sales during the third-quarter months of July, August and September in 2017 were $587,941,517.00, a 7.1 percent increase compared to the 2016 third-quarter sales of $548,849,118.30. 

Of the more than $1.73 billion in sales during the first nine months of 2017, 57.7 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 42.3 percent of sales. 

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 73.5 percent of sales in the first nine months of 2017 occurred in North America (U.S. and Canada), while 26.5 percent took place in other international markets. 

"The third-quarter report indicates that the retrofit market appears to be thriving, as those sales have increased more than 28 percent in the past year," said AEA President Paula Derks. "To further that point, retrofit sales increased more than 32 percent during the third-quarter months alone. This is consistent with what shop owners in the United States have been telling me during our AEA Connect Conferences this fall, as many have a backlog of work ranging anywhere from two to six months. I am hopeful that the retrofit market will remain healthy as we get closer and closer to the Jan. 1, 2020, deadline for aircraft to be equipped with ADS-B Out avionics in the U.S." 

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

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. 

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.