Avionics Sales Drop in Third Quarter, Says AEA

Avionics sales reported by companies participating in the Aircraft Electronics Association Market Report reached $1.664 billion in the first nine months, down 6.7 percent from last year's $1.774 billion. Third-quarter sales for 2016 were $549 million, down 5.7 percent from $582 million a year ago. 

There were 21 avionics manufacturers that reported during this latest period, and the dollar amount includes components 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.

Third-quarter sales broke down as 53.2 percent (more than $884 million) for forward-fit; and retrofit sales of 46.8 percent (more than $779 million). For the first nine months, North America (U.S. and Canada) accounted for 66.6 percent of sales and other international markets accounting for the remaining 33.4 percent, according to the AEA.

“It is disappointing that total worldwide sales have decreased in each of the first three quarters of the current year compared to those same time frames one year ago,” said AEA president Paula Derks. “Although the U.S. market has seen the equipage pace pick up slightly for avionics installations to meet the FAA's ADS-B _OUT mandate, that has not translated into an uptick in overall avionics sales. Last year, the strongest period for sales was the fourth quarter, so it will be interesting to note whether that late-year surge continues again this year.”