This website uses cookies
More information
Business Air News
Business Air News
The monthly news publication for aviation professionals.
See more information from the Business Air News Handbook...
The monthly news publication for aviation professionals.

Request your printed copy

Read our latest feature:   Bonus distribution: ACE'22
Avionics business continues trend of growth
The AEA is encouraged by growing sales, but worries about inflationary pressures. The effort by avionics OEMs to manage the flow of products while dealing with supply constraints and increasing costs is extraordinary.

In the first six months of the year, total worldwide business and general aviation avionics sales amounted to more than $1.3 billion as reported by the participating companies.

The Aircraft Electronics Association second quarter 2022 Avionics Market Report shows that second quarter sales increased 11.7 per cent sequentially from the first quarter of 2022, marking the eighth consecutive quarter of increasing sales. During the second quarter months of April, May and June, sales increased 19.9 per cent compared to the same time one year ago.

The figure represented a 15.8 per cent increase in total sales compared to the first six months of 2021, which was driven by a 35.6 per cent increase in forward-fit sales compared to the same time one year ago.

The more than $373 million in forward-fit sales marks the second largest sales total in that category in the report's history, just shy of the more than $376 million reported in the second quarter of 2019.

The dollar amount reported, using the net sales price rather than the 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 non-certified 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 $1.3 billion in sales during the first half of 2022, 45.8 per cent came from the retrofit market, namely avionics equipment installed after original production, while forward-fit sales, ie avionics equipment installed by airframe manufacturers during original production, amounted to 54.2 per cent of sales.

According to the companies that separated their total sales figures between North America, namely US and Canada, and other international markets, 73.6 per cent of the year-to-date sales volume occurred in North America, while 26.4 per cent took place in other international markets.

"It is encouraging to see sales continue to climb, up nearly 16 per cent compared to the first six months of 2021, but we also must consider the inflationary pressures that could factor into that increase," says AEA president and ceo Mike Adamson. "Companies participating in the market report indicated they had increased their prices nearly six per cent, which is substantial, yet below the 8.5 per cent rise in the US annual consumer price index reported in July. The effort to manage and maintain the flow of products by our avionics OEMs dealing with supply constraints and the ever-increasing cost to produce and recertify their products is extraordinary."

Other News
 
SkyLink ready for crewed aircraft installation
September 12, 2022
Blue Sky’s 2x award-winning connectivity platform SkyLink is now DO-160G qualified for aviation. It is the first certified Iridium Certus 100 airborne solution offering mid-band satellite data and high-definition voice.
New aircraft deliveries continue to increase
August 30, 2022
GAMA makes top level placements
August 2, 2022
Pre-owned market shows signs of stabilising
July 21, 2022
After two years of heated sales volume, the global pre-owned business aircraft market is beginning to show signs of stabilising. IADA members put forward their assessments of cause and effect.