Avionics sales for general aviation aircraft, including bizjets, exceed $614 million in Q3 2014, says AEA

LEE'S SUMMIT, Mo., 19 Nov. 2014. Total worldwide avionics sales for business and general aviation exceeded $614 million in the three-month period from July through September 2014, according to the Aircraft Electronics Association (AEA) third-quarter 2014 Avionics Market Report. This figure represents a five (5) percent decrease in year-over-year sales; sales in the third-quarter 2013 reached more than $646 million.

The third-quarter 2014 amount brings total worldwide sales for the first nine months of 2014 to $1,918,282,585.36, or more than $1.9 billion.

Despite the third quarter indicating a slowdown in sales compared to the first and second quarters of 2014, this year's sales are up 2.7 percent compared to the first nine months of 2013, which totaled $1,868,096,452.12.

"While it is disappointing to see the third-quarter sales drop slightly compared to the first half of the year, the industry has experienced modest year-over-year growth in sales compared to the first nine months of 2013," affirms Paula Derks, AEA president. "The report is only in its second year of quarterly reporting, so it's difficult to draw any conclusions on seasonality of sales just yet; however, this will be worth watching in future years."

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 $614 million in total sales in the third quarter, $323,685,864.93, or more than $323 million, came from forward-fit (avionics equipment installed by airframe manufacturers during original production) sales and comprised 52.7 percent of total sales. Retrofit (avionics equipment installed after original production) sales amounted to $290,720,672.63, or more than $290 million, comprising 47.3 percent of total sales.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 63.4 percent of the sales volume occurred in North America (U.S. and Canada), while 36.6 percent took place in other international markets.

The AEA first introduced its Avionics Market Report March 26, 2013, during the 56th annual AEA International Convention & Trade Show in Las Vegas, Nevada. 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.

To ensure confidentiality, the participating manufacturing companies submit their sales figures to an independent third-party accounting firm retained to produce the AEA Avionics Market Report. The companies currently participating in the report include:

Accord Technology

Alto Aviation

Anodyne Electronics Manufacturing Corp.

Aspen Avionics

BendixKing

Cool City Avionics

FreeFlight Systems

Garmin

Genesys Aerosystems

Gogo Business Aviation

Honeywell Business & General Aviation

ICG

Jupiter Avionics

Latitude Technologies

L-3 Aviation Products

Mid-Continent Instruments and Avionics

PS Engineering

Rockwell Collins

Sandia Aerospace

Shadin Avionics

Trig Avionics

Universal Avionics Systems Corp.

The number of companies that participate in the AEA Avionics Market Report may change on a quarterly and/or annual basis, and any comparative analysis of the data should take this 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.

Founded in 1957, the Aircraft Electronics Association represents nearly 1,300 member companies in 43 countries, including government-certified international repair stations specializing in maintenance, repair and installation of avionics and electronic systems in general aviation aircraft. The AEA membership also includes manufacturers of avionics equipment, instrument repair facilities, instrument manufacturers, airframe manufacturers, test equipment manufacturers, major distributors, engineers and educational institutions.