Total sales exceed $614 million for three-month period;
sales rise to more than $1.9 billion in first nine months of 2014.
LEE'S SUMMIT, MISSOURI, Nov. 18, 2014 -- The Aircraft Electronics Association released its third-quarter 2014 Avionics Market Report.
In the three-month period of July, August and September 2014, total worldwide business and general aviation avionics sales amounted to $614,406,537.56, or more than $614 million.
The figure represented a 5 percent decrease in sales compared to the third-quarter 2013 amount of $646,888,397.14, or more than $646 million as reported a year ago by the participating companies.
The third-quarter 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," said 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.
|First nine months of 2014
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.
"This report provides valuable information to promote the business and general aviation avionics industry to investors and inform elected officials of its global economic value," Derks said.
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
- Cool City Avionics
- FreeFlight Systems
- Genesys Aerosystems
- Gogo Business Aviation
- Honeywell Business & General Aviation
- 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.