AEA unveils third-quarter 2023 Avionics Market Report

The Aircraft Electronics Association released its third-quarter 2023 Avionics Market Report. In the first nine months of the year, total worldwide business and general aviation avionics sales amounted to $2,415,800,131.52, or more than $2.4 billion as reported by the participating companies.

During the third-quarter months of July, August and September, sales increased 9.9% compared to the same time frame one year ago. Although third-quarter sales decreased 1.1% sequentially from the second quarter of 2023, the more than $814 million in sales during the third quarter marked the second-highest quarterly sales volume in the history of the report and is only surpassed by the previous quarter.

First nine months of 2023 worldwide business and general aviation avionics sales

Quarter

Retrofit

Forward-fit

Total Sales

1Q 2023

$309,902,153.36

$467,738,234.12

$777,640,387.48

2Q 2023

$333,230,540.00

$490,543,785.00

$823,774,325.00

3Q 2023

$339,636,698.27

$474,748,720.77

$814,385,419.04

YTD 2023

$982,769,391.63

$1,433,030,739.89

$2,415,800,131.52

The figure represented a 15.9% increase in total sales compared to the first nine months of 2022, which was driven by a 26.2% increase in forward-fit sales compared to the same time frame one year ago.

Also of note, quarterly forward-fit sales topped $400 million for only the fourth time in the history of the report.

First nine months of 2023 worldwide business and general aviation avionics sales

2022

2023

% Change

Retrofit

$949,025,366.35

$982,769,391.63

3.6%

Forward-fit

$1,135,469,478.08

$1,433,030,739.89

26.2%

YTD

$2,084,494,844.43

$2,415,800,131.52

15.9%

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 $2.4 billion in sales during the first nine months of 2023, 40.7% 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 59.3% of year-to-date sales.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 73.3% of the sales volume in the first nine months of 2023 occurred in North America (U.S. and Canada), while 26.7% took place in other international markets.

2023 percentage of total sales by market

Quarter

Retrofit

Forward-fit

1Q 2023

39.9%

60.1%

2Q 2023

40.5%

59.5%

3Q 2023

41.7%

58.3%

YTD 2023

40.7%

59.3%

2023 percentage of total sales worldwide

Quarter

U.S./Canada

Other International

1Q 2023

74.5%

25.5%

2Q 2023

71.5%

28.5%

3Q 2023

73.9%

26.1%

YTD 2023

73.3%

26.7%

All dollar amounts noted are U.S. dollars. 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.

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.

"The industry continues to produce robust forward-fit sales," said AEA President and CEO Mike Adamson. "However, the retrofit market has grown only 3.6% year-over-year in sales. Even with persistent challenges in the supply chain, avionics manufacturers have done an extraordinary job managing issues and report improvement in product lead times compared to last year. While it's encouraging that more products are able to get to market, we still face capacity issues due to workforce needs. Our members report their backlogs continue to increase as their need for technicians grows."