February 17, 2021
AEA publishes 2020 year-end Avionics Market Report
The Aircraft Electronics Association on Feb. 9 released its 2020 year-end Avionics Market Report with total worldwide business and general aviation avionics sales for the year amounted to more than US$2.2 billion, as reported by the participating companies – allowing for some variance in their reported year-end numbers.
The above dollar amount from Aircraft Electronics Association’s (AEA) 2020 report, represents a 26 per cent decrease in total year-end sales when compared to the 2019 report, which set a record-high total topping US$3 billion. The year 2020 also marked the lowest amount of sales in the report’s nine-year history. During the fourth-quarter months of October, November and December, sales decreased 28.1 per cent compared to the same time frame one year ago.
AEA notes, however, that since COVID-19 began to negatively impact industry-wide sales near the end of the first quarter of 2020, the industry has experienced healthy sales growth during the last six months of the year. For example, AEA reports after total sales bottomed out in the second quarter of 2020, third-quarter sales increased 5.9 per cent with retrofit sales up 10.8 per cent compared to the second quarter. That upward trend continued with fourth-quarter sales, notes AEA, increasing another 8.5 per cent with retrofit sales up 15.3 per cent compared to the third quarter.
AEA reports, that of the more than US$2.2 billion in sales in 2020, 55.9 per cent 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 44.1 per cent of sales.
According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 73.8 per cent of the 2020 sales volume occurred in North America (U.S. and Canada), while 26.2 per cent took place in other international markets.
“The last half of 2020 provided a softer landing as yearly sales totals slid back to roughly the same numbers in 2016-17,” said Mike Adamson, CEO, AEA. “Despite the health crisis and its economic impact, I am encouraged that industry experienced steady growth during the last half of the year.
“Although 2020 year-end sales are significantly down from last year’s all-time high, we see positive signs in the retrofit market, which means our members are keeping busy with avionics upgrades,” continued Adamson. “We are hopeful the combination of innovative new products, the resilience of consumers who continue to focus on upgrades, and an uptick in aircraft production can fuel more sales growth in 2021.”