AEA Unveils 2022 Market Report

AEA Unveils 2022 Market Report

The Aircraft Electronics Association (AEA), an organization dedicated to advocating for its member companies within the aviation industry, has recently unveiled its 2022 Year-End Avionics Market Report. This report shows that several records within the market have been broken as increasing avionics sales continue.

The AEA has 1,300 member companies across the world in 40 countries. Founded in 1957, the organization aims to provide education, communication, and advocacy for its members. Annually, the AEA releases a report that summarizes the avionics market and explores various trends that occurred throughout the year. This data is gathered partially through many of the AEA’s member companies, including Garmin, Honeywell Business and General Aviation, Collins Aerospace, Blue Avionics, and Anodyne Electronics Manufacturing Corporation. With 2022’s report now available, the organization highlights the record-breaking revenue in sales of avionics.

Across the entire world, avionics sales generated over $2.8 billion in 2022. This dollar amount is a 21.5% increase from 2021, making it the largest annual percentage increase in the report’s 11 year history. In the fourth quarter of 2022 (October, November, and December), the AEA noted that avionics sales increased by 31.2% when compared to the fourth quarter of 2021. This also breaks a record, as it is the largest quarterly year-over-year percentage increase in the report’s history. Fourth quarter 2022 also boasted impressive growth compared to the third quarter of 2022, seeing a 7.2% increase in revenue. Overall, this is the market’s 10th consecutive quarter of increasing sales.

In the first three quarters of 2022, retrofits accounted for just under half of total sales, at 44.2%, 47.3%, and 45% for the first, second, and third quarters respectively. However, by the fourth quarter, retrofits accounted for over half (55.6%) of avionics sales. Geographically, the United States and Canada were by far the largest markets for avionics. The two countries combined never accounted for less than 70% of total sales. In 2022 overall, the U.S. and Canada were responsible for 74.9% of avionics sales.

Despite the challenges the industry is experiencing, the avionics market is showing positive signs of strong growth. As Mike Adamson, President and CEO of AEA, explained, “We have seen yearly sales rebound the last two years despite supply chain constraints and a tight labor market. While it’s encouraging to see a record-breaking percentage increase in year-over-year avionics sales, the industry is still rebounding from the economic impact of the pandemic. The $2.8 billion in sales for 2022 falls short of the 2019 year-end sales when industry notched a record $3 billion just prior to the international health crisis, but we are trending in the right direction with positive gains over the past 10 quarters.”

As the aviation industry continues to recover from the pandemic, the AEA’s 2022 Year-End Avionics Market Report has demonstrated the industry’s resilience and continued growth toward pre-pandemic levels. While this report cannot be used to accurately predict future sales, it seems recovery and growth has been a consistent trend within the avionics market.

 

The post AEA Unveils 2022 Market Report appeared first on Avionics International.

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