The Aircraft Electronics Association (AEA) published its second quarter 2022 business and general aviation avionics sales report this week. (Photo courtesy of Duncan Aviation)
Global sales of business and general aviation avionics increased by 15.8% to more than $1.3 billion during the first six months of 2022, according to the second quarter report published by the Aircraft Electronics Association (AEA) this week. Between April and June, based on the avionics suppliers that participate in AEA's report, sales increased 19.9% to $708 million compared to the same period a year ago.
The latest report published by AEA is the eighth consecutive quarter where sales of business and general avionics equipment has increased. Forward-fit sales of electronics featured on new in-production aircraft represented 54.2% of total sales during the first half of the year, according to the report.
Collins Aerospace, Garmin, Gogo Business Aviation, and Honeywell Aerospace are among the 21 different avionics manufacturers that participated in the second quarter report, a number that AEA notes can change periodically due to mergers and acquisitions or new companies participating.
The report comes following several quarterly earnings calls where executives from most of the companies participating in AEA's report discussed supply chain issues disrupting the development of some new technologies. Garmin, for example, reported a 13% revenue increase to $205 million for its aviation segment during the second quarter and expects total revenue growth in the segment to increase by 10% this year.
"During the quarter, supply chain constraints eased bringing back orders down from historically high levels, but we have more work to do to meet the strong demand for our products," Garmin CEO Cliff Pemble said during their second quarter earnings call.
Gogo Business Aviation CEO Oakleigh Thorne also told investors last week that the launch of their 5G in-flight connectivity (IFC) service could be delayed until mid-2023 due to a testing delay that their computer chip supplier Airspan is going through. Canada's ADS-B airspace mandate has also been delayed by six months because of supply chain constraints, according to their Aug. 2 announcement.
AEA President and CEO Mike Adamson said the avionics sales increase reported for the first six months of the year are encouraging, but also cautioned about "inflationary pressures that could factor into that increase."
"Companies participating in the market report indicated they had increased their prices nearly 6%, which is substantial, yet below the 8.5% rise in the U.S. annual consumer price index reported in July," Adamson said in a statement. "The effort to manage and maintain the flow of products by our avionics OEMs dealing with supply constraints and the ever-increasing cost to produce and re-certify their products is extraordinary."