Commercial Avionics Market to Grow 4
[Avionics Today 09 08 14] Avascent Analytics, a strategy and management consulting firm, projects the global market for commercial avionics equipment to grow at a rate of 4.8 percent through 2019. According to the report, this comes as no surprise, bearing in mind the record breaking $201 billion in commitments made by airlines and other customers present at the 2014 Farnborough International Airshow. The order backlog resulting from 1,100 aircraft orders placed over the course of the five day event suggests the global aerospace industry as a whole will likely see considerable growth over the coming years.
Avascent forecasts $21 billion will be spent on commercial avionics systems for fixed wing commercial aircraft in 2015, of which $14.3 billion will be spent on original equipment, and the remaining $6.6 billion will be attributed to spares and repairs orders. Overall market growth is partly driven by increasing demand for avionics spares and repairs. Revenue from this market segment will continue to rise significantly at an annual rate of 10.5 percent, driven primarily by ongoing maintenance and upgrade requirements for existing legacy aircraft such as the Boeing 777 and Airbus A320 family.
The report estimates that the total original avionics equipment for commercial business jets, turboprop and air transport aircraft will reach close to $90 billion over the next five years, growing steadily at a rate of 2 percent. Growth in this segment will take place at a more modest rate due to the fact that production rates of numerous ongoing programs are currently at record breaking levels.
The introduction of the Airbus A320neo and the Boeing 737MAX will together account for over 2,300 deliveries through 2019 and the official launch of the A330neo program will drive demand for new avionics equipment to outfit at least 1,000 new aircraft. Furthermore, high production rates for both the original A320 and 737 variants will persist in the near term due to sizeable discounts made to these older aircraft.