Projects 4.8% Expansion Through 2019

The global market for commercial avionics equipment is expected to grow at a rate of 4.8% through 2019, according to a recent forecast from Avascent Analytics.

The company bases its projection in part on 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 1100 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 this topline, $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%, driven primarily by ongoing maintenance and upgrade requirements for major existing legacy platforms like the Boeing 777 and Airbus A320 family.

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%. 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. Nonetheless, the introduction of the Airbus A320neo and the Boeing 737MAX will together account for over 2,300 deliveries through 2019.

Additionally, the recent 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.

FMI: www.avascent.com