SOURCE: Frost & Sullivan

Frost & Sullivan

March 10, 2011 08:15 ET

Frost & Sullivan: Turbulent Commercial Avionics Market to Stabilize Once Aircraft Production Picks Up

MOUNTAIN VIEW, CA--(Marketwire - March 10, 2011) - The negative effect of the economic downturn and the high prices of fuel on the transport aircraft market mirrored itself in the business aircraft and the general aviation aircraft markets. While aircraft transportation production declined by 4 percent in 2010, business and general aviation aircraft production experienced a 40 percent cut in 2010. This slowdown comes after years of record aircraft production and will put the brakes on avionics manufacturing.

New analysis from Frost & Sullivan (http://www.aerospace.frost.com), World Commercial Avionics Market, finds that the market earned revenues of $6.67 billion in 2009 and estimates this to reach $8.64 billion in 2014, after a dip in revenues in 2009 and 2010.

If you are interested in a virtual brochure on this study, please send an e-mail to Sarah Saatzer, Corporate Communications, at sarah.saatzer@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

The retrofit and aftermarket sales in previous years had resulted in unprecedented profits for avionics manufacturers. However, currently, they have to streamline their operations and investigate niche markets to stay afloat. Manufacturers in both the air transport and business aircraft markets can weather this turbulent phase if there are only limited cancellations or deferrals of orders.

Although manufacturers will be hard hit by the dip in production for the next five years, the growth in the individual parts of integrated modular avionics (IMA), glass cockpits and enhanced awareness devices will go a long way in helping them keep their heads above water.

For instance, both 787 and A350 use IMA, opening up a new window of opportunity for component manufacturers. Glass cockpits are also finding considerable uptake among new air transport aircraft and is becoming a regular fitting in new business and general aviation aircraft.

"Glass cockpits are now the standard, even in piston aircraft," says Frost & Sullivan research analyst Wayne Plucker. "Enhanced vision systems, synthetic visions systems and heads-up displays are also making inroads into the market."

Avionics manufacturers have to rely on newer technologies to provide growth opportunities until aircraft production starts to recover. Older aircraft could need significant hardware changes to comply with the 2020 U.S. implementation date of the Automatic Dependent Surveillance-Broadcast (ADS-B) and the related Required Navigation Performance programs.

"As the air transport market is likely to experience lesser contraction and a quicker recovery, manufacturers in that market space will be well positioned for growth after five years," notes Plucker. "Manufacturers that develop newer technology systems are likely to find novel applications that traditional suppliers cannot."

World Commercial Avionics Market is part of the Aerospace Growth Partnership Services program, which also includes research in the following markets: commercial and military aviation, homeland security, C4ISR, maintenance repair and overhaul, and unmanned aerial systems. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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World Commercial Avionics Market
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