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Commercial Avionics Catches Tailwind with the Introduction of Novel Systems Finds Frost & Sullivan - Prolific aircraft production in the last few years as well as unprecedented retrofit and aftermarket sales have resulted in record profits for avionics manufacturers
Commercial Avionics Catches Tailwind with the Introduction of Novel Systems Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2009/09/16 - Prolific aircraft production in the last few years as well as unprecedented retrofit and aftermarket sales have resulted in record profits for avionics manufacturers.

   
 
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However, both business and general aircraft manufacturers are increasingly trimming their production due to the economic slowdown and high prices of fuel. In fact, air transport aircraft production will decline by four percent by 2010, and business and general aviation aircraft production will be cut in half by 2010. In such altered circumstances, avionics manufacturers will have to re-strategize to stay afloat and design leaner operations and foray into niche markets.

New analysis from Frost & Sullivan (aerospace.frost.com), World Commercial Avionics Markets, finds that the market earned revenues of $5.42 billion in 2007 and estimates this to reach $6.55 billion in 2013 after a brief dip in revenues in 2009 and 2010.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, send an email to David Escalante, Corporate Communications, at descalante_pr[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

Although the overall growth will be relatively flat over the next five years, some market segments such as integrated modular avionics (IMA), glass cockpits, and enhanced awareness devices will likely exhibit more positive growth rates.

"The 787 and A350 will both use IMA, which opens a new window of opportunities for component manufacturers," says Frost & Sullivan Research Analyst Wayne Plucker. "Glass cockpits are now the standard, even in piston aircraft, while enhanced vision systems, synthetic visions systems, and heads-up displays are also making major inroads into the market."

These newer technologies are avionics manufacturers' best bet to maintain market momentum until aircraft production starts to recover. Avionics manufacturers that operate in both the air transport and business aircraft segments are best fit to survive these trying market conditions.

Manufacturers that produce the newer technology systems can find buyers that traditional suppliers cannot. As the air transport market will likely be the least affected by the downturn and the quickest to recover, manufacturers in this market space will be well positioned to grow in the next five years.

Avionics manufacturers will also feel encouraged by the introduction of several programs that compel aircraft producers to include advanced avionic systems in their aircraft.

"Over the last several years, operators have included Reduced Vertical Separation Minimum (RVSM) criteria as part of heavy maintenance check or as individual programs," notes Plucker. "The upcoming changes driven by Automatic Dependent Surveillance-Broadcast (ADS-B) and the related Required Navigation Performance programs will have a similar effect on the air transport market."

Older aircraft could need substantial hardware changes to comply with the 2020 U.S. implementation date and the earlier proposed European Cascade program, thereby making a case for commercial avionics.

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

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

World Commercial Avionics Markets / N0FA

 
 
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Commercial Avionics Catches Tailwind with the Introduction of Novel Systems Finds Frost & Sullivan

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