WASHINGTON, DC -- (Marketwired) -- 09/04/14 -- Avascent projects the global market for commercial avionics equipment to grow at a rate of 4.8% through 2019. 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 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.
These market forecasts are derived from the latest update to the Avascent Analytics Commercial Aircraft Systems toolkit. The data and analysis in this product offers business development and strategy teams a comprehensive view of the avionics market for fixed-wing commercial aircraft, as well as other aircraft components such as engines, cabin interiors, and airframe structures.
Existing users of the Commercial Aircraft Systems toolkit will receive the latest update as part of their current subscription. Avascent encourages those who may be interested in obtaining a subscription to contact Doug Berenson at email@example.com for more information or to request a product demonstration. More information about Avascent Analytics can be found online at www.avascent.com.
Avascent is the leading strategy and management consulting firm serving clients operating in government-driven markets. Working with corporate leaders and financial investors, Avascent delivers sophisticated, fact-based solutions in the areas of strategic growth, value capture, and mergers and acquisitions support. With deep sector expertise, analytically rigorous consulting methodologies, and a uniquely flexible service model, Avascent provides clients with the insights and advice they need to succeed in dynamic customer environments.