Impact of Technology on Avionics Cost Trends,
Abstract
This study provides an overview of nonmilitary generally aviation and commercial avionics price and cost structures as influenced by technology. It quantifies, computes, and evaluates the unique characteristics and behavior patterns of the industry, especially those that affect the frequency of innovation, the rate of technology diffusion from manufacturer to manufacturer or from product to product, and the anticipated major cost drivers of the future. The report reviews the impact of technology on the cost of avionics during the past 20 years and projects this impact for the next 20 years. This report concentrates on avionics in the low-performance general aviation aircraft category because they are the major components of the avionics industry. Typical units of detailed study are transponders, transceivers, navigation receivers, and course deviation indicators (CDIs). An examination of the price histories of more than twenty equipment families indicates that unit prices have been and are likely to continue increasing at the Producer Price Index (PPI) rate. This rate of price growth results from a balance between costs rising at the Consumer Price Index (CPI) rate and manufacturing cost reductions made possible through the introduction of new technologies. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1981
- Accession Number
- ADA108494
Entities
People
- Kelly Markin
- Steven Toth
- William Lovelace
Organizations
- ARINC