Impact of COVID-19 on the Global Aviation IoT Market
The aviation industry has been witnessing an unprecedented scenario in the past two months due to the COVID-19 outbreak. As flight operations are currently halted, the aviation industry is expected to adopt certain changes in their operations to ensure passenger safety. The pandemic has led to regulations being levied by governments across regions to implement social distancing measures and prevent the spread of the virus. The regulations are expected to enable airline companies and airports to adopt digital solutions for their operations.
Pre-COVID-19 Impact on the Aviation IoT Industry
According to Market Research Future, the global aviation IoT market was estimated to reach USD 38,852.4 million by 2026 due to factors such as increasing investments in smart airports and the rise in passenger traffic. Moreover, countries such as India had the highest growth rate in air traffic passengers, and budget airline companies witnessed a significant rise in demand. A similar trend was observed by other airline companies across Asia-Pacific. The aviation IoT market was expected to witness a double-digit Compound Annual Growth Rate (CAGR) by 2026.
Post-COVID-19 Impact on the Aviation IoT Industry
COVID-19 has negatively impacted the airline industry across the world. Various airline companies have grounded their aircraft fleets and cut-back on their air networks due to lockdowns enforced in several countries. The pandemic has lowered the demand for air travel, which has also reduced the demand for technologies that are implemented in the aviation industry. Airports have also witnessed a significant lowering of passenger footfall, which has led to losses in revenue generated by airports across the world. Furthermore, various budget cut measures have been enforced by the aviation industry, which is expected to reduce the demand for IoT technologies used in these infrastructures. However, technologies such as passenger tracking, database management, and movement monitoring are expected to increase as airports and flight operations resume post-pandemic. We can also expect to see growth in mobile applications used for passenger identification and health indicators to be implemented across airports post the COVID-19 situation.
COVID-19 Impact on the Aviation IoT Industry in Key Regions
North America: North America comprises the US and Canada. The presence of several prominent IT companies such as Cisco Systems, Inc., IBM Corporation, and Microsoft Corporation is expected to drive the regional market growth. These companies have the technological expertise to develop aviation IoT technologies provided aviation companies in this region would be willing to invest in technologies at this point.
Europe: As the European region is currently operating on restricted air networks for air logistics, we can expect innovations in logistics monitoring technologies to be implemented across airlines, provided that the airline companies have the liquidity to implement technologies during this period.
Asia-Pacific: Asia-Pacific comprises China, India, Japan, Australia, Singapore, and Australia. Countries such as India have an extensive IT industry that can develop advanced aviation IoT technologies. However, considering the present scenario, investments from aviation companies in IoT technology would dictate implementation. Government support for the aviation industry across countries is expected to drive the growth of the aviation IoT market in the future.
The Road Ahead
At present, airline companies and airport authorities are facing a liquidity crisis and are expected to receive government support in the coming months. However, due to the complexity of airline and airport operations, the aviation industry must prioritize its needs in the present conditions. Large aviation companies that have sufficient liquidity can implement IoT technologies if flight operations resume and the demand for air travel is restored to normalcy. The future of the aviation IoT market is expected to be largely dependent on the liquidity of aviation companies.
Role of Market Research Future
As a market research and consulting company, Market Research Future has been continuously monitoring and tracking the COVID-19 pandemic and its impact on various markets within the aerospace & defense industry. All our research studies have been updated to accommodate the impact of COVID-19 in the respective market to provide our customers with comprehensive market data along with present and future trends with macro and micro-level impact factors.
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