ID: MRFR/A&D/7145-HCR | 168 Pages | Published By Swapnil Palwe on March 2023
Aviation Analytics Market Size Valued at USD 9.1 Billion ,market Grow at a CAGR Of 18.20% by 2022 -2030
$USD 9.1 Billion
The aviation analytics market size is projected to reach approximately USD 9.1 billion by 2030, at a CAGR of 18.20% from 2022 to 2030. Aviation analytics is the computational technology that aids in serving the aviation sector with statistical data. It provides end-users with real-time flight data, weather predictions, airport operating data, and statistical flight data. The demand for crucial analytics by enterprises is driving the aviation analytics market growth. It aids businesses in increasing their portion of profits. Organizations can improve performance, raise revenue and profit, and save costs associated with product manufacturing. Aviation analytics solutions are being adopted by a growing number of enterprises ly as these systems help them lower costs, enhance maintenance and performance, and boost profitability and revenue. Applications for these systems in the aviation sector include risk management, inventory management, customer analytics, revenue management, and fuel management. They are employed in various commercial fields, such as operations, finance, sales and marketing, and upkeep & repair. Hence, all these factors drive the aviation analytics market size over the forecast period.
COVID-19 Impact Analysis
The COVID-19 pandemic has had a significant overall influence on the market. Due to delays in new aircraft delivery, the market is seeing a decline in demand for airport analytics software services. Additionally, a slowdown in the economy has moderately affected the purchase of new aircraft in several nations. A report by the International Air Transport Association (IATA) claims that the number of jobs supported by aviation could decrease from 46 million to 41.7 million (a decrease of -52.5%) and that domestic and international revenue passenger kilometers (RPKs) decreased by 65.9% from 2019 to 2020. From 2019 to 2020, Boeing's revenue fell by as much as -24.04 percent.
Aviation Analytics Market Dynamics
As per the aviation analytics market research analysis, most businesses have embraced aviation analytics since these tools help them increase operational effectiveness, profitability, and maintenance. By assisting businesses in creating an analytical response to future demands, such as client needs, aviation analytics also enables them to maximize operating income. Fuel management, customer analytics, revenue management, and risk management are a few ways the aviation sector uses aviation analytics solutions. Using aviation analytics solutions, enterprises may evaluate, monitor, and analyze their business goals, risks, and future growth. The market for aviation analytics is expanding quickly due to all of these causes.
The airline industry is increasingly utilizing aviation analytics to boost profits and reduce costs. Fuel requirements and baggage loss costs have decreased due to the rising demand for aviation analytics. Using automated systems with built-in machine learning algorithms, airlines gather and analyze flight data such as route length and altitude, aircraft type and weight, weather, and more. Based on data analysis findings, systems determine the right amount of fuel needed for a trip. Airlines spend 22.1% of their operating expenses on fuel, according to an IATA 2020 report. Airlines have started implementing cutting-edge technologies to lower this operating expense. The expansion of the aviation analytics market is anticipated to be aided by this.
Aviation analytics must effectively study large volumes of data, and for that, it is necessary to engage qualified specialists. Technical expertise, as well as analytical capabilities, are essential for model development. Additionally, many small businesses cannot afford the labor needed for analytics due to financial limitations. As a result, the lack of professionals hampered the market's expansion.
Real-time reactions to present and future market demands, better planning & decision-making, and a clear understanding and monitoring of all vital performance variables are all advantages of big data analytics for airlines. By achieving this, the airlines reduced operating costs, became more competitive in the market, and boosted profit margins. For instance, Corsair and Skywise of Airbus inked a deal for a predictive maintenance system in September 2020. A pioneering open data platform for the aviation industry, Skywise was created by Airbus. Additionally, Airbus developed Skywise Predictive Maintenance, an extraordinary fusion of aircraft connection and engineering know-how, intending to reduce airline operational interruptions and costs dramatically. Additionally, many airlines have experienced considerable cost reductions and market share gains due to implementing Big Data analytics. The user experience is improved while operational costs in aviation are decreased. As a result, the software is now more in demand for applications like smart maintenance, demand forecasting, performance monitoring, and consumer segmentation.
The aviation analytics market segmentation, based on components, is services and solutions. The solution segment held a major share in 2021 due to the rising need for specialized aviation analytics solutions that can address uncertainties in the aviation industry. The solutions segment is anticipated to dominate the market over the projected period. Besides this, the services segment is expected to be the fastest-growing segment as it concentrates on particular targeted areas. The services section provides on-demand features of aviation analytics, such as weather reporting and navigation.
The aviation analytics market segmentation, based on the development, is on-premise and cloud. The on-premise segment had a prominent share in 2021. On-premise installations give businesses more freedom and control over tailoring their IT infrastructure while decreasing their reliance on the internet and safeguarding sensitive company information from theft and fraud. These advantages are projected to persuade major enterprises to choose an on-premise deployment. However, the cloud segment is anticipated to be the fastest growing due to the demand for cloud solutions to expand as IoT and cloud computing becomes more widely adopted.
Business Function Insights
The aviation analytics market report segmentation, based on business function, is finance, operation, maintenance & repair, sales & marketing, and supply chain. The sales & marketing segment had a prominent share in 2021. Data on passenger sales and advertising are jointly gathered by airport management using analytics software. This enables the management to decide more effectively. Besides this, the finance segment is anticipated to be the fastest growing as airport finance analytics covers a range of topics, including the airport's revenues, expenses, profitability, payables and receivables, assets, profitability, and essential financial ratios. Due to these factors, airports are embracing and investing in this market more and more.
The aviation analytics market segmentation, by application, is flight risk management, fuel management, route management, fleet management, inventory management, wealth management, inspection, performance monitoring, predictive analysis, part replacement, supply chain planning, energy management, emergency management, mobility & functionality, and others. In 2021 the flight risk management segment had a major market share. This is because the need for flight risk management software is rising as there is a greater need to improve safety and minimize operational concerns. However, fuel management is anticipated to be the fastest growing due to fuel being an aircraft's most expensive direct operating expense. Airlines can efficiently monitor fuel use and keep operational costs under control using fuel management software. The demand for this market segment is anticipated to rise in the upcoming years.
The aviation analytics market segmentation, by end-user, is OEMs, aircraft OEMs, engine OEMs, airlines, small airlines, medium airlines, large airlines, airports, small airports, medium airports, large airports, MROs, small MROs, medium MROs, and large MROs. In 2021, the airline segment dominated the market due to the increased number of airports in various countries to meet the growing demand for air travel. Besides, the OEMs segment was the fastest growing sector because there was a great need for aviation software, and more airports needed data analytics.
Global Aviation Analytics Market Share, by Region, 2021 (%)
Aviation Analytics Market Overview, by Region
The aviation analytics market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific is projected to exhibit the highest CAGR during the review period.
North America dominated the aviation analytics market share in 2021. The United States has the largest fleet of aircraft, the greatest number of aircraft operators, and high demand for aviation sector innovation, which all contribute to the expansion. Additionally, it is projected that the presence of important players like Honeywell International, Inc., Boeing, Collins Aerospace, General Electric, IBM, Oracle, and L3Harris Technologies, Inc. would help the growth of the aviation analytics market.
Asia-Pacific had the fastest growth rate in 2021. The market for aviation analytics has benefited from the rising demand for greater functional efficiency and a successful supply chain. One of the main factors drawing aircraft OEMs and MRO solution providers to the Asia-Pacific region is the availability of start-ups offering analytics solutions, such as IBS Software Services, where specially crafted solutions can be purchased. Aviation analytics solution providers in China and India are receiving contracts from aircraft original equipment manufacturers, including Boeing and Airbus. After COVID-19, the region is expected to exhibit signs of healthy growth.
Aviation Analytics Market Competitive Landscape
The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach with diverse product portfolios. In aviation, Boeing is a pioneer in developing cutting-edge software solutions. It provides Boeing AnalytX, a set of tools and consulting services that assist airlines in gleaning insights from operational data and using those insights to boost productivity, allocate resources more effectively, and cut costs. To further help customers achieve their requirements and goals, companies offer three interrelated categories of analytics-enabled goods and services: digital solutions, consulting services, and self-service analytics. For instance, in July 2022, General Electric, Microsoft, and Teradata signed a Memorandum of Understanding to reduce carbon emissions. The three companies intend to start working together to develop a product that will provide pilots with the equipment to monitor emissions, report them, and take immediate action to minimize them. The collaboration brings together the software solutions of three leading organizations to address the issue of reducing aviation emissions. Furthermore, in July 2022, Askdata, a start-up specializing in search-driven analytics, was purchased by SAP SE to enhance that company's ability to assist businesses in making better-informed decisions. Users can use real-time data to their fullest potential by searching, interacting with it, and collaborating. The specialized Askdata experience, accessible in many languages, connects live to source apps without moving data and maintains the whole business context to provide informative responses and proactive insights.
Prominent players in the aviation analytics market include IBM, General Electric, Oracle Corporation, Sap Se, Ramco Systems, Capgemini, Hexaware Technologies, Honeywell International, Lufthansa Technik, IFS Ab, Winair, Sas Institute, Sita, Booz Allen Hamilton, Mercator, Atheer Air, Mu Sigma, Swiss Aviation Software, Graymatter Software Services, Beep Analytics, Zestiot, Ibs Software Services, Aviation Intelligence, Innodataics Inc., and Aeroficial Intelligence, among others.
Scope of the Aviation Analytics Market Report
Business Function Outlook
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Aviation Analytics Market Forecast & Size:
To identify and estimate the market size for the aviation analytics market segmented by form, routes of administration, product, application, end-user, and source by value (in US dollars). Also, to understand the consumption/ demand created by consumers of Aviation analytics between 2022 and 2030
Market Landscape and Trends:
To identify and infer the drivers, restraints, opportunities, and challenges for the aviation analytics market
Market Influencing Factors:
To find out the factors which are affecting the sales of aviation analytics among consumers
Impact of COVID-19:
To identify and understand the various factors involved in the aviation analytics market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||2030: USD 9.1 billion|
|CAGR||18.20% CAGR (2022-2030)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Development, Business Formation, Application, and End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and the Rest of the World (RoW)|
|Key Vendors||IBM, General Electric, Oracle Corporation, Sap Se, Ramco Systems, Capgemini, Hexaware Technologies, Honeywell International, Lufthansa Techink, IFSAb, Winair, SasInstitute, Sita, Booz Allen Hamilton, Mercator, Atheer Air, Mu Sigma, Swiss Aviation Software, Graymatter Software Services, Beep Analytics, Zestiot, Ibs Software Services, Aviation Intelligence, Innodataics Inc., Aeroficial Intelligence|
|Key Market Opportunities||The growing demand for big data in aviation analytics|
|Key Market Drivers||Increase in adoption of aviation analytics in airline industry to reduce cost in several ways and increase profit drives the market growth|
The study period of the global aviation analytics market is 2022 - 2030
The aviation analytics market is growing at a CAGR of 18.20% over the next 8 years.
Asia-Pacific is expected to register the highest CAGR during 2022 - 2030
North America held the largest share in 2021
IBM, General Electric, Oracle Corporation, Sap Se, Ramco Systems, Capgemini, Hexaware Technologies, Honeywell International are the major companies operating in the aviation analytics market.