Global Aviation Blockchain Market is projected to be valued at USD 1,686.15 Million by 2026, registering a 21.8% CAGR between 2020 and 2026. Blockchain is a decentralized technology, which eliminates risks associated with centrally held data. Thus, companies involved in the aviation industry are eager to introduce blockchain technology into their existing operations in the supply chain. This involves complex products, an extensive supply chain, and a decades-long aftermarket with frequently shifting participants.
Moreover, major players present in the aviation industry envisages blockchain technology as an innovative way to track and provide consistent aircraft configuration data throughout the intricate supply chain. Furthermore, blockchain has the potential to change to deliver profound benefits for hundreds of suppliers that are involved in the manufacturing of a single aircraft.
The global aviation blockchain market has registered high growth over the past few years owing to the enhanced transparency and traceability and multiple applications of blockchain in the aviation industry. Moreover, the reduced costs and transactional complexities are some factors driving the growth of the market. However, lack of regulations and common standards and slow integration and reluctance toward change in the aviation industry is expected to hinder the market growth.
Increase in need for advanced data storage system
- Enhanced transparency and traceability: Blockchain technology is a distributed network of data, which offers a new, elegant and secure way for the industry to track and trace numerous components while deterring counterfeiting and improving maintenance capabilities. Moreover, this technology provides tamper-proof data with strong authentication where the information about all the products are encrypted. In addition, the blockchain technology is integrated with the IoT to provide the increased transparency and efficient supply chain, which is expected to drive the growth of the global aviation blockchain market.
- Multiple applications of blockchain
- Reduced costs and transactional complexities
- Integration of blockchain with other upcoming aviation technologies
By End Market
- Airlines: The segment is expected to record the highest CAGR during the forecast period. Blockchain allows airlines and others across the distribution space to better collaborate while co-delivering travel products and services. It also has the capability to move payment towards being more transparent, low-cost, and real-time. This is expected to drive the growth of this segment during the review period.
- Airports: The segment accounted for the largest market share in 2019. Blockchain facilitates the tracking of the status and location of valuable assets such as passenger bags, cargo, and record data in a very reliable and immutable manner. Moreover, the increasing deployment of IoT based airport systems on many international and domestic airports is expected to drive the growth of this segment.
- MRO: The segment expected to witness the highest growth rate during the forecast period. In MRO, blockchain may reduce the risk for MRO service providers by providing verifiable documentation about the parts they have installed at any time.
- Civil & Commercial: The segment is expected to record a high growth rate during the forecast period from 2020 and 2026. This is due to the increasing development of blockchain technology for civil & commercial aviation. Additionally, the rise in demand for new aircraft with advanced systems is driving the growth of this segment.
- Military: The segment expected to register a steady CAGR during the forecast period. This is due to the modernization of existing military aircraft with advanced systems. Moreover, the increasing use of unmanned aerial vehicles (UAVs) for surveillance, border patrol, intelligence, reconnaissance, missile detection, and satellite communications by the military agencies globally is driving the growth of this segment.
- North America: North America dominates the aviation blockchain market. This trend is projected to continue during the forecast period due to the presence of prominent players, such as IBM, Microsoft Corporation, Moog Inc., and Sweetbridge, Inc., and high investments by them in the development of blockchain technology.
- Europe: The increasing adoption of UAVs by the military forces for tactical missions is expected to drive the growth of the European market in the review period.
- Asia-Pacific: The market in this region is projected to exhibit a high CAGR during the forecast period. The increasing demand for new aircraft and rising defense expenditure in countries such as India and China are expected to drive market growth.
- Middle East & Africa: The increase in defense expenditures by countries such as Saudi Arabia, UAE, and Israel is driving the market growth in the Middle East & Africa.
- Latin America: In Latin America, there has been an increase in the use of UAVs for intelligence gathering on drug trafficking and rebel groups, deforestation monitoring, and control of illegal migration, which is expected to drive the aviation blockchain market growth.
- Aeron Labs (Canada)
- AVINOC Ltd (China)
- IBM (US)
- Infosys (India)
- Insolar Technologies (Switzerland)
- Microsoft Corporation (US)
- Moog Inc. (US)
- Olistics (Switzerland)
- Quillhash Technologies Pvt. Ltd (India)
- Skybuys (Australia)
- Sweetbridge, Inc. (US)
Frequently Asked Questions (FAQ) :
Global aviation blockchain market is estimated to expand at a CAGR of 21.8% by 2026.
Global aviation blockchain market is projected to hold a market value of USD 1,686.15 million by the end of 2026.
The need for advanced data storage system is the market USP of the global aviation blockchain market.
Global aviation blockchain market can be segmented based on the end market, vertical, and region.
Quillhash Technologies Pvt. Ltd (India), IBM (US), Microsoft Corporation (US), Aeron Labs (Canada), are some of the key players of the global aviation blockchain market.