Aviation Analytics Market

Aviation Analytics Market Statistics 2021–2030

The aviation analytics market was valued at $2.78 billion in 2020, and is projected to reach $8.21 billion in 2030, registering a CAGR of 11.72%.  

The rapid spread of COVID-19 had a significant impact on the global aviation analytics market in 2020, owing to the implementation of strict lockdown measures across the world. COVID-19 pandemic led to several challenges for the aviation industry such as grounding of airplanes, reduced demand for air travel, and others. On the other hand, various countries with the foundations of aviation-friendly environment, such as U.S., UK, China, Germany, and others, were able to quickly mobilize the technology from the start of the pandemic.

Aviation involves the activities surrounding the aircraft industry and mechanical flight. Analytics means systematic computational analysis of statistics or data. Aviation analytics is a computational technology that provides information or statistics of historical airport operational data, historical flight data, weather forecasts, and real-time flight data to the end-users. It permits predictive analysis and query processing over big aviation data. Primarily, it offers predictions or solutions based on structured and unstructured massive aviation data.

The global aviation analytics market is driven by a rise in focus on competitive intelligence and real-time analytical solutions to increase the productivity of a business. Moreover, continuous growth in the volume of data generated in the aviation industry, surge in aviation passenger traffic, and growth in customers’ centricity fuel the growth of the market. However, incapability to provide data models according to the need of businesses and a dearth of analytically skilled workforce hampers the market growth. On the contrary, rise in the adoption rate of analytics and continuous technological advancements in the aviation industry are expected to provide numerous opportunities for market expansion in near future.

The aviation analytics market is segmented on the basis of component, end-user, business function, application, and region. By component, the global aviation analytics market has been categorized into service and software. By end-user, the global aviation analytics market has been categorized into airlines, airports, and others. On the basis of business function, the market has been classified into sales & marketing, operations, finance, maintenance & repair, and supply chain. By application, it is classified into flight risk management, inventory management, fuel management, revenue management, customer analytics, and navigation services. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key players profiled in this report include Accelya, General Electric Company, International Business Machines Corporation (IBM), IGT Solutions Pvt. Ltd., Mu Sigma, OAG Aviation Worldwide Ltd., Oracle, Ramco System, SAP SE, and SAS Institute Inc.

High volume data generation in the aviation industry

The aviation industry incorporates a large amount of data, which is difficult to manage and process. According to the U.S. National Air Traffic Controllers Association, a total of 87,000 flights are in the skies in the U.S. on any day. Data collected by sensors on one aircraft covers more than 300,000 parameters with engine data being one of the most important data points captured. For instance, the Boeing 737 generates 20 terabytes of engine information per hour. This massive data is critically important for any decision made by businesses. Such a huge amount of historical data is analyzed to discover valuable insights into the aviation industry. Moreover, this data is used to predict global security threats, changing customer preferences, and future market trends. For instance, in January 2020, the Boeing Company signed an agreement with Emirates Engineering for a specialized Boeing maintenance planning program that combines advanced data analytics with Boeing’s engineering expertise. In addition, participants of the aviation analytics market focus on competitive intelligence and real-time analytical solutions to enhance the data storage capability and profitability of their businesses. These factors are expected to drive the market during the forecast period.

Rise in aviation passenger traffic

According to the International Civil Aviation Organization (ICAO), by 2035, passenger traffic and freight volume should be double. Factors such as growth in disposal income of the middle-class population and the emergence of low-cost airlines have led to an increase in number of airline passengers. With surge in number of airline passengers, demand for aviation analytics services has increased at a significant rate. Major countries such as Canada, U.S., Brazil, Indonesia, Philippines, China, Saudi Arabia, and India witnessed rise in number of air passengers. For instance, according to the Bureau of transportation, in October 2021, U.S. Airlines’ passengers increased 119% from October 2020. According to International Air Transport Association (IATA), passenger numbers could double to 8.2 billion in 2037 at 3.5% compound annual growth rate (CAGR). Therefore, an increase in aviation passenger traffic indirectly is expected to boost the demand for aviation analytics. As increment in passenger traffic will generate an enormous amount of information, participants of the aviation industry need to use analytical solutions to predict customer preferences, reduce operational cost, manage fuel cost, and others.

Dearth of analytically skilled workforce

Recent growth in the use of real-time analytical solutions and “Big Data” analytics demands an analytically skilled workforce. The rapid expansion in global air passenger traffic can possibly be prevented due to absence of talented workforce. Airbus forecasts a need for around 33,000 new aircraft globally by 2035, which is expected to indirectly generate demand for trained and skilled engineers to maintain these aircraft. Currently, there are not enough qualified maintenance personnel in Asia-Pacific to meet the needs of the growing aviation industry. For instance, according to Boeing, Asia-Pacific is expected to require around 238,000 new maintenance technicians by 2034 to satisfy needs of the industry. Moreover, despite the growth in consumption and use of data, growth of the aviation analytics market is restricted due to skills gaps, which is a major blocker to current data and analytics efforts.

Technological advancements

On the basis of the analysis of International Air Transport Association, (IATA) the leading cause of late flights (42%) are based on airline-controlled processes, such as maintenance. Continuous technological advancements by the players of the industry to improve efficiency and client experience are expected to boost the demand for aviation analytics. For instance, the emergence of IoT has an impact on maintenance and safety, which allows airlines to keep their planes in the air longer with less time spent on the ground. In addition, another important technology that has recently emerged is cloud computing. By using cloud computing, IT vendors can provide resources to an airline remotely according to their needs. Another developing innovation includes mobile devices with the potential to impact drastically on services. These devices coupled with aviation analytics allow airlines to deliver ancillary services such as baggage fees, on-board food and services, and others by analyzing their preference history. These technological advancements create opportunities for the market during the forecast period. Moreover, developments by key players such as OAG Aviation Worldwide Limited, Accelya, General Electric, and others are anticipated to boost the demand for an aviation analytics market. For instance, in November 2021, OAG Aviation Worldwide Limited launched Flight Info Alerts, its new detection and notification product that delivers changes to flight schedules in real-time. In addition, SAS Institute Inc. collaborated with Raleigh-Durham International Airport for the development of significantly improved passenger forecast models.

COVID-19 Impact Analysis

• The COVID impact on the aviation analytics market is unpredictable and is expected to remain in force for a few years.
• The COVID-19 outbreak forced governments across the globe to implement strict lockdowns and banned domestic and international travel for most of the year 2020. This led to sudden fall in demand for air-travel and hampered adoption of aviation analytics across the globe.
• Adverse impacts of the COVID-19 pandemic have resulted in delays in activities and initiatives regarding development of innovative aviation analytics solutions globally.

Key Benefits For Stakeholders

• This study presents analytical depiction of the aviation analytics market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall aviation analytics market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities of the aviation analytics market with a detailed impact analysis.
• The current aviation analytics market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers in the industry.

 Aviation Analytics Market Report Highlights