Commercial Aerospace Digital Solutions Sector, Global, 2024-2033

Digital Solutions are Experiencing Transformational Growth due to the Increasing Focus on Sustainability

In 2023, the global commercial aerospace digital solutions sector generated a revenue of $28,974.6 million, and it is anticipated to grow at a compound annual growth rate (CAGR) of 7.0% and reach $57,032.4 million in 2033.

This study analyzes digital R&D investment and annual digital expenditure, and it covers the airline, airport, MRO service provider, and OEM industries.

• Airlines and airports are classified from Tiers I to V, while OEMs cover Tiers I to III.
• MRO service providers cover all the aerospace components.

By geography, the study covers the global market, with a focus on Asia-Pacific (APAC), Europe, North America, Latin America, and the Middle East and Africa (MEA).

• The study does not include a comprehensive list of global market participants; instead, it offers region-specific company lists.

Air travel demand increased in 2023, and by the end of 2024, air traffic numbers will equal 2019, pre-COVID 19 levels. This is a major driver that will foster the digital transformation journeys of airports, airlines, OEMs, and MRO suppliers. The higher the demand for air travel, the higher the aircraft utilization rate, leading to a substantial increase in demand for new aircraft and aftermarket services. As a result, spending on digital transformation will rise.

However, the high upfront cost of digital tools and recurring costs for software licenses, maintenance, and updates can challenge small companies, as they may not realize the return on investment (RoI) from digital initiatives immediately.

North America is the highest revenue contributor to the global commercial aerospace digital solutions sector. The region is also likely to register the highest growth rate during the forecast period, followed by Europe, APAC, Latin America, the Middle East, and Africa. In terms of industry verticals, airlines are the leading contributors, followed by OEMs, airports, and MRO service providers.

In H1 2024, leading aviation IT companies opted for the acquisitions route; Amadeus and SITA, for example, acquired Vision Box and Materna IPS, respectively, providing digital technology solutions to airports. During the forecast period, more acquisitions from leading aviation IT vendors are expected, as they consider acquiring companies that create synergies with their product portfolios. This will help them enhance and optimize cross-selling opportunities and upsell their bundled products to airport operators.

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The Impact of the Top 3 Strategic Imperatives on the Commercial Aerospace Digital Solutions Sector

Disruptive Technologies

WHY

• Electric vertical takeoff and landing (eVTOL) aircraft is a significant innovation, and research and development (R&D) efforts in this space will increase the aerospace industry's sustainability.
• At present, developed countries are seeing higher acceptance and use of eVTOL aircraft; by the end of the 2030s, developing countries will follow suit.  

FROST PERSPECTIVE

• Disruptive technologies, particularly eVTOL aircraft, are poised to transform the aerospace industry by the end of the decade.
• AI-driven operational improvements will result in an uptick in digital transformation projects, such as self-service at airports. IoT is seeing widespread adoption in aerospace manufacturing.

Transformative Megatrends

WHY

• Owing to the rising demand for air travel, the need for new airport terminal buildings is increasing globally. Digital solutions are being used to enhance productivity and passenger experiences.
• Sustainability concerns are compelling the aerospace industry to adopt eco-friendly aircraft and optimize airport operations.

FROST PERSPECTIVE

• Digitalization enhances process efficiency and passenger experiences. By the mid-2030s, the integration of digital solutions in aerospace ecosystems will commence.
• Advanced technologies will create a new interconnected ecosystem in the aerospace industry and address sustainability-related challenges.

Industry Convergence

WHY

• Industry convergence augurs innovation by sharing best practices to develop innovative solutions. Industry challenges must be solved, and new revenue streams must be developed. 

FROST PERSPECTIVE

• Different industry verticals are exploring opportunities to develop all-electric/hybrid aircraft, which will increase the aerospace industry's sustainability.
• Industry participants will create alliances in aerospace digitalization to provide the regulatory roadmap for the next 15 years.

This analysis highlights the critical strategic imperatives shaping the future of the Commercial Aerospace Digital Solutions Sector, emphasizing the importance of innovation, sustainability, and collaboration in driving industry advancements.

Segmentation

Sector Segmentation

• Airlines

Full-service carriers (FSCs), low-cost carriers (LCCs), and cargo carriers across the 5 regions are analyzed.

• Airports

  All 5 tiers of commercial airports are covered.

• MRO Service Providers 

  MRO companies across the 5 regions are analyzed.

• - OEMs 

  All 3 tiers of commercial OEMs are covered.

Key Competitors

North America

• - Sabre
• IBM
• Unisys
• Boeing
• Honeywell Aerospace
• PROS
• DXC Technology
• Amazon Web Services
• Microsoft Azure
• Google Cloud Platform
• Cognizant
• SmartKargo
• ADB Safegate
• Collins Aerospace
• Leidos
• Honeywell

Europe

• Amadeus
• SITA
• Travelport
• Airbus
• Thales
• Accelya
• Datalex
• Boxever
• Lufthansa Systems
• Accenture
• Siemens
• Indra Sistemas
• T-Systems
• INFORM
• Saab
• RESA
• A-ICE
• Airport Information Systems
• PDC A/S
• Adecs Airinfra BV

Asia-Pacific

• IBS Software
• Fujitsu
• Hexaware
• Coforge
• Travelsky
• Tata Consultancy Services
• Mphasis
• Happiest Minds
• Veovo (Gentrack Group)
• NEC Corporation

Middle East

• AIMS Airline Software
• TAV Technologies
• Bayanat Engineering
• Dubai Technology Partners