PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1351079
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1351079
According to Stratistics MRC, the Global Digital Aviation Market is accounted for $41.80 billion in 2023 and is expected to reach $81.62 billion by 2030 growing at a CAGR of 10.3% during the forecast period. In the aviation sector, digital solutions have a wide range of uses. These encompass a variety of things, such as aircraft data computers, maintenance, and flight operations. Moreover, these digital solutions give airline operators the right information at the right time, enabling them to work as safely and efficiently as possible while an aircraft is in the air, on the ground, or in a hangar. These solutions locate the problem and address potential problems before they become a hazard, in conjunction with data analytics.
According to IATA, as of March 25, 2022, 36 countries closed their airspace, including European countries, the U.K. and the U.S. to Russian Airlines. In return, Russia banned airlines from most of these countries from entering or flying over Russia.
Airlines and aviation organizations have access to tools through digital aviation technologies to optimize various aspects of their operations. Predictive maintenance is made possible through the Internet of Things (IoT) and sensor networks, which collect real-time data from infrastructure and aircraft parts. By spotting potential problems before they develop into serious ones, this strategy avoids unplanned downtime. Moreover, the optimization of crew scheduling, route planning, and fuel consumption by airlines with the help of data analytics also results in significant cost savings and increased operational effectiveness.
Security in aviation is increasingly important as a result of the growing integration of digital technologies. Since ground infrastructure, data networks, and aircraft systems are all interconnected, there are openings for cybercriminals to take advantage of. Additionally, attacks with malicious intent, like hacking or malware infiltration, have the potential to impede flight operations, compromise passenger data, or even jeopardize flight control systems. To reduce these risks, the aviation sector needs to make significant investments in cybersecurity measures like intrusion detection systems, encryption standards, and real-time threat monitoring.
Airlines can switch from being reliant on reactive maintenance methods to preventative ones by implementing predictive maintenance using IoT sensors, data analytics, and machine learning algorithms. Airlines can accurately predict component failures and maintenance requirements by continuously monitoring aircraft systems and analyzing data in real-time. With this method, unplanned maintenance occurrences are kept to a minimum, aircraft downtime is decreased, and operational efficiency is increased. Moreover, the impact of maintenance-related delays on flight schedules can be minimized by scheduling maintenance during pre-planned downtimes and optimizing spare parts inventories.
Even though digital technologies have many advantages, a reliance on them that is too great can be dangerous if those systems are disrupted or fail. Technical issues, software flaws, or network problems may affect how flights are operated, add to delays, or jeopardize passenger safety. However, maintaining backup and redundancy systems is essential to reducing the risk of technological failures.
The COVID-19 pandemic had a significant effect on the market for digital aviation. More than 16,000 commercial aircraft were reportedly grounded or parked as a result of fewer passengers due to the pandemic, according to the analysis. As a result of the grounding of aircraft, maintenance needs have significantly decreased, which has negatively impacted demand for the domain of digital solutions and services. Additionally, the pandemic has destroyed the financial health of the entire aviation value chain, particularly airlines.
Over the anticipated period, the satellite connectivity segment is anticipated to hold the largest share. The increase is the result of the fleet of existing aircraft receiving more upgrades, as well as the expanding use of satellite-based aircraft navigation and communication systems and other devices and systems on modern-generation aircraft. Additionally, the systems linked by satellite networks offer real-time data and information for effective aircraft operations.
During the projection period, the military segment is predicted to grow at the highest CAGR. The increase is attributed to a rise in military aircraft purchases as a result of warlike conditions in various nations around the world. Additionally, segment growth will be aided by the expanding military modernization programs that incorporate digital technologies. The segment is also expected to grow as a result of the expansion of digitized military aircraft combat and transport application techniques and solutions.
The North American region, especially the United States, is anticipated to hold the largest share of the global digital aviation market, as it is the forefront of the adoption and development of digital aviation technologies, thanks to a history of technological innovation, a thriving aviation industry, significant investments in research and development, and a robust technology ecosystem. With a significant demand for air travel, a strong regulatory environment, strategic alliances, and initiatives in urban air mobility, the area continues to be at the forefront of influencing the aviation industry's digital transformation.
During the forecast period, the digital aviation market is expected to grow at the highest CAGR in the European region. The aviation ecosystems of European nations are increasingly adopting digital solutions to improve operational effectiveness, passenger experience, and safety. This is due to their developed aviation industries, regulatory frameworks, and technological know-how. However, the region is becoming more adept at implementing cutting-edge technologies thanks to its emphasis on environmentally friendly aviation, developments in unmanned aerial systems, and investments in research and development.
Some of the key players in Digital Aviation Market include: Oracle Corporation, SITA Aero, Ramco Systems Limited, Swiss Aviation Software, IBM Corporation, Collins Aerospace, Airbus SE, GE Aviation, The Boeing Company and ATP Inc.
In June 2023, IBM announced that it has entered into a definitive agreement with Vista Equity Partners to purchase Apptio Inc., a leader in financial and operational IT management and optimization software, for $4.6 billion. The acquisition of Apptio will accelerate the advancement of IBM's IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.
In June 2023, Airbus SE is poised for a grand entrance at the Paris Air Show, where the European planemaker could announce a record 500-aircraft agreement with India's largest airline IndiGo on the first day, according to a report by Bloomberg.
In March 2023, Volocopter, the pioneer of urban air mobility (UAM), and SITA, the world's leading IT provider to the air transport industry, have entered a partnership, with SITA selected as Volocopter's preferred digital and IT systems partner for vertiports.Under the agreement, SITA has become the latest investor to join Volocopter's Series E funding round, cementing the strategic vision espoused by this partnership.