"Growing applications of IoT in aviation driving the market growth"
The rapid progress in the field of digital communication and networking has greatly influenced the aviation industry across the world. By adopting new and advanced technologies, the aviation industry is reshaping itself to improve its operational efficiency and passenger experience. Many companies are investing in IoT that has the ability to connect technology, processes, people, and culture to deliver a seamless air travel experience. With the growing number of air passengers across the world, especially the Asia Pacific, there is an annual growth of 5% investment in the overall aviation industry. Market players such as SAP SE, Microsoft, and others have already started investing in IoT technology to lead the market share. For instance, Rolls-Royce, an aero-engine manufacturer has started integrating Microsoft Azure IoT Suite and Cortana Intelligence Suite in its service solutions. This will also support Rolls-Royce's next-generation intelligent engines in the future.
With the launching of 5G technology, millions of devices are expected to communicate with each other in the future. This, in turn, will help aviation companies to leverage the power of IoT and big data to improve their fleet management, fuel savings, and safety & security standards. However, the lack of a single owner who can control the whole systems in commercial aviation that are flooded with an increasing number of airlines and MROs expected to restrain the adoption rate of IoT.
Overall, the global IoT in the aviation market was US$ 875.08 Mn in 2021 and is expected to reach US$ 4,239.7 Mn by 2030, growing at a CAGR of 19.3% from 2023 to 2030.
"Airport expected to lead the market share"
Airport segment expected to lead the market during the forecast period. Increasing passenger traffic affected the travel experience causing issues like flight disruption, baggage, and ticketing. Thereby, many airport authorities are shifting towards smarter airports to improve their efficiency of passenger handling. This has influenced the demand for IoT technologies such as IoT baggage tracking, IoT Queuing solutions, biometric security checks, and passenger management.
Beijing’s 5G equipped smart airport, JAL smart airport of Japan, and Hamad International airport, Qatar is some of the ongoing airports transforming themselves into IoT-based smart airports. For instance, in September 2019, NEC Corporation conducted trials of IoT at Haneda airports of Japan to improve airport operations.
"North America dominating the world market"
North America accounted for the largest share of the market in 2021. A large number of airlines operating in the region that are flying over 6700 flights daily boarding over 2.7 million passengers every day. A large number of air travel passengers provide high potential for IoT implementation to improve their flying experience. This has influenced the market players to install IoT in the regional airlines. Some of the companies present in the region include are IBM, Microsoft, SAP SE, and Honeywell. These companies are launching innovative software to enhance airline efficiency. For instance, Travel Accelerator of SAP SE, integrated with Gigya technology offers predictive analytics and demand-driven material requirement helps in an increase in profit and performance management.
On the other hand, a growing number of passenger travel due to the rise in disposable income and increasing private sector investment in the aviation sector of Asia Pacific has high potential to improve the operation, maintenance, and efficiency of the regional aviation industry. The region provides large opportunities for IoT in the aviation sector.
"Technological advancement is keeping the market competitive"
The global IoT in the aviation market is competitive in nature. Some of the major players of the market are IBM (U.S.), Microsoft Corporation (U.S.), SAP SE (U.S.), Fujitsu (Japan), and Huawei (China) among others. These market players are adopting strategies such as a partnership with other companies having excellence in technology, and launching new and advanced solutions to stay competitive in the global market. Following is the list of players included in the published reports.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of IoT In Aviation market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Component
| |
Application
| |
End-user
| |
|
Region Segment (2022-2032; US$ Million)
|
Key questions answered in this report
