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Global Iot In Aviation Market Size, Share, Trends, Covid-19 Impact & Growth Forecast Report - Segmented By End-User (Airlines, Airports, MROS, Manufacturers), Component (Solution, Service), Application (Ground Operations, Passenger Experience, Asset Management, Air Traffic Management), And Region (North America, Europe, APAC, Latin America, Middle East And Africa) – Industry Analysis From 2023 To 2028

Published: March, 2023
ID: 10566
Pages: 175
Formats: report pdf report excel report power bi report ppt

Global IoT In Aviation Market Size (2023 to 2028)

The global IoT in aviation market size is expected to be worth USD 881.17 million in 2023. It is expected to grow at a CAGR of 21.90% during the forecast period and reach a value of USD 2,371.80 million by 2028.

IoT technology is used by smart airports to build a digital environment for automated airline booking, baggage handling, and check-in. Also, by offering real-time threat analysis and aircraft health monitoring, IoT technology saves a lot of money on standard maintenance cycles. It is expected that this will raise the need for IoT in the aviation market. However, lockdowns and temporary closures of certain industries were implemented. This had an effect on regional economic activities. However, the pandemic also raised the demand for IoT technology because it forced airplanes into airport hangers, necessitating regular maintenance.

MARKET DRIVERS:

The growing need for in-flight wireless network technology to access internet services is one of the drivers propelling the IoT in the growth of the aviation market. Additionally, it is projected that the industry will grow due to business process optimization and improved passenger service. Furthermore, the need for Internet of Things solutions in aviation will rise in response to the enormous burden of an increasing number of travelers placed on airlines and airport resources. These solutions are expected to help automate and expedite avionic activities.

The IoT is important for aviation maintenance, repair, and overhaul (MRO) operations since it gives operators access to a lot of data and makes remote diagnostics possible. As a result, this increased the demand for the IoT in the aviation market. Therefore, it is projected that the advancements in Artificial Intelligence and Machine Learning will propel the industry's growth. For example, facial recognition powered by AI is used to verify passenger information, guaranteeing efficiency, security, and accuracy. Hence, this improves the biometric airport screening operations and cuts down the wait time related to the check-in procedures.

The IoT helps develop process skills by facilitating real-time business decisions with basic sensor-level computing and storage capacity. Increased investments in smart and agile concepts are likely to drive the growth of the Aviation IoT market during the forecast period. An active and shared structure allows many players to exchange information between airlines, airport operators, and passengers. The growing application of IoT ecosystems in a smart and active airport vision helps drive the growth of ancillary products and services for customers. The rapid penetration of In-Flight Entertainment (IFE) systems is a crucial factor that is expected to drive the demand for aviation IoT over the forecast period. Additionally, aviation IoT helps seize new business opportunities and influence real-time data sensors for the benefit of customers.

The implementation of IoT in aviation is likely to influence the structure of stakeholder offerings by examining the performance of these types of ancillary offerings in terms of use and implementation. The increased investment in the development of assistive technologies for passengers with disabilities is supposed to impact the development of the aviation IoT market in the coming years.

Robotics is another area which is providing opportunities for the market. For instance, robots are used in airports like Dusseldorf and Amsterdam to handle baggage & park cars, among other things. However, it is now used in more ways than one and is seen in some terminals as a customer-facing technology.

Blockchain technology helps in fighting against IoT system security weaknesses. Airlines can have a secure record of an aircraft's parts, maintenance history, and other important data due to blockchain technology. Many key players in the aviation market who use IoT have already started to adopt this technology.

MARKET RESTRAINTS:

Legacy infrastructure and technology are some of the reasons behind the slow progress of the IoT in the aviation market. The aviation industry is largely dependent on antiquated technology and infrastructure, which have been in operation for many decades. The adoption of new technology and the recognition of enhanced productivity may be hampered due to this reliance on antiquated systems. Retrofitting existing infrastructure for new technologies can be both technically and economically challenging, especially for aircraft and infrastructure. Another factor restricting the growth of the market is the lack of collaboration and industry-wide standards. Lack of standardization is typically the outcome of the aviation industry's scattered approach to innovation and transformation. This lack of cooperation hinders interoperability and decreases the rate at which new technologies are adopted.

The use of monolithic solutions is the primary challenge facing IoT in the aviation market. Managing large-scale monolithic solutions restricts agility and innovation, which is a common difficulty faced by the aviation sector. Canada recognized this problem and suggested dividing these complicated systems down into smaller, managed items. In addition to this, rising cybersecurity threats are further hampering the market growth rate. Cyberattacks are more likely to target the aviation industry. Cyberattacks are more likely to target the aviation industry. The aviation industry is becoming more digitalized, which has also increased the chances for cybercriminals to take advantage of this. This has led to an exponential increase in cyberattacks against the aviation sector. All these factors are limiting the growth of IoT in the aviation market.

Impact of COVID-19 on the IoT in Aviation Market:

COVID-19 propelled the development of new technologies which are driving forward the IoT in the aviation market. It has significantly increased the adoption of technology in the aviation sector, promoting contactless travel through the use of robots and biometrics. However, there were also various problems with the aviation industry's recovery. The two main ones were labor disputes and severe weather, which caused traffic jams in important aviation centers like the USA and Europe. Also, the rising cost of operating business caused by the pandemic and other external factors was one of the main obstacles to overcome. Despite these challenges, by June 2021, business aviation was much above pre-COVID-19 levels of operation. Furthermore, this also reduced carbon emissions due to travel restrictions around the world.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022 to 2028

Base Year

2022

Forecast Period

2023 to 2028

CAGR

21.90%

Segments Covered

By End User, Component, Application, & Region

Various Analyses Covered

Global, Regional, and country-level analysis; Segment-Level Analysis, DROC; PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape; Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

 

This research report on the global Iot in the aviation market has been segmented and sub-segmented into the following categories.

IoT in Aviation Market – By End User:

  • Airline
  • Airports
  • MROs
  • Manufacturers

The airline segment holds the highest share of the IoT in the aviation market. IoT sensors monitor airplane systems in real-time, which enables the identification of problems before they put passengers or crew members in danger. For instance, sensors installed on airplane engines have the ability to identify possible issues and notify maintenance personnel in advance of a failure. Additionally, IoT devices provide flight trajectory data that can be examined retrospectively to identify possible dangers or flight risks. Furthermore, unexpected changes in the weather need quick route adjustments to protect aircraft crew and passengers.

IoT in Aviation Market – By Component:

  • Solution
  • Service

The service segment is the leading segment under this category of the IoT in the aviation market. Industry 4.0 provides opportunities for a range of aftermarket services and solutions that optimize product potential, which drives the servitization business model. Nowadays, most original equipment manufacturers are searching for products to offer as a service to their customers with aircraft. Depleting revenue sources is one of the factors pushing OEMs to investigate servitization offerings. Furthermore, worldwide foot size and MRO spending are expected to expand over the next decade, which will lead OEMs to take advantage of this and increase their market share.

IoT in Aviation Market – By Application:

  • Ground Operations
  • Passenger Experience
  • Asset Management
  • Air Traffic Management

The ground operations segment continues to have the biggest market share under this category of IoT in the aviation market. The segment is growing because IoT devices offer real-time data on various ground operations elements, which include fuel levels, engine performance, and maintenance needs. Also, improved operational efficiency and faster turnaround times because of improved decision-making and process optimization are driving the market forward. For example, IoT-enabled automated baggage handling systems can enhance luggage flow, reducing delays and raising overall efficiency, which is fuelling the segment's growth.

IoT in Aviation Market – By Region:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

North American IoT holds the maximum market share in the aviation market and is expected to expand further during the forecast period. This is due to the presence of key aviation companies, such as airlines, tech firms, and builders of aircraft, who have been at the center of implementing and integrating IoT solutions in the aviation industry. The main reason for the market growth in the region is the development of wireless network technology. However, the 3.8 billion dollars Spirit acquisition by JetBlue Airways, which the Justice Department wanted to halt, has created uncertainty in the US market and might result in the elimination of half of all ULCC seats.

Europe IoT in the aviation market is expected to propel further during the forecast period despite the slow pace of recovery in recent times. Although traffic was just 11% less than pre-pandemic levels for the first three months of 2023, ACI is starting to witness some slowdown. The picture is becoming more unclear due to the weak recovery. The European nations with the strictest travel restrictions are having exponential growth, while other nations are not keeping up. Performance differences still exist between national markets, and in fact, they have become much wider.

Asia Pacific IoT in the aviation market is anticipated to grow at a rapid pace in terms of revenue in the coming years. The market growth in the region is the aviation industry's growing desire for automation systems. It makes travel and tourism easier, especially when it comes to international travel. The aviation sectors in China, India, and Japan have experienced significant expansion due to increased demand for IoT solutions to improve passenger experience, safety, and operational efficiency. The rising CAGR of Asia Pacific IoT in the aviation industry is further due to increased investments in smart airports and emphasis on digital transformation.

Latin America IoT in the aviation market is estimated to progress at a faster rate during the forecast period. Rising passenger volume and aircraft deliveries are anticipated to fuel the market expansion. Furthermore, the growth of low-cost carriers in Latin America has led to a surge in the use of narrow-body aircraft as a means of increasing efficiency and promoting traffic.

Middle East and Africa IoT in the aviation market is projected to grow at an exponential market growth rate in the coming years. The competition in the IoT-based aviation industry is pushing businesses to use AI, IoT, and other cutting-edge technology. The IoT in the aviation market is driven by rising air travel and its return to pre-pandemic levels, as well as the replacement of outdated aircraft with more modern and environmentally friendly models.

KEY MARKET PLAYERS:

The major players in the global aviation IoT industry analyzed in the research include IBM Corporation, Huawei Technologies Co., LTD., Cisco Systems, Inc., SITAONAIR, Tata Sons Private Limited., Honeywell International Inc., Aeris, Happiest Minds Technologies, Amadeus It Group Sa, Walkbase, Sendum Wireless Corporation, Microsoft Corporation, Palantir Technologies, Blip Systems, Tech Mahindra Limited, SAP SE, Arrow Electronics, Inc., Wind River Systems, Inc., Undagrid, and Zestiot.

RECENT HAPPENINGS IN THE MARKET:

  • In October 2018, Cisco Systems Inc. partnered with Abu Dhabi Airports Company (ADAC) to bring digital transformation to the airport in the capital of the United Arab Emirates. As part of this partnership, Cisco System Inc. implemented its IoT solutions, which helped connect devices and analyze critical data to deliver value to key ADAC customers and partners.
  • In May 2018, Honeywell International Inc. partnered with AT&T, one of the telecommunications companies, to provide IoT solutions for aircraft and freight deployments around the world.

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FAQ's

1. What are the key applications of IoT in aviation?

Applications include predictive maintenance, asset tracking, fuel management, passenger experience enhancement, safety monitoring, and overall optimization of aviation processes.

2. What challenges does the aviation industry face in implementing IoT?

Challenges include data security concerns, interoperability issues, regulatory compliance, and the need for substantial investments in IoT infrastructure.

3. What are the future trends in IoT for the aviation industry?

Future trends include the increased adoption of edge computing, advanced analytics, AI applications, and the development of more sophisticated IoT devices for aviation.

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