Aviation Iot Market Outlook, Opportunity & Future Trends Till Forecast Period 2023
The Internet of things (IoT) is a computing concept that enables users to use and control physical objects by connecting them to the internet. Today IoT is an important and integral part of the aviation industry because the aviation industry always strives to provide a superior traveling experience at the lowest fares. The aviation IoT market has been anticipated to earn revenues worth USD 25,134.6 million while expanding at a CAGR of 16.34% by 2023. Increase in passenger traffic, subsequent demand for new aircraft, and rising investment in the agile and smart airport concept drive the market growth.
Analyzing the market structure, this report offers insights about factors affecting the market growth. Estimating the market size and forecasting the revenue, this report covers and observes the competitive developments of market players that include joint ventures, mergers and acquisitions, new product developments, research and developments (R&D), and strategic alliances.
Huge investments in terms of R&D have led to technological innovations in the aviation as well as IoT sector. Moreover, the energy & process optimization and the rapid adoption of IFEC systems easing have led to demand from more aviation industry players to incorporate IoT in their operations and services which is leading to the growth of aviation IoT market. However, the vulnerability of IoT systems regarding cybersecurity can have a negative impact on market growth.
The aviation IoT market is segmented on the basis of, application component, end user, and region. Airline application has been sub-segmented into fleet management, passenger experience enhancement, and others. Application-based segmentation segments this market into airline application, airport application, and air traffic management application processes. Sub-segmentation of airport application covers operations, passenger processing, and security. The sub-segmentation of air traffic management application comprises of flight turnaround optimization, runway management, and other processes.
Based on the component, the market has been segmented into communication services, data center systems, devices, IT services, and softwares. Given the basis of end users, the market has been segmented into the airline, airport, and air traffic management.
The regions covered in the global market are Europe, Asia Pacific, North America, Latin America, and Middle East & Africa (MEA)
Detailed Regional Analysis
The regional analysis of the aviation IoT market covers regions such as Europe, Asia Pacific, North America, Latin America, and Middle East & Africa (MEA). North America is the largest regional market. In 2017, it held the largest market share of 30.89% whose market value was USD 3,150.5 million. During the forecast period, this market has been anticipated to grow at a 15.61% CAGR. USA and Canada are the strongest economies in this region, and they can be lucrative markets. In 2016, American Airlines spent nearly USD 25 million on easing congestion at various airports in the US. This kind of developments can enhance fuel market growth. During the forecast period, the aviation IoT market in North America is estimated to witness a CAGR of 15.61% during the forecast period.
In Europe, the market is growing due to strong economies such as France, Germany, Italy, the Netherlands, and the UK. Due to technological advancement, Europe is one of the major regions for aviation IoT. In 2016, there were over 4,500 aircraft operating in Europe. By 2035, the number is expected to reach 8,000. In this region, the market is growing due to the greater collaboration between airlines and airport authorities such as the installation of smart solutions and an increase in the number of aircraft. Thus, market growth for Europe is expected to register a 14.73% CAGR during the forecast period.
Asia Pacific is likely to emerge as the fastest growing market during the forecast period at 18.40% CAGR due to the increasing demand for in-flight connectivity & connected electronic devices, rapid urbanization, rising technological advancement, the need to enhance the passenger experience, and rising investments in IoT solutions by airline operators & airports authorities. The major country-specific markets in this region are China, India, Japan, and South Korea, followed by the remaining countries of the Asia Pacific region.
In the MEA region, the market is primarily driven by the increasing passenger traffic in this region. Airlines are investing in ways to reduce fuel consumption, superior in-flight connectivity networks and enhancing passenger experience during baggage & security screening. During the forecast period, the market in the MEA region is expected to grow at 16.50% CAGR. Significant country-specific markets in this region are Saudi Arabia and UAE, followed by the remaining countries of the MEA region.
In Latin America, the market is growing at 17.26% CAGR during the forecast period due to increasing investments and the rising demand for real-time data by airlines. In this region, airports focus on lower operational costs by incorporating IoT solutions and satellite connectivity. The biggest market in this region is Brazil, followed by the remaining countries of Latin America.
The outlook for growth in the aviation IoT market is competitive due to the efficient application of strategies such as geographic expansion, new product launch, acquisitions, agreement, and R&D to strengthen their business portfolio. The market players are observed as being focused on increasing their operations globally and engage in strategic acquisitions to grow in organic cold pressed juices business. The key players profiled in the aviation IoT market are Amadeus IT Group SA, Cisco Systems Inc., Huawei Technologies Co. Ltd., SAP SESITA, and others.
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