The global aviation IoT market size was valued at USD 5.06 Billion in 2022 and is anticipated to reach USD 26.5 Billion by 2031, expanding at a CAGR of 20.2% during the forecast period, 2023–2031. The growth of the market is attributed to emphasis on enhancing passenger experience and exponential growth in air passenger traffic.
There are various advancement that has resulted in growing preference for smart airport architecture and wireless technology in the aviation industry. Although the COVID-19 pandemic had severely affected the aviation industry during 2020-2021, there have been unpredicted rise in passenger traffic in air travel over the decade.
Consequently, airline operators and airport professionals worldwide are widely accepting recent technologies that introduced in the market to enhance their business flow and cope up with the untapped growth in air traffic. Internet of Things (IoT) plays a crucial part in assembling data in the industry by providing statistical analysis to support airport management.
Aviation companies utilize these statistical analysis to gain illicit insights with decreasing people’s interference. The aviation industry is adopting a digital ecosystem with the continued advances in intelligent technologies. Simultaneously, advances in IoT are enhancing the present digital system to provide technology-based services such as document checking, baggage, flight booking, and automated check-in.
Technological advancements are vital factors that help to grow the aviation market and several technologies are used for various applications associated with the industry For instance, advanced facial recognition AI is being used largely for efficiency, security, and accuracy while examining details of passengers. This is helping in decreasing the waiting time linked with the check-in process while enhancing the biometric airport screening procedures.
IoT can specially support the industry in betterment of MRO services and cutting off the downtime. The function to foresee the malfunctioning component and decrease the equipment downtime using advanced software is enabling airlines to rise their revenues.
Aviation IoT Market Trends, Drivers, Restraints, and Opportunities
- Growing usage for smart airport architecture and continuous advancements in wireless technology are estimated to fuel the market growth.
- Major aviation industry players are specifically adopting data-driven methods to take their business decisions which is expected to boost the market growth.
- Technological advancement in terms of machine learning and Artificial Intelligence (AI) are potential drivers that can accelerate the market expansion.
- Intense competitive rivalry among airlines to enhance passenger experience and various government authorities are key challenges that can restrict the market growth.
- Deployment of advanced technology by the provisioning of customized solutions and service providers are also key factors providing lucrative growth opportunities for the market.
Scope of Aviation IoT Market Report
The report on the global aviation IoT market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Aviation IoT Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Applications (Ground Operations, Passenger Experience, Aircraft Operations, and Asset Management) and End-users (Airport, Airline Operators, MRO, and Aircraft OEM)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Tata Communications; Honeywell International, Inc.; Huawei Technologies Co. Ltd; Cisco Systems, Inc.; and SITAONAIR
Aviation IoT Market Segment Insights
Applications Segment Analysis
Based on applications, the global aviation IoT market is segmented into ground operations, passenger experience, aircraft operations, and asset management. The asset management segment is expected to account for a key share of the market during the forecast period owing to increasing fleet size in line with the growing passenger traffic globally.
However, the passenger experience segment is anticipated to register a substantial growth rate in the coming years as the aerospace industry is increasingly adopting advanced technology to enhance the passenger experience.
End-users Segment Analysis
In terms of end-users, the market is differentiated into airport, airline operators, MRO, and aircraft OEM. The airport segment is estimated to expand at a robust growth rate during the projected period due to growing popularity of the smart airport concept across various regions.
Meanwhile, the airline operators segment is expected to exhibit a high growth rate in the coming years owing to growing adoption of intelligent baggage monitoring and advanced cabin climate control solutions.
In terms of regions, the global aviation IoT market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the targeted period due to elegant aviation infrastructure in the U.S. to facilitate the passenger experience.
However, the market of Asia Pacific is expected to register a considerable CAGR during the forecast period of the market owing to rise in the middle income population opting for air travel, the expansion of airline operations, and several government favorable policies in the development of smart airport architecture in the region.
The global aviation IoT market has been segmented on the basis of
- Ground Operations
- Passenger Experience
- Aircraft Operations
- Asset Management
- Airline Operators
- Aircraft OEM
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global aviation IoT market are Tata Communications; Honeywell International, Inc.; Huawei Technologies Co. Ltd; Cisco Systems, Inc.; and SITAONAIR.
The main market players are continuously engaged in various business development activities such as mergers and acquisitions, research and developments, investments for innovative products, and collaborations. Strategic partnerships between airport operators and leading airlines are coming up as a common strategy often adopted by the major market players to achieve a competitive advantage.