Aviation Analytics Market Size, Share & COVID-19 Impact Analysis, By Function (Finance, Operations, Sales & Marketing, Others), By Application (Fuel Management, Flight-Risk Management, Customer Analytics, Navigation Service, Others), By Product (Services and Solutions), By End-use (OEM, Aftermarket), and Regional Forecast, 2021 – 2028

The global aviation analytics market size was USD 1.93 billion in 2020 and is projected to grow, 2021 to 2028 from USD 2.02 billion in 2021 to USD 4.36 billion in 2028 at a CAGR of 11.58% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with aviation analytics witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of -18.47% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR during the forecast is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Aviation analytics is a technology that enables airports to obtain comprehensive and coordinated information, statistics, and flight route data, weather forecast, real-time flight data, and air travel preferences. It also enables the end-user to better plan and decision-making by utilizing analytics solutions to collect relevant data.

It is used by airports, airlines for continuous improvement, making business decisions, and building workflows in an effective and efficient manner using data. Such emerging technologies in the market are propelling the aviation industry to new heights by assisting them in meeting client expectations, real-time performance dashboards, and predictive maintenance in every manner conceivable.

Aviation Industry Faced Unprecedented Challenges Amid COVID-19 

The overall impact of the COVID-19 pandemic on the market has been massive. The market is witnessing a decrease in demand for airport analytics software services due to disruption in new aircraft deliveries. In addition to this, an economic slowdown has created a moderate impact on the procurement of new aircraft in several countries.

• According to a released report by International Air Transport Association (IATA), the number of jobs supported by aviation could drop by 46 million to 41.7 million (-52.5%), in 2020, revenue passenger kilometers (RPKs), including international and domestic, will be down 65.9% from 2019.


• Furthermore, there is a decline in the revenue of key market players such as “Boeing” amid COVID-19. The revenue of Boeing has decreased by up to -24.04% from 2019 to 2020.

LATEST TRENDS

Rising Demand for Big Data in Aviation Analytics is a Prominent Trend

The benefits of big data analytics with airlines together are real-time responses to current and future market demands, better planning and improved decision making, and clear understanding and monitoring of all key performance drivers. With the achievement of this, the airlines will lower operating expenses, achieve market competitiveness and increase profit margins.

 For instance, in September 2020, corsair signed a contract with Airbus’ Skywise for predictive maintenance system. Skywise is a first-of-its-kind open data platform for the aviation sector, developed by Airbus. Furthermore, Airbus created Skywise Predictive Maintenance, a unique combination of aircraft connectivity and engineering competence, intending to lower airline operational interruptions and costs drastically.

In addition to this, many airlines have seen significant gains in market share and cost savings as a result of applying Big Data analytics. Technological advancements lower the aviation industry's operational costs while also enhancing the consumer experience. Therefore, the demand for the software has increased for applications such as fuel efficiency, demand forecasting, performance measurement, smart maintenance, and customer segmentation.

DRIVING FACTORS

Increase in Adoption of Aviation Analytics in Airline Industry to Reduce Cost in Several Ways and Increase Profit Drives the Market Growth

The growing demand for airport analytics has resulted in the reduction of costs in areas such as fuel needs and baggage loss. Airlines collect and analyze flight data such as route distances and altitudes, aircraft type and weight, weather, and more using AI systems with built-in machine learning algorithms. Systems evaluate the appropriate quantity of fuel required for a flight based on data results. According to a report of IATA 2020, airlines spend 22.1% of their operating cost on fuel. To reduce this operating cost, airlines have started adopting advanced solutions. This is expected to boost the global aviation analytics market growth.

Increase in Air Travelers Boosts the Market for Aviation Analytics

With the growing passenger preference for air traveling, the demand for aviation analytics tools has been propelled. According to a report by IATA, the air passenger number is expected to increase to 8.2 billion by 2037. Thus, the increasing number of air travelers’ airlines is investing heavily in analytical tools to improve customer base and customer preference to fulfill the upcoming demand.

RESTRAINING FACTORS

Lack of Skilled Professionals in the Area of Analytics Hampers the Market

Aviation analytics requires the use of skilled specialists since large volumes of data generated by these analytics must be efficiently examined. The abilities required to develop a model include technical talents as well as analytical skills. Furthermore, many small companies cannot afford the workforce for analytics due to budget constraints. Thus, the lack of professionals hinders the growth of the market.

SEGMENTATION

By Function Analysis: 

Sales & Marketing Segment to Grow At Faster Pace During 2021-2028

Based on function, the market is segmented into finance, operations, sales & marketing, and others.

The sales & marketing market segment is projected to grow at the highest pace during the forecast period. The finance segment is likely to dominate the market during the forecast period. Airport management uses analytics software to collect collaborative data regarding passenger sales and advertisements. This helps the management to make more efficient decisions.

The finance segment held the second-largest share during the forecast period. Airport finance analytics deals with the airport's revenues, costs, profitability, payables, receivables, assets, profitability, and key financial ratios, among other things. Due to such reasons, airports are increasingly adopting and investing in this segment.

The operations segment will witness moderate growth during 2021-2028. Airport operations analytics covers areas such as passenger traffic, Airport Operations Analytics, air traffic movement, on-time performance, terminal activities, resource utilization, aviation safety, and others. It also deals with landing weights, passenger statistics, baggage handling, and cargo.

By Application Analysis

Customer Analytics Segment to Grow At Highest Pace During the Forecast Period.

Based on application, the market is segmented into fuel management, flight risk management, customer analytics, navigation services, and others.

Customer analytics is projected to be the fastest-growing segment in the market during the forecast period. This is due to the airports' segment. The airlines segment is investing heavily in knowing customer preferences and customer behavior and adopting customer-centricity by using predictive analytics for improving decision making.

The navigation services segment is forecasted to be the second-highest growing segment. The navigation software provides cockpit optimization solutions, post-flight tracking functions, ground vehicle tracking, and monitor flight movements, which help the airport and air traffic management for better operational service.

The flight risk management segment is predicted to showcase a moderate growth rate during the forecast period. The increase in demand to enhance safety and reduce operational issues boosts the demand for flight risk management software.

The fuel management type segment held a significant value share in 2021. The highest direct operating cost of an aircraft is fuel. Fuel management software helps airlines efficiently track fuel consumption and control operating costs. In the coming years, the demand for this segment is likely to increase.

By Product Analysis

Service Segment is Anticipated to Lead the Market During 2021-2028

The product segment is divided into services and solutions. The services segment is expected to lead the market due to the increased need for supply chain planning and inventory management services from airlines and airports is driving this segment's growth. Key players offer various services to aircraft operators and airlines, such as flight data management, maintenance consulting, and customer analytics.

By End-use Analysis

OEM Segment is Likely to Dominate the Market During the Forecast Period

Based on the end-user segment, the market is divided into aftermarket and OEM. The OEM market by end-user segment is forecasted to dominate the market during to period of 2021-2028. This is due to an increase in demand for aviation software, rise in air travelers, and increase in the number of airports that require data analytics.

REGIONAL INSIGHTS

The global market is studied across North America, Europe, Asia Pacific, the Middle East, and the rest of the world.

North America is expected to dominate the market during the forecast period. The growth is due to a large aircraft fleet in the U.S., the highest number of aircraft operators, and demand for advancement in the aviation industry. In addition to this, the presence of key players in such as Honeywell International, Inc., Collins Aerospace, Boeing, General Electric, IBM, Oracle, L3Harris Technologies, Inc. is anticipated to support the aviation analytics market growth. Furthermore, in October 2019, Power Analytics received a new 5-year software license agreement from the Federal Aviation Administration, which is an “Indefinite Delivery/Indefinite Quantity” (IDIQ) contract.

The market in Europe will showcase moderate growth during the forecast period. The region's growth is due to the increase in demand for advancement in technology, increase in travel and tourism, and modernization of the aviation sector.

Asia Pacific will witness fast-paced growth during the forecast period. The growth is attributed to the growing aviation industry in Asia Pacific, growing economy, and significant demand for air travel from countries such as China, India, South Korea, and others.

The Middle East will show moderate growth due to the presence of high net worth in the region, rise in travel and business opportunities & new aircraft procurement plans. The market in the Rest of the World is anticipated to experience sluggish growth during the forecast period owing to the limited aviation sector budget.

KEY INDUSTRY PLAYERS

Key Players are Focusing on Business Expansion Through Contracts and Partnerships with OEMs

Boeing is a pioneer in providing advanced software solutions in the aviation sector. It offers Boeing AnalytX, a collection of software and consulting services that help airlines gather and apply insights from operational data to improve efficiency, allocate resources, and reduce costs.

Furthermore, Customers can mix and match three interconnected categories of analytics-enabled products and services from Boeing AnalytX to fulfill their needs and goals: digital solutions, analytics consulting services, and self-service analytics.

• In February 2020, Vistara an Indian airline, announced a contract with Boeing AnalytX for Boeing Maintenance Performance Toolbox and Airplane Health Management tools for the new 787-9 aircraft. These services offered by Boeing AnalytX provide real-time custom alerting, fleet data to enhance maintenance capabilities.


• In June 2019, Air Peace and EnterAir joined a global roster of 105 Airplane Health Management (AHM) customers. Boeing AnalytX powers AHM to provide clients with real-time maintenance and engineering support so they can make informed decisions about their Boeing aircraft.

LIST OF KEY COMPANIES PROFILED:

• Airbus (France)


• Boeing (U.S.)


• Collins Aerospace  (U.S.)


• General Electric (U.S.)


• Honeywell International Inc. (U.S.)


• IBM (U.S.)


• L3Harris Technologies, Inc. (U.S.)


• Lufthansa Technik (Germany)


• Oracle (U.S.)


• SAP SE (Germany)

KEY INDUSTRY DEVELOPMENTS:

• July 2020 – PASSUR aerospace, Inc. and Aireon reached an agreement to jointly power aviation data analytics, collaboration, and digital decision support solutions around the world. This is the First Air Traffic Optimization Platform to Offer Global, Space-Based, Operational-Quality Surface Surveillance, and Airfield Management Solutions.


• October 2020 – Air Transport Services Group (ATSG) selected GE Aviation for a comprehensive data analytics agreement, including FlightPulse and eFOQA (electronic flight operation quality assurance) services.

REPORT COVERAGE

The global aviation analytics market report provides a detailed market analysis and focuses on key aspects such as key industry players, products, and applications. Moreover, the report offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation