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Analysis of the Global Airline IT Market, Forecast to 2025
Analysis of the Global Airline IT Market, Forecast to 2025
Innovative Implementation of Digital Technologies to Unlock Airline Revenues and Generate Savings of Up to $25 Billion by Improving Operational Efficiencies
29-May-2020
Global
Description
Airlines are facing an ever-evolving digital landscape and an increase in expectations from an always-connected passenger. Cloud computing, mobile solutions, machine learning (ML), Blockchain etc. are disrupting numerous traditional processes across industries. Airlines have lagged behind other industries in embracing these digital enablers, but many have begun their digital transformation (DT) journey that will fundamentally change the traditional airline information technology (IT) strategies. The major challenge for airlines is their dependence on legacy systems for their critical IT needs. Solution providers are developing digital solutions that will enable airlines to overcome this challenge and help them grow in their DT endeavor. The airline industry has faced numerous cyber threats over the past couple of years and such incidents have brought the focus of leaders to cyber security. In such a scenario, airlines are trying to navigate their way in the new digital age, where protection of personal data is of high priority to passengers and governments are getting stricter on data regulation policies. Optimization of operations and hyper-personalization are key areas of focus for airlines globally. Growth in public awareness about climate change has put the aviation industry in the crossfires of a global backlash regarding the emissions levels that harm the environment. The industry is tackling this challenge by investing in alternate sustainable fuels, electric propulsions etc. However, these measures will only be realized and implemented over the very long term. Currently, airlines are implementing solutions that are integrated with ML algorithms that can optimize operations, delivering reduced cost and emissions. Customers are becoming more mobile and are always online and connected. Their experience in other aspects of life such as retail shopping, business, and even relationships are served in an intelligent manner curated to their preferences. Airlines are trying to reach the level of personalization provided by such industries to gain more of the opportunity in ancillary products by pitching the right product to potential passengers at the right time. Numerous start-ups in various stages of growth are developing niche technologies that can improve particular processes of an airline. Airlines and solution providers are partnering and investing in these start-ups to support their digital growth. The airline IT market is segmented into 6 key categories across various airline business models – Full-Service Carriers, Hybrid Carriers, Low-Cost Carriers and Logistic Carriers. The 6 segments are IT Infrastructure, Operational IT, Commercial IT, Passenger Service Systems, Core Airline IT, and Corporate IT. There is also growing support and investment from international industry associations like International Air Transport Association (IATA) to simplify and improve processes using digital solutions.
Research Scope
Product Scope: Airline IT Systems, Segmentation of Airline IT, Key Market and Technology Trends
Geographic Scope: Global
End-user Scope: IT solution providers and firms that specialize in DT specific to the airline industry
Key Issues Addressed
- What is the current market for airline information technology, and how will it change by 2025?
- What are the various segments making up the airline IT market? How much does each segment contribute to the overall airline IT market and how will the composition change by 2025?
- What are the major digital trends on which airlines are focusing on? How do airlines plan to solve their pain points by using digital technologies?
- Who are the key solution providers in the market, and how are they responding to the new trends in the airline industry?
- Who are the disruptors in this area, and how will they impact the current market for the incumbent solutions providers?
Table of Contents
Key Findings
Market Engineering Measurements
CEO’s Perspective
Market Definitions
Market Definitions (continued)
Market Definitions (continued)
Definitions—Airline IT Projects
Definitions—Airline IT Projects (continued)
Definitions—Airline IT Projects (continued)
Scope
Key Questions this Study will Answer
Market Overview—Airline IT Segmentation
Percent IT Expenditure by Segment—Full-Service Carriers
Percent IT Expenditure by Segment—Hybrid Carriers
Percent IT Expenditure by Segment—Low-Cost Carriers
Percent IT Expenditure by Segment—Logistics Carriers
Key Airline IT Projects—Impact on Profitability
Impact of Key IT Projects on Revenue and Expenses
Connected Aviation—Key IT Projects and Products in Airlines
Impact of Key IT Products (Software) on Revenue and Expenses
Airline IT Landscape—Key Areas Contributing to the Revenue
Market Drivers
Drivers Explained
Drivers Explained (continued)
Market Restraints
Restraints Explained
Restraints Explained (continued)
Impact on Aviation Industry
Impact on Airline IT
Current State of Airlines
Trend 1—Airlines Undertaking Enterprise-wide DT Strategies
Trend 2—Integration of Data Sets to the Airline Ecosystem
Schematic Flow of Operational Data Platforms
Schematic Flow of Commercial Data Platforms
Trend 3—Migrating Workloads to the Cloud
Global Cloud Adoption Rate
Global Cloud Adoption by Segment, 2019
Global Cloud Adoption by Key Vendors, 2019
Trend 4—Cyber Security
Major Cyber Security Incidents at Airlines
Trend 5—Optimization of Airline Operations
Adoption Rate of Key Technologies
Technologies in Focus for Airlines
Technologies in Focus for Airlines (continued)
Key Technologies—Airline Applications
Key Technologies—Airline Applications (continued)
Case Study—IoT and Big Data Analytics
Case Study—AI and AR/VR
Case Study—Blockchain and Robotics
Case Study—Drone and 3D Printing
Market Engineering Measurements
Forecast Assumptions
Total Airline IT Revenue Forecast—COVID-19 Impact
Revenue Forecast Discussion
Total Airline IT Revenue Forecast by Business Model—COVID-19 Impact
Percent Revenue Forecast by Region—COVID-19 Impact
Revenue Forecast by Region—COVID-19 Impact
Revenue Forecast Discussion by Region
Revenue Forecast Discussion by Region (continued)
Revenue Forecast Discussion by Region (continued)
Market Share of Key Airline IT Solution Providers
Market Share Analysis
Competitive Environment
Top Competitors
Snapshot of Major Solution Providers
Snapshot of Major Solution Providers (continued)
Snapshot of Major Solution Providers (continued)
Snapshot of Major Solution Providers (continued)
Snapshot of Major Solution Providers (continued)
Airline IT Supplier Landscape—2019
Start-ups Disrupting the Airline IT Ecosystem
Growth Opportunity 1—Disruption Management
Growth Opportunity 2—Personalizing Digital Passenger Experience at Every Touch Point
Growth Opportunity 3—Development of Operational Data Platforms
Strategic Imperatives for Success and Growth
Segment Overview
IT Infrastructure—Component Details
Segment Overview
Operational IT—Component Details
Operational IT—Component Details (continued)
Segment Overview
Commercial IT—Component Details
Other Areas of Focus for Airline Commercial IT Systems
Other Areas of Focus for Airline Commercial IT Systems (continued)
Segment Overview
Core Airline IT—Component Details
Segment Overview
Passenger Service System—Component Details
Distribution Models
Segment Overview
Corporate IT—Component Details
High-priority Digital Areas
Operational Efficiency
Competitor Profile—Amadeus
Key Airline Contracts—Amadeus
Competitor Profile—SITA
Key Airline Contracts—SITA
Competitor Profile—Sabre
Key Airline Contracts—Sabre
Competitor Profile—Travelport
Key Airline Contracts—Travelport
Competitor Profile—Travelsky
Key Airline Contracts—Travelsky
Competitor Profile—IBS Software Services
Key Airline Contracts—IBS Software Services
Competitor Profile—Lufthansa Systems
Key Airline Contracts—Lufthansa Systems
Competitor Profile—Swiss Aviation Software Ltd.
Key Airline Contracts—Swiss Aviation Software
Competitor Profile—Navblue
Key Airline Contracts—Navblue
Competitor Profile—Jeppesen
Key Airline Contracts—Jeppesen
Competitor Profile—Unisys
Competitor Profile—Datalex
Competitor Profile—PROS
Start-ups—Operational IT
Start-ups—Operational IT (continued)
Start-ups—Operational IT (continued)
Start-ups—Commercial IT
Start-ups—Commercial IT (continued)
Start-ups—Commercial IT (continued)
Start-ups—Commercial IT (continued)
Start-ups—Core Airline IT
Start-ups—Core Airline IT (continued)
Start-ups—Corporate IT
Start-ups—Infrastructure IT/Passenger Service Systems
The Last Word—3 Big Predictions
Legal Disclaimer
Market Engineering Methodology
Global Adoption Rate of Key IT Projects
Cloud Adoption by Global Airlines
List of Companies in “Others”
Abbreviations and Acronyms Used
Major Airline Projects
Major Airline Projects (continued)
Major Airline Projects (continued)
Major Airline Projects (continued)
Major Airline Projects (continued)
Major Airline Projects (continued)
Major Airline Projects (continued)
Major Airline Projects (continued)
Major Airline Projects (continued)
Major Airline Projects (continued)
Partial List of Companies Interviewed
Additional Sources of Information on the Global Airline IT Market
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
Popular Topics
Research Scope
Product Scope: Airline IT Systems, Segmentation of Airline IT, Key Market and Technology Trends
Geographic Scope: Global
End-user Scope: IT solution providers and firms that specialize in DT specific to the airline industry
Key Issues Addressed
- What is the current market for airline information technology, and how will it change by 2025?
- What are the various segments making up the airline IT market? How much does each segment contribute to the overall airline IT market and how will the composition change by 2025?
- What are the major digital trends on which airlines are focusing on? How do airlines plan to solve their pain points by using digital technologies?
- Who are the key solution providers in the market, and how are they responding to the new trends in the airline industry?
- Who are the disruptors in this area, and how will they impact the current market for the incumbent solutions providers?
| No Index | No |
|---|---|
| Podcast | No |
| Author | Aditi Gargav |
| Industries | Aerospace, Defence and Security |
| WIP Number | MDE1-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9000-A1 |