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

RELEASE DATE
29-May-2020
REGION
Global
Research Code: MDE1-01-00-00-00
SKU: AE01406-GL-MR_24427
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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)

Related Research
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.--BEGIN PROMO--

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?

 

More Information
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