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Global Airline Digitalization Growth Opportunities
Global Airline Digitalization Growth Opportunities
Transforming Traditional Processes and Realizing Digital Benefits to Drive Future Growth Potential of Global Carriers
20-Jul-2021
Global
Market Research
Description
The airline digitalization market is a growth market forecast to achieve more than $35 billion in revenue by 2030. It is a highly fragmented market, with the top 15 companies accounting for nearly 26.5% of the market share. This share amount is not expected to change significantly over the forecast period (2021–2030). The market’s top companies by estimated revenue include Amadeus, Sabre, SITA, IBM, Boeing, Airbus, and PROS. The market is estimated to have more than 100 companies and will continue to grow as new start-ups increasingly enter the market with niche solutions based on next-generation technologies targeting specific airline needs.
Major airlines globally have committed to migrating their entire information technology (IT) infrastructure to a cloud infrastructure within the next decade. Traditional full-service carriers with a significant amount of IT workloads on legacy systems and facing stiff digital competition from low-cost carriers are anticipated to lead this market trend. Migrating workloads to the cloud, increasing touchless passenger experiences, optimizing internal processes, improving customer outreach through personalization, and enhancing ancillary revenues are the key growth drivers of the airline digitalization market.
A notable success factor for airlines is creating a team with dedicated budgets for digital initiatives, but training employees and recruiting digitally skilled employees are major challenges. Real-time data analytics with an interactive display/graphical user interface is also a key focus area and expected to have a higher penetration in the medium term (2024–2025). Additionally, blockchain is gaining traction in aviation research and development investment as airlines investigate its potential usage in distribution, loyalty programs, and supply chain management.
Major processes receiving high investments in aviation are disruption management and personalization initiatives. The key components airlines seek in a digital solution include modular capabilities, high interoperability with existing and new systems, and partnerships with digital stakeholders. The growth in interconnected solutions has created a vulnerable data ecosystem, resulting in various data regulations across regions monitoring efforts to increase sensitive data security. These factors, along with a heightened global focus on data privacy, will intensify airlines’ spending on cybersecurity solutions. As such, the adoption of data platforms enhancing operations and commercial activities is expected to rise over the forecast period.
Traditional aircraft and engine manufacturers also play a significant role in this market. These participants can identify and realize new revenue streams as they undergo their own digital transformation. These firms, along with technology firms and start-ups, will potentially shift the dynamics of the market over the forecast period.
The COVID-19 pandemic has negatively affected the global airline digitalization market. While digital solutions have increased to ensure a safe passenger experience, the pandemic has reduced operations, leading to historically low revenues and limiting airlines’ digital and information technology budgets. The market growth depends on how quickly airlines can recover from the pandemic. Despite the pandemic, the airline digitalization market is anticipated to continue growing in the long term.
Table of Contents
Key Highlights
Trends to Watch
Top Growth Opportunities in the Airline Digitalization Market
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on the Airline Digitalization Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Scope of Analysis
Airline Type Segmentation
Airline Tier Segmentation
Digital Transformation Process
Airline Digital Transformation
Digital Transformation—Key Performance Indicators
Digitalization Benefits—Operational KPIs
Airline Digitalization—Top Priorities and Challenges
Key Metrics for Successful Digital Airlines
Key Trends for Post-pandemic Digital Airlines
Future of Consumer Electronics
Digitalization in Travel and Tourism
Current Status of Legacy Systems and the Future of Infrastructure
Future of Data Regulations
Digital Solutions for a Sustainable Future
Loyalty Programs
Spotlight on Cargo
Digitalizing Cargo Operations
Key Competitors for Airline Digitalization
Key Growth Metrics for Airline Digitalization
Growth Drivers for Airline Digitalization
Growth Restraints for Airline Digitalization
Forecast Assumptions
Revenue Forecast
Revenue Forecast by Airline Tier
Revenue Forecast by Region
Revenue Forecast by Airline Type
Revenue Forecast Analysis
Revenue Forecast Analysis by Airline Type
Pricing Trends and Forecast Analysis
Competitive Environment
Revenue Share
Revenue Share Analysis
Notable Start-ups in Airline Digitalization
Notable Investments in Start-ups by Key Airlines
Key Growth Metrics for Airline Digitalization—Africa
Revenue Forecast for Airline Digitalization—Africa
Revenue Forecast by Airline Tier for Airline Digitalization—Africa
Forecast Analysis by Airline Tier for Airline Digitalization—Africa
Key Growth Metrics for Airline Digitalization—Asia-Pacific
Revenue Forecast for Airline Digitalization—Asia-Pacific
Revenue Forecast by Airline Tier for Airline Digitalization—Asia-Pacific
Forecast Analysis by Airline Tier for Airline Digitalization—Asia-Pacific
Key Growth Metrics for Airline Digitalization—Europe
Revenue Forecast for Airline Digitalization—Europe
Revenue Forecast by Airline Tier for Airline Digitalization—Europe
Forecast Analysis by Airline Tier for Airline Digitalization—Europe
Key Growth Metrics for Airline Digitalization—Latin America
Revenue Forecast for Airline Digitalization—Latin America
Revenue Forecast by Airline Tier for Airline Digitalization—Latin America
Forecast Analysis by Airline Tier for Airline Digitalization—Latin America
Key Growth Metrics for Airline Digitalization—Middle East
Revenue Forecast for Airline Digitalization—Middle East
Revenue Forecast by Airline Tier for Airline Digitalization—Middle East
Forecast Analysis by Airline Tier for Airline Digitalization—Middle East
Key Growth Metrics for Airline Digitalization—North America
Revenue Forecast for Airline Digitalization—North America
Revenue Forecast by Airline Tier for Airline Digitalization—North America
Forecast Analysis by Airline Tier for Airline Digitalization—North America
Growth Opportunity 1: Disruption Management and Fuel Optimization for Improved Operational Efficiency
Growth Opportunity 1: Disruption Management and Fuel Optimization for Improved Operational Efficiency (continued)
Growth Opportunity 2: Big Data Platforms for Enhanced Operations and Merchandising
Growth Opportunity 2: Big Data Platforms for Enhanced Operations and Merchandising (continued)
Growth Opportunity 3: Cybersecurity for Robust Operational Resilience
Growth Opportunity 3: Cybersecurity for Robust Operational Resilience (continued)
Growth Opportunity 4: Workload Migration to Cloud for Scalability and Cost Efficiency
Growth Opportunity 4: Workload Migration to Cloud for Scalability and Cost Efficiency (continued)
Key Takeaways
Your Next Steps
Why Frost, Why Now?
List of Exhibits
List of Exhibits (continued)
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| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Abhilash Varkey Abraham |
| Industries | Aerospace, Defence and Security |
| WIP Number | PBB0-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9000-A1 |