Aviation Analytics Market

Aviation Analytics: Enhancing Airline Operations and Passenger Experience

In recent years, aviation has experienced significant growth, with more people opting to travel by air. As a result, airlines have been forced to improve their operations and enhance passenger experience to remain competitive. One of the ways airlines are achieving this is through the use of aviation analytics. This essay discusses aviation analytics, its importance, and how airlines are using it to improve operations and passenger experience.

Aviation analytics refers to the use of data analytics to solve aviation-related problems. It involves the collection, analysis, and interpretation of data to make informed decisions. Aviation analytics is critical in today's aviation industry as it allows airlines to make data-driven decisions, reduce operational costs, and enhance passenger experience. With aviation analytics, airlines can optimize their operations, reduce delays, and improve safety.

One of the most significant benefits of aviation analytics is that it allows airlines to optimize their operations. By collecting and analyzing data on flight schedules, airline crews, and aircraft maintenance, airlines can identify areas where they can reduce costs and improve efficiency. For example, airlines can use aviation analytics to identify the most efficient flight routes and optimize flight schedules to reduce delays and improve on-time performance.

Aviation analytics is also critical in enhancing passenger experience. By analyzing data on passenger preferences, airlines can tailor their services to meet individual needs. For instance, airlines can use analytics to identify the most popular in-flight meals, the preferred seating arrangements, and the most sought-after amenities. This information can then be used to customize the passenger experience and make it more enjoyable.

Moreover, aviation analytics is critical in improving safety. By analyzing data on aircraft maintenance, airlines can identify potential safety issues before they become significant problems. Airlines can also use analytics to track flight paths and monitor weather conditions to avoid potential safety hazards.

Dynamics of Aviation Analytics Market

Drivers in Aviation Analytics Market

The aviation industry is undergoing a transformation with the help of aviation analytics. Companies are increasingly focusing on identifying new market opportunities by analyzing customer behavior and preferences, which has become a driving force for the growth of the aviation analytics market. By analyzing consumer shifts in preferences, airlines can offer the best-suited solutions to consumers, resulting in improved customer offerings, loyalty, and increased revenues. Both large enterprises and SMEs have invested heavily in analytics to ensure customer comfort, with an emphasis on smart data and big data analytics to enhance customer experience.

The aviation analytics market is driven by a rise in focus on competitive intelligence and real-time analytical solutions to increase business productivity. The market growth is further fueled by continuous growth in the volume of data generated in the aviation industry, surge in aviation passenger traffic, and growth in customers’ centricity. However, the market growth is hampered by the incapability to provide data models according to the need of businesses and a dearth of analytically skilled workforce.

Restraints in Aviation Analytics Market

The lack of appropriate analytical skills is one of the major restraints for the aviation analytics market. The integration between conventional and modern aviation devices requires a huge amount of investments and expertise. In some cases, new devices have different protocols that make these difficult to adopt. The integration of legacy data systems with new technologies is time and effort-consuming and may distract an organization from its core business activities due to a lack of proper analytical skills.

The COVID-19 pandemic has also affected the aviation industry, with a potential decline in passenger traffic. Aviation analytics companies must comply with a range of regulations related to data privacy, security, and the aviation industry, which can create compliance costs and limit the types of data that can be collected and analyzed. The aviation analytics industry requires a range of specialized skills, including data science, aviation engineering, and business analysis. However, there may be a shortage of professionals with these skills, limiting the growth of the industry. The development and implementation of aviation analytics solutions can be costly, particularly for smaller airlines or operators, limiting their ability to adopt these solutions and compete with larger players.

Opportunities in Aviation Analytics Market

The aviation industry presents an opportunity for the use of AI-based analytics solutions for critical functions. However, this requires skilled professionals and can be a time-consuming process. Artificial intelligence (AI) technologies are well-suited for extracting insights and patterns from large data sets, enabling predictions to be made based on that information. AI-based analytics solutions, such as those offered by SAP SE and Oracle Corporation, automate the analytics process and make it more efficient and accessible. The use of AI can therefore promote growth in the aviation analytics market. According to ICAO, the aviation industry contributed $3.5 trillion to the global economy and supported 87.7 million jobs in 2019. Additionally, the number of commercial aircraft in service is expected to increase to 32,600 by 2038.

Challenges in Aviation Analytics Market

However, the COVID-19 pandemic has presented economic challenges to the aviation industry. The civil aviation industry has been among the most severely affected sectors globally since the beginning of the outbreak. ICAO and IATA regularly publish reports and forecasts on the economic impact of the pandemic on the aviation industry. One of the significant challenges in aviation analytics is the availability and quality of data. Data is often stored in different systems, making it challenging to access and integrate. Additionally, data quality issues can arise due to errors in data entry or processing. According to a Deloitte survey, data quality was identified as a top challenge by 60% of respondents in the aviation industry. Another challenge is ensuring the privacy and security of sensitive data, which can contain personal information about passengers, crew, and employees, as well as sensitive information about flight operations and maintenance. Cybersecurity was identified as a top concern by 45% of respondents in the aviation industry, according to a study by IATA. Skilled data analysts and data scientists are in short supply, and the aviation industry will need to hire over 700,000 new pilots and technicians by 2036, many of whom will require skills in data analytics. Finally, integrating legacy systems with new data analytics platforms can be challenging and require significant investments in time and resources.

Ecosystem of Aviation Analytics Market

The aviation analytics market is segmented into solutions and services based on the component. Among these segments, the solutions segment is expected to lead the market during the forecast period. This is attributed to the increased demand for customized aviation analytics solutions that can tackle uncertainties in the aviation business. On the other hand, the services segment offers on-demand functionalities of aviation analytics, such as weather reporting and navigation, to focus on specific targeted areas.

The aviation analytics market is segmented based on application into various categories, including flight risk management, fuel management, route management, fleet management, inventory management, wealth management, inspection, performance monitoring, predictive analysis, part replacement, supply chain planning, energy management, emergency management, mobility & functionality, and others. Among these, the mobility & functionality segment is projected to grow at the highest CAGR during the forecast period.

Aviation analytics involves collecting and analyzing historical data and trends to forecast various stages of a certain business function. Modern analytics tools, coupled with big data and artificial intelligence, offer accurate solutions to analyze critical business functions. This has resulted in increased demand for aviation analytics solutions from various OEMs and aircraft maintenance providers to gauge consumer trends and offer their services accordingly. Implementing aviation analytics provides benefits such as operational cost savings, improved efficiency, and better customer reach.

The aviation analytics market is segmented based on end users into airlines, airports, MROs, and OEMs. Among these, the airlines segment is projected to grow at the highest CAGR during the forecast period. The airports segment is expected to lead the market due to the increasing number of airports worldwide to cater to the rising demand for air travel.

The COVID-19 pandemic has affected the aviation industry globally, but the Asia Pacific region is anticipated to showcase a positive growth rate post-pandemic.

According to the International Air Transport Association (IATA), airline-controlled processes, such as maintenance, are the primary cause of late flights, accounting for 46% of delays. To improve efficiency and enhance customer experience, players in the aviation industry are constantly making technological advancements, which are expected to drive the demand for aviation analytics. One such development is the Internet of Things (IoT), which has a significant impact on maintenance and safety, enabling airlines to keep their planes in the air longer with less time spent on the ground. Cloud computing is another innovation that has recently emerged and is being used to remotely provide resources to airlines as per their needs. Mobile devices also have the potential to greatly impact services, and when coupled with aviation analytics, airlines can provide ancillary services such as baggage fees and on-board services by analyzing customer preference history.

These technological advancements present opportunities for the aviation analytics market during the forecast period. Furthermore, key players in the industry such as OAG Aviation Worldwide Limited, Accelya, and General Electric are expected to further drive the demand for aviation analytics. For example, OAG Aviation Worldwide Limited launched Flight Info Alerts, a real-time detection and notification product that delivers changes to flight schedules. Similarly, SAS Institute Inc. collaborated with Raleigh-Durham International Airport to develop significantly improved passenger forecast models.

Regional Insights

Regional insights suggest that the use of data analytics in the aviation industry is increasing rapidly across different regions. The Asia Pacific region is projected to exhibit the highest CAGR during the forecast period, with countries like China, Japan, and India offering technical expertise and a skilled workforce. The aviation analytics market in the region is driven by the demand for improved functional efficiency and an effective supply chain. The presence of startups providing analytics solutions such as IBS Software Services is attracting aircraft OEMs and MRO solution providers to the region. Companies like Boeing and Airbus are offering contracts to aviation analytics solution providers in China and India.

In Europe, the European Aviation Safety Agency (EASA) reports that stakeholders are increasingly utilizing data analytics to improve safety management, operational efficiency, and air traffic management. The adoption of data analytics in the North American aviation industry has been a leader, as North America accounted for the largest share of the aviation analytics market, with a market size of over $3.3 billion, being driven by the need to improve safety, reduce costs, and optimize operations. In Africa, the adoption of aviation analytics is in the early stages, but the market is expected to grow at a CAGR of over 10.6%, driven by the need to improve safety, reduce costs, and optimize operations.

Dominating Companies in Aviation Analytics Market

• IBM CORPORATION
• GENERAL ELECTRIC
• ORACLE CORPORATION
• SAP SE
• RAMCO SYSTEMS
• CAPGEMINI
• HEXAWARE TECHNOLOGIES
• HONEYWELL INTERNATIONAL
• LUFTHANSA TECHNIK
• IFS AB
• WINAIR
• SAS INSTITUTE
• SITA
• BOOZ ALLEN HAMILTON
• MERCATOR
• ATHEER AIR
• MU SIGMA
• SWISS AVIATION SOFTWARE
• GRAYMATTER SOFTWARE SERVICES
• BEEP ANALYTICS
• ZESTIOT
• IBS SOFTWARE SERVICES
• AVIATION INTELLIGENCE
• INNODATATICS INC.
• AEROFICIAL INTELLIGENCE
• Accelya
• IGT Solutions Pvt. Ltd.
• OAG Aviation Worldwide Ltd.

Recent Developments in Aviation Analytics Market

• In 2021, GE Aviation announced the acquisition of PraxSoft, a provider of predictive maintenance solutions for the aviation industry. The acquisition is expected to enhance GE Aviation's analytics capabilities and enable it to offer more comprehensive services to its customers.
• In 2020, Airbus announced a partnership with AirAsia to establish a joint venture called Redbeat Ventures. The partnership aims to develop innovative digital solutions for the aviation industry, including in the areas of data analytics and artificial intelligence.
• In 2019, Boeing acquired ForeFlight, a provider of aviation software solutions for pilots and flight operations. The acquisition is part of Boeing's strategy to expand its digital solutions portfolio and enhance its capabilities in data analytics and decision-making.
• In 2019, Rolls-Royce announced a partnership with Lufthansa Technik to develop a new digital platform for predictive maintenance in the aviation industry. The platform, called AVIATAR, uses data analytics and artificial intelligence to optimize aircraft maintenance and reduce downtime.
• Also in 2019, Boeing and Safran announced the establishment of a joint venture called Electric Power Systems to develop and produce advanced batteries for electric and hybrid-electric aircraft. The joint venture will leverage both companies' expertise in aviation and technology, including data analytics and machine learning, to drive innovation in the field.
• In 2020, Collins Aerospace, a subsidiary of Raytheon Technologies, announced the acquisition of FlightAware, a provider of aviation data and analytics solutions. The acquisition is expected to enhance Collins Aerospace's capabilities in flight tracking and data analytics, enabling it to offer more comprehensive solutions to its customers.
• In 2019, Honeywell Aerospace announced the acquisition of TruTrak Flight Systems, a provider of autopilot and flight control systems for general aviation aircraft. The acquisition is part of Honeywell's strategy to expand its portfolio of aviation technologies and services, including data analytics and connectivity solutions.
• Also in 2019, GE Aviation announced a partnership with Avionica, a provider of wireless data collection and transmission solutions for aircraft. The partnership aims to develop new technologies for data analytics and predictive maintenance, enabling airlines to optimize their operations and reduce costs.
• In 2018, United Technologies Corporation (UTC) announced the acquisition of Rockwell Collins, a provider of aviation communication and information management systems. The acquisition is part of UTC's strategy to expand its presence in the aviation industry and enhance its capabilities in data analytics and connected technologies.
• Also in 2018, Boeing announced the acquisition of KLX Aerospace Solutions, a provider of aviation parts and services. The acquisition is part of Boeing's strategy to expand its services business and offer more comprehensive solutions to its customers, including in the areas of data analytics and supply chain management.

In conclusion, aviation analytics is an essential tool for the modern airline industry. It enables airlines to optimize their operations, reduce costs, enhance passenger experience, and improve safety. As the aviation industry continues to grow, aviation analytics will become even more critical in ensuring that airlines remain competitive and provide the best possible service to their customers.