Aviation IoT Market Size, Share & Trends Report

Aviation IoT Market Size, Share & Trends Analysis Report By Application (Ground Operations, Passenger Experience, Aircraft Operations, Asset Management), By End-use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jan, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-323-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 104

Report Overview

The global aviation IoT market size was valued at USD 4.95 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.4% from 2021 to 2028. The exponential growth in air passenger traffic and a strong emphasis on enhancing passenger experience are expected to fuel the growth of the market. Continuous advances in wireless technology and a growing preference for smart airport architecture are contributing to market growth. The aviation industry has witnessed an unprecedented increase in passenger traffic in recent years. Subsequently, airport authorities and airline operators worldwide are aggressively adopting the latest technologies to optimize their business flow and cope with the unabated growth in passenger traffic. The key aviation industry players are particularly adopting data-driven approaches to make their business decisions. Internet of Things (IoT) plays a vital role in collecting data in the aviation industry by providing statistical summaries to facilitate airport management. Aviation companies can utilize these statistical summaries to obtain actionable insights while reducing human interference.

U.S. aviation IoT market size, by application, 2016 - 2028 (USD Million)

The aviation industry is adopting a digital ecosystem in line with the continued advances in intelligent technologies. Advances in wireless technology have particularly allowed the industry to enhance its operational efficiency. At the same time, advances in IoT are enhancing the existing digital ecosystem to offer technology-based services, such as baggage and document checking, flight booking, and automated check-in.

Advances in Artificial Intelligence (AI) and Machine Learning hold immense potential to fuel the growth of the market. These technologies can be used for several applications associated with the aviation industry. For instance, advanced facial recognition AI is being used widely for ensuring security, efficiency, and accuracy while validating the details of passengers. This is subsequently helping in reducing the waiting times associated with the check-in procedures while strengthening the biometric airport screening processes. Aggressive investments by government authorities to build smart airport infrastructure and intense competitive rivalry among airlines to enhance passenger experience particularly bode well for the implementation of IoT in the aviation industry.

The growing preference for automation systems in the aviation industry is one of the key factors that are contributing to the growth of the market. IoT can particularly help the aviation industry in enhancing the MRO services and reducing the downtime. The ability to predict the malfunctioning component and reduce the equipment downtime using advanced predictive software is allowing airlines to increase their revenues. Continued deployment of advanced technologies by service providers and the provisioning of customized solutions are also offering lucrative growth opportunities for the market. All these factors are expected to encourage airport operators and airlines to install IoT-compatible devices within airports and in aircraft, thereby opening revenue generation opportunities over the forecast period.

Application Insights

The asset management segment dominated the market with a share of more than 30.0% in 2020. The aviation industry has to deal with several expensive assets, which can potentially lead to higher operating costs. At this juncture, the increasing fleet size in line with the growing passenger traffic is highlighting the importance of asset management and tracking to achieve higher operational efficiency. Aviation asset management provides various solutions to improve the overall productivity of crew and fleet operations.

The passenger experience segment is expected to emerge as the fastest-growing segment, registering a CAGR of 23.1% from 2021 to 2028. The commercial aerospace industry is leveraging the advances in technology to enhance the passenger experience. Deploying advanced technologies, such as beacons, NFC, and Wi-Fi, to interact with the passengers and understand their requirements is allowing the service providers to offer better and more personalized offerings. Access to various information and infotainment systems can potentially enhance the travel experience and eliminate the unnecessary confusion that passengers encounter during travel.

End-use Insights

The airport segment accounted for the largest revenue share of over 38.0% in 2020. It is also expected to emerge as the fastest-growing segment over the forecast period in line with the growing popularity of the smart airport concept across various regions. IoT can potentially open opportunities for the incumbents of the aviation industry to offer solutions for passenger traffic monitoring, baggage handling, and facilities management, and subsequently improve the overall operational flow and efficiency of the airport. The partnerships that are materializing between IoT service providers and airport operators are anticipated to create significant growth opportunities for the segment over the forecast period.

Global aviation IoT market share, by end-use, 2020 (%)

The airline operators segment is growing steadily as airlines are focusing gradually on generating ancillary revenues. IoT can play an important role in providing access to various real-time data to airlines and in improving the in-flight cabin experience for passengers. The proliferation of smartphones is driving the demand for in-flight internet connectivity and personalized entertainment solutions, thereby opening opportunities for airlines to generate considerable ancillary revenues. The growing adoption of intelligent baggage monitoring and advanced cabin climate control solutions to enhance the overall passenger experience is also contributing to the growth of the segment.

Regional Insights

North America dominated the market with a share of over 35.0% in 2020. The established aviation industry in the U.S. and Canada is allowing the region to be a lucrative market to implement sophisticated technologies. North America is home to several technology companies and has hence been an early adopter of advanced technologies. Continued rollout of sophisticated aviation infrastructure in the U.S. to enhance the passenger experience also bodes well for the growth of the regional market.

Asia Pacific is anticipated to emerge as the fastest-growing regional market, registering a CAGR of 24.1% from 2021 to 2028. The growth can be attributed to the increase in the mid-income population opting for air travel, the aggressive investments in smart airport architecture, and the expansion of airline operations in the Asia Pacific. Developing countries, such as India, and other Southeast Asian countries have witnessed a significant upsurge in domestic air travel. Government initiatives for connecting new air routes, such as Regional Connectivity Scheme (RCS) in India, and the strong emphasis on expanding the handling capacity are some of the critical factors driving the growth of the regional market.

Key Companies & Market Share Insights

The market is moderately fragmented with a limited number of market players controlling the industry dynamics. The commercial aerospace industry holds significant potential for implementing IoT technologies. Given that the aviation industry is primarily focused on value-based services, the market players are focusing on implementing advanced technologies within their existing system. Strategic collaborations between leading airlines and airport operators are emerging as a common strategy being adopted by the key market players to gain a competitive advantage. Some prominent players in the global aviation IoT market include:

  • Honeywell International, Inc.

  • Tata Communication

  • Cisco Systems, Inc.

  • Huawei Technologies Co. Ltd.

  • SITAONAIR

Impact of COVID-19 on the Industry

The outbreak of the COVID-19 pandemic has taken a significant toll on the business and operations of the aviation industry. Even though the air passenger movement across domestic and international destinations has been recovering since Q3/2020, the recovery has been very slow. As per our research findings, the domestic aviation market is expected to recover faster than its international counterpart. Government policies and regulations regarding commercial air transport are also expected to have a direct impact on passenger volume.

Airport stakeholders and airline operators are abiding by the safety norms by adopting advanced contactless solutions for onboarding passengers. The deployment of IoT devices is expected to gain traction as the majority of the airport operators invest in hygiene measures and deploy contactless interaction technologies. IoT holds the potential to transform the current facility into a smart infrastructure and improve the overall business processes. Gathering critical information for analyzing and improvising health-related decisions is turning out to be a contemporary application area in the commercial aviation industry. Real-time temperature monitoring and infection detection have become an essential part of the journey. IoT devices with advanced temperature monitoring systems are helping in monitoring passenger health and conveying the information to the concerned authorities in real-time.

A Personal Electronic Device (PED) can play a decisive role in ensuring passenger safety during the post-COVID situation. The integration of IoT devices at airports with PEDs is expected to offer a myriad of self-service options and provide real-time data while helping in avoiding direct contact and reducing queue time. As a result, the pandemic situation is expected to encourage investments in the installation of IoT devices, thereby fueling the growth of the market.

Aviation IoT Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 5.80 billion

Revenue forecast in 2028

USD 22.51 billion

Growth Rate

CAGR of 21.4% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; Japan

Key companies profiled

Honeywell International, Inc.; Tata Communication; Cisco Systems, Inc.; Huawei Technologies Co. Ltd; SITAONAIR

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global aviation IoT market report on the basis of application, end-use, and region:

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • Ground Operations

    • Passenger Experience

    • Aircraft Operations

    • Asset Management

  • End-use Outlook (Revenue, USD Million, 2016 - 2028)

    • Airport

    • Airline Operators

    • MRO

    • Aircraft OEM

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

    • Latin America

    • Middle East & Africa (MEA)

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