The Internet of things (IoT) is a computing concept that enables users to use and control physical objects by connecting them to the internet. Today IoT is an important and integral part of the aviation industry because the aviation industry always strives to provide a superior traveling experience at the lowest fares.
The aviation IoT market has been anticipated to earn revenues worth USD 25,134.6 million while expanding at a CAGR of 16.34% by 2023. Increase in passenger traffic, subsequent demand for new aircraft, and rising investment in the agile and smart airport concept drive the market growth.
Analyzing the market structure, this report offers insights about factors affecting the market growth. Estimating the market size and forecasting the revenue, this report covers and observes the competitive developments of market players that include joint ventures, mergers and acquisitions, new product developments, research and developments (R&D), and strategic alliances.
Huge investments in terms of R&D have led to technological innovations in the aviation as well as IoT sector. Moreover, the energy & process optimization and the rapid adoption of IFEC systems easing have led to demand from more aviation industry players to incorporate IoT in their operations and services which is leading to the growth of aviation IoT market. However, the vulnerability of IoT systems regarding cybersecurity can have a negative impact on market growth.
The aviation IoT market is segmented on the basis of, application component, end user, and region. Airline application has been sub-segmented into fleet management, passenger experience enhancement, and others. Application-based segmentation segments this market into airline application, airport application, and air traffic management application processes. Sub-segmentation of airport application covers operations, passenger processing, and security. The sub-segmentation of air traffic management application comprises of flight turnaround optimization, runway management, and other processes.
Based on the component, the market has been segmented into communication services, data center systems, devices, IT services, and softwares. Given the basis of end users, the market has been segmented into the airline, airport, and air traffic management.
The regions covered in the global market are Europe, Asia Pacific, North America, Latin America, and Middle East & Africa (MEA).
Detailed Regional Analysis
The regional analysis of the aviation IoT market covers regions such as Europe, Asia Pacific, North America, Latin America, and Middle East & Africa (MEA). North America is the largest regional market. In 2017, it held the largest market share of 30.89% whose market value was USD 3,150.5 million. During the forecast period, this market has been anticipated to grow at a 15.61% CAGR. USA and Canada are the strongest economies in this region, and they can be lucrative markets. In 2016, American Airlines spent nearly USD 25 million on easing congestion at various airports in the US. This kind of developments can enhance fuel market growth. During the forecast period, the aviation IoT market in North America is estimated to witness a CAGR of 15.61% during the forecast period.
In Europe, the market is growing due to strong economies such as France, Germany, Italy, the Netherlands, and the UK. Due to technological advancement, Europe is one of the major regions for aviation IoT. In 2016, there were over 4,500 aircraft operating in Europe. By 2035, the number is expected to reach 8,000. In this region, the market is growing due to the greater collaboration between airlines and airport authorities such as the installation of smart solutions and an increase in the number of aircraft. Thus, market growth for Europe is expected to register a 14.73% CAGR during the forecast period.