In 2023, the global commercial aerospace digital solutions sector generated a revenue of $28,974.6 million, and it is anticipated to grow at a compound annual growth rate (CAGR) of 7.0% and reach $57,032.4 million in 2033.
This study analyzes digital R&D investment and annual digital expenditure, and it covers the airline, airport, MRO service provider, and OEM industries.
• Airlines and airports are classified from Tiers I to V, while OEMs cover Tiers I to III.
• MRO service providers cover all the aerospace components.
By geography, the study covers the global market, with a focus on Asia-Pacific (APAC), Europe, North America, Latin America, and the Middle East and Africa (MEA).
• The study does not include a comprehensive list of global market participants; instead, it offers region-specific company lists.
Air travel demand increased in 2023, and by the end of 2024, air traffic numbers will equal 2019, pre-COVID 19 levels. This is a major driver that will foster the digital transformation journeys of airports, airlines, OEMs, and MRO suppliers. The higher the demand for air travel, the higher the aircraft utilization rate, leading to a substantial increase in demand for new aircraft and aftermarket services. As a result, spending on digital transformation will rise.
However, the high upfront cost of digital tools and recurring costs for software licenses, maintenance, and updates can challenge small companies, as they may not realize the return on investment (RoI) from digital initiatives immediately.
North America is the highest revenue contributor to the global commercial aerospace digital solutions sector. The region is also likely to register the highest growth rate during the forecast period, followed by Europe, APAC, Latin America, the Middle East, and Africa. In terms of industry verticals, airlines are the leading contributors, followed by OEMs, airports, and MRO service providers.
In H1 2024, leading aviation IT companies opted for the acquisitions route; Amadeus and SITA, for example, acquired Vision Box and Materna IPS, respectively, providing digital technology solutions to airports. During the forecast period, more acquisitions from leading aviation IT vendors are expected, as they consider acquiring companies that create synergies with their product portfolios. This will help them enhance and optimize cross-selling opportunities and upsell their bundled products to airport operators.
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Author: Nripendra Bahadur Singh
The Impact of the Top 3 Strategic Imperatives on the Commercial Aerospace Digital Solutions Sector
Disruptive Technologies
WHY
Electric vertical takeoff and landing (eVTOL) aircraft is a significant innovation, and research and development (R&D) efforts in this space will increase the aerospace industry's sustainability.
- At present, developed countries are seeing higher acceptance and use of eVTOL aircraft; by the end of the 2030s, developing countries will follow suit.
FROST PERSPECTIVE
- Disruptive technologies, particularly eVTOL aircraft, are poised to transform the aerospace industry by the end of the decade.
- AI-driven operational improvements will result in an uptick in digital transformation projects, such as self-service at airports. IoT is seeing widespread adoption in aerospace manufacturing.
Transformative Megatrends
WHY
- Owing to the rising demand for air travel, the need for new airport terminal buildings is increasing globally. Digital solutions are being used to enhance productivity and passenger experiences.
- Sustainability concerns are compelling the aerospace industry to adopt eco-friendly aircraft and optimize airport operations.
FROST PERSPECTIVE
- Digitalization enhances process efficiency and passenger experiences. By the mid-2030s, the integration of digital solutions in aerospace ecosystems will commence.
- Advanced technologies will create a new interconnected ecosystem in the aerospace industry and address sustainability-related challenges.
Industry Convergence
WHY
- Industry convergence augurs innovation by sharing best practices to develop innovative solutions. Industry challenges must be solved, and new revenue streams must be developed.
FROST PERSPECTIVE
- Different industry verticals are exploring opportunities to develop all-electric/hybrid aircraft, which will increase the aerospace industry's sustainability.
- Industry participants will create alliances in aerospace digitalization to provide the regulatory roadmap for the next 15 years.
This analysis highlights the critical strategic imperatives shaping the future of the Commercial Aerospace Digital Solutions Sector, emphasizing the importance of innovation, sustainability, and collaboration in driving industry advancements.
Segmentation
Sector Segmentation
- Airlines
Full-service carriers (FSCs), low-cost carriers (LCCs), and cargo carriers across the 5 regions are analyzed.
- Airports
All 5 tiers of commercial airports are covered.
- MRO Service Providers
MRO companies across the 5 regions are analyzed.
- - OEMs
All 3 tiers of commercial OEMs are covered.
Key Competitors
North America
- - Sabre
- IBM
- Unisys
- Boeing
- Honeywell Aerospace
- PROS
- DXC Technology
- Amazon Web Services
- Microsoft Azure
- Google Cloud Platform
- Cognizant
- SmartKargo
- ADB Safegate
- Collins Aerospace
- Leidos
- Honeywell
Europe
- Amadeus
- SITA
- Travelport
- Airbus
- Thales
- Accelya
- Datalex
- Boxever
- Lufthansa Systems
- Accenture
- Siemens
- Indra Sistemas
- T-Systems
- INFORM
- Saab
- RESA
- A-ICE
- Airport Information Systems
- PDC A/S
- Adecs Airinfra BV
Asia-Pacific
- IBS Software
- Fujitsu
- Hexaware
- Coforge
- Travelsky
- Tata Consultancy Services
- Mphasis
- Happiest Minds
- Veovo (Gentrack Group)
- NEC Corporation
Middle East
- AIMS Airline Software
- TAV Technologies
- Bayanat Engineering
- Dubai Technology Partners
Revenue Forecast
Commercial Aerospace Digital Solutions Sector, Global, 2024–2033
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Commercial Aerospace Digital Solutions Sector
Scope of Analysis
Segmentation
Segmentation (continued)
Value Chain
Competitive Environment: Airlines
Competitive Environment: Airports
Competitive Environment: MRO Service Providers
Key Competitors
Growth Metrics
Growth Drivers
Growth Drivers (continued)
Growth Restraints
Growth Restraints (continued)
Forecast Considerations: Airlines
Forecast Considerations: Airports
Forecast Considerations: MROs and OEMs
Revenue Forecast
Revenue Forecast by Region
Revenue Forecast by Industry Vertical
Revenue Forecast Analysis
Revenue Forecast Analysis by Region
Revenue Forecast Analysis by Industry Vertical
Pricing Trends and Forecast Analysis
Revenue Share: Airlines
Revenue Share Analysis: Airlines
Revenue Share: Airports
Revenue Share Analysis: Airports
Revenue Share Analysis: Airports (continued)
Revenue Share: MRO Suppliers
Revenue Share Analysis: MRO Suppliers
Airlines: Notable Start-ups
Airports: Notable Start-ups
OEMs: Notable Start-ups
MROs: Notable Start-ups
Recent Key Mergers and Acquisitions
Airport and Airline Data Value Chain
Benefits of Airport Digitalization
Challenges for Airport Digitalization
Airline Data Value Chain
Airline Data Value Chain (continued)
Key Technologies Airlines Use
Key Aerospace OEM Trends
Key Aerospace OEM Trends (continued)
Key Aerospace OEM Trends (continued)
Aircraft Data and MRO Service Providers: Digital Value Chain
Generative AI
Generative AI Scope for Airlines
Generative AI Scope for Airports
Generative AI Scope for MRO Service Providers
Generative AI Scope for OEMs
Generative AI Challenges
Generative AI Implementation
Commercial Aerospace: Sustainability
Commercial Aerospace: Carbon Emissions
Digital Platforms Shaping Sustainability in Aerospace
Impact of Sustainability Initiatives in Commercial Aerospace
Aerospace Industry: AI for Sustainability
Analytics Platforms
Analytics Platforms (continued)
Analytics Platforms (continued)
Aerospace Industry: Cybersecurity
Growth Metrics
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis
Growth Metrics
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis
Growth Metrics
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis
Growth Metrics
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis
Growth Opportunity 1: Integration of AI and ML in Aerospace Operations
Growth Opportunity 1: Integration of AI and ML in Aerospace Operations (continued)
Growth Opportunity 2: Using Blockchain in Aerospace Parts Traceability
Growth Opportunity 2: Using Blockchain in Aerospace Parts Traceability (continued)
Growth Opportunity 3: Improved Cybersecurity Measures
Growth Opportunity 3: Improved Cybersecurity Measures (continued)
Growth Opportunity 4: Digital Twin
Growth Opportunity 4: Digital Twin (continued)
Best Practices Recognition
Frost Radar
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
List of Exhibits (continued)
Legal Disclaimer
List of Figures- Commercial Aerospace Digital Solutions: Segmentation by Airport and Airline Tier, Global, 2023
- Commercial Aerospace Digital Solutions: Segmentation by OEM Tier, Global, 2023
- Commercial Aerospace Digital Solutions: Growth Metrics, Global, 2023
- Commercial Aerospace Digital Solutions: Growth Drivers, Global, 2024–2033
- Commercial Aerospace Digital Solutions: Growth Restraints, Global, 2024–2033
- Commercial Aerospace Digital Solutions: Revenue Forecast, Global, 2023–2033
- Commercial Aerospace Digital Solutions: Revenue Forecast by Region, Global, 2023–2033
- Commercial Aerospace Digital Solutions: Revenue Forecast by Industry Vertical, Global, 2023–2033
- Commercial Aerospace Digital Solutions: Revenue Share of Top Airlines Participants, Global, 2023
- Commercial Aerospace Digital Solutions: Revenue Share of Top Airport Participants, Global, 2023
- Commercial Aerospace Digital Solutions: Revenue Share of Top MRO Participants, Global, 2023
- Key Stakeholders in the Airport and Airline Data Value Chain, Global, 2023
- Airlines: Key Digital Stakeholders in the Data Value Chain, Global, 2023
- Carbon Emissions from Commercial Aerospace, Global, 2004–2022
- Airline Digital Solutions: Growth Metrics, Global, 2023
- Airline Digital Solutions: Revenue Forecast, Global, 2023–2033
- Airline Digital Solutions: Revenue Forecast by Region, Global, 2023–2033
- Airport Digital Solutions: Growth Metrics, Global, 2023
- Airport Digital Solutions: Revenue Forecast, Global, 2023–2033
- Airport Digital Solutions: Revenue Forecast by Region, Global, 2023–2033
- OEM Digital Solutions: Growth Metrics, Global, 2023
- OEM Digital Solutions: Revenue Forecast, Global, 2023–2033
- OEM Digital Solutions: Revenue Forecast by Region, Global, 2023–2033
- MRO Digital Solutions: Growth Metrics, Global, 2023
- MRO Digital Solutions: Revenue Forecast, Global, 2023–2033
- MRO Digital Solutions: Revenue Forecast by Region, Global, 2023–2033
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| Deliverable Type | Market Research |
|---|---|
| Author | Nripendra Bahadur Singh |
| Industries | Aerospace, Defence and Security |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Aerospace Digital Solutions |
| Keyword 2 | Aviation Technology Trends |
| Keyword 3 | Digital Aerospace Growth |
| List of Charts and Figures | Commercial Aerospace Digital Solutions: Segmentation by Airport and Airline Tier, Global, 2023~ Commercial Aerospace Digital Solutions: Segmentation by OEM Tier, Global, 2023~ Commercial Aerospace Digital Solutions: Growth Metrics, Global, 2023~ Commercial Aerospace Digital Solutions: Growth Drivers, Global, 2024–2033~ Commercial Aerospace Digital Solutions: Growth Restraints, Global, 2024–2033~ Commercial Aerospace Digital Solutions: Revenue Forecast, Global, 2023–2033~ Commercial Aerospace Digital Solutions: Revenue Forecast by Region, Global, 2023–2033~ Commercial Aerospace Digital Solutions: Revenue Forecast by Industry Vertical, Global, 2023–2033~ Commercial Aerospace Digital Solutions: Revenue Share of Top Airlines Participants, Global, 2023~ Commercial Aerospace Digital Solutions: Revenue Share of Top Airport Participants, Global, 2023~ Commercial Aerospace Digital Solutions: Revenue Share of Top MRO Participants, Global, 2023~ Key Stakeholders in the Airport and Airline Data Value Chain, Global, 2023~ Airlines: Key Digital Stakeholders in the Data Value Chain, Global, 2023~ Carbon Emissions from Commercial Aerospace, Global, 2004–2022~ Airline Digital Solutions: Growth Metrics, Global, 2023~ Airline Digital Solutions: Revenue Forecast, Global, 2023–2033~ Airline Digital Solutions: Revenue Forecast by Region, Global, 2023–2033~ Airport Digital Solutions: Growth Metrics, Global, 2023~ Airport Digital Solutions: Revenue Forecast, Global, 2023–2033~ Airport Digital Solutions: Revenue Forecast by Region, Global, 2023–2033~ OEM Digital Solutions: Growth Metrics, Global, 2023~ OEM Digital Solutions: Revenue Forecast, Global, 2023–2033~ OEM Digital Solutions: Revenue Forecast by Region, Global, 2023–2033~ MRO Digital Solutions: Growth Metrics, Global, 2023~ MRO Digital Solutions: Revenue Forecast, Global, 2023–2033~ MRO Digital Solutions: Revenue Forecast by Region, Global, 2023–2033~ |
| Podcast | No |
| Predecessor | PC04-01-00-00-00 |
| WIP Number | KAA5-01-00-00-00 |
Commercial Aerospace Digital Solutions Sector, Global, 2024 2033
Digital Solutions are Experiencing Transformational Growth due to the Increasing Focus on Sustainability
09-Oct-2024
Global
Market Research