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.
1.
Research Sources
We at Zettabyte Analytics have a
detailed and related research methodology focussed on estimating the market
size and forecasted value for the given market. Comprehensive research
objectives and scope were obtained through secondary research of the parent and
peer markets. The next step was to validate our research by various market
models and primary research. Both top-down and bottom-up approaches were
employed to estimate the market. In addition to all the research reports, data
triangulation is one of the procedures used to evaluate the market size of
segments and sub-segments.
Research Methodology
1.1. Secondary Research
The secondary research study involves various sources and databases used
to analyze and collect information for the market-oriented survey of a specific
market. We use multiple databases for our exhaustive secondary research, such
as Factiva, Dun & Bradstreet, Bloomberg, Research article, Annual reports,
Press Release, and SEC filings of significant companies. Apart from this, a
dedicated set of teams continuously extracts data of key industry players and
makes an extensive and unique segmentation related to the latest market
development.
1.2. Primary Research
The primary research includes gathering data from specific domain
experts through a detailed questionnaire, emails, telephonic interviews, and
web-based surveys. The primary interviewees for this study include an expert
from the demand and supply side, such as CEOs, VPs, directors, sales heads, and
marketing managers of tire 1,2, and 3 companies across the globe.
1.3. Data Triangulation
The data triangulation is very important for any market study, thus we
at Zettabyte Analytics focus on at least three sources to ensure a high level
of accuracy. The data is triangulated by studying various factors and trends
from both supply and demand side. All the reports published and stored in our
repository follows a detailed process to obtain a reliable insight for our
clients.
1.4. In-House Verification
To validate the segmentation
and verify the data collected, our market expert ensures whether our research
analyst is considering fine distinction before analyzing the market.
1.5. Reporting
In the end,
presenting our research reports complied in a different format for straightforward
valuation such as ppt, pdf, and excel data pack is done.