Global Airline Digitalization Growth Opportunities

Global Airline Digitalization Growth Opportunities

The airline digitalization market is a growth market forecast to achieve more than $35 billion in revenue by 2030. It is a highly fragmented market, with the top 15 companies accounting for nearly 26.5% of the market share. This share amount is not expected to change significantly over the forecast period (2021–2030). The market’s top companies by estimated revenue include Amadeus, Sabre, SITA, IBM, Boeing, Airbus, and PROS. The market is estimated to have more than 100 companies and will continue to grow as new start-ups increasingly enter the market with niche solutions based on next-generation technologies targeting specific airline needs.

Major airlines globally have committed to migrating their entire information technology (IT) infrastructure to a cloud infrastructure within the next decade. Traditional full-service carriers with a significant amount of IT workloads on legacy systems and facing stiff digital competition from low-cost carriers are anticipated to lead this market trend. Migrating workloads to the cloud, increasing touchless passenger experiences, optimizing internal processes, improving customer outreach through personalization, and enhancing ancillary revenues are the key growth drivers of the airline digitalization market.

A notable success factor for airlines is creating a team with dedicated budgets for digital initiatives, but training employees and recruiting digitally skilled employees are major challenges. Real-time data analytics with an interactive display/graphical user interface is also a key focus area and expected to have a higher penetration in the medium term (2024–2025). Additionally, blockchain is gaining traction in aviation research and development investment as airlines investigate its potential usage in distribution, loyalty programs, and supply chain management.

Major processes receiving high investments in aviation are disruption management and personalization initiatives. The key components airlines seek in a digital solution include modular capabilities, high interoperability with existing and new systems, and partnerships with digital stakeholders. The growth in interconnected solutions has created a vulnerable data ecosystem, resulting in various data regulations across regions monitoring efforts to increase sensitive data security. These factors, along with a heightened global focus on data privacy, will intensify airlines’ spending on cybersecurity solutions. As such, the adoption of data platforms enhancing operations and commercial activities is expected to rise over the forecast period.

Traditional aircraft and engine manufacturers also play a significant role in this market. These participants can identify and realize new revenue streams as they undergo their own digital transformation. These firms, along with technology firms and start-ups, will potentially shift the dynamics of the market over the forecast period.

The COVID-19 pandemic has negatively affected the global airline digitalization market. While digital solutions have increased to ensure a safe passenger experience, the pandemic has reduced operations, leading to historically low revenues and limiting airlines’ digital and information technology budgets. The market growth depends on how quickly airlines can recover from the pandemic. Despite the pandemic, the airline digitalization market is anticipated to continue growing in the long term.


  • Market Overview
    • Key Highlights
    • Trends to Watch
    • Top Growth Opportunities in the Airline Digitalization Market
  • Strategic Imperatives
    • Why is it Increasingly Difficult to Grow?
    • The Strategic Imperative 8™
    • The Impact of the Top Three Strategic Imperatives on the Airline Digitalization Industry
    • Growth Opportunities Fuel the Growth Pipeline Engine™
  • Growth Opportunity Analysis
    • Scope of Analysis
    • Airline Type Segmentation
    • Airline Tier Segmentation
    • Digital Transformation Process
    • Airline Digital Transformation
    • Digital Transformation—Key Performance Indicators
    • Digitalization Benefits—Operational KPIs
    • Airline Digitalization—Top Priorities and Challenges
    • Key Metrics for Successful Digital Airlines
    • Key Trends for Post-pandemic Digital Airlines
  • Market Trends
    • Future of Consumer Electronics
    • Digitalization in Travel and Tourism
    • Current Status of Legacy Systems and the Future of Infrastructure
    • Future of Data Regulations
    • Digital Solutions for a Sustainable Future
    • Loyalty Programs
    • Spotlight on Cargo
    • Digitalizing Cargo Operations
    • Key Competitors for Airline Digitalization
    • Key Growth Metrics for Airline Digitalization
    • Growth Drivers for Airline Digitalization
    • Growth Restraints for Airline Digitalization
    • Forecast Assumptions
    • Revenue Forecast
      • Table Airline Digitalization: Revenue Forecast, Global, 2019–2030
    • Revenue Forecast by Airline Tier
      • Table Airline Digitalization: Revenue Forecast by Airline Tier, Global, 2019–2030
    • Revenue Forecast by Region
      • Table Airline Digitalization: Revenue Forecast by Region, Global, 2019–2030
    • Revenue Forecast by Airline Type
      • Table Airline Digitalization: Revenue Forecast by Airline Type, Global, 2019–2030
    • Revenue Forecast Analysis
    • Revenue Forecast Analysis by Airline Type
    • Pricing Trends and Forecast Analysis
    • Competitive Environment
    • Revenue Share
    • Revenue Share Analysis
    • Notable Start-ups in Airline Digitalization
    • Notable Investments in Start-ups by Key Airlines
  • Growth Opportunity Analysis—Airline Digitalization: Africa
    • Key Growth Metrics for Airline Digitalization—Africa
    • Revenue Forecast for Airline Digitalization—Africa
      • Table Airline Digitalization: Revenue Forecast, Africa, 2019–2030
    • Revenue Forecast by Airline Tier for Airline Digitalization—Africa
      • Table Airline Digitalization: Revenue Forecast by Airline Tier, Africa, 2019–2030
    • Forecast Analysis by Airline Tier for Airline Digitalization—Africa
  • Growth Opportunity Analysis—Airline Digitalization: Asia-Pacific
    • Key Growth Metrics for Airline Digitalization—Asia-Pacific
    • Revenue Forecast for Airline Digitalization—Asia-Pacific
      • Table Airline Digitalization: Revenue Forecast, Asia-Pacific, 2019–2030
    • Revenue Forecast by Airline Tier for Airline Digitalization—Asia-Pacific
      • Table Airline Digitalization: Revenue Forecast by Airline Tier, Asia-Pacific, 2019–2030
    • Forecast Analysis by Airline Tier for Airline Digitalization—Asia-Pacific
  • Growth Opportunity Analysis—Airline Digitalization: Europe
    • Key Growth Metrics for Airline Digitalization—Europe
    • Revenue Forecast for Airline Digitalization—Europe
      • Table Airline Digitalization: Revenue Forecast, Europe, 2019–2030
    • Revenue Forecast by Airline Tier for Airline Digitalization—Europe
      • Table Airline Digitalization: Revenue Forecast by Airline Tier, Europe, 2019–2030
    • Forecast Analysis by Airline Tier for Airline Digitalization—Europe
  • Growth Opportunity Analysis—Airline Digitalization: Latin America
    • Key Growth Metrics for Airline Digitalization—Latin America
    • Revenue Forecast for Airline Digitalization—Latin America
      • Table Airline Digitalization: Revenue Forecast, Latin America, 2019–2030
    • Revenue Forecast by Airline Tier for Airline Digitalization— Latin America
      • Table Airline Digitalization: Revenue Forecast by Airline Tier, Latin America, 2019–2030
    • Forecast Analysis by Airline Tier for Airline Digitalization— Latin America
  • Growth Opportunity Analysis—Airline Digitalization: Middle East
    • Key Growth Metrics for Airline Digitalization—Middle East
    • Revenue Forecast for Airline Digitalization—Middle East
      • Table Airline Digitalization: Revenue Forecast, Middle East, 2019–2030
    • Revenue Forecast by Airline Tier for Airline Digitalization—Middle East
      • Table Airline Digitalization: Revenue Forecast by Airline Tier, Middle East, 2019–2030
    • Forecast Analysis by Airline Tier for Airline Digitalization—Middle East
  • Growth Opportunity Analysis—Airline Digitalization: North America
    • Key Growth Metrics for Airline Digitalization—North America
    • Revenue Forecast for Airline Digitalization—North America
      • Table Airline Digitalization: Revenue Forecast, North America, 2019–2030
    • Revenue Forecast by Airline Tier for Airline Digitalization— North America
      • Table Airline Digitalization: Revenue Forecast by Airline Tier, North America, 2019–2030
    • Forecast Analysis by Airline Tier for Airline Digitalization— North America
  • Growth Opportunity Universe
    • Growth Opportunity 1: Disruption Management and Fuel Optimization for Improved Operational Efficiency
    • Growth Opportunity 2: Big Data Platforms for Enhanced Operations and Merchandising
    • Growth Opportunity 3: Cybersecurity for Robust Operational Resilience
    • Growth Opportunity 4: Workload Migration to Cloud for Scalability and Cost Efficiency
    • Key Takeaways
  • Next Steps
    • Your Next Steps
    • Why Frost, Why Now?

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