About the IT Spending in Aviation Industry Market
Aviation is a technologically advanced industry and is an early adopter of new solutions and technologies. There is an ongoing effort in aviation to boost operational efﬁciencies while reducing costs. So, IT has become a core component of almost all airport and airline operations, from ticketing to baggage handling to catering. Modern airlines offer a wide range of services to customers and tenants, and the use of IT helps achieve these targets efficiently. Aviation IT involves monitoring, regulating, and improving airport structures such as airfields, terminals, roadways, people movers, and rails. Such actions ensure the smooth flow of passengers among baggage counters, airplanes, automobiles, rentals, cars, and trucks. The use of IT ensures staff efficiency and enhances the passenger experience inside airport and aircraft premises.
Technavio’s analysts forecast the global IT spending in aviation industry market to grow at a CAGR of 4.42% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global IT spending in aviation industry market for 2016-2020.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global IT Spending in Aviation Industry 2016-2020
Technavio recognizes the following companies as the key players in the global IT spending in aviation industry: Amadeus IT Group, Rockwell Collins, SITA, and Ultra-Electronics Airport Systems.
Other Prominent Vendors in the market are: AirIT, Atos, Capgemini, Damarel Systems, INFORM, Lockheed Martin, NEC, Northrop Grumman, PASSUR Aerospace, RESA, SAAB Sensis, Siemens, and TravelSky Technology.
Commenting on the report, an analyst from Technavio’s team said: “A trend which will boost market growth is the rise of big data analytics. Big data is one of the most disruptive technologies for the aviation industry. Many other industries have already seen a radical alteration in their business models with the advent of big data. And since, air transportation has always been particularly dependent on data; major big data applications are gradually transforming businesses. Big data technologies are actively being applied to various elements of the airline industry such as dynamic pricing, customer loyalty programs, and business development. With the vast available information, airline’s management can make data-driven decisions and respond to changing conditions in real-time.”
According to the report, a key growth driver is the tracking and tracking ability afforded by IT software. Online tracking and tracing of packages shipped through various courier service companies such as FedEx and DHL have been in the system for years. The trend is now gradually shifting to the aviation industry, especially in the case of civil aviation. By means of new technologies and advanced tracking software, the baggage transfer process has become more transparent and offers many conveniences to passengers. For instance, Delta Air Lines has introduced its Track Checked Bag services that help keep track of passengers’ baggage. The airlines scan each bag tag before the commencement of the journey and allows passengers to track their baggage on a real-time basis through the Delta system. Currently, the service is available for domestic flights.
Further, the report states that one challenge that could hamper market growth is the increased complexity and cost of implementation. IT deployment at airports and in aircraft is an expensive process. The price of IT applications includes the cost of licensing, system design and customization, implementation, training, maintenance, and executing upgrades. After purchasing the license for different IT software systems, an airport operator needs an expert for the smooth implementation of the software.
Amadeus IT Group, Rockwell Collins, SITA, Ultra-Electronics Airport Systems, AirIT, Atos, Capgemini, Damarel Systems, INFORM, Lockheed Martin, NEC, Northrop Grumman, PASSUR Aerospace, RESA, SAAB Sensis, Siemens, TravelSky Technology.