ANTA CLARA, California, June 22, 2020, / PRNewswire/ — Recent study by Frost & Sullivan, Global Airline IT Market Analysis, Forecast to 2025, finds that increasing passenger expectations are compelling airlines to embrace digital enablers and propel a digital transformation journey that will fundamentally change traditional IT strategies. The airline IT market, affected by the COVID-19 pandemic, is expected to produce revenue of $20.74 billion by 2025, compared with $21.20 billion in 2019. The market was estimated to reach $25.1 billion from $21.20 billion in 2019 by 2025 according to the original forecast.
“Airlines are focusing increasingly on integrating next-generation technologies such as automation, machine learning (ML), large-scale data analytics, and artificial intelligence (AI) to find cost-saving and revenue-generating opportunities, despite the unfavourable impact of COVID-19 on the industry, ” said Aerospace & Defense Research Analyst at Frost & Sullivan. “A very small number of airlines have decided to shift their whole IT infrastructure into the cloud for the next 3-5 years and this trend is likely to continue and expand, among low-cost carriers.”
“North American airlines were one of the largest contributors from a global IT sector perspective and are expecting to remain so over the projected timeframe. However, APAC is expected to be the predominant medium and long-term growth driver”. Abraham added.
With global airlines losing $25 billion due to operational disruptions and 50 per cent being addressable through digital solutions, there is a huge opportunity for IT providers to innovate and expand their portfolio. Business chances include:
In the medium term, real-time data analytics with an interactive display / graphical user interface (GUI) will have higher adoption, which will serve as suppliers’ growth potential.
With airlines adopting next-gen technology capabilities like AI and ML, solution providers are encouraged to incorporate these technologies into their solutions.
Vendors are encouraged to develop solutions to address disruptive pain points for airlines, especially in the areas of passenger re-accommodation and compensation.
Adopting Big Data platforms can streamline airline operations, cutting costs, and time.
Global Airline IT Market Analysis, Forecast to 2025 is the latest addition to Frost & Sullivan’s research and analysis on Aerospace & Defense, available through the Frost & Sullivan Leadership Council, which helps organizations to find a continuous flow of growth opportunities to become successful in the future which is unpredictable.
