Market Trends of Aviation Analytics Industry
Airlines Segment to Witness Highest Growth During the Forecast Period
To meet the needs of rising passenger traffic, airlines globally are expanding and modernizing their existing fleet. For instance, in November 2022, Ethiopian Airlines Group announced to increase their fleet size from 140 (currently) to 271 aircraft by 2035. To achieve this, the airline is considering the addition of at least 130 aircraft, with the replacement of older aircraft as well. Similarly, in June 2023, Wizz Air also announced its plans to expand its fleet to over 200 aircraft by the end of 2024. The company aspires to build a fleet of over 500 aircraft by 2030. In September 2021, United Airlines placed an order for 270 single-aisle Boeing and Airbus planes to increase the number of planes in its fleet and their average size. Thus, an increase in fleet size will create a simultaneous demand for aviation analytics for multiple applications such as fleet management, fuel management, revenue management, etc.
Airlines are increasingly adopting the use of analytics for their business operations. In this regard, in May 2022, American Airlines and Microsoft Corporation partnered to use technology to create better, more connected experiences for customers and American Airlines team members. As a part of the partnership, American Airlines will use Microsoft Azure as its preferred cloud platform for its airline applications and key workloads.
Asia-Pacific to Demonstrate Rapid Growht During the Forecast Period
Asia-Pacific is expected to showcase the highest growth during the forecast period. As per IATA, airlines in Asia-Pacific saw a 105.8% increase in July 2023 traffic compared to July 2022, continuing to lead the regions. To cope with the rising traffic, airlines in the region are placing new aircraft orders. In June 2023, it was announced by the MRO Associations of India that Indian airlines are poised to expand their fleet capacity by 15% annually, with an addition of 100 to 110 aircraft per year, leading to close to 1,200 aircraft by 2027. Air India's fleet will grow by 50 narrowbody and 19 widebody aircraft by 2024 as it aggressively inducts new planes to meet immediate demand. Likewise, in April 2023, China Airlines placed an order for eight Boeing B787 aircraft. An increase in fleet size demands the use of aviation analytics to streamline operations and fleet management challenges. Also, there are instances of airlines in the region adopting aviation analytics for their businesses. In June 2023, Collins Aerospace, an RTX business, and Japan Airlines (JAL) announced that JAL would use Collins Aerospace's Ascentia maintenance performance monitoring solution on its Boeing B787 fleet. Availability of skilled labor and workspace in countries of Asia-Pacific are additional factors driving the aviation analytics market in the region.
