IT spending in the aviation industry: Key market research findings
- The Americas dominate the market geographically
- Increased adoption of social media for CRM
- Key vendors – Amadeus IT Group SA, Rockwell Collins, SITA, and Ultra-Electronics Airport Systems
Technavio’s market research analysts expect the global IT spending in the aviation industry to grow at a CAGR of more than 4% between 2016 and 2020. The ubiquity of tracking and tracing abilities is the primary driver for growth in the market. Innovative technologies and advanced tracking software are making the baggage transfer process more transparent. In baggage tracking, passengers are offered with real-time information to improve their overall travel experience. During 2015, the Americas dominated the global IT spending in the aviation industry by accounting for almost 47% of the overall market share. The market is flourishing in this region owing to the increased spending on international expansion and modernization programs by major players in the aviation industry. Renovation and the adoption of advanced technologies are some of the factors that will boost growth in the IT spending in the aviation industry in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the IT spending segments based on categories.
“The increase in the adoption of social customer relations management (CRM) is an ongoing trend in the market. Social media is drastically altering the way companies communicate with their clienteles, especially in the management of customer relations. Platforms such as Facebook and Twitter are opening up new channels for companies to engage with their clients and cater to their needs and suggestions. However, many companies, in the air transportation business have observed a hit on their reputations as a result of poorly executed social media campaigns,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The software segment occupied around 38% of the overall market space to dominate the global IT spending in the aviation industry in 2015. This segment consists of solutions such as passenger information systems, air traffic management systems, airline communication and networking systems, ticketing systems, advanced security monitoring systems, aircraft control monitoring systems, and analytics. Aviation operators are increasingly adopting the latest software solutions that enable the intelligent use of assets and meet growing customer demand for more efficient and safer services augmented by the increasing demand for air transport.
The key vendors in the market include Amadeus IT Group SA, Rockwell Collins, SITA, and Ultra-Electronics Airport Systems. Due to the presence of several large and small players, the aviation industry appears highly fragmented. The forecast period is expected to witness the entry of several new vendors, which will, in turn, intensify the level of competition in the market. Vendors focus on differentiating themselves from the competition by offering innovative, cost-effective, and outcome-based solutions and are constantly looking for ways to increase their market share through partnerships and strategic acquisitions.
A more detailed analysis is available in the Technavio report, Global IT Spending in the Aviation Industry 2016-2020.
We can customize reports by other regions and specific segments upon request.
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