Global IT Spending Market in the Aviation Industry 2016-2020

Overview of the global IT spending market in the aviation industry

Industry research analysts at Technavio have predicted that the global IT spending market in the aviation industry will grow steadily at a CAGR of around 4% by 2020. The rise in passenger volumes and persistent terrorist threats have induced aviation operators to invest heavily in advanced security technologies such as access control, passenger security, and IT security. Additionally, international and domestic aviation legislations enforced by organizations also mandate the installation of airport security measures. The exponential increase in passenger volumes has also increased the need for faster passenger processing at airports that further increases airline operator investments towards implementing advanced IT solutions.

Business intelligence (BI) plays a significant role in the aviation industry and assists in improving processes such as in-airport operations, airport resource management, and passenger flow monitoring. Business intelligence helps airline enterprises gain exposure to various kinds of important business data and also helps the management to access and analyze data from various sources and make important business decisions. To derive powerful actionable insights about passengers and staffs, airports, and airlines have started spending a large portion of their revenue on business intelligence technology as it will help them to augment their revenue generating capacity.

Segmentation by category and analysis of the IT spending market in the aviation industry

• Hardware
• Software
• Services

During 2015, the software segment dominated the IT spending market in the aviation industry and accounted for about 38% of the total market share. The rise in demand for air transport will consequently increase the interest of aviation operators to adopt latest software solutions to meet the growing customer demand for more efficient and safer services.

Geographical segmentation and analysis of the IT spending market in the aviation industry

• Americas
• APAC
• EMEA

According to this market analysis, the Americas accounted for about 47% of the global IT spending market in the aviation industry and dominated this market during 2015. Factors such as the rise in spending on international expansion and modernization programs and increased investments to adopt effective technological solutions and infrastructure will fuel the growth of the market in this region.

Competitive landscape and key vendors

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. 

The leading vendors in the market are -

• Amadeus IT Group SA
• Rockwell Collins
• SITA
• 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.

Key questions answered in the report include

• What will the industry size and the growth rate be in 2020?
• What are the key factors driving the IT spending market in the aviation industry?
• What are the key industry trends impacting the growth of the IT spending market in the aviation industry?
• What are the challenges to industry growth?
• Who are the key vendors in the IT spending market in the aviation industry?
• What are the industry opportunities and threats faced by the vendors in the IT spending market in the aviation industry?
• Trending factors influencing the industry shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the IT spending market in the aviation industry?

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