The aviation industry has been quick to implement the latest advancements in an ever-evolving digital ecosystem. As innovative technologies come about, they are quickly adopted by airplanes and airports to enhance the customer experience, along with the other benefits of improved data collection.
One of the reasons that the aviation industry has been so keen to adopt IoT technology is because of the massive growth in passenger traffic in recent years. According to data compiled by Statista, the industry has seen positive percentage growth every year (except 2009) up until the start of the COVID-19 pandemic. “Subsequently, airport authorities and airline operators worldwide are aggressively adopting the latest technologies to optimize their business flow and cope with the unabated growth in passenger traffic,” explains the report.
Key players in the aviation IoT market include Honeywell International (US), Tata Communication (India), Cisco Systems (US), Huawei Technologies (China), and SITAONAIR (Switzerland).
Reasons for Growth
The reason this report is predicting a compound annual growth rate (CAGR) of 21.4% is the same reason mentioned above for why the market has expanded in recent years: a push for modernization due to enhanced competition. The report predicts that the aviation industry will continue to see momentum toward a better passenger experience and airport infrastructure.
Furthermore, the aviation IoT market is expected to develop some game-changing technologies which will likely be adopted for widespread use. For example, per the report, the IoT is expected to “play a critical role in weather forecasting as well as monitoring various systems of the aircraft in real-time,” allowing airlines to make crucial decisions in real-time and plot alternative flight routes when needed. Another example is the development of an advanced Aircraft Health Monitoring System, which will allow aircraft operators to reduce maintenance costs by predicting problems.
Threat or Catalyst?
The coronavirus pandemic has had a devastating impact on the aviation industry and theoretically could harm the IoT portion of the market. However, as airline companies struggle to get back on their feet, the report predicts that the deployment of IoT devices will actually gain traction after the pandemic. According to the report, this part of the industry stands to gain as airport operators invest in hygiene measures and deploy contactless interaction technologies in a bid to increase customer confidence in flying. As a result, the pandemic should help — not hurt — this market.
The global aviation IoT market appears to be in an extraordinarily strong position for growth, which is important to note for investors and entrepreneurs alike. While the rest of the aviation industry has faced some challenges, the IoT market has proven itself vital.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.