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Global Commercial Aerospace Digital Solutions Growth Opportunities

  • ID: 5457014
  • Report
  • September 2021
  • Region: Global
  • 108 Pages
  • Frost & Sullivan
Data-centric Next-generation Technologies to Enhance the Future Growth Potential of Commercial Aerospace

Digitalization is a ubiquitous strategy essential to sustain business and growth in a post-pandemic economy. High penetration and improvement of digital solutions and accompanying hardware have made digitalization affordable and customizable. The commercial aerospace digital solutions market is captured by identifying digital R&D investment and the annual digital expenditure for each stakeholder. Digital investment is broadly considered a part of Information Technology (IT) investment, except for a few major industry stakeholders that have dedicated digital investment and teams for implementing and monitoring progress. Digitalization covers the investments and efforts by a firm to move toward digital processes, reduce cost overheads, and identify new revenue streams. Investments in mobile solutions, cloud computing, the Internet of Things, and Artificial Intelligence are some of the major focus areas for digitalization.

The study is segmented into 4 key commercial aviation segments: airlines; airports; maintenance, repair, and overhaul (MRO); and original equipment manufacturer (OEM).

Growth factors were identified for each airline type. The parameters for full-service carriers were economic strength (in terms of GDP percentage growth) and levels of passenger traffic and tourism; for low-cost carriers, levels of domestic passenger traffic and smartphone/internet penetration; and for cargo carriers, the level of international freight movement.

As the COVID-19 pandemic severely affected airports’ spending capacity in 2020, digital investments will be allocated to high-priority projects alone; this will have an impact on the overall airport IT budget requirements amidst the drastic drop in overall passenger traffic. Therefore, airports will adopt a cautious approach over the short term (2021–2023) until passenger traffic reaches the 2019 pre-pandemic level (probably during 2024–2025). The budget for digital investments largely depends on the overall passenger traffic at airports and the financial digital investment capability of airports. Airports with high passenger traffic (e.g., airports in APAC) and high spending capacity (e.g., Tier I airports) will be able to negate the lower revenue achieved during the 2020–2023 time period.

MRO participants, with their B2B business model, are largely behind in terms of digitalization (only 6%), when compared to the other aviation stakeholders. Social distancing norms and the subsequent limited number of onsite technicians restrained growth for the overall market, but these factors contributed to an increase in digitalization projects in MROs.

The OEM segment not only offers digital solutions to other segments but also actively invests in acquiring and developing full-stack digital capabilities (e.g., Boeing’s AnalytX platform). Most of the digital initiatives were managed by in-house teams, with only specific projects being outsourced. OEMs are leveraging digital solutions to improve their throughput, quality, and workforce efficiency - the top driving factors for the forecast period. Supply chain vulnerabilities stemming from the COVID-19 pandemic, challenges in data sharing, and cross-border integration requirements are top challenges that were considered while forecasting the OEM segment.

For the short term (2021–2023), the market will grow at high rates as aviation recovers (to pre-pandemic levels) by meeting pent-up demand, the growing requirement to maintain parked aircraft, and top OEMs managing their growing backlogs and orders; these factors will increase digital investment in efficient operations in both the airline and airport segments. Digital investment in the airline segment will be assigned toward revamped revenue and demand management solutions; in the airport segment, toward self-service technology and passenger flow management; and in the MRO segment, toward mobile solutions.

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1. Strategic Imperatives
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on Commercial Aerospace Digital Solutions
Growth Opportunities Fuel the Growth Pipeline Engine™

2. Growth Environment - Commercial Aerospace Digital Solutions
What You Need to Know First
Trends You Need to Know

3. Growth Opportunity Analysis
Scope of Analysis
Segmentation
Commercial Aerospace Value Chain
Key Competitors
Key Growth Metrics
Growth Drivers
Growth Restraints
Forecast Assumptions
Revenue Forecast
Revenue Forecast by Industry Vertical
Revenue Forecast by Region
Revenue Forecast Analysis
Revenue Forecast Analysis by Region
Revenue Forecast Analysis by Industry Vertical
Pricing Trends and Forecast Analysis
Competitive Environment
Revenue Share
Revenue Share Analysis
Airline - Key Solution Providers
Airport - Key Solution Providers
Airline - Notable Start-ups
Airports - Notable Start-ups
Aerospace OEM - Notable Start-ups
MRO - Notable Start-ups
Recent Key Mergers & Acquisitions

4. Airline Digitalization
Impact of the COVID-19 Pandemic on Airlines
Impact of the COVID-19 Pandemic on Airline Digitalization
The COVID-19 Spotlight on Cargo Airlines
Airline Data Value Chain
Airline Data Value Chain & Digital Challenges

5. Airport Digitalization
Impact of the COVID-19 Pandemic on Airports
Impact of the Pandemic on Airport Digitalization
Airport Data Value Chain
Key Metrics for Airport Digitalization

6. OEM Digitalization
Impact of the COVID-19 Pandemic on OEMs
Key Aerospace OEM Trends
Aerospace OEM Digital Solutions & Challenges
Digital Focus of Aerospace OEM Digitalization

7. MRO Digitalization
Impact of the COVID-19 Pandemic on MROs
Impact of the COVID-19 Pandemic on MRO Digitalization
Aircraft Data & MRO - Digital Value Chain

8. Analytics in Commercial Aerospace Digital Solutions
Analytics Platforms

9. Commercial Aerospace Digital Solutions for Sustainable Aviation
Sustainable Aviation in Focus

10. Growth Opportunity Analysis - Airlines
Key Growth Metrics for Airlines
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis

11. Growth Opportunity Analysis - Airports
Key Growth Metrics for Airports
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis

12. Growth Opportunity Analysis - OEM
Key Growth Metrics for OEM
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis

13. Growth Opportunity Analysis - MRO
Key Growth Metrics for MRO
Revenue Forecast
Revenue Forecast by Region
Forecast Analysis

14. Growth Opportunity Universe - Commercial Aerospace Digital Solutions
Growth Opportunity 1: Disruption Management and Fuel Optimization for Improved Operational Efficiency - Airlines
Growth Opportunity 2: Big Data Platforms for Improved Operations and Merchandising
Growth Opportunity 3: Cybersecurity for Improved Operational Resilience
Growth Opportunity 4: Predictive Analytics for Higher Maintenance Efficiency
Growth Opportunity 5: Total Airport Management for Optimal Efficiencies
Growth Opportunity 6: Improved Automation and Digital Design for Greater Digital Integrity

15. Next Steps
Your Next Steps
List of Exhibits
Legal Disclaimer

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