Aviation IoT Market size was over USD 7.5 billion in 2023 and is set to reach USD 104.9 billion by the end of 2036, witnessing around 22.5% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of aviation IoT is estimated at USD 9.1 billion.
The market is rising at a rapid pace as most airlines and airports are seeking IoT technologies to help improve overall operational efficiency, safety, and passenger service. The incorporation of advanced sensors, analytics, as well as automation in the processes of aviation, drives growth in this sector. Governments are also contributing their share to the growth of the aviation IoT market through smart airport initiatives and regulatory frameworks, ensuring incentives for adopting these IoT technologies. For example, in May 2023, the European Union launched a €1.2 billion program to modernize airport infrastructure across member states with a strong focus on IoT and AI integration to enhance safety and operational efficiency.
Companies in the aviation IoT market are getting more innovative to claim a larger share of the growing business. Some forward strides include the strategic coalition of GE Aviation with Verizon, announced in April 2021, for a new IoT platform providing real-time data transmission across airports using 5G connectivity. The platform looks forward to bettering ground operations through high-speed, low-latency communication among the plethora of IoT devices, thereby enhancing efficiency and safety within airport environments. The collaboration represents the push toward deploying the latest technology to satisfy the complex needs of contemporary aviation.
Growth Drivers:
Challenges:
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
22.5% |
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Base Year Market Size (2023) |
USD 7.5 billion |
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Forecast Year Market Size (2036) |
USD 104.9 billion |
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Regional Scope |
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Application (Ground Operations, Passenger Experience, Aircraft Operations, Asset Management)
By application, the asset management segment in the aviation IoT market is estimated to hold a share of 35% by 2024 due to the growing demand for tracking and proper management of aviation assets. IoT-enabled asset management systems facilitate real-time information on the location of the asset and its status, hence diminishing losses and increasing the utilization of such assets. In May 2023, Honeywell found a solution based on the IoT for asset management—one that lets airports manage airport assets, such as baggage carts and fuel trucks, all to make sure they can live up to the operational efficiency necessary at a lower cost to the customer. Such developments further drive the segment growth throughout 2036.
Component (Hardware, Software, Service)
By component, the hardware segment is expected to secure a 55% aviation IoT market share in 2024. This segment demand has been growing owing to the rising deployment of IoT sensors, gateways, and other hardware components in aviation operations; such devices are crucial for data collection and their transmissions across IoT networks. For example, Siemens AG integrated further with the healthy growth potential of the hardware wing of the aviation IoT market in June 2023 by launching new lines of IoT sensors targeted at harsh aviation environments.
End use (Airport, Airline Operators, MRO, Aircraft OEM)
The airport segment is estimated to account for a significant revenue share in the aviation IoT market over the forecast period. The increasing trend to adopt IoT technologies is making airports massively invest in them to smooth operations, enhance security, and improve passenger experience.
In June 2023, Pristina International Airport introduced Amadeus' Airport Management Suite (AMS) in a major initiative to optimize flight scheduling planning up to a year in advance. New operational systems will distribute and regularly update key flight data at strategic points throughout the airport while introducing advanced optimization algorithms to better manage commonly used facilities such as parking, departure gates, and check-in counters for the benefit of airlines flying from Pristina. Developments like these further boost the adoption of aviation IoT in airports.
Our in-depth analysis of the aviation IoT market includes the following segments:
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Application |
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End use |
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Component |
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North America Market Analysis
North American aviation IoT market is poised to dominate over 39% revenue share by 2036. The aviation IoT market in North America is rapidly growing since the region is technologically advanced, with rising demand related to smart airports throughout.
The U.S. aviation IoT industry is rising steadily owing to the rising demand for smart technologies and as a factor emanating from the country's interest in enhancing some of the efforts that have been benchmarked in safety improvements and operational efficiency in aviation. The companies in the U.S. industry have increased the implementation of IoT in airport operations, enhanced the passenger experience, and increased flight safety. In April 2024, Honeywell introduced its IoT-based “Connected Airport” platform, designed to enhance airport efficiency by integrating various systems for real-time data analysis and decision-making.
The market in Canada is growing at a rapid rate with the increased focus that countries are laying on modernizing their aviation infrastructure and enhancing their passenger services. Some growth drivers for the Canada market include the rise in smart airports, supportive government initiatives, and efficient air traffic management.
Asia Pacific Market Analysis
The aviation IoT market in Asia Pacific is likely to grow at a rapid pace through 2036, with the increase in the demand for air travel and the growing modernization of airport infrastructure. India's market is expected to gather pace quite rapidly because massive uptake of digital technology has been taken forward and government emphasis on infrastructure modernization. For example, in July 2024, SITA announced its plan to deploy its biometric system across 10 more Indian airports as part of the Digi Yatra initiative. This will contribute to the general trend of utilizing IoT in facilitating airport operations and easing travel formalities.
China’s aviation IoT market is driven due to increasing domestic and international air traveling. In November 2023, Huawei was a forerunner top leader in the technology space to launch its all-encompassing IoT and AI "Smart Airport Solution" for aviation and boosted airport operations and passenger services. This growth is emphasized in the new development plan of the Chinese government includes a comprehensive package that will develop inventive infrastructure, including airports, with huge investments earmarked for such kind of project. The plan outlines substantial financial commitments that would ensure the modernization of the nation's aviation hubs.
The leading players in the aviation IoT market are involved in the high competition, setting new standards for deploying innovation and technology. Key players in the industry include NEC Corporation, Fujitsu Limited, Hitachi Ltd., Mitsubishi Electric Corporation, and Japan Airport Terminal Co., Ltd. These firms are taking the lead in developing applications related to integrated airport IoT as well as AI technology to optimize airport operations, security, and passenger experience.
In March 2024, Fujitsu Limited announced the debut of an advanced IoT-derived baggage tracking system at Tokyo Haneda Airport. The new system uses real-time data and AI to substantially reduce errors in baggage handling and improve the effectiveness of luggage processing. The launch underlines the role of Fujitsu as a leader in smart airport technologies and the evolution of IoT usage across the aviation sector to streamline operational challenges.
Here are some leading players in the aviation IoT market:
Author Credits: Dhruv Bhatia
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