Analytics refers to the process of going through massive datasets to discover, interpret, and communicate new insights and knowledge. It has several advantages for businesses of all sizes. Using analytics, companies can make data-driven decisions, improve operational efficiency, and enhance customer experience.
Aviation analytics is a computational technology that brings together historical airport operational data, flight data, weather data, and other aviation statistics. In this blog post, we take you to the realm of aviation analytics and shed light on the major factors driving the aviation analytics market forward.
Applications of Analytics in the Aviation Industry
Here’s a look at some of the major applications of analytics in the aviation sector:
Parts and components
Analytics plays an important role when it comes to predicting potential failures and speeding up the process of uncovering the root cause of problems. Also, it can help accelerate the incident response time. That way, MRO teams can pre-emptively change aircraft parts.
On the operational level, parameters like fleet availability, resource allocation, and lead time often come in handy. These parameters can be used to improve inventory management, optimize staff schedules, and allocate resources optimally.
Aviation analytics can provide insights into maintenance costs and turnaround time. These insights are important for increasing aircraft uptime and ensuring safer flight operations.
Market Analysis and Growth Drivers
The aviation analytics market size was USD 2.73 billion in 2022 and is expected to grow at a CAGR of 12.3%, generating an estimated revenue of USD 6.92 billion by 2030. The market for aviation analytics is being driven by several factors, including:
Rising disposable income: Growing disposable income among the middle-class population and the rising prevalence of budget-friendly airlines are projected to have a favorable impact on market growth.
Increasing demand to offer personalized customer experience: Growing emphasis on identifying consumer preferences and providing suitable solutions to provide a unique customer experience is likely to drive the aviation analytics market sales.
Growing adoption of analytics: The advent of new flight paths and aircraft providers has led to a steady increase in airport congestion. Aviation analytics offers the best tools and practices to handle large volumes of traffic and recommends the best data collection models regarding several factors.
Advantages of Using Analytics in the Aviation Sector
Below are some of the major benefits of using analytics in the aviation sector:
- Aviation analytics can help the aviation analytics market key players address failure mechanisms proactively.
- With the right insights, MRO teams can plan their inventory wisely and reduce the risks of overstocking or stockouts.
- Aviation analytics ensures high passenger safety by minimizing safety incident risks.
- Analytics drives collaboration by bringing different stakeholders onto a single platform.
- Analytics plays a major role in ensuring great airworthiness.
On-Premise Segment is Anticipated to Lead the Market Growth
The significant growth of the on-premise segment can largely be attributed to the growing need for customizable and sole ownership solutions in the aviation sector. Besides, high data security offered by on-premise aviation analytics tools is another major factor behind the increased deployment of on-premise solutions.
Asia Pacific is Anticipated to Witness the Fastest Growth
The Asia Pacific region is projected to grow at the fastest rate over the forecast period. This is largely due to the growth of the aviation sector with improved operations and enhanced customer experience across economies like India, China, Japan, Malaysia, and South Korea. Besides, rising investments and developments in cloud technologies are expected to further drive the market demand in the region.
To conclude, analytics plays an increasingly important role in the aviation sector. It provides valuable insights that can help operators increase efficiency, improve security, and reduce costs. The rising prevalence of analytics solutions to update aircraft fleets and operations to ensure safety is expected to spur the aviation analytics market demand in the upcoming years.