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Airlines leverage AI, ML and Blockchain to save costs and generate revenues

Adam GavineBy Adam GavineJune 23, 20202 Mins Read
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Research and consulting firm, Frost & Sullivan, has released Analysis of the Global Airline IT Market, Forecast to 2025, a study that found that the increasing digital expectations of passengers are driving airlines to introduce digital enablers. The consultancy says that this trend is “propelling a digital transformation journey” that will “fundamentally change traditional airline information technology (IT) strategies”

The airline IT market has been reduced by the Covid-19 pandemic, and is estimated to generate revenues of US$20.74 billion by 2025, compared to US$21.20 billion in 2019. Frost & Sullivan originally forecast that, by 2025, the market would reach revenues of US$25.1 billion from $21.20 billion in 2019.

“Despite the adverse impact of Covid-19 on the industry, airlines are increasingly focusing on adopting next-generation digital solutions such as mobility, machine learning (ML), Big Data analytics, and artificial intelligence (AI) to identify cost-saving and revenue-generating opportunities,” said Abhilash Varkey Abraham, aerospace & defence research analyst at Frost & Sullivan. “Additionally, a few major airlines have already committed to migrating their entire IT infrastructure to the Cloud over the next 3-5 years, and this trend is likely to continue and grow, mainly among low-cost carriers.”

Abraham added, “From a regional airline IT market perspective, North American airlines were the highest revenue contributor in 2019 and are expected to remain so during the forecast period. Further, APAC is expected to be the key growth engine over the medium and long terms.”

The report states that global airlines are losing US$25 billion due to disruptions in operations, some 50% of which is addressable via digital solutions. According to Frost & Sullivan, a “huge opportunity” exists for IT suppliers to innovate and expand their portfolio. Market opportunities include real-time data analytics – with interactive displays and graphical user interfaces (GUI) having higher market penetration in the medium term, this area will serve as a growth opportunity for suppliers. With airlines embracing the capabilities of next-generation technologies such as AI and ML, solution providers are encouraged to integrate these technologies into their solutions.

Frost & Sullivan also encourages vendors to develop solutions to solve airlines’ disruption pain points, especially in the areas of passenger re-accommodation and compensation. Adopting Big Data platforms can also streamline the operations of airlines, reducing cost and time.

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Adam Gavine
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Adam loves air travel, and since taking on the Aircraft Interiors International brand he has really enjoyed the opportunity to be involved with the latest aircraft and airline products before they are even launched. Adam co-ordinates the growth of the brand platform, and sits on various panels, including the Crystal Cabin Awards

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