Industry Addendum: Technology
COVID-19 intensifies pace of commercial airline digital transformation
July 1st 2020
Despite current financial challenges airlines and Information technology (IT) suppliers are continuing to invest in distribution, loyalty programs and supply chain management, a new survey has revealed. Read More »
Frost & Sullivan’s Global Airline IT Market, Forecast to 2025, found expectations of passengers are compelling carriers to embrace digital enablers, propelling a digital transformation journey that will fundamentally change traditional airline IT strategies.
Impacted by COVID-19, the airline IT market is estimated to drop back marginally and generate revenue of $20.74 billion by 2025. Previously, the market had been forecast to reach $25.1 billion by the mid-2020s, 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,” Frost & Sullivan aerospace and defence research analyst, Abhilash Varkey Abraham, said.
“Additionally, a few major airlines have committed to migrating their entire IT infrastructure to the cloud in the next three to five years. This trend is likely to expand, mainly among low-cost carriers.”
Asia-Pacific airlines are expected to be the key growth engine for the industry in the medium to long term, he said.
With airlines losing $25 billion due to disruptions in operations from COVID-19 and with 50% of them addressable via digital solutions, a huge opportunity exists for IT suppliers to innovate and expand their portfolios, Frost & Sullivan forecast.
