Airlines invest in new technologies in the face of the post-pandemic

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Airlines invest in new technologies in the face of the post-pandemic
Source: Twitter @UNWTO
August 23, 2021

A new Frost & Sullivan reveals that the world's leading companies implement the latest innovations to adapt to the new era of business and grow back

Recent Frost & Sullivan analysis of the global airline digitization market finds that major airlines globally have committed to migrating most of their information technology (IT) infrastructure to a cloud infrastructure within the next decade. Increasing contactless passenger experiences, optimizing internal processes, improving customer reach through personalization, and improving ancillary revenue (derived from services such as baggage fees and seat selection ) are some of the key drivers of the airline digitization market, which is estimated to reach $ 35.42 billion. by 2030, exceeding the pre-pandemic level by 2025.

From a regional perspective, Asia-Pacific is expected to remain the largest revenue contributor in 2030, while North America will be the fastest growing region. Legacy airlines that were in various phases of migrating their workloads to the cloud before the pandemic are expected to continue once the industry begins to recover. New airlines and startups bypass legacy infrastructure in favor of open architecture and cloud computing.

"Developments among technology companies, travel start-ups and other stakeholders in the travel ecosystem are changing the landscape of airline digitization," said Abhilash Varkey Abraham, senior research analyst, aerospace and defense practice. at Frost & Sullivan. "Over the next decade, tech giants are expected to play an important role in enabling workload migration to cloud infrastructure for airlines and major airline IT providers. Niche companies that use next-generation technology to solve specific airline challenges are gaining ground in the industry".

Abhilash added: "The development and deployment of next-generation technologies, rapid advancements in consumer technology, and the use of the Internet of Things (IoT), Big Data, and Machine Learning (ML) to collect and analyze large amounts of data is transforming processes in the industry". 

The increased focus on digitization, hardware enhancements, cost reduction of software services, and as-a-service business models present lucrative growth prospects for airline digitization market participants, including:

  • Outage management and fuel optimization to improve operational efficiency: Digital solutions can help reduce financial losses due to irregular operations by approximately 50%, creating a sizeable target market for digital solution providers.
  • Big Data Platforms for Enhanced Trading and Operations - Data platforms built into existing infrastructure will improve airline marketing strategies and segmentation methods.
  • Cybersecurity for robust operational resilience: Blockchain technology can be implemented in various use cases, including secure identity management, secure data tokenization, smart contracts for airline maintenance, and certification optimization.
  • Migrating workloads to the cloud for scalability and cost-effectiveness - Providers and systems integrators must build a portfolio of digital services alongside core infrastructure and migration services. This will allow airlines to choose solutions as their requirements change.

For more information on this analysis, Global Airline Digitization Growth Opportunities, visit:


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