Airline Technology Integration Market Opportunities and Strategies to 2033

This report describes and explains the airline technology integration market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global airline technology integration market reached a value of nearly $21.05 billion in 2023, having grown at a compound annual growth rate (CAGR) of 8.05% since 2018. The market is expected to grow from $21.05 billion in 2023 to $41.52 billion in 2028 at a rate of 14.55%. The market is then expected to grow at a CAGR of 12.80% from 2028 and reach $75.84 billion in 2033.

Growth in the historic period resulted from the rising number of air travel passengers, growing integration of artificial intelligence, increasing government support, rising internet penetration and increasing commercial aircraft orders. Factors that negatively affected growth in the historic period include shortage of skilled labor and increasing raw material costs.

Going forward, the growing travel and tourism industries, increasing digitalization, rising urbanization, increasing adoption of 5G connectivity and increasing globalization and trade will drive the market. Factors that could hinder the growth of the airline technology integration market in the future include supply chain disruptions.

The airline technology integration market is segmented by offering into software and hardware. The software market was the largest segment of the airline technology integration market segmented by offering, accounting for 80% or $16.84 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the airline technology integration market segmented by offering, at a CAGR of 14.86% during 2023-2028.

The airline technology integration market is segmented by deployment into on-premises and cloud. The on-premises market was the largest segment of the airline technology integration market segmented by deployment, accounting for 66.6% or $14.02 billion of the total in 2023. Going forward, the on-premises segment is expected to be the fastest growing segment in the airline technology integration market segmented by deployment, at a CAGR of 15.97% during 2023-2028.

The airline technology integration market is segmented by technology into internet of things (IoT), cybersecurity, artificial intelligence, advanced analytics, biometrics, blockchain, wearable technology and other technologies. The cybersecurity market was the largest segment of the airline technology integration market segmented by technology, accounting for 24% or $5.05 billion of the total in 2023. Going forward, the cybersecurity segment is expected to be the fastest growing segment in the airline technology integration market segmented by technology, at a CAGR of 16.40% during 2023-2028.

North America was the largest region in the airline technology integration market, accounting for 35.8% or $7.53 billion of the total in 2023. It was followed by Asia-Pacific, Africa and then the other regions. Going forward, the fastest-growing regions in the airline technology integration market will be Asia-Pacific and Africa, where growth will be at CAGRs of 17.00% and 16.45% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 15.98% and 15.31% respectively.

The global airline technology integration market is highly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up 6.43% of the total market in 2023. Honeywell International Inc. was the largest competitor with a 0.97% share of the market, followed by SITA (Société Internationale de Télécommunications Aéronautiques) with 0.71%, Thales Group with 0.67%, Sabre Corporation with 0.63%, Raytheon Technologies Corporation with 0.62%, Airbus SE with 0.62%, Panasonic Avionics Corporation with 0.58%, GE Aerospace with 0.56%, L3 Harris Corporation with 0.56% and Amadeus IT Group SA with 0.51%.

The top opportunities in the airline technology integration market segmented by offering will arise in the software segment, which will gain $16.83 billion of global annual sales by 2028. The top opportunities in the airline technology integration market segmented by deployment will arise in the on-premises segment, which will gain $12.75 billion of global annual sales by 2028. The top opportunities in the airline technology integration market segmented by technology will arise in the cybersecurity segment, which will gain $5.75 billion of global annual sales by 2028. The airline technology integration market size will gain the most in the USA at $5.47 billion.

Market-trend-based strategies for the airline technology integration market include development of augmented reality (AR) in-flight experience, enhancing airline operations with facial recognition technology and integration of automation in customer service and baggage handling.

Player-adopted strategies in the airline technology integration market include focus on strengthening business operations through the launch of new products and solutions and enhancing operational capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the airline technology integration companies to focus on augmented reality for enhanced in-flight experiences, focus on facial recognition for enhanced operational efficiency, focus on automating airport operations for enhanced efficiency, focus on software solutions for growth in airline technology integration, focus on cybersecurity solutions for growth in airline technology integration, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships for enhanced operational capabilities, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and focus on targeting airlines effectively.