Blockchain in Aviation: Introduction
- Blockchain in aviation is a digital journal of transactions that store accounts each time a part is installed or removed from an aircraft. Blockchain technology provides a real-time portrait of conditions from the assembly line to the retirement of the fleet.
- The blockchain in aviation market is driven by the capability to simplify and ensure smoother and efficient operations that leads to reduction in complexities and cost savings. The improved passenger experience, reduction in maintenance cost, reduction in transactional complexities, and increased transparency & traceability of operations are some of the factors propelling the market growth.
- Blockchain technology is supporting the aviation sector to have a well-connected and transparent supply chain. The requirement of this technology in the aviation sector is due to the presence of large, complex supply chains that further supports the industry growth.
- In recent years, aircraft Maintenance, Repair, and Overhaul (MRO) providers, airline carriers, and aircraft manufacturers have announced plans to implement initiatives and research programs that use blockchain technology - from the replacement of parts on in-service airplanes and handling the purchase of flight tickets.
Global Blockchain in Aviation Market: Dynamics
Global Blockchain in Aviation Market: Key Drivers
- Industry participants are working closely with airport authorities for the implementation and integration of blockchain technology and update industry players regarding the upcoming technologies in the aviation sector.
- Blockchain technology can help in ensuring a superior and efficient supply chain due to the complex supply chain management in this sector. This is one of the prime reasons for using blockchain technology that is likely to propel the market revenue over the forecasted timeframe.
- Increasing adoption of evolving and developing technologies by aircraft carriers and airports is expected to significantly support market growth over the coming years. For instance, in November 2018, Boeing announced a strategic partnership with SparkCognition that plans to launch SkyGrid, which is likely to qualify the future of urban aerial mobility. This partnership plans to build a blockchain-powered and artificial intelligence airspace management platform software.
Impact of COVID-19 on the Global Blockchain in Aviation Market
- The rapid spread of Covid-19 across the globe and the huge death toll resulting in lockdowns and border closures devastated the demand for travel worldwide. The global travel sector has seen decline due to government restrictions on travel, changes in passenger behavior, and the broad economic downturn globally.
- Global MRO spending by large commercial aircrafts and thus aftermarket revenues for suppliers engaged in the aviation sector is foreseen to crash by approximately 50%-70% in the year 2020.
North America to Account for Major Share of the Global Blockchain in Aviation Market
- In terms of region, the global blockchain in aviation market can be divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
- The North America blockchain in aviation market is anticipated to expand at the highest CAGR. Rising implementation of technology by airports, airlines, and MRO service providers in this region is one of the key factors prompting the positive market growth.
- Presence of key industry participants and major airports in North America is anticipated to propel the blockchain in aviation market. For instance, in January 2019, Honeywell Aerospace announced the launch of GoDirect Trade, a B2B e-commerce platform for selling and buying aircraft elements and components. This new platform provides access to use as well as new aircraft components for air transport customers and airlines by proposing clear pricing and direct inventory access.
Global Blockchain in Aviation Market: Competition Landscape
- Various companies are actively focusing on organic growth strategies such as portfolio expansion, product approvals, certification, and product launches. Strategic growth plans witnessed in the blockchain in aviation market include partnerships, collaborations, strategic agreements, and acquisitions. Blockchain technology is implemented by several participants in the aerospace & defense sector due to the increasing prominence of Artificial Intelligence (AI) and Internet of Things (IoT). The technology provides organized records of components & flights and supervises maintenance records to access the safety of an aircraft. For instance, in May 2019, GE Aviation announced plans to enter a strategic partnership with Microsoft Azure to trace the blockchain and track the supply chain.
Key players operating in the global blockchain in aviation market include:
- Accenture PLC
- IBM Corporation
- Microsoft Corporation
- Zamna Technologies
- Insolar Technologies
- Loyyal Corporation
- Aeron Labs
- Winding Tree
- LeewayHertz Technologies
- Moog Inc.
- Avinoc Ltd
- 14bis Supply Tracking
Global Blockchain in Aviation Market: Research Scope
Global Blockchain in Aviation Market, by Use Cases
- Cargo & Baggage Tracking
- Passenger Identity Management
- Flight & Crew Data Management
- Aircraft Maintenance
- Inventory Management
- Aircraft Refueling
Global Blockchain in Aviation Market, by Deployment
Global Blockchain in Aviation Market, by Application
- MRO Service Providers
Global Blockchain in Aviation Market, by Sector
- Commercial Aviation
- Military Aviation
Global Blockchain in Aviation Market, by Region
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.