Aviation Blockchain Market By Application (Airports, Airlines, MRO Service Providers, and Manufacturers), By Use Cases (Cargo & Baggage Tracking, Passenger Identity Management, Flight & Crew Data Management, Aircraft Maintenance, Inventory Management, Aircraft Refuelling, and E-Ticketing), By Sector (Commercial Aviation and Military Aviation) – Global Analysis & Forecast 2020-2030.
Report ID : 391 | Published Date : Sep 2020 | Pages : 160 | Region : Global | Report Code : AD-3
Aviation Blockchain Market Overview and Introduction
The aviation blockchain market is driven by its ability to facilitate efficient & smoother operations that lead to cost savings and reduced complexities. Several factors, such as the reduction in maintenance cost, improved passenger experience, increased transparency & traceability of operations, and reduction in transactional complexities, are some of the factors driving the market growth. The blockchain technology is helping the aerospace & defense sector to have a transparent & well-connected supply chain. The need for this technology in the defense sector is due to the presence of large & highly complex supply chains, further supporting industry growth.
Aviation blockchain is a digital ledger of transactions that stores records each time a part is removed or installed from an aircraft. This provides a real-time snapshot of conditions from the assembly line to the retirement of the fleet. The industry has several advantages that include a reduction in costs incurred in unplanned maintenance & downtime, increasing the value of the plane in the secondary market, and improving the productivity of workers.
This increases investments in research & development activities in defense and commercial aviation for superior protection against cyber threats, tracing defense contracts, and creating secure government portals, which is supporting the market growth. In recent years, numerous airlines, aircraft Maintenance, Repair, and Overhaul (MRO) providers, and aircraft manufacturers have announced to embed research programs and initiatives that utilize blockchain technology from managing the purchase of flight tickets to the replacement of parts on in-service airplanes. In the military sector, blockchain technology is primarily utilized to trace the defense-related contracts and shipments with a reduction in operational complexities, which augments the industry share.
The aviation blockchain market can be segmented into the following categories – By Application, By Use Cases, By Sector, and By Region
Aviation Blockchain Market By Application
Based on the application, the market can be segmented into airports, airlines, MRO service providers, and manufacturers. The airline segment is anticipated to showcase superior growth potential over the coming years. The increasing utilization of blockchain technology in airlines to provide real-time information that includes passenger data, sales data, and cargo & baggage information is supporting the market growth. For instance, Russia’s airline giant, S7 Airlines, and a leading bank, Alfa-Bank, issue tickets to passengers through blockchain technology. The goal is to streamline the payment process with a reduction in settlement times that are as long as two weeks in certain cases.
Aviation Blockchain Market By Use-Cases
Based on the use cases, the market can be classified as cargo & baggage tracking, passenger identity management, flight & crew data management, aircraft maintenance, inventory management, aircraft refueling, and e-ticketing. The inventory management segment is expected to drive the market due to the ability to enable end-to-end component lifecycle visibility with a reduction in turn-around time and cost savings for the aviation industry. The industry participants are utilizing blockchain technology that helps to efficiently manage the inventory. For instance, Air France KLM and Lufthansa Technik are working on the utilization of blockchain technology for managing in-service airplanes and replacement parts. These advancements by industry players are supporting the growth of this segment.
Aviation Blockchain Market By Sector
Based on the sector, the market can be classified as commercial aviation and military aviation. Commercial aviation is anticipated to boost the market growth due to a large number of commercial aircraft manufactures and the utilization of blockchain technology by key players. This technology is adopted by several key players in the aerospace & defense sector due to the rising popularity of the Internet of Things (IoT) and Artificial Intelligence (AI). The technology provides systematic records of flights & components and manages maintenance records to access the airworthiness of an aircraft. For instance, in May 2019, GE Aviation entered into a strategic partnership with Microsoft Azure to tract the supply chain and trace the blockchain. The GE Aviation Digital Group helps to trace the manufactured parts and data related to the life cycle & production of aircraft components.
Aviation Blockchain Market by Region
The aviation blockchain market in North America is projected to propel the market by growing at the highest CAGR. The increasing adoption of technology by airlines, airports, and MRO service providers in this region is one of the major drivers influencing the growth positively. The presence of major airports and key industry participants in the region is expected to drive the aviation blockchain market. For instance, in January 2019, Honeywell Aerospace launched GoDirect Trade, a new business-to-business (B2B) e-commerce platform for buying and selling aircraft components. The new platform provides access to new & used aircraft components for airlines and air transport customers by offering direct inventory access and clear pricing.
Aviation Blockchain Market Prominent Players
Some of the major players present in the aviation blockchain market include Accenture PLC, IBM, Microsoft Corporation, Zamna Technologies, Insolar Technologies, Loyyal Corporation, Aeron Labs, Winding Tree, Filament, Infosys, LeewayHertz Technologies, and Moog Inc., among others. The companies operating in the market are adopting strategies, such as partnerships, acquisitions, and joint ventures, to provide safety to customers in a wide range of missions. For instance, in November 2018, SparkCognition and Boeing announced to launch SkyGrid, a new joint venture that will utilize the blockchain technology to ensure the secure & safe integration of autonomous cargo and passenger air vehicles in the aerospace & defense sector across the globe.