Aviation Blockchain Market size is set to expand at lucrative CAGR during the forecast period driven by rising demand for air travel around the globe to address the increasing air passenger traffic and propelling greenfield & brownfield airport projects.
Several factors such as reduction in maintenance costs improved passenger experience, increased transparency & traceability of operations, and reduction in transactional complexities are some of the factors driving the market growth.
Blockchain technology aids the aerospace & defense sector to obtain a transparent and well-connected supply chain. The presence of large & highly complex supply chains drives the need for this technology in the defense sector, further supporting the aviation blockchain market growth.
The increasing adoption of advanced technology by airports and airlines in developed and developing nation is driving the industry share during the forecast timeframe. This provides a real-time snapshot of the condition from the assembly line to retirement of the fleet. The industry has several advantages that include a reduction in costs related to unplanned maintenance & downtime, increasing the value of planes in the secondary market and improvement in worker productivity.
Increasing investments in research & development of defense & commercial aviation for superior protection against cyber threats, tracing defense contracts, and creating secure government portals are supporting market growth. In recent years, numerous airlines, aircraft Maintenance, Repair and Overhaul (MRO) providers, and aircraft manufacturers have announced research programs & initiatives that use blockchain to manage the purchase of flight tickets and replace parts on in-service airplanes. Blockchain technology in the military sector is primarily used to trace defense-related contracts and shipments with reduction in operational complexities, which will augment the industry share.
Based on the application, the aviation blockchain market can be segmented into airports, airlines, MRO service providers, and manufacturers. The airlines segment is anticipated to showcase a superior growth potential over the coming years. The increasing use of blockchain technology in airlines to provide real-time information that includes passenger data, sales data, and cargo & baggage information is supporting market growth.
For instance, S7 Airlines, Russia’s airline giant, and Alfa-Bank, Russia’s largest bank, issued tickets to passengers through blockchain technology. The goal was to streamline the payment process, reducing settlement time that will take around two weeks to process.
Based on the use cases, the segment 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 is expected to drive the market due to ability to enable end-to-end component lifecycle visibility with the reduction of turnaround time and cost savings for the aviation industry. Blockchain technology also aids industry participants in efficiently managing the inventory.
For instance, Air France KLM and Lufthansa Technik are working toward the use of blockchain technology to manage in-service airplanes and replacement parts. These advancements by industry players are supporting the growth of the segment during the forecast timeframe.
The aviation blockchain market in North America is projected to grow at a high CAGR. The increasing adoption of technology by airlines, airports, and MRO service providers in this region is one of the major drivers positively influencing the growth. The presence of major airports and key industry participants in the region is expected to drive the market.
For instance, in January 2019, Honeywell Aerospace launched GoDirect Trade, a new business-to-business (B2B) e-commerce platform, to buy and sell aircraft components. The new platform provides access to new & used aircraft components for airlines and air transport customers by offering direct inventory access & clear pricing.
Based on the sector, the segment is classified as commercial aviation and military aviation. The commercial aviation segment is anticipated to grow due to presence of a large number of commercial aircraft manufacturers and the use of blockchain technology by the players. This technology is adopted by many key players dealing in the aerospace & defense sector due to use of the Internet of Things (IoT) and Artificial Intelligence (AI). The technology provides a systematic record of flight & components and manages the maintenance records to access the airworthiness of the 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. GE Aviation Digital Group helps to trace the manufactured parts and data-related to the life cycle & production of aircraft components.
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.
The companies operating in the market are entering into strategies, such as partnerships, acquisitions, and joint ventures, to develop new organizations that will provide safety to customers in a wide range of missions. For instance, in November 2018, SparkCognition and Boeing announced the launch of SkyGrid, a new joint venture, that will use blockchain technology to ensure the secure & safe integration of autonomous cargo and passenger air vehicles in the aerospace & defense sector across the globe.
Market by Application, 2015-2026 (USD Million)
Market by Use Cases, 2015-2026 (USD Million)
Market by Sector, 2015-2026 (USD Million)
The above information has been provided for the following regions and countries: