Digitization in Aerospace Market Size (2024 –2030)

The Global Digitization in Aerospace Market was estimated to be worth USD 5.24 billion in 2023 and is projected to reach a value of USD 11.37 billion by 2030, growing at a CAGR of 11.7% during the forecast period 2024-2030.

Compared to industries like retail banking, the aerospace industry, which is renowned for its cutting-edge technologies like computer-aided design and stealth, has been slower to embrace contemporary digital technology. Nonetheless, digitization is becoming more and more of a focus in aviation, which is stimulating creativity and strategic decision-making. The quality and design of aircraft are being enhanced by digital technology. Cloud services, automation, analytics, and other digital tools are being investigated by aerospace companies. Prioritizing important digital initiatives in line with overarching business goals is more effective than launching too many digital projects at once without clear goals or coordination, as some people have discovered.

Key Market Insights:

The manufacturing process is connected by a digital thread, which makes it simpler for businesses to monitor each step of the process. The products being made, how they're made, and the production process are currently not very connected in the aerospace industry. This indicates that everything is disjointed and not very connected. Digital technology allows manufacturers to gather data in real-time when making aircraft. By using this data, they can anticipate when maintenance is required and address issues before they become serious ones. Proactive maintenance saves time and money by preventing unanticipated repair costs and preventing plane outages. Businesses can gain more control over the manufacturing process by collecting and analyzing real-time data. They can make adjustments, figure out how to work more effectively and ensure the quality of the products they're producing with the help of this data.

Global Digitization in Aerospace Market Drivers:

The following advantages of digitalization are boosting the aerospace industry's worldwide digitization.

Manufacturers of aircraft can now collect and evaluate real-time data thanks to the use of digital technology. This lowers unforeseen repair costs and downtime by assisting them in anticipating when maintenance is required for aircraft and their components. To increase productivity and product quality, manufacturers can also modify their production procedures in response to real-time data. One tool used for this is the digital twin, which enables manufacturers to model and improve production processes. In general, digitization enhances operations and facilitates better decision-making for manufacturers.

The aerospace industry's growing digitization is being driven by digital twins.

Digital twins are virtual replicas of aircraft components or procedures used in the aviation industry. They are created with data gathered from real-world sensors. Because these digital twins behave exactly like the real thing, engineers can test the performance of various parts without having to build them. They can observe how components behave in various conditions, such as severe weather or high flight volume. Manufacturers can increase aircraft performance and anticipate when parts may require maintenance by utilizing digital twins, which will increase overall aircraft efficiency and safety.

Digitization in Aerospace Market Challenges and Restraints:

Cybercriminals see aerospace companies as appealing targets because they can steal important data, cause disruptions, or gain an advantage over rivals. They could send phishing emails, take advantage of software flaws, use weak passwords, or even hire insiders to compromise aircraft networks and systems. Sensitive data, such as financial records or intellectual property, may become public knowledge in the event of a data breach. The efficiency and security of aerospace assets, such as airports and aircraft, could be harmed by this. Cyberattacks may potentially impact ground-based systems that facilitate aircraft operations, such as air traffic control and security. Aerospace businesses need to have robust cybersecurity procedures in place to guard against, identify, and address cyberattacks.

Digitization in Aerospace Market Opportunities:

Predictive maintenance involves the use of sensors installed in aircraft to gather performance data. To forecast when parts might require maintenance or repair, this data is examined using specialized software. Airlines can keep their aircraft operating safely and prevent expensive breakdowns by addressing problems before they become serious. Modern technology assists airlines in recognizing possible threats to their safety before they materialize. Airlines can identify issues early and take preventative measures to avoid accidents by evaluating data from multiple sources, such as sensors, weather forecasts, and flight records. To become more adept at handling difficulties in the real world, maintenance teams, and pilots can also practice emergency scenarios through virtual reality training. Digitization offers airlines several ways to reduce costs. Through improved supply chain management, they can lower inventory costs and prevent delays. By reducing downtime and avoiding costly repairs, predictive maintenance also reduces costs. Additionally, fuel costs and overall operating expenses are decreased by optimizing fuel consumption and flight routes.

DIGITIZATION IN AEROSPACE MARKET REPORT COVERAGE:

Global Digitization in Aerospace Market Segmentation: By Application

• Passenger Screening and Security

• Baggage Services

• Passenger Assistance and Retail

• Flight Operations and Management

• Maintenance

• Repair and Overhaul (MRO)

• Design and Engineering

• Manufacturing and Assembly

• Others

Digital solutions that improve the passenger experience by providing individualized services, easy travel, and in-flight entertainment fall under the Passenger Assistance and Retail category. To satisfy passenger demands, airlines and airports are concentrating on developing new business models and revenue streams in response to shifting consumer preferences. This market is predicted to expand quickly because airports and airlines are becoming more competitive.

Digital solutions that optimize flight operations—including route selection, fuel consumption, scheduling, dispatching, and flight planning—fall under the category of flight operations and management. These solutions are being adopted by airports and airlines more frequently to lower expenses, boost efficiency, and encourage environmental sustainability. Because of the need for sustainability and operational efficiency, this industry is predicted to lead the aerospace market's digitization.

Global Digitization in Aerospace Market Segmentation: By Segment

• Airlines

• Airports

• MROs

• Original Equipment Manufacturers (OEMs)

• Defense Contractors

• Space Agencies

• Others

Public and private agencies that study and conduct research in space are known as space agencies. The anticipated growth of this segment is attributed to heightened investments and progress in space technology. This growth will also be aided by the emergence of new space companies and markets, as well as the growing demand for satellite-based services and applications.

Commercial and cargo airlines that offer passenger and cargo air transportation services fall under the airline category. The aerospace market is expected to digitize into its largest segment, which will be airlines. The rising demand for freight and air travel, changing customer tastes, and increased competition between airports and airlines are the main drivers of this growth.

Global Digitization in Aerospace Market Segmentation: By Technology

• Cloud Computing

• Artificial Intelligence

• Internet of Things

• Blockchain

• Augmented Reality

• Virtual Reality

• Digital Twin

• 3D printing

With the use of digital twin technology, physical assets or systems can be virtually modeled, simulating their behavior and performance under various conditions. Its growing ubiquity in a range of aerospace applications, including design, manufacturing, maintenance, and flight operations, is expected to fuel its rapid growth.

The 3D Printing Process Often referred to as additive manufacturing, 3D printing produces tangible goods by using digital models. It is anticipated to lead the digitalization of the aerospace sector. This is a result of the increasing need for 3D printing in a range of aerospace applications, including concept testing, manufacturing, and prototyping.

Global Digitization in Aerospace Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East and Africa

The region known as Asia-Pacific, which includes China, India, Japan, and other nations, is anticipated to have the quickest rate of aerospace digitization growth. This is due to several factors, including the growing need for cargo and air travel, the development of new space companies, the need for traditional piloted systems in developing nations, and technological advancements in space.

However, it is anticipated that North America—which consists of the US, Canada, and Mexico—will hold the biggest market share for aerospace digitization worldwide. This is because digital technologies are being widely used in a variety of aerospace-related activities, including engineering, manufacturing, maintenance, and flight operations.

COVID-19 Impact on the Global Digitization in Aerospace Market:

Airports have cut back on digital projects as a result of the COVID-19 pandemic because of the decline in revenue and passenger volume. Until passenger traffic recovers to pre-pandemic levels, which might not occur until 2024–2025, they will exercise caution when making investments. The number of passengers who use the airports and their capacity to pay for these projects determine how much funding is available for digital initiatives. Airports that handle large volumes of traffic, particularly in the Asia-Pacific area, and those with substantial financial resources, such as Tier I airports, can allocate more funds toward digital projects. The pandemic has forced Maintenance, Repair, and Overhaul (MRO) companies—which primarily serve other businesses—to embark on more digital projects, despite their sluggish adoption of digital technology. Nonetheless, social distancing laws and a shortage of on-site labor have hindered the development of the aviation sector overall during this time.

Latest Trend/Development:

Two key trends are influencing the aerospace industry. First off, machine learning (ML) and artificial intelligence (AI) are becoming more and more popular. By analyzing massive volumes of data from sensors and aircraft systems, these technologies help forecast maintenance requirements, optimize flight paths for maximum fuel economy, and improve overall operational efficiency. Second, the field of Digital Twin technology is growing, with the creation of virtual representations of tangible assets such as aircraft parts. Predictive maintenance, design optimization, and aircraft performance simulation under various circumstances are all accomplished with digital twins. Aerospace companies can increase aircraft performance, save costs, and improve safety by combining AI and ML with Digital Twin technology. The aerospace industry is working closely with tech giants to integrate AI and ML. Digital twin technology advancements improving design optimization and aircraft simulation. A greater emphasis on environmentally friendly aviation, including investments in hydrogen fuel cells and electric propulsion. Move toward aviation solutions that are safer, more effective, and less harmful to the environment.

Key Players:

1. Cisco Systems

2. IBM

3. Microsoft

4. Siemens

5. SITA

6. Apple

7. Scarabee

8. Wind River

9. Daifuku

10. Living PlanIT