Global Software Services for Aerospace Market Size (2023 - 2030)

The Global Software Services for Aerospace Market was valued at USD 5.83 billion and is projected to reach a market size of USD 7.72 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.1%.

The key driver that is estimated to help the market move forward are the new innovations in the field pertaining to IOT, Machine learning, and more. Another factor responsible for market growth is international investment and interest in the industry which helps propel it further.

Industry Overview:

Aerospace is a term that has been prevalent for several decades now but it is often, wrongly, used interchangeably with the term aviation or aeronautics. Although the three fields deal with similar aspects there are stark and notable differences there. Aerospace deals with the terms aeronautics and space or spaceflight. It deals with all aspects of flying that include flying in the earth’s atmosphere as well as in outer space, beyond the planetary boundaries. Aircraft manufacturing, for example, is a key part of aerospace. Aircraft that can travel across the globe and aircraft that are bound to interplanetary destinations are all part of the aerospace industry. Breaching the space boundaries like the exploration of Mars, civilian space programs by organizations like NASA, ISRO, etc., and manufacturing of various satellites are all a part of the aerospace industry. Software Services for Aerospace refers to the software and services that are used in the aforementioned tasks and more. Software installed in on-sight devices, in the satellites, and more as well as services available across the board are all a part of this market. With the integration of new-age technologies like Artificial Intelligence, Machine Learning and more, Software Services for Aerospace are a very integral point of the entire industry.

COVID-19 impact on the Software Services for Aerospace Market:

The pandemic was an unpredictable international tragedy that uprooted entire industries. The pandemic was caused by a virus that was extremely contagious and very deadly. Because it was the first of its kind, it took several months for people just to come to terms with it and for medical professionals to find a way to handle it. This led to several national and international restrictions being imposed across the globe, as almost no country remained unaffected. Only essential businesses and industries were permitted to remain open and functioning. The software services for the aerospace market also faced the brunt of the situation because the functioning, although very significant, was not essential. The overall market value dipped in the year 2020 and 2021 but it has since observed a rise and continues to do so. Experts confidently predict that the market can revert back to its pre-pandemic form and even progress further during the forecast period and beyond.

Market Drivers:

The new innovations in the field pertaining to IOT, Machine learning, and more are fueling market growth:

The market for Software Services for Aerospace is predicted to grow at a compound annual growth of about 4.1%. This steady growth is likely to be observed across the forecast period of 2022-2030. The significant reason for the same is the innovations that have been observed in the field related to several different technologies. Artificial Intelligence is in its most advanced form and is being incorporated into all fields. Thus it is to be anticipated to be integrated into the software services for the aerospace market. It aims to ease the human load required for any specific task. The satellites that are sent into outer space are equipped with various kinds of sensors and other IOT (Internet of Things) devices. Thus the advancements in that field will in turn propel the growth of this market. Machine Learning refers to the training of machines to perform tasks similar to humans. Because of the advancement in this case, the market will observe growth as several software and services will perform better if trained to do smart tasks. Thus amalgamation of these industries will help in market growth.

The international investment and interest in software services for the aerospace market is estimated to help the market prosper:

The aerospace industry has observed unparalleled growth in the past few decades. Advancements in space travel and exploration are a big part of that. Planets like mars have been explored for traces of life as well as possibilities of relocating human life on that planet. This has attracted attention from all over the globe, from the public as well as private sectors. Private equity individuals are investing a lot of their funds into missions that involve space venturing and travel. This interest has been piqued by the development of new software services for the aerospace market. Because of the interest, investments are also increasing. Public sectors are interested in defense and space exploration as well. Therefore the market observes investments from public organizations like NASA and ISRO as well as the national governments across the board.

Market Restraints:

The Software Services for Aerospace Market growth are being stifled by the expenses that are to be made in the software development and maintenance:

New technologies pertaining to AI, IoT, Machine Learning, etc are being incorporated into the software services for the aerospace market. These technologies help the industry grow to unprecedented heights but this comes with a great cost. The software developed is required to be of high quality and is thus very expensive to build. Because the defense and space sectors are very crucial, privacy is also extremely significant. Maintaining this privacy also costs the entities investing in the market. After development, it is of utmost importance to maintain the software. Thus, the overall cost of software building and upkeep is hindering market growth.

SOFTWARE SERVICES FOR AEROSPACE MARKET REPORT COVERAGE:

Market Segments:

This research report on the global Software Services for Aerospace Market has been segmented based on type, application, and region.

Software Services for Aerospace Market- By Type

• • On-Cloud

  • On-Premise

The on-Premise sector has dominated the market in the past because it was observed to be the safest option as the organizations’ information and data are stored in the organization itself. The sector is predicted to grow significantly as well.

The on-cloud sector has promising growth because more and more organizations are opting to store their data on distant servers.

Software Services for Aerospace Market- By Application

• Large Enterprise

• SMEs

During the forecast period, 2023–2030, Small and Medium Enterprises (SMEs) are anticipated to grow flourishingly. SMEs are the enterprises that are responsible for ensuring the supply chain demand is met and the job market is not in a metaphorical drought. They are the backbone for the large enterprises which previously dominated. Thus, in the coming years, SMEs are predicted to dominate the global market share.

Software Services for Aerospace Market- By Region

• North America

• Europe

• Asia-Pacific

• Rest of the World

North America has been the biggest shareholder of software services for the aerospace market. The region has a staggering defense as well as space exploration budget both of which contribute to the market. Countries like India and China have been investing in their space agencies to further their growth and have also been allocating budgets for their air defense systems. Thus the Asia-Pacific region is anticipated to grow at a fast rate during the forecast period.

Major Key Players in the Market:

1. Hexagon
2. Ansys Inc
3. PTC
4. Boeing Co.
5. Dassault Systemes
6. Autodesk
7. Microsoft
8.  Siemens Digital Industries Software
9. Cadence Design Systems
10. Synopsys

Market Insights and Developments:

• In May 2023, Collier Airspace launched a HyperX that is antcipated to help in designing and analysis of aircraft. It aids to analyze the metallic structures and sizes and helps to plan solutions to reduce the weight of the aircraft.
• In October 2022, flydocs and Lufthansa Technik collaborated to create a Lease Asset Management software that optimizes leases and it makes sure that any aircraft is handed over in time.