Global Airline Technology Integration Market to Generate $89,130.4 Million by 2031, Owing to Increase in the Demand for Air Travel

The airline technology sector is witnessing a period of overhaul due to the emergence of technologies such as Internet of Things (IoT), Artificial Technology, robotics, etc. Airline technology integration in its contemporary sense basically entails use of these advanced technologies in aircrafts to increase the safety, efficiency, and comfort of the passenger during the air travel. Not just airlines, these technologies are also increasingly used in airports to modernize them and manage the air traffic efficiently.

Forecast Analysis of the Airline Technology Integration Market

According to the report published by Research Dive, the global airline technology integration market is expected to gather a revenue of $89,130.4 million by 2031 and grow at 15.90% CAGR in the 2022–2031 timeframe.

In recent years, there has been a steady increase in demand for air travel which is predicted to be the primary growth driver of the airline technology integration market in the forecast period. Additionally, increasing applications of airline technology integration in aviation sector is anticipated to push the market forward. Along with this, advancements in technology in the aviation sector are projected to offer numerous growth and investment opportunities to the market in the analysis timeframe. However, an increase in incidences related to aircraft autopilot failure is estimated to create hurdles in the full-fledged growth of the airline technology integration market in the coming period.

Regionally, the airline technology integration market in the North America region is expected to be the most dominant by 2031. Growing number of air passengers in the US and Canada is expected to be the leading factor behind the growth of the market in this region.

Some prominent market players include Airbus, Honeywell International Inc., Boeing, IBM, Oracle, Collins Aerospace, L3Harris Technologies, Inc., SAP SE, Lufthansa Technik, General Electric, and many others.

Covid-19 Impact on the Market

The outbreak of the Covid-19 pandemic has had a massive negative effect on almost all industries and businesses across the world. The airline technology integration market, too, faced a negative impact of the pandemic. The travel restrictions imposed by various countries crippled the aviation sector completely which resulted in the decline of growth rate of the airline technology integration market during the pandemic.

Significant Market Developments

The significant companies operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, thus helping the airline technology integration market to flourish. For instance:

• In January 2020, TWAI, a global leader in travel technology, announced the acquisition of Airlines Technology Pvt. Ltd., an NDC aggregator and solutions provider. This acquisition is expected to increase the footprint of TWAI significantly in the market in the near future.
   
• In June 2021, KLM Royal Dutch Airlines (KLM), the leading airline carrier of Netherlands, announced that it was partnering with Boston Consulting Group, a management consulting company. This partnership is aimed at launching artificial intelligence-based solutions to modernize KLM’s global airline operations.
   
• In May 2022, American Airlines, a leading airline based in the US, announced a partnership with Microsoft, a multinational information technology. This collaboration is aimed at developing technologies and tools to better travel experience for American Airlines' customers. The collaboration is anticipated to create tremendous growth opportunities for both the companies in the coming period.