Airlines leverage AI, machine learning and blockchain to save costs and generate new revenues


Frost & Sullivan’s recent study, Analysis of the Global Airline IT Market, Forecast to 2025, finds that the increasing expectations of passengers are compelling airlines to embrace digital enablers.

Impacted by the COVID-19 pandemic, the airline IT market is estimated to generate a revenue of US$20.74 billion by 2025, compared to US$21.20 billion in 2019. As per the original forecast, by 2025, the market was estimated to reach US$25.1 billion from US$21.20 billion in 2019.

“Despite the adverse impact of COVID-19 on the industry, airlines are increasingly focusing on adopting next-generation digital solutions such as mobility, machine learning (ML), big data analytics, and artificial intelligence (AI) to identify cost-saving and revenue-generating opportunities,” said Abhilash Varkey Abraham, aerospace & defense research analyst at Frost & Sullivan, in a prepared statement. “Additionally, a few major airlines have already committed to migrating their entire IT infrastructure to the cloud over the next three to five years and this trend is likely to continue and grow, mainly among low-cost carriers.”

With global airlines losing US$25 billion due to disruptions in operations and with 50% of them addressable via digital solutions, a huge opportunity exists for IT suppliers to innovate and expand their portfolio, according to Frost & Sullivan.

Market opportunities include:

  • Real-time data analytics with an interactive display/graphical user interfaces (GUI) will have higher penetration in the medium term, which will serve as a growth opportunity for suppliers.
  • With airlines embracing the capabilities of next-gen technologies such as AI and ML, solution providers are encouraged to integrate these technologies into their solutions.
  • Vendors are encouraged to develop solutions to solve airlines’ disruption pain points, especially in the areas of passenger re-accommodation and compensation.
  • Adopting big data platforms can streamline the operations of airlines, reducing cost and time.

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