Artificial Intelligence in Aviation Market Size To Gain USD 9,985.86 Mn By 2030

Published Date : 08 Dec 2022

The global artificial intelligence in aviation market size was exhibited at USD 885.03 million in 2022 and it is expected to gain around USD 9,985.86 million by 2030 with a CAGR of 35.38% over the forecast period 2022 to 2030.

The emerging trend of adopting big data analytics in the aviation industry is the primary driver of global AI in the aviation market. The shift of the aviation industry towards cloud-based technologies powered by AI is boosting the demand for AI in the aviation industry. With the rising need for increasing profits, enhancing operations, and improving customer service quality, major airline companies are investing in the adoption of artificial intelligence technologies in the aviation industry. Moreover, the adoption of AI technologies reduces recurring tasks, improves customer services, and significantly helps in surveillance activities. For instance, the deployment of artificial intelligence-based chatbots helps to handle customer queries and facilitates in online booking of tickets. 

Report Highlights

  • Based on the offering, the software segment dominated the market in 2021. The rapid emergence of AI-based software and its emerging applications in the aviation industry in various activities like surveillance, airport operations, and flight operations has significantly augmented the growth of the software segment in the global AI in the aviation market.
  • Based on the technology insights, the machine learning segment led the global AI in the aviation market in 2021. The rapidly surging demand for data analytics and collecting and storing data has led to the growth of the machine learning segment. Moreover, the enhanced capabilities of the machine learning algorithms in calculation complex and impossible calculations has significantly boosted the growth of this segment in the global market.
  • Based on the application, virtual assistants was the leading segment in 2021. The virtual assistants helps in eliminating recurring tasks and can automatically perform various tasks such as changing radio station, providing real-time location, and handling customer queries, which has led to the dominance of this segment.

Artificial Intelligence in Aviation Market Report Scope

Report Coverage Details
Market Size In 2022 USD 885.03 Million
Market Size By 2030 USD 9,985.86 Million
Growth Rate from 2022 to 2030 CAGR of 35.38%
Base Year 2022
Forecast Period 2022 to 2030
Segments Covered By Offering, By Technology, By Application
Regions Covered North America, Europe, Asia-Pacific, Latin America, Middle East and Africa

Regional Snapshot

North America was the leading AI in the aviation market in 2021. This growth is attributable to the presence of strong air infrastructure that has facilitated the adoption of advanced and novel technologies like artificial intelligence in the aircraft and airports. The rise in the globalization of business attracts a huge number of business tourists from across the world. The rapidly growing number of air travelers in the region has stimulated the adoption of artificial intelligence technologies to improve customer services and safety. This region is among the early adopters of AI technology across various fields. The increased demand for the latest and advanced technologies across various sectors has led to the growth of North America AI in the aviation market in the past decade.

Asia Pacific is offering numerous growth opportunities to the market players operating in the AI in the aviation market. Asia Pacific is characterized by rising government investments in the development of strong and sophisticated air connectivity and the adoption of advanced digital technologies to improve operations and customer service. Asia Pacific is a major attraction among tourists and the rapidly surging number of air travelers in the region is expected to boost the deployment of AI-based services and products in the aviation sector in the forthcoming future.

Market Dynamics

Driver: Rising adoption of computer vision at airports

Computer vision is among the emerging applications of artificial intelligence. Computer vision uses cameras and machine learning technology for monitoring complex activities related to ground services. It also detects objects and tracks it in real-time and can also detect the behavior of a large group of people at the airports. Therefore, the rising need for safety and security at airports is significantly boosting the demand for AI-based computer vision and driving the growth of global AI in the aviation market.

Restraint: Concerns related to security and system malfunctions

The major restraint associated with the AI in aviation market is the data security and risks of system malfunctioning. The smooth and effective functioning of artificial intelligence relies on good data. Therefore, the right sources and right amount of data has to be ensured to achieve the desired results. Overburden of data may slow down the systems. Therefore, the sudden malfunctioning of the system can create chaos at the airport that may also compromise security.

Opportunities: Rising investments in the automation

The adoption of artificial intelligence and its cognitive abilities can easily sense data and automate various functions like analytics, maintenance, customer services and other activities. The growing need for improving the efficiency of operational activities, and enhancing customer services is rapidly driving the demand for the automation of activities by adopting the novel artificial intelligence technologies. 

Challenge: Lack of proper air connectivity 

There is a lack of proper and adequate air connectivity in developing and underdeveloped regions. The low financial capabilities in these regions and the lack of proper IT and telecommunications infrastructure hampers the adoption of the AI in aviation industry.

Recent Developments

  • In June 2020, SparkCognition ventured with Boeing to form a company named SkyGrid to develop an aerial operating system to support the next generation of autonomous aviation.

Key Players in the Reports:

  • Samsung Electronics
  • Intel
  • Xilinx
  • Thales
  • IBM
  • Amazon
  • Nvidia
  • Microsoft
  • Garmin
  • Lockheed Martin

Market Segmentation

By Offering

  • Hardware
  • Software
  • Services

By Technology

  • Machine Learning
  • Context Awareness Computing
  • Natural Language Processing
  • Computer Vision
  • Others

By Application

  • Smart Maintenance
  • Training
  • Manufacturing
  • Flight Operations
  • Virtual Assistants
  • Dynamic Pricing
  • Surveillance
  • Others

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