What Is The Current and Historic Market Size Analysis Of The Aviation Cloud Market?
The aviation cloud market has seen considerable growth due to a variety of factors.
• The scale of the aviation cloud market has experienced a remarkable increase in the recent past. The market, valued at $5.39 billion in 2024, is anticipated to reach $6.18 billion in 2025, reflecting a compound annual growth rate (CAGR) of 14.6%.
This surge during the historic period can be credited to the rising need for secure data storage alternatives, cost-effectiveness offered by cloud solutions, widespread adoption of internet of things, continuous enhancement of smart airports, and an increased investment in IT upgrades by airlines.
What Are The Predictions for The Aviation Cloud Market Size?
The aviation cloud market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of aviation cloud is anticipated to witness significant expansion over the coming years. By 2029, it is expected to reach $10.54 billion with a CAGR of 14.3%.
Factors such as the emergence of hybrid cloud solutions, the need for real-time flight monitoring and management, the provision of dedicated cloud solutions, the growing emphasis on cybersecurity in aviation, and increased automation needs in aviation, significantly contribute to its growth anticipated in this forecast period. The forecast period will also see major market trends such as cloud-powered airline reservation systems, integration of blockchain technology with cloud services in aviation, implementation of advanced technologies like AI and IoT, a transition towards virtual airlines, and digital twins.
Which Factors Are Boosting Growth In The Aviation Cloud Market?
The anticipated boost in air traffic is set to drive the growth of the aviation cloud market. Air traffic pertains to the activity of aircraft within a regulated airspace, including both private and commercial planes, and their management by air traffic control (ATC) to ensure safety and efficiency. The surge in air traffic is due to factors such as increased global tourism, a growing international business sector, and the escalating demand for speedy and convenient travel alternatives. The aviation cloud helps improve air traffic management by offering integrated real-time data, enhancing communication, and making flight operations more efficient and safe. For instance, Luxembourg-based government entity Eurostat reported that in November 2024, global passenger traffic hit approximately 8.7 billion in 2023, marking a 30.6% increase relative to 2022. Consequently, the surge in air traffic is contributing to the expansion of the aviation cloud market.
What Are The Core Segments Of The Global Aviation Cloud Market?
The aviation cloud market covered in this report is segmented –
1) By Service Model: Infrastructure As A Service, Platform As A Service, Software As A Service
2) By Deployment Type: Public, Private, Hybrid
3) By Application: Flight Operations, Passenger Airports, Supply Chain Management
4) By End User: Airlines, Airports, Original Equipment Manufacturers, Maintenance, Repair, And Operations (MRO)
Subsegments:
1) By Infrastructure As A Service (IaaS): Compute Services, Storage Services, Networking Services
2) By Platform As A Service (PaaS): Cloud Middleware, Database Management, Application Development & Management
3) By Software As A Service (SaaS): Flight Operations Management, Passenger Service Systems, Aircraft Maintenance And Monitoring, Crew Management Systems
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Which Emerging Trends Are Reshaping The Aviation Cloud Market Size?
Major companies operating in the aviation cloud market are focusing on developing innovative solutions such as enterprise resource planning (ERP) software to streamline operations, improve efficiency, and enhance data management across airlines and aviation-related businesses. Enterprise resource planning (ERP) software refers to integrated systems that help airlines and aviation companies manage flight scheduling, inventory management, maintenance, human resources, and financial processes, improving efficiency and better decision-making across departments. For instance, in September 2024, Ramco Systems Limited, an India-based software company, launched Aviation version 6.0. It is an advanced, cloud-based enterprise resource planning (ERP) software to integrate and optimize aviation operations, including monitoring & evaluation (M&E), maintenance, repair, operations, supply chain management, and finance, with AI-driven intelligence, automation, and enhanced mobility features.
Who Are the Key Players In The Aviation Cloud Market?
Major companies operating in the aviation cloud market are:
• Google LLC
• Microsoft Corporation
• Accenture plc
• IBM Corporation
• Oracle Corporation
• Honeywell International Inc.
• Luftansa
• SAP SE
• Safran S.A
• Salesforce
• Collins Aerospace
• NEC Corporation
• Adobe Inc
• Amazon Web Services Inc.
• Wipro Limited
• Amadeus IT Group
• Infor
• DXC Technology
• SITA
• Tav Technologies
What Are The Regional Insights Into The Aviation Cloud Market?
North America was the largest region in the aviation cloud market in 2024. Aisa-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aviation cloud market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
