Blockchain technology, known as the Internet Second Information Revolution, has used in many industries around the world. With unique technical characteristics-decentralization, consensus mechanism, full-node real-time data update, data consistency, data security sharing, etc.-blockchain is undergoing a new round of efficiency improvement and technological empowerment in many industries. Blockchain involves maintenance, security, reservations, luggage, flight delays, flight cancellations, and passenger logistics. Blockchain may proliferate in the following areas, such as provide e-ticket options, passenger information, flight cancellation, operating conditions, and aircraft maintenance inspections.
The global aviation blockchain market size was valued at USD 398.37 Million in 2019 and projected to reach USD 1744.82 Million by 2027, registering a CAGR of 17.43%.during the forecast period 2020-2027. The major factors attributed are the rise in transparency, traceability, cost savings, and improved passenger experience. Additionally, the growing adoption of blockchain technology by airports and airlines in a developed and developing nation are projected to drive the growth of the global aviation blockchain market in the upcoming periods. Moreover, government initiatives digitalize business processes have spurred the advancements and adoption of blockchain technology in the aviation industry.
Furthermore, the growing application of blockchain in the aerospace sector to obtain a transparent and well-connected supply chain is further triggering the global aviation blockchain market growth. Due to the uniqueness of user identity information, airlines can achieve real-time online sales of alternate seats based on the bound blockchain account information. The combination of the authentication capabilities of authoritative third-party organizations and the unique identity of blockchain users can assist airports in the rapid verification of passenger identities, thereby simplifying many processes.
The aviation industry is perfectly matched with blockchain technology. Multiple participants rely on instant, coherent, consistent, and accurate data. The blockchain can not only formulate and implement plans but also be used to share various aspects such as traveler and operational information. Blockchain technology can solve the problem such as inconsistency in communication between airlines, through its transparent distributed ledger, which is both permanent and secure. Airlines can use blockchain technology to manage large amounts of data, such as flights, luggage, passengers, weather, etc. They can use smart contracts to track maintenance needs and improve ticketing services.
Passengers can use blockchain to manage loyalty points, which helps to coordinate their flights and thereby cut costs. Both airlines and travelers can use blockchain services to integrate airline touchpoints, obtain refunds, and minimize transaction costs.
Based on the deployment type, the global aviation blockchain market classified into Public, Private, and Hybrid. The Hybrid segment will witness significant growth in the forecast period. It is primarily attributed to the hybrid characteristics of both private and public blockchain, and it provides transparent solutions, and, at the same time, information is also secured.
The public will be the fastest-growing segment in the estimated period due to the growing adoption of public blockchain through which any participant of the network can access the information stored.
Based on function, the global aviation blockchain market bifurcates into Record-Keeping and Transactions. The record-keeping segment held a lucrative share in 2019 and projected to dominate the global aviation blockchain market by 2027. It is due to blockchain help in record data such as flight events, operating conditions, and aircraft maintenance inspections. Additionally, blockchain provides real-time records of repairs, purchases, construction, and maintenance inspections.
The transactions segment will grow at a significant rate in the forecast period. It is owing to blockchain provide smooth transaction of contract ticketing, and complete the refund once the ticket contract does not meet the conditions.
Based on application, the global aviation blockchain market segregated into smart contracts, passenger identity management, frequent flyer programs, supply chain management, aircraft maintenance, and cargo & baggage tracking. The passenger identity management segment estimated to lead the market by 2027 due to the growing use of biometrics in the aviation industry to gather passengers’ data for airlines and airports.
The supply chain management segment will grow with a significant rate during the forecast period owing to blockchain help in enabling end-to-end component lifecycle visibility with the reduction of turnaround time and cost savings.
Based on end-user, the global aviation blockchain market categorized into Airports, Airlines, MRO, Manufacturers, and Lessors. The airport segment held for a significant market share in 2019 and will witness to gain maximum market revenue by 2027. It is attributable to the rising passenger traffic, and the growing number of inbound and outbound flights the blockchain provide support the airports to increase the efficiency and pace of their operations,
Airlines segment will grow with a lucrative rate during the forecast periods due to the blockchain help airlines through real-time information that includes passenger data, sales data, and cargo & baggage information.
Based on the vertical, the global aviation blockchain market bifurcated into civil & commercial and military. The civil & commercial segment held higher market potential in 2019. It is attributed to the major players using blockchain to get a systematic record of flight & components and manages the maintenance records to access the airworthiness of the aircraft.
The military segment will grow with a lucrative rate during the analysis period due to blockchain used in the military to trace defense-related contracts and shipments with the reduction in operational complexities.
Based on geography, the global aviation blockchain market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s share in the aviation blockchain market by 2027. It is owing to the presence of key market players, coupled with the growing adoption of blockchain technology by airlines, airports, and MRO service providers.
The Asia Pacific captured a prominent share of the aviation blockchain market in 2019 and projected to remain dominant by 2027. It is due to the huge surge in airline using passenger in these regions, along with airports in countries such as China, India, Singapore, Australia, Malaysia have implemented blockchain into their operations.
Companies such as Microsoft Corporation, IBM, Zamna Technologies, Aeron Labs, Winding Tree, Volantio Inc, Filament, Accenture PLC, Infosys, Insolar Technologies, Leewayhertz Technologies, and Moog Inc. are the key players in the global aviation blockchain market.
By End User