Aviation Analytics Market

Market Definition

The market involves the application of advanced data analysis techniques to optimize various facets of the aviation industry, including flight operations, maintenance, and customer experience. Aviation analytics provides actionable insights to improve safety, reduce operational costs, and enhance decision-making  by leveraging big data, predictive analytics, and machine learning.

The scope covers areas such as flight path optimization, fuel consumption analysis, predictive maintenance, and demand forecasting. This technology is crucial in enhancing operational efficiency and ensuring smoother, more reliable air travel. The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping the industry’s growth.

Aviation Analytics Market Overview

The global aviation analytics market size was valued at USD 2,721.4 million in 2023 and is projected to grow from USD 3,063.5 million in 2024 to USD 7,324.7 million by 2031, exhibiting a CAGR of 13.26% during the forecast period.

The growth of the market is strongly influenced by the expansion of smart airport infrastructure, which relies on data-driven systems for efficient passenger flow and operations. Additionally, the integration of AI and machine learning algorithms enhances predictive capabilities, enabling real-time insights that significantly improve decision-making and operational efficiency.

Major companies operating in the aviation analytics industry are SITA, General Electric Company, Honeywell International Inc., Boeing, IBM, Collins Aerospace, Thales, Airbus, Lufthansa Group, AeroData, Inc., FlightAware, Pivotal, Accenture, Oracle, SAS Institute Inc.

The market is expanding as airlines scale up operations to meet rising global air travel demand. Increasing fleet sizes and route networks demand robust analytics to manage aircraft rotation, fuel use, and capacity planning. These solutions offer visibility into flight patterns, optimize scheduling, and reduce operational costs.

As regional carriers in high-growth economies like India and Vietnam expand their networks, aviation analytics platforms are playing a vital role in driving efficiency, maximizing fleet utilization, and enabling seamless coordination across diverse operational environments.

• According to the International Air Transport Association (IATA) 2025 report, total passenger traffic for 2024 grew by 10.4% compared to 2023, surpassing pre-pandemic (2019) levels by 3.8%. International traffic saw an increase of 13.6% year-over-year, accompanied by a 12.8% rise in overall capacity, reflecting a strong rebound and continued momentum in global air travel.

Key Highlights

1. The global aviation analytics market size was recorded at USD 2,721.4 million in 2023.
2. The market is projected to grow at a CAGR of 13.26% from 2024 to 2031.
3. Asia Pacific held a market share of 39.37% in 2023, with a valuation of USD 1,071.3 million.
4. The solutions segment garnered USD 1,439.8 million in revenue in 2023.
5. The on-premises segment is expected to reach USD 4,102.6 million by 2031.
6. The operations segment secured the largest revenue share of 33.16% in 2023.
7. The customer analytics segment is poised for a robust CAGR of 14.41% through the forecast period.
8. North America is anticipated to grow at a CAGR of 13.30% during the forecast period.

Market Driver

Expansion of Smart Airport Infrastructure

The growing adoption of smart airport infrastructure, where data-driven systems optimize passenger movement, baggage handling, runway usage, and energy consumption is driving the global market. Analytics tools enhance operational efficiency by offering real-time insights and predictive decision-making across terminals.

With increasing investments in digital airport upgrades in regions such as the Middle East and Asia-Pacific, aviation analytics is being deployed to reduce congestion, improve turnaround times, and support intelligent airport ecosystems.

• In April 2025, Collins Aerospace announced the advancement of its predictive health monitoring solutions for airlines under the Digital Alliance for Aviation initiative. The Alliance will leverage Collins’ extensive experience in delivering predictive maintenance analytics across both Airbus and non-Airbus platforms. Collins Aerospace collects operational data from various onboard systems, such as hydraulics, air management, pneumatics, anti-ice, electric power, landing gear, and navigation systems, enabling airlines to optimize performance and improve maintenance efficiency.

Market Challenge

Data Silos and Integration Complexities

A significant challenge hindering the growth of the aviation analytics market is the fragmentation of data across multiple legacy systems and departments, leading to data silos and integration difficulties. Airlines and airport operators often struggle to unify operational, maintenance, and passenger data into a centralized platform, limiting the effectiveness of analytics tools.

To address this, companies are investing in cloud-based data lakes, adopting standardized data formats, and collaborating with analytics vendors to implement interoperable systems. These efforts aim to streamline data access, improve collaboration across departments, and enhance the overall efficiency of analytics-driven decision-making.

Market Trend

Integration of AI and Machine Learning Algorithms

The market is witnessing a transformation with the integration of AI and machine learning technologies. These tools enable predictive maintenance, anomaly detection, and personalized passenger services through advanced pattern analysis. Airlines are leveraging AI-powered models to forecast delays, optimize routes, and improve customer engagement.

As machine learning algorithms evolve to support real-time, adaptive decision-making, their application in aviation analytics is leading to faster, more accurate insights and enabling carriers to enhance performance.

• In February 2025, IBM entered into an agreement with Riyadh Air to integrate its Watsonx portfolio of AI solutions, along with IBM Consulting’s advanced AI capabilities, to develop a comprehensive enterprise-wide AI infrastructure. Riyadh Air aims to enhance guest and employee experiences along with data security and privacy using IBM's AI solutions. 

Aviation Analytics Market Report Snapshot

Market Segmentation

• By Component (Solutions, Services): The solutions segment earned USD 1,439.8 million in 2023 due to its critical role in providing advanced analytical platforms that enable real-time decision-making, predictive maintenance, and operational optimization across various aviation functions.
• By Deployment Mode (On-Premises, Cloud-Based): The on-premises segment held 56.90% of the market in 2023, due to its ability to offer greater control over sensitive operational data, enhanced data security, and customization aligned with complex aviation IT infrastructures.
• By Business Function (Finance, Operations, Sales & Marketing, Maintenance, Repair & Operations (MRO), Supply Chain): The operations segment is projected to reach USD 2,441.3 million by 2031, owing to its critical role in optimizing flight schedules, managing real-time disruptions, and improving resource allocation to enhance overall operational efficiency.
• By Application (Flight Risk Management, Fuel Management, Route Management, Fleet Management, Inventory Management, Customer Analytics): The customer analytics segment is poised for significant growth at a CAGR of 14.41% through the forecast period, attributed to its ability to provide airlines with actionable insights into passenger behavior, enhancing personalized services, and improving customer retention.

Aviation Analytics Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia Pacific aviation analytics market share stood around 39.37% in 2023 in the global market, with a valuation of USD 1,071.3 million. The region's increasing investment in smart airports is driving demand for analytics platforms capable of managing passenger flow, baggage handling, and terminal operations.

For instance, Vietnam is developing a greenfield airport with an investment of USD 19.8 billion and an estimated year of completion in 2025.

Once fully operational, the airport is expected to handle 100 million passengers and 5 million tonnes of cargo annually. Such large-scale projects demand advanced analytics for passenger flow, cargo management, and operational planning, significantly contributing to the growth of the market in the region.

North America is poised for significant growth at a robust CAGR of 13.30% over the forecast period. North American airlines are increasingly adopting AI-powered analytics to refine revenue management, focusing on demand forecasting, dynamic pricing, and maximizing ancillary revenue.

This shift toward data-driven strategies is accelerating the growth of the market, enabling carriers to achieve greater accuracy in responding to evolving market trends and passenger preferences. 

Furthermore, the ongoing digitization of Maintenance, Repair, and Overhaul (MRO) processes for legacy aircraft fleets is driving adoption of predictive maintenance and asset utilization platforms. These tools are critical for extending aircraft lifespan while maintaining compliance, thereby supporting sustained growth of the market in North America.

Regulatory Frameworks

• In the U.S., the Federal Aviation Administration (FAA) oversees aviation safety and has initiated data-driven safety reviews, such as the recent audit of Southwest Airlines following multiple near-miss incidents. Additionally, the U.S. enforces data protection laws like the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), which impact how aviation companies handle personal and health-related data.
• The European Union Aviation Safety Agency (EASA) regulates aviation safety across EU member states, including the collection and analysis of safety data. The General Data Protection Regulation (GDPR) governs data privacy, requiring aviation analytics providers to ensure lawful processing, data minimization, and secure handling of personal data.
• China's aviation analytics are governed by the Civil Aviation Administration of China (CAAC). Data handling is regulated by the Data Security Law (DSL) and the Personal Information Protection Law (PIPL), which impose strict data localization and cross-border data transfer requirements.
• Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) oversees aviation safety. The Act on the Protection of Personal Information (APPI) regulates personal data handling, requiring businesses to obtain consent for data collection and to implement appropriate security measures.

Competitive Landscape

Market players in the aviation analytics sector are increasingly forming partnerships and collaborations with airlines to accelerate market growth. These alliances enable the integration of cutting-edge technologies into airline operations, enhancing flight performance and reducing environmental impact.

By combining their strengths, companies can develop innovative solutions to address challenges like fuel efficiency and climate change. These collaborations boost operational efficiency and contribute to the industry's sustainability goals, further promoting the adoption of data-driven solutions in aviation.

• In February 2025, Thalescollaborated with airline Amelia and Breakthrough Energy’s Contrails initiative, to launch a large-scale contrail avoidance solution. Contrails, a major environmental concern, have been reduced through this solution, preventing over 20 tonnes of CO2 equivalent emissions in 2024. The system adjusts aircraft altitude rather than altering lateral flight paths, reducing climate impact by up to 40% per flight while keeping additional fuel consumption under 3%. This innovation improves flight planning efficiency and supports the aviation industry's ecological transition.

List of Key Companies in Aviation Analytics Market:

• SITA
• General Electric Company
• Honeywell International Inc.
• Boeing
• IBM
• Collins Aerospace
• Thales
• Airbus
• Lufthansa Group
• AeroData, Inc.
• FlightAware
• Pivotal
• Accenture
• Oracle
• SAS Institute Inc.

Recent Developments (M&A/Partnerships/Joint Venture/ Product Launch)

• In April 2025, SITA and NEC Corporation formed a partnership to advance the adoption of digital identity within SITA’s Digital Travel Ecosystem framework. By combining NEC’s expertise in biometrics with SITA’s extensive global network of biometric touchpoints, the collaboration aims to accelerate the global shift toward seamless and secure digital travel experiences.
• In February 2025, GE Aerospace and Scandinavian Airlines (SAS) successfully completed a predictive maintenance initiative to enhance the operational efficiency and reliability of SAS’s Embraer E190 fleet. Leveraging GE Aerospace’s Event Measurement System (EMS) for flight data and analytics, combined with SAS’s technical operations insights, the collaboration aims to implement accurate, data-driven maintenance solutions.
• In February 2025, Lufthansa revealed plans to manage a portion of Lufthansa Group Airlines’ flights at Munich Airport using its own ground handling services by potentially acquiring full ownership of Swissport Losch later this year. The move is expected to enhance operational stability and service reliability for its passengers..
• In October 2024, GE Aerospace entered into a joint venture with Lilium, a Germany-based Regional Air Mobility (RAM) developer, to establish a robust safety framework for this emerging mode of air travel. The collaboration focuses on implementing OEM-level Flight Data Monitoring (FDM) and Flight Operations Quality Assurance (FOQA) programs. These data-collection systems are intended to support a voluntary FDM program for Lilium’s customers while enabling comprehensive safety oversight of eVTOL (electric Vertical Take-Off and Landing) operations across its fleet.