Aviation Software Market Size, Share and Trends 2024 to 2034

Aviation Software Market Size and Forecast 2024 to 2034

The global aviation software market size is calculated at USD 11.50 billion in 2024 and is predicted to reach around USD 23.10 billion by 2034, expanding at a CAGR of 7.23% from 2024 to 2034. Rising demand for innovative flight management systems is the key factor driving the growth of the aviation software market. Also, many aviation companies are adopting advanced software solutions coupled with government initiatives in various countries can fuel market growth soon.

Aviation Software Market Key Takeaways

• North America dominated the aviation software market with the biggest market share of 36% in 2023.
• Asia Pacific is expected to expand at a significant CAGR of 10.05% over the studied period.
• By software type, the management software segment dominated the market in 2023.
• By software type, the simulation software segment is expected to grow at the fastest rate in the market over the forecast period.
• By application, the airlines segment contributed the largest market share of 78% in 2023.
• By application, the airport segment is estimated to show the fastest growth in the market over the forecast period.
• By deployment, the cloud segment held the biggest market share of 70% in 2023.
• By deployment, the on-premises segment is expected to grow rapidly in the market during the projected period.

U.S. Aviation Software Market Size and Growth 2024 to 2034

The U.S. aviation software market size is evaluated at USD 3.11 billion in 2024 and is projected to be worth around USD 6.37 billion by 2034, growing at a CAGR of 7.44% from 2024 to 2034.

North America dominated the aviation software market in 2023. The dominance of the region can be attributed to the growing adoption of cutting-edge technologies such as AI and IoT. The region's focus on enhancing operational efficiency and passenger safety is boosting demand for advanced software solutions. Furthermore, the presence of top aviation software companies and an established aerospace infrastructure is significant.

• In June 2022, IBM expanded its Robotic Process Automation (RPA) service to automate internal processes and increase staff efficiency. The solution facilitates & monitors operations and processes and enhances talent management for higher-value tasks.

Asia Pacific is expected to witness significant growth in the aviation software market over the studied period. The growth of the region can be driven by the region's fast growth in air travel coupled with the surge in the aviation industry. Moreover, the strong presence of major market players is driving the market expansion, particularly in countries like China and India.

Market Overview

The aviation software market has become a crucial element in the aviation industry, optimizing an extensive range of functions from customer service to flight scheduling and planning. This industry contains many software solutions created to enhance efficacy, safety, and regulatory requirements. The need for advanced software applications has grown, leading to substantial expenditure investments in this sector.

World's biggest public airline companies by revenue (as of May 2024) 

Role of Artificial Intelligence in the Aviation Software Market 

Artificial intelligence (AI) technologies like natural language processing and computer vision can be used in pilot training, customer service, and threat detection. The increasing adoption of machine learning techniques to resolve various aviation operational problems can strengthen the presence of AI in the aviation software market. Furthermore, the rising application of AI for the baggage screening process and rapid check-in process can drive the adoption of AI in the industry shortly.

• In September 2024, Enterprise software provider Ramco Systems Ltd announced that it had launched the latest version of its Aviation Software, version 6.0, set to transform maintenance, repair, and overhaul (MRO) operations and maintenance and engineering (M&E) processes with innovative technology and AI-driven features.

Aviation Software Market Growth Factors

• Governments are heavily investing in research and development (R&D) programs, which are expected to boost the aviation software market's growth shortly.
• Manufacturers in the aviation software industry are emphasizing more on developing advanced solutions that can propel market growth further.
• The rising demand for commercial and private aircraft will likely contribute to the aviation software market expansion in upcoming years.

Market Scope

Market Dynamics

Driver

Increasing air passenger traffic

There is an increasing demand for aviation software solutions because of the continuous surge in air passenger traffic. This growth of the aviation software market is due to the rise in globalization, growth in the middle class, and an increase in the disposable incomes of the majority of people. Therefore, to meet this demand for air travel, airlines need to deploy convenient software solutions to facilitate resources, enhance customer services, and manage operations.

• In June 2024, Airline software provider Accelya unveiled FLX Select, which it says will bring an ‘innovative and standardized’ approach to establishing New Distribution Capabilities (NDC) in the market. The new technology enables airlines to cut legacy distribution and retailing constraints, enhancing customer experience and creating lucrative opportunities to drive incremental revenue.

Restraint

Market fragmentation

An extensive range of suppliers offering tailored solutions for many market segments such as maintenance companies, airlines, and air traffic management is what covers the aviation software market. However, because of this fragmentation, sometimes customers find it challenging to analyze and compare all these packages, which can lead to delays and uncertainties while making decisions.

Opportunity

Digital transformation in the aviation industry

The aviation software market is undergoing an extensive digital transformation, which is mainly led by technological advancements and the rising focus on safety, efficiency, and customer experience. Furthermore, aviation software systems are important for optimizing digitization in numerous business sectors, such as airports, air traffic control, repair, maintenance, etc. Also, by digitizing the industry, airlines may streamline resource management processes and operations, which propel productivity and decrease the overall costs of airline operations.

• In February 2024, the software provider DAKOSY and airport operator FRAPORT formed a partnership with GmbH. The collaboration aims to set up, operate, and develop cargo community systems for air freight and to innovate the digitalization of air cargo processes at Frankfurt Airport and internationally.

Software Type Insights

The management software segment dominated the aviation software market in 2023. The dominance of the segment can be attributed to the services provided by this software including crew management, flight scheduling, and maintenance procedures. Management software is important for airports and other aviation stakeholders to maintain their daily activities efficiently. Additionally, the surge in demand for integrated and comprehensive software solutions can drive segment adoption further.

The simulation software segment is expected to grow at the fastest rate in the aviation software market over the forecast period. The growth of the segment can be linked to the growing demand for innovative operational and training solutions. However, this software creates realistic and sophisticated environments for pilots to perfect their skills. Simulation software also can be used to facilitate maintenance operations.

• In October 2024, AXIS Flight Simulation launched its newest cutting-edge flight training product. This new application is designated the Virtual Cockpit Procedure and Walkaround Trainer (VPT). This new product is driven by virtual reality (VR) and mixed reality (MR) technologies.
• In May 2024, NASA announced it had designed a new digital modeling tool for engineers to simulate conceptual aircraft designs. The new Aviary tool enables researchers to digitally test how aircraft concepts will work in the real world before making costly flight tests.

Application Type Insights

The airlines segment led the global aviation software market in 2023. The dominance of the segment can be credited to the massive operational demand and the crucial role that this software has in the airline industry. Airlines are the backbone of air travel. Hence, airlines necessitate innovative software solutions for several functions, such as crew management, light operations, and customer service. The increasing demand for predictive maintenance and data analytics has further boosted the segment's growth.

The airport segment is estimated to show the fastest growth in the aviation software market over the forecast period. The growth of the segment can be driven by the rising complexity of airport functions and the growing requirement for improved security and efficiency. However, with the rise in travel across the globe and the growth of airport infrastructure, there is an increased need for software solutions that can optimize operations and improve the passenger experience.

Deployment Type Insights

The cloud segment held the largest share of the aviation software market. The growth of the segment is linked to the features provided by cloud-based solutions, such as greater flexibility, scalability, and low cost. Enabling market players to conveniently manage their operations with less infrastructure costs. Also, the cloud enables smooth integration with different technologies like AI and Internet of Things (IoT).

• In March 2024, VMware, a provider of hybrid quantum computing cloud services, is collaborating with Oracle and Nvidia to test and develop a hybrid quantum computing service for enterprise customers.

The on-premises segment is expected to grow rapidly in the aviation software market during the projected period. The growth of the segment can be credited to the market's need for control, compliance, and security, which can be easily provided by on-premises systems. Furthermore, aviation companies with confidential data mainly prefer on-premises solutions to secure total control over their IT infrastructure.

Aviation Software Market Companies

• Airbus SE
• Bigscal Technologies Pvt. Ltd.
• CHAMP Cargosystems
• General Electric Company
• Honeywell International Inc.
• IFS
• Indra Avitech GmbH
• Leonardo S.p.A.
• Ramco Systems Limited
• RTX Corporation
• SITA
• Veryon
• Thales Group
• The Boeing Company

Recent Developments

• In August 2024, Surf Air Mobility introduced Surf Air Technologies, a subsidiary that provides solutions for hybrid and electric aircraft. The company and Palantir Technologies will work together to create software tools for new aircraft manufacturers and operators.
• In June 2024, the University of Michigan unveiled the Future Aircraft Sizing Tool (FAST). It is MATLAB-based software suitable for the design and analysis of electrified and conventional aircraft.

Latest Announcements by Leaders

• In January 2024, Airbus Helicopters announced that it is collaborating with the Tata Group to establish a Final Assembly Line (FAL) for helicopters in the country. The FAL will create Airbus’ best-selling H125 helicopter from its civil range for India and export to some of the neighboring countries.
• In October 2024, Saudia Arabia's new airline just announced a major Airbus order in the latest blow for Boeing. The order from the airline, which is set to start flying next year, comes after months of speculation as to which planemaker the Saudis would choose for its narrowbody jets.

Segments Covered in the Report

By Software Type

• Management Software
• Analysis Software
• Design Software
• Simulation Software
• MRO Software

By Application 

• Airport
• Airlines

By Deployment

• On-Premises
• Cloud

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa