Top Digital Transformation Trends in Aviation Worth Knowing

The Fourth Industrial Revolution witnessed digital solutions empowering businesses to provide customers with new service levels. This is where artificially intelligent machines complement the world's workforce, enabling humans to gain more effective and accurate results. 

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This advancement is opening up a plethora of opportunities for businesses. We are here to explore how the aviation sector compares to others in leveraging the potential of the Fourth Industrial Revolution to engage customers.

Given the increased competition among industry participants, digital transformation in the aviation sector is expanding quickly. Utilizing digital technologies gives users a competitive advantage and guarantees company growth.

The aviation business has undergone a digital transformation, increasing process automation and speeding up service. Additionally, it has aided airlines in providing customers with individualized support.

The aviation sector has been a leader in embracing digital innovations. The amount of AI investment when considering digital transformation in aviation was roughly $0.34 billion in 2019 and is anticipated to increase to USD 3.7 billion by 2027, increasing at a 45.3% CAGR. 
 

Digital Transformation Trends in the Aviation Sector

Given these numbers, it is clear that the advent of digital transformation in recent years has resulted in substantial changes in the aviation sector. The following are some of the most significant developments in digital transformation in aviation:

1. Big Data and Analytics

Using big data analysis of past purchases, tracking methods built into AI systems help identify changes in passenger behavior. As a result, airlines can develop personalized offers, which increases cost efficiency and improves customer attraction and retention.

Big data is crucial to the growth of the smart aviation sector, particularly for improving safety through route planning, air traffic management, flight management, flight environment, aircraft design, performance improvement, and aviation business management.

Big data can offer real-time, multidimensional information, and intelligence can help convert this information into knowledge and capability. Hence, enhancing the management of aviation flight risks both predictively and preventively.

To ensure better aircraft performance and flight safety, aviation technology big data primarily records and reflects the fundamental aspects of aircraft design and implementation, operating states, and malfunction diagnosis and maintenance.

Big data in aviation management primarily records the status of aeronautical operations and operational effectiveness. Thereby aiding in optimizing operations performance and guaranteeing air traffic safety.

Big Data assists carriers in performing better aircraft maintenance. Boeing, for instance, analyses 
2 million conditions daily as part of its Airplane Health Management system, including mechanical analysis, in-flight metrics, and shop results across 4,000 aircraft. The system facilitates preemptive action, predicts failures, and aids Boeing in organizing upkeep and distribution.

2. Internet of Things (IoT)

IoT measures and analyzes aircraft performance, lower maintenance costs, and boosts operational effectiveness in the aviation sector. Aircraft engines and other components have IoT sensors installed to gather data, which is then analyzed to spot potential maintenance issues before they become serious.

Airlines are looking into IoT for various operational uses, including in-flight entertainment and baggage handling. Airlines are spending millions of dollars on the implementation of IoT to monitor luggage in real-time, increasing transparency and dependability.

By integrating their native mobile applications with airport beacons, airlines can also provide customized airport navigation. For example, the locations of commuters as they move between terminals can be used to direct them to exit gates or point them in the direction of discounted lounges.

IoT and cutting-edge analytics can provide airlines with several upsell and cross-sell possibilities. For example, upgrade offers and other personalized in-flight services can be created using historical information about passenger tastes. Additionally, curated entertainment content may be made accessible with seamless digital payment account debits for all fees.
 

It can be challenging to integrate native mobile applications with IoT-powered airport beacons at times.

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3. Artificial Intelligence (AI) and Machine Learning (ML)

In the race towards digital transformation in aviation, airline companies use AI and ML to increase customer service, route planning, and predictive maintenance. For example, airlines engage with customers, give real-time information, and make individualized travel suggestions using chatbots and virtual assistants.

Adopting AI in the aviation sector can increase customer satisfaction regarding customer relationship management and operation management, as well as operational efficacy and efficiency. Several applications of AI technology can aid the industry's recovery:

  • Customer Relationship Management: Customer sentiment analysis requires AI algorithms to identify real-time customer responses on social media sites. 
  • Aviation Operations Management – Passengers: By implementing and enhancing AI systems that aided in the optimization of operations, airlines saw substantial cost benefits during the pandemic. Companies optimize ticket costs using AI-based dynamic pricing models based on data from passenger journeys during times of travel restrictions. 
  • Aviation Operations Management – Predicting Air Traffic and the Weather: Another crucial and challenging task that AI can optimize is air traffic control. According to the International Air Transport Association (IATA), 7.2 billion individuals will fly by 2035. Although the pandemic impacted capacity requirements, they are predicted to double in the long term. Airlines are already bolstering their air traffic control systems with AI-based techniques as demand slowly recovers.
  • Autonomous Machines and Processes: Several airlines have started using self-flying aircraft driven by AI systems. However, extensive research projects on creating autonomous aircraft with AI algorithms are still being done. The adoption of AI in aircraft management is being pursued by both Airbus and Boeing to maximize benefits. 

4. Digital Payments

Airlines are implementing digital payment solutions to streamline the booking and payment process in response to the growth of smartphone payments. In addition to making payment options, airlines accept more digital payment methods like Apple Pay and Google Pay.

Airlines must put the payment process first in the new era of digital transformation in aviation to maintain customer requirements and increase sales. Improved brand value, higher sales volume, higher conversion rates, reduced fraud, and other advantages of digital payments can benefit the airline business. 

5. Blockchain

Blockchain is being investigated by airlines to enhance security, decrease fraud, and streamline procedures like baggage monitoring and loyalty programs. In addition, the airline ecosystem can benefit from using blockchain to store and exchange data securely and openly.

Network members also adhere to government regulations and directives that guarantee the safety and security of the connected stakeholders and give them a completely transparent view of the information contained therein. As a result, the effectiveness of airline activities can be increased in the following ways thanks to blockchain:

  • Identity Management and Verification: Airlines and the extended value chain can conduct business in digital environments by streamlining the identification management of passengers and staff using biometric data, the necessary documents, and tickets. 
  • Automated Payments: Blockchain allows smart contracts used in airline transactions, including the sale of travel insurance, billing between travel agents and airlines, and billing among airlines.
  • Tracking Luggage and Cargo: As these assets change custody starting with the instant of deposit, Blockchain makes it possible to track the status and location of passenger bags and shipments at all moments throughout the value chain.
     

6. Cybersecurity

Security has risen to the top of the priority list as airlines opt for digital transformation in aviation. Airlines invest in cybersecurity tools to safeguard consumer information and protect against online attacks.

In order to establish carrier connectivity, it is essential to install secure communication channels. These channels must be impenetrable both between aircraft and between aircraft - ground - satellite controls. The subject of hacking is vital in this regard. The problem is the same whether it involves stopping a terrorist organization or an enemy power from hacking a drone or civil aircraft.

Through decision-making tools, the challenge also includes pilots in the civil and armed services who must deal with increasingly complex aircraft systems and meet increasingly demanding security standards. In addition, techniques for managing air traffic assist you in modifying the aircraft paths in response to unforeseen traffic disruptions or changes in the weather.

These different forms of technology and difficulties are just one example, as is the Electronic Flight Bag and its ongoing evolutions. Civil and military requirements resemble each other more and more. Like their civilian counterparts, combat pilots participate in an aeronautical, satellite, and ground system that helps organize their respective missions.
 

The Final Lines

Airlines are investing in digital transformation in aviation to upgrade the consumer experience. Additionally, there is a big emphasis on security and safety, with stricter screening processes to guarantee travelers have a safe and secure trip.

Their staff also expects the same improvements, usability, and effectiveness customers anticipate. With cutting-edge software, airlines streamline production, maintenance, and operations in the background.

These systems integrate worldwide processes with better oversight, compliance, communications, and real-time data. This transformation has significantly affected the airline business, becoming more effective and customer-focused. Smart airports result from digital transformation in aviation and use advanced technology to enhance the traveler experience.

The market for smart airports is predicted to increase from $14.9 billion in 2020 to $22.6 billion in 2025, according to a MarketsandMarkets study. The airline industry will adopt the newest software trends in the future years to completely transform how airlines conduct business. 
 

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Harshita Agnihotri

Harshita Agnihotri is a technical content writer working with TRooTech, and having fair experience in penning technology-related blogs, articles, use-cases, newsletters, social media, and more. Driven by passion and the purpose of sharing valuable acumens, she takes pride in providing the most accurate information possible. As a writer, her goals include delivering meaningful and relevant content.

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