Let’s deep dive into how the concept of blockchain (which lies in safe record keeping) can help transform the aviation sector.
Its fundamental and most important characteristic is that it is secure and next to impossible to tamper with. Hence any industry such as aviation itself, that relies highly on data integrity could take great advantage of the latest blockchain technology trends. Blockchain technology without a doubt, is the next big thing in aviation. Here are some numbers proving it
Key Statistics Of Blockchain In The Aviation Industry
- According to Markets and Markets, blockchain in airlines is projected to grow from USD 421 million in 2019 to USD 1,394 million by 2025, at a CAGR of 22.1% during the forecast period.
- The aviation blockchain market in North America is projected to grow at 25.2%, being the highest CAGR during the forecast period. North America is the most advanced region in terms of adopting new technologies and infrastructure. Increasing the rate of adoption of blockchain in air transportation is one of the major factors impacting the growth rate of this region.
To understand the blockchain benefits for the airline industry we need to understand the use of blockchain in aviation software development solutions.
Blockchain Use Cases In The Airlines Industry
Aviation records security Did you know that the greatest mystery in the airline industry is the Malaysian Airlines flight 370 that disappeared in March 2014? There was a lack of detail about why there was a bizarre change in the flight pattern and where the flight was headed. Millions of dollars were invested to find out the details of flight MH370 but nothing was accomplished per se.
Aviation maintenance We have all experienced delays at the airport due to maintenance issues. These delays not just lead to a bad reputation but also result in the loss of countless dollars. The global Maintenance, Repair and Overhaul (MRO) market was valued at $69 billion but it is estimated to reach $103 billion in 2028 with a 4.1% increase per annum.
Tokenized Ticketing The theoretical concept of smart tickets can be brought to life with the help of blockchain technology. This will not only eliminate the use of paper tickets but could also be used as access to the airport lounge, accommodations, etc.
Seamless digital travel experience Fragmentation usually results in a bad customer experience. Inefficiency is a cost that the entire travel industry has to bear. Since consumers like to save a few nickels here and there, as a result, companies that organize travel bookings can be liable for as much as $269,000 in fragmentation costs.
Blockchain Benefits For The Aviation Market
- Smoother payment processes: With the help of blockchain many repetitive processes can be automated such as purchasing travel insurance, loyalty settlements, paying authority taxes and fees, etc. Even the payment process will be more secure and efficient than ever!
- Amazing customer experience: There is absolutely no denying the fact that blockchain technology for airports will improve the rate of customer satisfaction. The processes will be simplified and the risk of error minimized.
- Reducing dependency on third parties: Did you know that travel agents or other intermediaries control 99% of the market for indirect ticket sales? Astonishing, isn’t it? Well, blockchain for the aviation market can help in driving a much-required change. Blockchain can help by reducing these third-party costs and can increase revenues among the network members.
- Improving ground operations: Blockchain enhances tracking, tracing, and transparency in operations, transactions, cost, and revenue. The complexity is decreased and all the processes become simpler and more efficient.
To summarise it all, although the world doesn’t understand the complete potential of blockchain technology, it is certainly the tool to revolutionize the airline sector. I can’t help but wonder how amazing it would be to combine blockchain with other technologies like the internet of things and artificial intelligence in the aviation industry.