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London, United Kingdom, 2010/02/08 - New analysis from Frost & Sullivan, Global Commercial Aviation Asset Management Software Market Assessment, finds that the market earned revenues of about $325.0 million in 2008, and is estimated to reach $680.6 million by 2018.
The need for integration and more efficient business cycles is propelling the global commercial aviation asset management software market, with revenues projected to grow at a compound annual growth rate (CAGR) of about 8 per cent from 2008 to 2018. There is considerable potential to be tapped as airlines increasingly implement IT asset management solutions. However, factors such as development costs and the lack of an existing IT infrastructure in certain regions must first be addressed.
New analysis from Frost & Sullivan (aerospace.frost.com), Global Commercial Aviation Asset Management Software Market Assessment, finds that the market earned revenues of about $325.0 million in 2008, and is estimated to reach $680.6 million by 2018. The total market includes the asset management spending by airlines and maintenance, repair and overhaul (MRO) organisations.
"The implementation of an IT system in this market has cut the time lag in business cycles by 20 per cent on average," notes Frost & Sullivan Team Leader, John Siddharth. "Shorter business cycles reflect directly on the increased efficiency of an organisation. This has driven many airline operators and MRO shops to implement IT asset management systems."
The need for interdepartmental integration is another major driver. The efficiency of an integrated system can be judged when invoicing or raising a purchase order in an organisation. This usually takes 24 to 48 hours in a non-integrated environment.
"Airlines have been subjected to stringent safety regulations that have had a considerable impact on market prospects," remarks Siddharth. "Airlines are implementing IT asset management solutions to keep track of fleet, inventory and also human resources."
Development costs are much lower in countries like India. Cost-effective outlays on highly skilled professionals reduce the cost of asset management software in the development stage. India has developed well in the services sector, and is currently an outsourcing hub for most global IT companies. This has promoted the number of highly skilled IT professionals for software development.
However, the lack of existing IT infrastructure presents a challenge, particularly in regions like Eastern Europe and Africa, where there is a lack of proper Internet access. More than 80 per cent of these markets remain untapped, and without basic amenities like effective Internet connectivity, the potential of these markets will continue to remain unrealised.
"Data migration is the process of retrieving existing information when a new system is implemented and can be considered the second step in the overall implementation process," states Siddharth. "This has been a challenge from the technological aspect. Major market participants have their own technology for data migration."
The market is highly consolidated, and there are numerous participants in specific areas like inventory management within the asset management supply chain. Major participants can forge strategic alliances with smaller participants to meet specific requirements.
If you are interested in more information on this study, please send an email to Monika Kwiecinska, Corporate Communications, at monika.kwiecinska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.
Global Commercial Aviation Asset Management Software Market Assessment is part of the Aerospace Growth Partnership Service programme, which also includes research in the following markets: Middle East Business Jets Market Assessment, Very Light Jet Market Assessment – Asia Pacific, Very Light Jet Market Assessment – Middle East and, Very Light Jet Market Assessment – Europe. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Global Commercial Aviation Asset Management Software Market Assessment / M4B3.