In a comprehensive analysis released by Allied Market Research, the “Aviation Blockchain Market by Application, End Use, and Function: Global Opportunity Analysis and Industry Forecast, 2021-2030,” outlines a positive trajectory for the aviation blockchain sector. Valued at $0.42 billion in 2020, the market is anticipated to escalate to $1.15 billion by 2030, marking a Compound Annual Growth Rate (CAGR) of 11.1%. The Asia-Pacific region, not surprisingly, led the charge in 2020 with a market size of $0.14 billion and is expected to continue its dominance, projecting a CAGR of 12.6% to reach $0.43 billion by 2030.
The upward trend in the aviation blockchain market is primarily fueled by the increasing demand for AI-enabled recording and tracking of aviation assets and transaction movements. As air transportation grows more complex due to the sheer volume of data and activities, there is a heightened need for advanced technologies to ensure accurate updates and transactions. The critical demand for enhanced safety, tracking, and transparency in aviation logs is a significant factor propelling market growth.
In 2020, passenger identity management emerged as a leading application within the market. However, cargo and baggage tracking is expected to experience rapid growth and is projected to dominate the market share by the end of the forecast period.
Moreover, to secure a competitive edge in the global landscape, market participants are forging long-term agreements and contracts with airport operators and Maintenance, Repair, and Overhaul (MRO) organizations. Asia-Pacific remains at the forefront of the aviation blockchain market in 2020, driven by increasing adoption of air transport in the region. Notably, countries like China, India, Japan, the U.S., and Germany are emerging as key players due to their growing focus on safety, security in transportation, and the adoption of AI-based technologies.
The market’s growth trajectory was somewhat disrupted by the COVID-19 pandemic, which had a deleterious impact on the global aviation blockchain market. The pandemic-induced commute restrictions have not only stifled the demand for aviation blockchain but also dented the financial performance of market players in 2020.
Despite these challenges, the resilience of the aviation sector, coupled with advancing technologies, suggests a robust recovery and a promising future for the aviation blockchain market.