Increasing number of airports and development of their infrastructure leading to high demand for aviation cyber security. Number of air travelers are increasing owing to rising disposable income and decrease in prices of flight tickets. For instance, according to the World Bank, there was 3.97 Bn passengers who travelled through air transport and that number increased to 4.23 Bn in 2018. Moreover, airports are also upgrading their infrastructure to improve consumer experience. The use of computers provide benefits to aviation industry which includes exchange of real-time data on airport, increases airport efficiency, and passenger services. However, these computer-based systems require cyber security software to protect all these data from cyber-attacks. For instance, according SITA Air Transport IT Trends Insights Report, 2018, globally 94% of the airports and airlines are planning to invest in their IT infrastructure and cyber security program over the next three years. Apart from development of old airport infrastructure, governments of various countries are also focusing on construction of new airports and this is expected to fuel the growth of the global aviation cyber security market in the forecast period. For instance, according to the Indian Governments Vision 2040, India needs around 200 commercial flight airports and an estimated investment of US$ 40 to US$ 50 billion to handle at least 1.1 billion passengers. Also, the civil aviation authorities across the world are emphasizing on enhancement of cyber safety and cyber security standards.
The aviation industry is complex in terms of standards and regulations that are imposed by governing authorities of countries, globally. Aviation companies are finding it difficult to comply with different sets of rules and standards in the aviation sector of different regions. For instance, in May 2019, a joint regulation by European Aviation Safety Agency (EASA) and the US FAA was introduced for aviation industries. According to this law, from 2019 onwards, this certificate can only be given to aircraft that comply with the recently updated DO-326 and ED-202.12. A certificate of airworthiness (CofA) is issued for an aircraft by the national aviation authority in the state in which the aircraft is registered. DO-326 and ED-202.12 regulations focus on detailed and comprehensive approach to the management of cyber security risk. However, these rules are only applicable to Europe and the U.S. Countries set different rules and regulations according to their specific needs, which increases complexity in the aviation industry. In December 2019, according to report published by Atlantic Council on aviation cyber security, primary research suggested that aviation companies are concerned about effectiveness and clarity in regulations imposed by several countries. Aviation companies suggested that the rules and regulations should be imposed globally, as rules developed by a different country, state or governing body may add complexity. Therefore, this complex nature of government rules and regulations, and absence of standardized regulations across the globe are restraining factors that are expected to hamper the growth of the global aviation cyber security market over the forecast period. However, the impact of these factors is expected to remain low over the forecast period.
Global Aviation Cyber Security Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has significantly disrupted almost all the industries including infrastructure, retail, manufacturing, and others. To combat COVID-19 pandemic, most of the countries have implemented lockdowns and are now easing it in phase-wise and industry wise.
The COVID-19 pandemic has plunged the global airline industry into unprecedented crises as airline service providers have witnessed a significant drop in airline bookings owing to travel restrictions imposed by governments and businesses to safeguard their consumers and workforce health. In commercial aviation, aircraft manufacturers and component providers are experiencing a disruption in production and slow consumer demand, owing to imposed travel restrictions, workers going home, and airline service providers deferring the delivery of new aircraft. The demand for aircraft components and spare parts is down, as fewer maintenance activities are required during this phase. Most of the commercial aircraft manufacturers are capital intensive by nature, thus raising short-term distresses about liquidity and cash flows. Therefore, aviation cyber security market also hampered due to Covid-19 pandemic.
North America held dominant position in the global Aviation Cyber Security market in 2020
North America held dominant position in the global Aviation Cyber Security market in 2020, accounting for 39.3% share in terms of value, followed by Europe and Asia Pacific.
|Base Year:||2019-2020||Market Size in 2019:||US$ 4,180.8 Mn|
|Historical Data for:||2017 to 2018||Forecast Period:||2021 to 2027|
|Forecast Period 2021 to 2027 CAGR:||7.1%||2027 Value Projection:||US$ 6,810.3 Mn|
Airbus SE, BAE Systems, Inc., F-Secure Corporation, General Dynamics Corporation, Harris Corporation, Palo Alto Networks, Inc., Raytheon Company, General Electric Company, Computer Sciences Corporation, BluVector Inc., Thales Group and Rockwell Collins, Inc.
|Restraints & Challenges:||
Figure 1: Global Aviation Cyber Security Market Share (%), By Region, 2020
Owing to presence of various market players the U.S. accounted for 83.20% share in North America Aviation Cyber Security market in 2020 and is projected to retain its dominance during the forecast period. Furthermore, owing to increasing merger & acquisition and collaboration activities by market players in order to strengthen its position in the global market. For instance, In August 2018, BAE Systems Inc. collaborated with Splunk Inc., a U.S.-based software company. Through this collaboration, Spunk Inc. will provide its enterprise product with secure cloud and this will enable analysts to detect threats easily.
Identity and Access Management (IAM) segment is expected to drive the market growth during the forecast period
On the basis of solution, the global aviation cyber security market is segmented into antivirus and anti-malware, firewall, data loss prevention, Security Information, and Event Management (SIEM), intrusion detection systems/intrusion prevention system, Identity and Access Management (IAM), Governance, Risk and Compliance (GRC), Distributed Denial of Service (DDoS), and others.
In 2017, the Identity and Access Management (IAM) segment generated revenue of US$ 336.4 Mn and is expected to reach US$ 695.5 Mn by 2027 with a CAGR of 7.7% over the forecast period from 2019 to 2027. Identity and Access Management (IAM) can be defined as a solution which ensures that access to a network or a system is given to the authorized person only. An identity access management (IAM) system is a framework for business processes that defines and manages the roles and access privileges of network users. IAM system is used in various industries to capture, manage, and record user identities to allow or deny access permissions in an automated fashion. The core objective of IAM systems is one identity per person, which accompanies him or her through the entire life cycle, starting with file access and ending with the way these files are used. Identity and access management (IAM) also plays a critical role in any aviation companys security plan. In airports around the world, paperless biometric technology is being deployed to manage identity recognition. For instance, in July 2019, the Bengaluru airport terminal in India implemented the facial recognition system. With this system, passengers entry would be automatically processed at all checkpoints, including aircraft boarding, security checks, airport entry among others using the facial recognition system. Moreover, Beijings new Daxing International airport is using biometric computer applications to automatically identify suspected criminals and jaywalkers from a database of digital images
Figure 2: Global Aviation Cyber Security Market Value (US$ Mn) Analysis and Forecast, 2017 - 2027
The global Aviation Cyber Security market was valued at US$ 4,180.8 Mn in 2020 and is expected to reach US$ 6,810.3 Mn by 2027 at a CAGR of 7.1% % between 2021 and 2027.
Major players operating in the global Aviation Cyber Security market include Airbus SE, BAE Systems, Inc., F-Secure Corporation, General Dynamics Corporation, Harris Corporation, Palo Alto Networks, Inc., Raytheon Company, General Electric Company, Computer Sciences Corporation, BluVector Inc., Thales Group and Rockwell Collins, Inc.
Increasing adoption of cloud computing networks and services drives the growth of aviation cyber security market. Interpretation of a large volume of data in a complex environment is a major challenge for airlines. Moreover, ground staff requires this data to keep ground and air operations running seamlessly.
Increasing usage of cloud-based services for multiple workloads such as passenger management, data backups, ERP, CRM, and baggage management is expected to drive the growth of the global aviation cyber security market over the forecast period
Advantages of using cloud computing such as lower total cost of ownership, ease of scalability, increased productivity, and fast implementation of apps and services is a major factor for its adoption in the aviation industry. Moreover, cloud deployment in aviation increases vulnerabilities and makes it easily accessible to unauthorized users. Therefore, companies are shifting towards the adoption of cyber security solutions to secure their workloads on the cloud without risks of cyber threats.
Key players in the market are also focusing on developing cloud-based solutions to remain competitive in the global market. For instance, in September 2018, Thales Group, a global technology leader in the aerospace, transportation, space and defense & security markets, entered into a partnership with Saudi Telecom Company, to launch cloud encryption service for enterprise customers allowing them to protect and control their data in the cloud.
On the basis of deployment type, the global aviation cyber security market is segmented into on-premise and cloud/hosted. Cloud/hosted segment is expected to exhibit the highest CAGR of 9.3% over the forecast period and it is expected to generate a revenue of US$ 2,380.5 Mn in 2027. This growth is owing to rise in demand for cyber security solutions over cloud and increase in awareness about the benefits of cloud-based security solutions such as easy access to vital business metrics, lower cost as compared to on-premise solutions, and higher performance.
On the basis of security type cloud security segment is expected to exhibit the CAGR of 8.4% over the forecast period. This segment is expected to generate revenue of US$ 856.7 Mn by 2027. Cloud security is a set of controls which is used to protect and safeguard the data and the infrastructure involved in cloud computing. With the integration of new technologies, the aviation system is dependent on cloud computing for its ground operations and management. Aviation companies are moving towards cloud computing as it increases the productivity of aviation operations and provides low-cost services compared to installing new IT infrastructures. For instance, in April 2019, Lufthansa Systems, a Germany-based IT company, launched new line products combined with their cloud technologies. Products include NetLine, Lido, and SIRAX. These products help client in managing company’s finance, flight operations, and others.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.