AVIATION CYBER SECURITY MARKET ANALYSIS

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

Statistics:

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.

Figure 1: Global Aviation Cyber Security Market Share (%), By Region, 2020

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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

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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.