AI in Aviation: A $40 Billion Market by 2033, Says New Study

Artificial Intelligence (AI) is poised to significantly transform airlines, according to the new report «Airlines» by Globant, a digital company of Argentine origin specializing in business reinvention through technological solutions.

Ads

According to research by Market.us, the global AI market in aviation, currently valued at $1.6 billion, could reach $40.4 billion by 2033, with a compound annual growth rate (CAGR) of 38.1% between 2024 and 2033.

AI’s impact is already evident in operations and the personalization of services offered by airlines. According to a survey by SITA, a technology company focused on the airline industry, 73% of organizations in the sector are investing in Business Intelligence programs, while 64% are focusing on significant AI initiatives to improve operations and passenger experience, reports our partner outlet, AEROIN.

Highlighted advantages include cost reductions of up to 30% for airlines, attributable to automation and service personalization, ranging from seat management to predictive maintenance. These innovations could result in average savings of $42 billion for the sector by 2035.

«As expected, the airline industry is undergoing profound transformation. With the modernization of outdated systems to meet the growing expectations of passengers, adopting AI and digital best practices is essential for these companies to regain control of their operations and enhance the customer experience,» stated Gonzalo Cadenas, Vice President of Technologies at Globant.

Ads

Although numerous innovative solutions are available, airlines still face significant hurdles to fully adopting new technologies. Many operators work with outdated systems, some of which were created decades ago, complicating the integration of modern AI and Machine Learning (ML) solutions.

Additionally, companies must manage large volumes of sensitive passenger data, increasing the need to strengthen cybersecurity solutions, one of the biggest challenges for digital transformation. Globant has collaborated with sector organizations to overcome these challenges and explore the full potential of AI in their operations.

A notable example is the collaboration with Avianca, where the company, through Globant GUT Studio, optimized its digital campaigns, from flight searches to booking completions. By implementing the Google Marketing Platform (GMP), combined with Machine Learning systems, the airline experienced an 80% growth in Click-Through Rate (CTR) and a 34% increase in the number of campaign sessions.

Another relevant case is the partnership with a Japanese airline, which modernized its outdated systems using Globant’s software development platform, enabling greater agility and efficiency in its operations.