Introduction of Aviation Consulting Service
The growing demand for asset management services is as aircraft values are subject to economic cycles and fluctuations. Aviation consultants examine the ownership and funding framework that airline operators will operate for each aircraft shipment months before it appears to minimize hazard, and price, maximize money, and optimize the lifetime of the asset management of the aircraft. The aviation industry is undergoing a rapid transformation due to the rising requirement for air travel and the introduction of current technologies.
According to DGCA data, in May 2023, India’s domestic air passenger traffic grew 15 percent year-on-year to 132.67 lakh passengers; the country’s domestic air passenger traffic was 114.67 lakh passengers in the year-ago period.
Aviation consulting services enable airlines, airports, and other companies in the aviation industry to gain insights into the market and develop strategies to increase their market share. Aviation consulting services provide valuable insights into the current market trends, innovative technologies, and customer preferences. These services also help companies better understand the changing regulations and policies related to the industry and the competitive landscape.
How are the Key Opportunities Affecting the Aviation Consulting Service Market?
- Increasing Air Traffic and Growing Demand for Air Travel to Provide Viable Market Output
A significant market driver for aviation consulting services has been increasing air traffic and growing demand for air travel. With the global economy’s growth and new markets’ emergence, air traffic has seen a steady rise in recent years. Consequently, demand for air travel has increased, leading to a surge in demand for aviation consulting services to help airlines, airports, and other stakeholders navigate the complexities of the aviation industry. Companies are taking several initiatives to remain competitive in the global market.
For instance, in April 2022, KPMG acquired DayOne Consulting, a consulting firm for implementing, supporting, and integrating the Workday management system. The firm’s acquisition of DayOne Consulting showcases its dedication to investing in cutting-edge technology tools that assist clients in their digital transformation journey.
(Source:kpmg.com/ca/en/home/media/press-releases/2022/04/kpmg-acquires-dayone-consulting-leader-workday.html
Airlines, airports, and other stakeholders require specialized aviation consulting services to help optimize their operations and maximize efficiency. These services include operational consulting, financial consulting, risk management consulting, and more.
The Factors Restraining the Growth of the Aviation Consulting Service Market
- High Capital Investment Requirements to Hinder Market Growth
High capital investment is one of the major growth restraints of the global aviation consulting service market. The upfront costs of launching a new business line or entering a new market can be substantial. This can make it difficult for companies to access the funds they need to make the venture a success. This can be specifically difficult for small and medium-sized companies with limited capital access. Moreover, the high operational cost. This includes the costs associated with personnel, equipment, and other overhead costs. These expenses can add up fast and can make it challenging for firms to be profitable in the long term. The complexity of regulatory requirements in the aviation sector can add to the operational costs and make it even more challenging for businesses to be successful.
Impact of COVID–19 on the Aviation Consulting Service Market
The COVID-19 epidemic had a strong effect on the aviation industry as a whole, and therefore, the aviation consulting service market also experienced significant changes and challenges. The most direct and noticeable impact was the drastic decrease in air travel demand due to travel restrictions, lockdowns, and passenger concerns. As airlines and airports faced financial challenges, they had to cut expenses, leading to decreased demand for consulting services related to development and operational advancements. However, as the industry recovers and adjusts to the new normal, there are opportunities for consulting services to help airlines in their actions to reshape their operations, enhance efficiency, and navigate the evolving landscape.
Top Companies Market Share in Aviation Consulting Service Market Report 2023 Industry: (In no particular order of Rank)
- Emerald Aviation Inc.
- Mott MacDonald.
- Airline Tariff Publishing Company
- Ramboll Group A/S.
- IBM Services
- Black & Veatch
- Alton Aviation Consultancy
- ACS
- WSP
- Black & Veatch
- Ramboll Group
- IATA
- Alton Aviation Consultancy
- ATPCO
- SGS
- Baines Simmons
- Aviation Analysts International
- Mott MacDonald
- Ricondo
- ICF
- Emerald Aviation
- AeroLogistix
Competitive Landscape of Aviation Consulting Service Market
The market for aviation consulting services has a very active and diverse competitive environment. Increased competition among aviation consulting service companies aiming to establish secure contracts is being observed in the market. The players in the aviation consulting service market compete based on differentiation in technology, design, product performance, and conformity to customer specifications. Additional factors, such as timely product delivery, market goodwill, excellent consumer service & approval, and cost, also influence the competition.
Aviation Consulting Service Market News
May 2022: The African Airlines Association has signed a memorandum of understanding with AviaPro Consulting Inc. The MoU will deliver a framework of collaboration between AFRAA and AviaPro Consulting to help the provision of aviation consulting services in the places such as airline network and fleet planning, pricing and revenue management, sales, airline operations planning and audit services, and many more.
April 2022: Infosys and Rolls-Royce inaugurated their joint ‘Aerospace Engineering and Digital Innovation Centre’ in Bengaluru, India. This center has been established to provide high-end research and development (R&D) services integrated with advanced digital capabilities to Rolls-Royce’s engineering and group business services from India. Infosys and Rolls-Royce’s collaboration has been reinforced through strategic deals to yield mutual benefits to both organizations over the next seven years.
July 2019: Alton Aviation Consultancy, a specialized aviation consulting firm, has expanded its global reach by extending a new office in Singapore. With its existent offices in New York, Tokyo, Dublin, Hong Kong, and Beijing, Alton now has a local presence in one of the world’s leading aviation and aerospace centers of excellence.
Aviation Consulting Service Market Report 2023 Analysis
Global Aviation Consulting Service Market Report 2023 talks about crucial market insights with the help of segments and sub-segments analysis. In this section, we reveal an in-depth analysis of the key factors influencing Aviation Consulting Service Market Report 2023 Industry growth. Aviation Consulting Service Market Report 2023 has been segmented with the help of its Type, Application , and others. Aviation Consulting Service Market Report 2023 analysis helps to understand key industry segments, and their global, regional, and country-level insights. Furthermore, this analysis also provides information pertaining to segments that are going to be most lucrative in the near future and their expected growth rate and future market opportunities. The report also provides detailed insights into factors responsible for the positive or negative growth of each industry segment.
By Type, the Investment Assessment and auditing Segment Dominating the Aviation Consulting Service Market
Investment assessment & auditing is the aviation consulting service market’s most important part of the aviation consulting service market. This consulting type helps organizations analyze their current investments and make the necessary adjustments to maximize their return. Professional auditing and assessments can be used to identify weaknesses and areas for improvement to create more efficient and cost-effective strategies.
According to Cognitive Market Research, project & information management is the second-most popular type, as it is essential for any organization that needs to plan and oversee important aviation projects. This type of consulting helps with the organization and management of the project by providing reliable data that can be used to compare progress, develop budgets, and allocate resources. Consulting can also help to identify and resolve any problems that may arise during the course of the project.
- Investment Assessment and Auditing
- Permitting and Compliance
- Project and Information Management
- Monitoring and Testing
By Application, the Aerospace Segment Dominating the Aviation Consulting Service Market
According to Cognitive Market Research, aerospace is the fastest-growing category, with increased investment in research and development in the aerospace industry. The government funds most space-sector R&D, but private companies have recently driven a notable uptick in overall investment, thereby driving the need for consulting firms to guide aerospace firms to sustain market growth. Aerospace consulting firms are essential for assisting companies in the aerospace industry, including commercial aviation, space, and government services, in overcoming challenges and staying competitive. These firms help organizations innovate to meet sustainability agendas and develop strategies for future developments that can reshape the industry.
The airport is the second-most category, as airports require assistance with various operational issues, such as airspace management, airport security and surveillance, facility and ground management, airport access and investment, and customer service. Aviation consulting services offer insight into all these operational issues and help airports to become more efficient and profitable.
- Airport
- Aerospace
In terms of revenue, The North American Aviation Consulting Service market share was 35% of total market.
According to Cognitive Market Research, North America held the major market share of more than 35% of the revenue in 2022 due to the rising demand for aviation consulting services in the region, driven by the growth of the tourism industry, the expansion of air travel, and the need for efficient and cost-effective air transport solutions. The increasing demand for specialized aviation consulting services, such as aircraft maintenance, flight operations, and safety management, drives the market. This is due to the need for improved safety and efficiency in the aviation industry.
The United States Aviation Consulting Service Market Expected to Expand at the Fastest Expansion Rate in North America
According to Cognitive Market Research, the US is the home to major aerospace manufacturers, suppliers, and industry leaders and has a robust ecosystem that fosters innovation and drives the need for specialized consulting services. With a strong presence of aerospace OEMs, suppliers, and MRO organizations, companies seek consulting expertise to navigate complex challenges and capitalize on opportunities. Aerospace consulting services provide valuable insights and strategic guidance to optimize operations, improve supply chain management, enhance productivity, and achieve regulatory compliance.
The Prime Factors for Aviation Consulting Services to Show a Significant Growth in the Asia Pacific Region in the Coming Years
The region’s strong economy and significant presence of firms create a considerable demand for aviation consulting services as the existence of large aircraft manufacturers, airlines and aircraft operators led to increasing demand for effective procedures, including consulting, asset management, and remarketing. Moreover, it is becoming hard to maintain demand with the increasing capacity expenses due to declining revenues owing to the slow economy. This has resulted in airline operators and producers utilizing consultants to address operational problems and find efficient alternatives.
