In 2016, the global aviation industry's market size for Big Data Analytics stood at US$2.52 million. Projections indicate that by 2023, this figure might surge to US$7,178 million, driven by a robust compound annual growth rate (CAGR) of 17.5%.
We can employ the strategic use of accurate data to yield transformative insights.
Big data and AI have equipped us with the power to harness revolutionary decision-making, streamline operations, and enhance the passenger-centric delivery of services.
Businesses now have a strategic competitive advantage to leverage big data from multiple sources and bring in billions of dollars annually.
How Leading Carriers Are Leveraging Data Insights
Some of the biggest players in the airline industry, like American Airlines, Delta Air Lines, and United Airlines, are making significant strides in big data.
American Airlines uses big data to predict passenger demand, which helps them fine-tune flight schedules and avoid overbooking situations.
In 2017, American Airlines made a significant announcement about how they harnessed big data to enhance their flight schedules and reduce overbooking by an impressive 15%.
This strategic move was a win for efficiency and translated into substantial estimated savings of approximately US$100 million for the airline.
On the other hand, Delta Air Lines is taking a more personalized approach by using big data to recommend flights, seats, and in-flight amenities that align with each passenger's unique preferences and demographics.
United Airlines, however, is taking big data in a different direction by focusing on safety. Leveraging Big Data Analytics, United Airlines has achieved a remarkable year-on-year revenue increase of 15%.
They're diligently analyzing data from various sources, including flight recorders and maintenance logs, to spot potential safety hazards in advance.
The Future of Air Cargo Industry
The air cargo industry operates on a rather unique business model that has been a linchpin of the global economy for quite some time.
According to industry data, it's often considered the go-to choice for transporting goods efficiently across the world, responsible for a staggering 35% of international trade value.
The industry is rebounding and gearing up for an extraordinary surge after facing the pandemic. By 2025, experts predict the industry will hit a whopping US$376 billion valuation, chalking up a steady growth rate of 5.6%.
No surprises here – both the big players and the underdogs in the industry are eager to carve out their slice of this US$376 billion pie.
What sets them apart? Well, it's increasingly becoming a digital race, with the pace of digitization emerging as the ultimate game-changer.
On one hand, the air cargo sector has been on a growth spree, especially with the recent boom in e-commerce. On the other, it's not without its challenges.
Poor visibility across the entire value chain, moderate digital maturity, and limited data-driven decision-making pose potential hurdles to its continued growth.
Benefits of Implementing Analytics in Air Cargo
Boosting Operational Efficiency
- Efficient Routes: Analytics is a game-changer when it comes to air cargo. It fine-tunes operations by identifying and eliminating inefficiencies.
Think of it as a GPS for cargo, finding the most efficient shipping routes and optimizing the loading and unloading processes.
- Cost Savings: Analytics is all about the bottom line. It zeros in on waste and cost-saving opportunities.
It also keeps a watchful eye on the performance of different air cargo carriers, flagging those that might be burning more fuel than necessary.
Elevating Customer Experience
- Real-time Updates: In today's fast-paced world, customers demand real-time information.
Here’s where analytics comes in, providing customers with instant updates on their shipments. If a delay occurs, analytics sends notifications to keep customers in the loop.
Prioritizing Safety and Compliance
- Safe Shipments: Safety is paramount in air cargo. Analytics plays a vital role in identifying and mitigating risks. For example, it monitors cargo temperatures to prevent exposure to extreme conditions.
- Regulatory Peace of Mind: Analytics makes staying on the right side of regulations easier. It keeps tabs on cargo locations to ensure nothing goes where it shouldn't.
Unearthing New Opportunities
- Market Insights: Analytics isn't just about optimizing what we have; it's about discovering what we don't.
By crunching the numbers, it reveals new markets for cargo shipments and sparks ideas for fresh products and services.
What’s on The Horizon?
AI and data analytics are becoming indispensable tools in the airline industry, offering a slew of advantages like better efficiency, enriched customer service, heightened security, and cost savings.
Firms that embrace these technologies and put them to work for tangible business results are poised for success in the dynamic and competitive aviation landscape.
KAMS Global stands out as a valuable ally for the aviation industry seeking to enhance their operations and safety through big data analytics.
With their wealth of expertise and extensive experience, the company is well-equipped to assist the aviation sector in maximizing the potential of their data.