The blockchain aviation industry is poised to grow almost tenfold over the next decade. However, current market uncertainty could disrupt the multi-billion dollar industry. While the private jet market is slow to rise, the blockchain aviation industry is in parallel with a volatile situation.
Private jet sector faces demand uncertainty
The private jet sector is currently struggling with rising costs and declining demand, Bloomberg reports. Currently, this industry is worth approximately $12.97 billion and is one of the largest customers of blockchain networks.
The market for blockchain technology in the aviation sector is expected to grow to $1.15 billion by 2030. This growth is expected on the back of a compound annual growth rate (CAGR) of 11.1% from 2021 to 2030. However, if there is a downturn in industry demand, which is likely to continue, it could have a similar impact on the blockchain market.
Aviation industry backs blockchain to ensure safety and efficiency
According to Allied Markets Research, distributed ledger technology, smart contracts, and immutable records are the key components of aviation blockchain. Moreover, the adoption of digital ledger technology in the aviation sector ensures efficiency of aerospace transactions, maximum operational efficiency and transparency for users.
Primarily, digital ledgers are used by airlines, airports, rental companies, and maintenance repair organizations. In some cases, airports and service providers partner with larger companies. These include technology companies like Microsoft, IBM, and even his Infosys in India, which provides excellent blockchain software. In addition, these softwares also help with data tracking, rostering, and other measures. If demand in the private jet industry continues to slump, we could see a knock-on effect of a slight decline in revenue for these big tech giants.
Growth in the aviation industry will drive future development of blockchain
The aviation ledger industry is expected to expand tenfold in the future. This growth can be attributed to factors such as increased passenger numbers, more money at their disposal, and increased safety, tracking, and transparency in aviation logs. However, the aviation industry includes many segments. These include airports, airlines, ground personnel, aircraft development, etc.
According to estimates, the aviation blockchain market will be led by the aviation sector. Accurately understanding aircraft configuration and maintenance can reduce costs and losses associated with unplanned maintenance and downtime. Therefore, by utilizing blockchain technology, these losses can be prevented.