Market Trends of Blockchain Technology in Aerospace and Defense Industry
This section covers the major market trends shaping the Aerospace & Defense Blockchain Technology Market according to our research experts:
The Aerospace Segment to Experience the Highest Growth During the Forecast Period
The aerospace segment of the market studied is expected to register the highest CAGR during the forecast period. This growth is primarily driven by the increase in investments on R&D of blockchain technology into commercial aviation. Airlines, like Lufthansa, Air New Zealand, and Air France KLM, invested, and are evaluating, this technology for incorporating it into their business models, including retail, cargo, and baggage tracking, distribution, and loyalty program, to increase their profitability. Singapore Airlines officially launched its blockchain-based loyalty program for frequent customers in July 2018, after conducting a proof-of-concept trial with KPMG and Microsoft from February. Similarly, companies, like SITA, are working closely with the airport authorities and partnering with each other to integrate blockchain technology and update the industry players about the emerging technologies. SITA Labs partnered with British Airways, Heathrow, Geneva Airport, and Miami International Airport to validate FlightChain platform that demonstrates how flight information can be stored on the blockchain to deliver a single source of truth and shared control of data by airlines and airports. Lufthansa and Air France KLM are also working toward the use of blockchain for managing replacement parts on in-service airplanes. Such advancements are aiding the growth of the segment during the forecast period.
The North America Region to Experience the Highest Growth During the Forecast Period
North America is anticipated to have the highest growth during the forecast period. This is due to the investments by companies based in the United States. Honeywell launched a new e-commerce initiative, GoDirect Trade, a blockchain initiative for aircraft parts. Similarly, Boeing partnered with SparkCognition to form a new company called SkyGrid to develop software for aerial mobility in urban areas for autonomous cargo and passenger air vehicles. SkyGrid technology uses both blockchain technology and artificial intelligence for dynamic traffic routing (unmanned aircraft systems (UAS) traffic management). Additionally, on the other hand, the government has plans to use this technology in military applications. In the past years, the government mandated the blockchain cybersecurity research study. Naval Air Systems Command (NAVAIR) partnered with Indiana Technology and Manufacturing Companies (ITAMCO) to use blockchain technology for a connected and transparent supply chain. Such initiatives by the government and the companies on the technology are anticipated to support the growth of this market in this region.
