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  • Airline It Market: Two Slides by Francesco Ragni Twitter: @francescoragni

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    The airline IT market is valued at around $10 billion and has grown significantly over the last two decades. It is expected to continue expanding due to increasing air traffic and airline IT budgets. Air traffic grew by 5.3% annually from 2012 to 2016, reaching 3.6 billion passengers in 2016, and is forecast to increase 4.8% each year for the next 20 years. As a result, airlines have steadily increased their IT spending as a percentage of revenue and shifted more of their IT budget from internal departments to outsourcing.

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    two slides on the airline IT market by Francesco Ragni, aviation expert, twitter: @FrancescoRagni

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    Airline IT Market

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    The airline IT market is valued at around $10 billion and has grown significantly over the last two decades. It is expected to continue expanding due to increasing air traffic and airline IT budgets. Air traffic grew by 5.3% annually from 2012 to 2016, reaching 3.6 billion passengers in 2016, and is forecast to increase 4.8% each year for the next 20 years. As a result, airlines have steadily increased their IT spending as a percentage of revenue and shifted more of their IT budget from internal departments to outsourcing.

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    21 views3 pages

    Airline It Market: Two Slides by Francesco Ragni Twitter: @francescoragni

    Uploaded by

    francesco ragni
    The airline IT market is valued at around $10 billion and has grown significantly over the last two decades. It is expected to continue expanding due to increasing air traffic and airline IT budgets. Air traffic grew by 5.3% annually from 2012 to 2016, reaching 3.6 billion passengers in 2016, and is forecast to increase 4.8% each year for the next 20 years. As a result, airlines have steadily increased their IT spending as a percentage of revenue and shifted more of their IT budget from internal departments to outsourcing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Airline

    IT market

    Two slides by Francesco Ragni


    Twitter: @FrancescoRagni
    Airline IT market
    •  A huge market (valued in the area of $10Bn)
    which has grown spectacularly over the last two
    decades and is expected to expand further
    •  Driven by air traffic growth:
    –  3.6 Bn passengers in 2016 (+5.3% pa from 2012)
    –  Worldwide air traffic is estimated to grow 4.8%/year
    in the next 20 years (GDP +2.9%/year)
    –  One billion more people will be travelling by 2030
    •  .. and increase in airlines IT budget
    Sources: Boeing, Sita, Sabre
    Increase on airline IT Spending
    IT spending in % of Revenues Budget allocation

    Internal IT
    42% 35% 34% Dept
    2.70% 2.80% 3%
    Outsourcing
    58% 65% 66% or external
    contractors

    2014 2015 2016 2014 2015 2016

    Every year airlines spend more on IT and shift budget from in-
    house towards outsourcing.

    Sources: Sita

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