Key Market Overview:
The Passenger Service System Market was valued at USD 8,383.02 Million in 2022, registering a CAGR of 12.7 % during the forecast period (2023-2030), and the market is projected to be worth USD 21,400.63 Million by 2030.
A passenger service system refers to a network of software applications that facilitates airlines in managing passenger-related operations ranging from ticketing to boarding. Moreover, the passenger service system enables an airline to sell its inventory (seats) and consists of information on fares, and schedules, along with a database of reservations.
Factors such as rising commercial flight activities, growing number of air travel passengers, and increasing demand for efficient flight booking & management solutions are among the primary factors driving the adoption of passenger service systems. Additionally, the rise in trade and tourism activities is a significant factor fostering the market demand for passenger service system.
In July 2022, Air India, an Indian airline company, switched to the Amadeus passenger service system with the aim of improving the company\'s process of ticket reservation, flight schedules, departure control, and loyalty program. The adoption of the Amadeus passenger service system enables Air India to provide a modern interface with improved functionalities and a faster response time. Therefore, the rising adoption of passenger service systems by airline companies is further driving the growth of the market.
Passenger Service System Report Coverage:
Rising number of air travel is driving the market growth
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||21,400.63 million|
|CAGR (2023-2030)||12.7 %|
|By Service||Airline Reservation System, Airline Inventory System, Departure Control System, and Others|
|By Deployment||Cloud-based and On-premise|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Amadeus IT Group SA, Radixx International, Takeflite, SITA NV, Sabre Corporation, Bravo Passenger Solutions Pte Limited, Collins Aerospace, Hitit Computer Services, InteliSys Aviation System, Unisys Corporation, and Videcom International Limited|
The global air travel industry continues to grow as airlines are expanding their fleets, owing to an increase in commercial flight activities. Moreover, passenger service systems are mainly deployed by airline companies for managing passenger-related operations ranging from airline reservations and ticketing to boarding.
Additionally, factors including the increasing commercial flight activities, rising number of air travel passengers, and growing demand for efficient flight booking & management solutions are major factors driving the adoption of passenger service systems.
According to International Air Transport Association (IATA), global air passenger traffic gained significant momentum and increased up to 68.5% in 2022 from 41.7% in 2021. Hence, the rise in air travel activities is further driving the implementation of passenger service systems for applications involving airline reservation, management, and departure control among others. The above factors are accelerating the growth of the market.
Security risks associated with implementation of cloud-based passenger service system is restraining the market growth
The implementation of cloud-based passenger service systems is associated with data security risks, which is a prime factor restricting the growth of the market. The deployment of cloud-based passenger service systems is creating a higher risk of security threats including cyberattacks, data breaches, and privacy disclosures as most of the data including sensitive information is stored and processed on the cloud, which makes the system highly susceptible to cyber attackers and hackers.
Additionally, cloud-based message delivery models are more prone to data loss or leakage, and accidental exposure of credentials, along with legal and regulatory compliance. Hence, high data security risks associated with the implementation of cloud-based passenger service systems are restraining the growth of the market.
Passenger Service System Market Segmentation:
The service segment is divided into airline reservation system, airline inventory system, departure control system, and others.
The airline reservation system segment is anticipated to contribute to a substantial revenue share during the forecast period. Airline reservation systems enable an airline to sell its inventory (seats). Airline reservation systems typically consist of information related to fares and schedules along with a database of reservations including passenger name records and tickets issued. Airline reservation systems are a crucial part of passenger service systems for applications involving direct contact with the passenger.
Further, factors including the rising demand for air travel, modernization of airports, and increasing adoption of advanced solutions for reservation of flight tickets are among the major factors driving the growth of the airline reservation system segment.
Additionally, the departure control system segment is expected to grow steadily during the forecast period. A departure control system is optimized to automate the processing of an airlines airport management operations. The operations include management of information for airport check-in, baggage acceptance, printing boarding cards, load control, boarding, and aircraft checks among others.
Furthermore, factors including the rising development of airports, expansion of flight networks, and growing need for optimized solutions for airport management operations are crucial factors proliferating the growth of the departure control system segment.
The deployment segment is divided into cloud-based and om-premise.
The cloud-based segment is accounted for a substantial share of the passenger service system market. The cloud-based deployment offers a seamless collaboration along with fast and cost-effective access to passenger service systems by multiple users irrespective of the time and location of the user. Moreover, cloud-based passenger service systems offer various benefits such as minimal capital expense, rapid implementation, ease of utilization and integration, faster processing, and higher scalability. The above benefits of cloud-based deployment are the prime factors driving its utilization in the deployment of passenger service systems.
For instance, in December 2022, Wellington Airport in New Zealand integrated Amadeus\' airport cloud use service that simplifies the process of agents accessing airline systems. The deployment of cloud service enables airline agents to provide a personalized service to passengers during check-in and boarding. Thus, the rising adoption of cloud-based passenger service deployment is driving the growth of the segment.
Further, factors such as rapid pace of digitalization in the airline industry and the increasing consumer preference for flexible, economical, and cost-effective passenger service systems are major factors fostering the demand for cloud-based passenger service systems.
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The North American region is considered to contribute the largest revenue share in the year 2022. The adoption of passenger service systems in the North American region is primarily driven by multiple factors including the growing commercial flight activities and rising number of air travel passengers among others. For instance, according to the United States Department of Transportation, U.S. airlines carried approximately 674 million passengers in 2021, depicting a substantial growth of 82.6% in comparison to 369 million passengers in 2020. The rising number of air travel activities is stimulating the adoption of passenger service systems for applications ranging from airline reservations, ticketing, and baggage control to boarding. The above factors are fostering market growth in the region.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The market growth in the Asia-Pacific region is attributed to several factors including the growing aviation industry and rising adoption of passenger service systems by airlines to reduce operational costs and maximize efficiency. Additionally, the growth of air travel activities in the Asia-Pacific region is a vital factor driving the adoption of passenger service systems. According to the International Air Transport Association (IATA), the Asia-Pacific region witnessed a 363.3% rise in full-year international traffic in 2022 as compared to 2021. The above factors are further proliferating the market growth in the Asia-Pacific region.
Passenger Service System Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Passenger Service System Market. Key players in the market include-
• Amadeus IT Group SA
• Radixx International
• SITA NV
• Sabre Corporation
• Bravo Passenger Solutions Pte Limited
• Collins Aerospace
• Hitit Computer Services
• InteliSys Aviation System
• Unisys Corporation
• Videcom International Limited
• In February 2023, All Nippon Airways extended its partnership with Amadeus with the aim of maximizing the company\'s operational efficiency. The partnership enables All Nippon Airways to include Amadeus\'s passenger service system support in its domestic and international flight operations.
• In November 2022, Sabre Corporation extended its long-term agreement with Oman Air. The agreement enables the Omani flagship carrier to integrate SabreSonic Passenger Service System for managing the airline\'s core operations.