Global Aviation Digital Storage Market Research Report: Forecast (2022-27)

Market Definition

Aviation Digital Storage refers to the record of conversations between pilot and air traffic control along with other the details such as operational behavior of various aircraft components, atmosphere, etc. Such data is generally stored in cockpit voice recorder (CVR), the flight data recorder (FDR), and the quick access recorder (QAR). However, flight data recorder (FDR) remains the key component. Flight Recorder is also known as black box and comprise of flight data recorder and cockpit voice recorder. The data collected by the flight data recorders and cockpit voice recorders are utilized in case of any accident for investigation purpose.

Market Insights

The Global Aviation Digital Storage market is projected to grow at a CAGR of around 2.5% during the forecast period, 2022-27. The Global Aviation Digital Storage market recorded substantial growth during 2017-2019 on account of the mandatory installation of storage equipment such as flight data recorders, the cockpit voice recorder, etc., to facilitate investigation in case of an accident. In 2019, a Lion Air jet’s cockpit voice recorder was found, which crashed into the Java Sea 2018.

Moreover, the missing cockpit voice recorder of Airbus A320 aircraft was found in 2020, which was a vital information provider for the evidence. Additionally, military aircraft purchases around the world have increased due to rapidly changing geopolitics, security concerns, and a growing demand to purchase combat, transport, and surveillance aircraft. Besides, Asia-Pacific, the Middle East, and North America have been the major spenders in the segment. Hence, the rising orders for military aircraft across the globe have positively impacted the requirement for digital storage devices. The market experienced a decline in 2020 on account of the outbreak of COVID-19, which led to delays & cancellation of aircraft orders and a reduction in the fleet. Besides, the implementation of travel restrictions around the globe led to several companies cutting the demand for new aircraft.

Impact of COVID-19 on Global Aviation Digital Storage Market

During 2020, the outbreak of the COVID-19 pandemic has caused a steep plunge in the Global Aviation Digital Storage market due to the international as well as domestic travel restrictions imposed by several countries worldwide. As a result of travel restrictions, the leading aircraft manufacturers such as Airbus, Boeing, etc., have reduced their production rate of commercial aircraft. In 2020, Airbus reported that it reduced commercial aviation production by 40%. Additionally, Airbus has reduced the production rate of its A320 passenger aircraft from April 2020, as it was 60 in 2019 and was cut off to 40 in 2020. Further, the company has reported a total of 115 aircraft orders cancellations in 2020. In light of the low production rate of commercial aircraft, sales of flight data recorders & cockpit voice recorders have drastically declined, adversely affecting the Global Digital Aviation Storage market.

However, despite the COVID-19 pandemic, the demand for flight data recorders have been constant by the military aircrafts such as fighter jets, combat helicopters, attack helicopters, etc., worldwide, owing to the burgeoning defense expenditure on military aircraft by the countries such as India, China, the US, Spain, Germany, etc.

Market Segmentation

By Aircraft Type

• Commercial
  • Passenger Aircrafts
  • Cargo Jets
  • Helicopters
• Military Aircrafts
  • Fighter Jets
  • Cargo Jets
  • Helicopters
  • Others (Drones, Special Mission Aircraft)

The military aircraft attained a dominant share in the Aviation Digital Storage market during the historical period. The exponential progress of the segment is majorly dependent on the factors such as the growing requirement for the replacement of obsolete fighter jets with technologically advanced fighter aircraft, as well as the rising defense budget by the governments, which had proliferated the demand for the procurement of new military aircraft. In 2019, as per SIPRI, the US government released a USD731.75 billion budget for its defense sector, which was 7.22% high as compared to the previous years. Thus, the rising defense budget led the government of various countries such as the US, Canada, India, Finland, etc., to procure more aircraft & reinforce their military fleets. These dynamics have further influenced the Aviation Digital Storage market in order to capture the flight data to be used for investigation purposes, in case of any mishappenings. For instance:

• In 2021, Finland purchased 64 Lockheed Martin F-35 fighter jets to replace F/A-18 combat jets with a total investment of approximately USD9.4 billion. The procurement of aircraft also includes weapons as well as service & maintenance by 2030.
• In 2021, the Israeli Defense Ministry signed a contract with the US to purchase 12 Lockheed Martin-Sikorsky CH-53K helicopters & 2 Boeing KC-46 refueling Planes worth USD3.1 billion. The procurement of new aircraft strengthen the capabilities of the Israeli Defense Forces & prepared them to face any current & future contingencies.

Moreover, an increase in military engagements, owing to the presence of significant political conflicts & territorial disparities among the countries, has positively contributed to the demand for military aircraft. Hence, various countries are involved in acquiring foreign military aircraft to strengthen their defense sector.

By Equipment Type

• Flight Data Recorder (FDR)
• Cockpit Voice Recorder (CVR)
• Data Transfer Units
• Quick Access Recorder
• Cockpit Voice & Data Recorder

The high requirement for flight recorders, which comprise flight data recorders & cockpit voice recorders by the government agencies to analyze aircraft crashes, has been one of the key growth drivers for the flight data recorder market. Hence, the flight data recorder captured a considerable market share in the Global Aviation Digital Storage market during 2017-21. As a result, several companies have introduced new products offering upgrades & advanced features so that they can further strengthen their positions in the market. For instance:

• In 2022, Flight Data Systems launched the Flight Data Acquisition Interface Unit (FDAIU), which enables operators to upgrade outdated Flight Data Recorders with Flight Data Systems’ SENTRY series of recorders.
• In 2019, HENSOLDT launched a flight data recorder with extreme lightweight dimensions & energy consumption, which is equipped in aircraft, small helicopters, business jets, and UAVs. This new flight data recorder is also known as SferiRec LCR (Lightweight Crash Recorder), in which all the necessary sensors are included such as data related to altitude & direction, engine temperature, speed, and pilot voice recordings

Regional Landscape

• North America
• South America
• Europe
• Middle East & Africa
• Asia Pacific

The North America Aviation Digital Storage market accounted a considerable growth during 2017-21. The market growth is attributed to the growing technological advancements such as the deployment of next-generation navigation systems, radar, etc., in both military & commercial aircraft, as a means to provide better communication between on-ground stations & off-ground aircraft. Consequently, this urged the need to occupy aircraft with advanced data storage systems to manage the recorded data derived from voice recordings & other information loads and provide greater processing & recording power & security. In addition, the rise in the number of aircraft incidents across the world led to increased demand for advanced digital storage equipment to be installed in passenger aircraft, to support the regulatory bodies of investigation. For instance:

• In 2019, Honeywell collaborated with Curtiss-Wright for developing next-generation cockpit voice recorders & flight data recorders to provide real-time aircraft data to operators, manufacturers, etc., of a commercial airline, cargo transport, and business jets.

Key Trends in the Market

Integration of Cloud Computing Technology in Digital Storage Devices

The increasing adoption of cloud computing technology in an aircraft storage device for maintaining & storing complex data has shown significant growth during the historical period. Moreover, cloud computing utilizes a patented algorithm to automate the functionality of flight data recorders & to meet the civil aviation regulatory performance. Integration of the cloud in digital storage devices provides a better & assured way of keeping flight data records in the case of an emergency where the data needs to be retrieved.

Furthermore, the integration of cloud computing also supports checking the status of the black box for investigation purposes after the accident. Hence, the continuous adoption of cloud computing technology for data storage in aircraft is expected to show an upward inclination for aviation digital storage devices during the forecast period. Therefore, several companies have invested in advanced technology & introduced new products to strengthen their position in the market.

Market Dynamics

Key Drivers

• Rising Investment in Aircraft Manufacturing

The rising investment for manufacturing of aircraft & the expansion of aircraft manufacturers across the countries such as the US, France, the UK, India, etc., have boosted the market for aviation digital storage. The growth of aircraft manufacturing is driven by the rising demand in the countries such as the US, Italy, Russia, the UAE, etc., for air travel & delivery of goods around the world. For instance, according to the US Department of Transportation’s Bureau of Transportation Statistics, the total number of air travel in 2017 was 965 million, which increased to 1,052 million in 2019.

Furthermore, to cater to the increased demand for air travel there was an increase in the manufacturing of new commercial aircraft. Hence, it further fuels the demand for data storage equipment in commercial, passenger, and cargo jets with mandatory installation of data storage equipment to facilitate investigation in case of an accident. In addition, there have been continuous investments of companies such as Embraer, Airbus, etc., for the production of aircraft is expected to show significant growth for the aviation digital storage market during the forecast period.

Possible Restraint

•  Managing Massive Amounts of Data Produced by Aerospace IIoT Systems

Advancement in the technologies such as the Industrial Internet of Things (IIoT) is expanding globally, which resulted in changing the aerospace manufacturing operations. The biggest challenge in the aerospace industry is to handle a massive amount of data that is coming during the flight. As the commercial jet produce nearly hundreds of gigabyte of data during the flight in around one minute, therefore, it is difficult to manage large amount of data coming during the flight.

In addition, digital storage devices must function properly in extreme weather conditions & be able to handle a large amount of data, and have the ability to operate from nearly -40°C to 85°C for prolonged time periods without any failure. But many aerospace manufacturers recognize flash memory data storage devices, as a product & purchase commercial off-the-shelf (COTS) parts that do not have a proper meet type, memory capacity, and can work under different weather conditions. Under harsh weather conditions, these data storage devices cannot manage workload which includes frequency of reading & writing large amounts of data, and different environmental conditions such as temperature and vibrations. These are the major factors that are responsible for the corruption of data during flight & reducing the life span of flash storage devices. Hence purchasing COTS is one of the major drawbacks in the aviation industry.

Recent Developments by Leading Companies

• In September 2021, Tata & Airbus collaborated & signed an agreement of USD2.9 billion with the central government to manufacture C-295 military aircraft in India. The manufacturing unit will be in Uttar Pradesh.
• In July 2020, the Canadian government announced to finalize a new fighter jet among three jets for its future purchase of fighter aircraft, which is worth USD14 billion in the three aircraft F35 Lightning II, Saab’s Gripen E, and Boeing F/A 18 Super Hornet.
• In 2018, the Israel Air force announced its deal of USD11 billion with US aircraft manufacturer Boeing, which includes F-15 jets, cargo helicopters, and aerial refueling planes.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Market Size- By Value & Volume, Forecast Numbers, Market Segmentation, Market Shares) of the Global Aviation Digital Storage Market?
2. What are the country-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Aviation Digital Storage Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Aviation Digital Storage Market based on the competitive benchmarking matrix?
5. What are the key results derived from the surveys conducted during the Global Aviation Digital Storage Market study?