Future Growth Potential of Sustainable Technology in Commercial Aviation
Environmental, social, and governance (ESG) framework and long-term goals to reduce emissions bolster technology strategy
The COVID-19 pandemic forced lockdowns and border closures, which subsequently curtailed global travel. Industry revenue in fiscal year (FY) 2020–2021 amounted to $328 billion—the nominal equivalent to revenue generated in FY 2000–2001. Due to grounded aircraft and cancelled flights, the reasons for the shift in passenger behavior, government restrictions, and economic downturn go beyond the carbon impact in the near term.
Fossil fuel derivatives remain the most volatile cost in the operations of airlines and airports. In addition, maintenance costs account for a substantial portion of operating expenses (OPEX). Incorporating sustainable and energy-efficient technologies to power aircraft, airports, and ground support equipment (GSE) can reduce OPEX in the short, medium, and long terms. Technological maturity and widespread adoption will reduce cost implications due to economies of scale.
Aircraft OEMs, battery and solar photovoltaic manufacturers, hydrogen suppliers, and sustainable aviation fuel (SAF) refineries are seeking increased investments and strategic partnerships to drive the advancement of aviation and the improvement of market standards, product offerings, and time to market. Frost & Sullivan forecasts increased mergers, acquisitions, and vertical partnerships with solution providers and horizontal partnerships with correlative industries to boost resilience and meaningful change.
Take your first step towards achieving growth-centric solutions with our
Growth Pipeline Dialog™. Speak to our industry experts in a complimentary open discussion that will spark innovative thinking and growth opportunities that will benefit your organization.