Passenger Service System Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Passenger Service System Market Analysis
The passenger service system market is estimated to register a CAGR of 12% over the forecast period.
- With the emergence of low-cost carriers (LCC) and a growing number of air passengers, the need for an efficient and mission-critical system for passenger service management is increasing. Thanks to the increasing income levels of customers and the availability of low-cost aviation, tickets are becoming more affordable every day for a broad base of potential customers. For instance, according to the International Civil Aviation Organization (ICAO), in 2018, LCCs carried an estimated 1.3 billion passengers, accounting for approximately 31% of the world's total scheduled passengers.
- Although the passenger service system (PSS) aims to develop a single homogeneous solution, the need for airlines to differentiate their products is hindering this possibility. Despite this, many airlines have included PSS in their standard operating procedures due to the aviation industry's fast adoption of information technology. The advent of online booking, inventory control, and reservation services has greatly automated airline operations.
- Although the Covid-19 pandemic slowed down international passenger travel, the market for airline passenger service systems expanded quickly as governments simplified their current operating capabilities, which encouraged the use of smart solutions. Airports were able to operate smoothly throughout the pandemic thanks to these advancements.
Passenger Service System Industry Segmentation
The passenger service system market is segmented by software and services. The basic modules offered in the software are the reservation system, inventory management, and departure control system. The deployment model depends on the scale of adoption and the infrastructure required to support it.
The passenger service system market is segmented by type (software, service), deployment (on-premise, cloud), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|Middle East & Africa|
Passenger Service System Market Trends
Rise in Air Travel Passengers is Driving the Market Growth
- The passenger service system (PSS) has applications in mission-critical systems within the airline distribution system, supporting various airline processes related to servicing, delivering, and financially fulfilling orders. The increasing number of air passengers and the need for safe and hassle-free processes before, during, and after travel are significant factors contributing to the growing use of PSS in the airline industry.
- For instance, according to passenger numbers for September 2022 released by the International Air Transport Association (IATA), the rebound in air travel is still going strong. Revenue passenger kilometers (RPKs), which measure total traffic, increased by 57.0% in September 2022 compared to September 2021.
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Asia-Pacific to Witness a Significant Growth Share during the Forecast Period
- In November 2022, Air India leased six Airbus A320 neo aircraft from CDB Aviation, a fully Irish-owned subsidiary of China Development Bank Financial Leasing Co Limited. This move comes as India's domestic and international travel industry is expected to quadruple to 400 million travelers in the next 5-7 years. Additionally, the country's overall air passenger traffic is projected to increase to about 827 million by 2032–2033.
- As economies around the world continue to open up for trade and travel, Asian airlines are expanding their flight networks. This is a much-needed change that has been long overdue, especially considering that airlines handled 330% more international passengers in the first half of 2022 compared to the same period in 2021.
- Moreover, India plans to invest close to USD 60 billion to construct 100 new airports in the next 10-15 years, with the aim of making air travel more affordable, according to the civil aviation minister. This investment is likely to increase the demand for passenger service systems by airlines in the region.
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Passenger Service System Industry Overview
The aviation industry is witnessing a paradigm shift toward connected systems, and airlines are increasingly focusing on enhancing customer experiences by offering differentiated passenger service systems (PSS). Leading vendors such as SITA NV and Amadeus IT Group are capitalizing on this trend by developing innovative PSS solutions. Moreover, several airline companies have adopted a vertical integration strategy to develop in-house PSS.
In October 2022, Munich Airport announced the launch of its new Express Queue reservation system, aimed at better managing traffic before security checkpoints in Terminal 1 and reducing wait times. Air travelers can now reserve a free 30-minute window for entry to security checkpoints and passport control while flying to non-Schengen locations, thus providing greater flexibility and convenience.
Similarly, in April 2022, IBS Software announced the launch of its next-generation software iFly Res, which features a customer-centric PSS with state-of-the-art offer and order management capabilities. The new system is designed to enhance the passenger experience and provide airlines with greater operational efficiency.
Passenger Service System Market Leaders
Amadeus IT Group SA
Bravo Passenger Solutions Pte Limited
*Disclaimer: Major Players sorted in no particular order
Passenger Service System Market News
- November 2022: Sabre Corporation, a leading technology provider to the global travel industry, announced at the World Passenger Symposium (WPS) that it extended its long-term partnership with Oman Air, the national carrier of the Sultanate of Oman. As part of the agreement, Sabre will continue to support Oman Air in achieving its strategic objectives through a multi-year extension of the worldwide distribution system arrangement and renewal of Oman Air's SabreSonic Passenger Service System (PSS).
- May 2022: Air India, undergoing several improvements under Tatas' ownership, announced that it would be upgrading its technology by switching to a new service provider, Amadeus, for its reservations system. This system upgrade is expected to result in cost savings and increased productivity for the airline.
Passenger Service System Market Report - Table of Contents
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Introduction to Market Drivers and Restraints
4.4 Market Drivers
4.4.1 Rise in Air Travel Passengers
4.4.2 Increased Adoption of IoT and Connected Devices at Airports
4.5 Market Challenges
4.5.1 High Initial Capital Investment to Create Supporting Infrastructure
5. MARKET SEGMENTATION
5.1 By Type
5.2 By Deployment
5.3.1 North America
5.3.4 Latin America
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 SITA NV
6.1.2 Amadeus IT Group SA
6.1.3 Sabre Corporation
6.1.4 Radixx International
6.1.6 Bravo Passenger Solutions Pte Limited
6.1.7 Collins Aerospace
6.1.8 Hitit Computer Services
6.1.9 Enoyaone Ltd
6.1.10 InteliSys Aviation System
6.1.11 Unisys Corporation
6.1.12 Videcom International Limited
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Passenger Service System Market Research FAQs
What is the study period of this market?
The Passenger Service System Market is studied from 2018 - 2028.
What is the growth rate of Passenger Service System Market?
The Passenger Service System Market is growing at a CAGR of 12% over the next 5 years.
Which region has highest growth rate in Passenger Service System Market?
Asia Pacific is growing at the highest CAGR over 2021 - 2026.
Which region has largest share in Passenger Service System Market?
North America holds highest share in 2022.
Who are the key players in Passenger Service System Market?
SITA NV, Amadeus IT Group SA, Radixx International, Bravo Passenger Solutions Pte Limited, Sabre Corporation are the major companies operating in Passenger Service System Market.
Passenger Service System Industry Report
Statistics for the 2023 Passenger Service System market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Passenger Service System analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.