Investment in connected aircraft technologies to rise substantially in next 12 months

Spending on connected technologies in the aviation sector will increase dramatically in the coming years, driven by rapidly growing demand for solutions that can enhance the passenger experience, save airlines money and improve operational efficiency, a report released by Honeywell said on Wednesday.

The report finds that spending will be largely focused beyond the cabin, with maintenance ranking highest among the pain points that airline decision-makers want to tackle. Investment in connected technologies is expected to rise significantly during the next 12 months, and to rise even more rapidly over the next five years.

The report also said that connected aircraft technologies are seen as one of the most important long-term investments to improve all-around operations and competitive standing within the industry. The benefits of these technologies also go well beyond passenger entertainment in the cabin. The next wave of investment in connectivity is to address three main challenges: maintenance effectiveness, fuel consumption and aircraft turnaround time.

In fact, 81 percent of airline decision-makers of a survey discussed in the report cited connected technologies as a high or very high priority for their businesses. Meanwhile, 86 percent of the respondents said they were looking to make a connected aircraft purchase over the next year, with the number expected to jump to 95 percent over the next five years.

About half of the respondents expect to spend up to $1 million per aircraft on connectivity technologies over the next year. The bigger jump is seen over the next five years, with 38 percent of respondents saying that they expect to spend at least $1 million per aircraft on connected technology during that time span. There are also plans to spend 17 percent of more than $10 million per aircraft on connected technologies over the next five years.

These significant investments signal the increasing value of connected technologies in the coming years.