Analysis of Passenger Service System market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global passenger service system market is expected to grow at an astonishing CAGR of over 9.4% between 2022 and 2032, expected to be valued at US$ 21.9 Billion.
In FY 2021, the industry was valued at US$ 7.9 Billion, and is projected to experience a Y-o-Y growth of 12.7% in 2022, reaching US$ 8.9 Billion.
Base Year Value (2021)
US$ 7.9 Billion
Anticipated Current Value (2022)
US$ 8.9 Billion
Expected Forecast Value (2032)
US$ 21.9 Billion
Global Growth Rate (2022-2032)
Growth Rate of the U.S (2022-2032)
Market Value of China (2032)
US$ 1.7 Billion
Key Companies Profiled
As travelers and passengers demand more and more travel, new technologies and services are being developed around the world in an effort to continually improve the safety, efficiency, and effectiveness of the industry. A rise in international passenger traffic has continuously resulted in new needs and requirements for ensuring a smooth and secure flow of passengers.
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As the number of people traveling by air continues to surge, major aviation companies plan to use advanced software solutions to streamline operational processes and automate a large number of processes in the service system market.
This has resulted in an environment that has created fertile ground for the numerous passenger’s service systems providers in recent years. As per Fact.MR- market research and competitive intelligence provider- the industry grew at a 10.7% CAGR from 2015 to 2021.
Despite the pandemic crisis stalling global passenger movement, the airline passenger service system market grew rapidly as governments streamlined existing operational capabilities, which led to an increase in smart solutions' deployment in the market. Due to the pandemic, airports were able to travel seamless or hassle-free during the time of the pandemic.
Fact.MR expects the airline industry's growth to increase even further in the years to come, as the planned infrastructure expansion was expected to kick off by 2021. With the world almost eliminating global travel restrictions, global air travel has resumed full-fledged, prompting increased deployment of passenger service systems. During the 2022-2032 period of assessment, the global passenger service system market is projected to expand 2.5x.
With the 21st century rapidly approaching, industry leaders are leveraging trends such as big data, process automation, artificial intelligence, machine learning, and a variety of other innovations to deploy advanced software-based management solutions.
The increasing operational complexity of the aviation industry is one of the primary factors influencing the rise of innovative operations management solutions, such as autopilot systems, SaaS solutions, and flight management solutions providing enormous potential for the passenger service system (PSS) market expansion in the future.
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A great deal of personal information about passengers is collected through their boarding passes, posing a potential threat for malicious entities to utilize technological flaws in reservation systems to steal valuable information.
Companies are investing in bot protection mechanisms to prevent such automated attacks, and software developers are introducing features to prevent bot attacks by limiting the maximum number of transactions in a given time frame.
The rapid inclusion of information technology in the aviation industry has led to an increased use of passenger service systems in the industry. These investments have resulted in highly automated airline operations through online booking, inventory control, and reservation services.
Platforms are being developed that cater to both low-cost and hybrid operations in the passenger service system market. In addition to ensuring high productivity, these platforms will reduce vendor dependent aspects in the market. Software developers have centered much of their efforts on fares, ancillary fees, automatic departures, and quality service over the past decade.
An increasing number of end users are using the internet for the purpose of booking flights via the internet, which in turn is driving the development and adoption of passenger service systems. An IATA survey states that, in 2019, 51% of flights worldwide were booked online via smartphones or tablets. This resulted in companies introducing highly efficient booking platforms that are designed specifically to meet passengers' needs in this industry.
A rising level of competitiveness in the commercial transportation industry has created in-flight services, especially food delivery and waste collection to be one of the most important competitive measures to attract passengers over their rivals. These services directly and indirectly benefit passengers during a flight, which impacts the perception of the overall level of service provided by the airline.
In the field of passenger service system development, companies offer sustainable solutions for aircraft management through custom-built, reliable software platforms. Increasing competition and operational pressure have made this necessary due to increasing competition in the airline industry. Companies in the passenger service system market generate steady revenue streams from airline parking reservations and ticketing services.
According to Airlines for America, the U.S. aviation industry rakes in nearly US$ 2 Trillion in economic activity each year, generating over 10 million jobs. Therefore, key airline companies are investing in streamlining operations, boosting their growth. Air transportation systems worldwide are composed of complex networks and alliances that are constantly changing. At least one connection is made by most international passengers traveling to and from the United States before reaching their final destinations.
The immense scope of aviation has led to many academic and research programs to develop and deploy initiatives to teach and learn about the technical aspects of aviation, an advancement that has led to an increase in the use of passenger service management solutions, both on premise and cloud-based in the market. The market for passenger service systems will grow at a CAGR of 6.5% to reach a value of US$ 3.2 Billion during the forecast period.
The Chinese passenger service systems market is expected to add the most revenue over the forecast period, growing at a CAGR of 9.4%. The market is expected to reach a value of US$ 1.7 Billion over the forecast period. The increase in GDP per capita and ease of domestic air travel has led to a rapid rise in per capita income.
Due to the large number of potential customers in the region, growth is predicted to continue at a rapid pace. According to industry 4.0 initiatives, the Chinese government is allotting a significant proportion of its budget to streamlined aviation infrastructure that lets people and goods move smoothly, a development that is expected to contribute significantly to enhancing passenger services.
As business activities increase, aviation stakeholders are increasingly implementing high-scale automation, virtual reality, and big data analytics to manage operations. China Southern Airlines, for instance, began using paperless boarding passes and online seat selection in 2019 on all domestic flights, improving operational efficiency significantly.
According to the research, Japan is projected to grow at a CAGR of 8.6% over the forecast period. The market growth will be affected by the low cost of living and increased tourism, despite favorable regulations, especially in developed nations. In addition, the rise of the airline ticket booking industry in South East Asia and customer awareness about easy booking options are other key factors aiding the rise in demand for PSS.
In the U.K., the passenger service system market is projected to reach a value of US$ 838.8 Billion by the end of the forecast period. Market growth is expected to reach 8.1% during the forecast period. In addition to rising disposable incomes, Loyalty programs can be more beneficial than other forms of marketing for airlines in terms of attracting passengers.
An increasing number of CARGO companies are expanding their business operations throughout the country. While there are still many growth opportunities in the market, the UK market for passenger service systems will be no exception due to the influx of investments into airline inventory management systems taking place in the country. As a result, there is a high demand for passenger service systems on the market.
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Through the use of global distribution systems, web-based booking solutions have enabled the consolidation of data from multiple airlines through the use of airline reservation systems. Customers and travel agents can access the system in real time for inventory and rates. Within the forecast period, the airline reservation system market is expected to grow at a CAGR of 8.6% during the forecast period.
Assisting airlines with various management tasks and satisfying customers from the initial booking through to flight completion to propel market demand for airline reservation systems in the market. A high use of smart phones and the growing popularity of the internet have stimulated the growth of airline reservation systems. Growing digitization and hassle-free online payment options are all stimulating airline reservation system market growth. Modern technology and ever-growing technological innovation in the market have contributed to the demand for cloud-based airline reservation systems. In addition to all these factors, demand for airline reservation systems is on the rise in the market.
An increase in product functionality is a key reason behind the increasing demand for passenger service systems. Therefore, market players are increasing their R&D spending in order to launch new products in the market. Furthermore, both acquisitions & mergers, collaborations, and regulatory approvals are also crucial components of effective growth.
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The global passenger service systems market size is worth US$ 8.9 Billion at present
A CAGR of 9.4% is expected for the global passenger service systems market until 2032
The passenger service systems market is expected to reach nearly US$ 21.9 Billion by 2032.
The absolute dollar growth in passenger service systems was estimated at US$ 13 Billion during the forecast period
Increased interest in tourism industry, and low-cost carriers are driving the global passenger service systems market
U.S., UK, China, Japan, and Australia are the top 5 countries driving demand for passenger service systems in the market
Passenger service systems demand is expected to rise by 9.4% CAGR in China through 2032
Asia Pacific will dominate the passenger service systems to dominate with 10.2% revenue during the forecast period
With a CAGR of 8.6%, airline reservation system are expected to become an important component of passenger service system applications.
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