Aerospace IT Technology Innovations: The changing landscape of aviation supply chain the impact of IT technology and solution

Transcription

1 Aerospace IT Technology Innovations: The changing landscape of aviation supply chain the impact of IT technology and solution Presented by Subhranshu Sekhar Das Head, Aerospace & Defense Frost & Sullivan, APAC 28 October 2015

2 Agenda Global Aerospace IT Solutions Market Assessment Industry Eco-system Key stakeholders & their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 2

3 Aircraft Deliveries APAC is expected to be the single largest market for aircraft deliveries Europe 18% Global Market Share of Aircraft Deliveries by Region Middle East 8% 21% 32% ( ) Latin America 9% CIS 4% 6% 6% 6%3% 26% Africa 3% Region with largest fleet APAC share of world aircraft market share will expand from its current 26% to 36% by 2033 North America 22% Asia Pacific 36% Source: Frost & Sullivan As new players emerge from growth economies, the opportunities for Aerospace IT solution providers will shift towards Asia. 3

4 MRO Spending in $US Billion Growth in Aerospace MRO Overall Market growing. APAC expected to become the second largest region for MRO services by 2024 $ $ Total MRO Spending Forecast, Global, By Regions, % Global CAGR Eastern Europe $80.00 Western Europe North America $60.00 Latin America India $40.00 Africa China $20.00 Asia Pacific Middle East $ APAC is clearly gaining share in the MRO market Emergence of new private players expected to bring newer opportunities for the Aerospace IT market Source: Frost & Sullivan 4

5 Market projections of Aerospace IT Solutions Market size for IT Solutions in A&D is estimated to grow from 7.81$bn in 2015 to 8.95$bn in 2020 A&D IT : MRO $bn A&D IT: MRO+ Manufacturing 2.02 $bn A&D IT : Manufacturing 7.81 $bn 8.95 $bn 6.03 $bn 6.94 $bn IT constitutes about 1.6% of MRO and 2.0% of Manufacturing Segments within A&D The overall market is expected to reach USD 8.95 Billion by 2020 Source: Frost & Sullivan 5

6 Agenda 1 2 Global Aerospace IT Solutions Market Assessment Industry Eco-system Industry Technology Regulation 3 Key stakeholders & their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 6

7 Industry Eco-system Macro dynamics in the Aerospace IT industry are shaped by industry, technology and regulatory trends Industry Technology Regulation Growing consolidation in MRO Vertical integration of OEMs Preference for parts pooling Going green Maintenance at the asset Cloud computing Business analytics Continual liberalization of airspace Increasing regulatory compliance 7

8 Agenda 1 2 Global Aerospace IT Solutions Market Assessment Industry Eco-system Industry Technology Regulation 3 Key stakeholders & their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 8

9 Industry Trends Various trends are observed in the Aerospace IT Solutions market 1 Growing consolidation in MRO Consolidation of MROs providing full range of services 2 Vertical integration of OEMs OEMs seeking after-care contracts 3 Preference for parts pooling Airlines reducing inventory stockpiling 4 Going green Technologies supporting paperless operations become more pervasive 9

10 Agenda 1 2 Global Aerospace IT Solutions Market Assessment Industry Eco-system Industry Technology Regulation 3 Key stakeholders and their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 15

11 Technology Trends Technological innovation is driving significant change in the Aerospace IT Solutions Market 1 Maintenance at the asset Mobile-ready solutions Wearable technology 2 Cloud computing Advent of cloud computing 3 Business analytics Predictive analysis of Big Data 16

12 Agenda 1 2 Global Aerospace IT Solutions Market Assessment Industry Eco-system Industry Technology Regulation 3 Key stakeholders & their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 21

13 Regulatory Trends Continual airspace liberalization and move towards common-source data platform 1 Continual liberalization of airspace Greater freedom rights for corporate aviation and helicopter operators 2 Seamless information sharing through common source data platform Continual implementation of FAA s NextGen initiatives 22

14 Agenda Global Aerospace IT Solutions Market Assessment Industry Eco-system Key stakeholders & their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 25

15 Key Stakeholders & Their Priorities Aerospace IT Solutions need to address issues & concerns of various purchase decision influencers C-level Executives Cost efficiency Business analytics Regulatory compliance IT Engineers Traceability Scalability Mobility Change Management Ease of integration Modularity Maintenance Maintenance optimization Efficient shift planning Mechanics Ease of use Functional width and breadth Finance Ease of financial reporting 26

16 Aerospace IT Investments Priorities Demands of key stakeholders for IT investments Key considerations & strategies for investments in IT solutions Application replacement or modernization IT infrastructure modernization Integrating what we have for better data sharing All of the strategies Transitioning our applications to a virtualized infrastructure Moving our applications to the cloud Migration off the mainframe onto less expensive platforms None, we don t have an application or IT infrastructure modernization strategy Modernization of application and IT infrastructure, as well as data integration are key considerations. % Source: CSC and Aerospace Industries Association, Frost & Sullivan 27

17 Industry Mega-Trends Top 10 macro trends observed in the Aerospace IT market Greater modularity in IT Solutions to promote flexible future integration Solutions which create seamless interactions between OEMs, MROs & Airlines Technology which offer efficient inventory management by driving lean supply chains Green initiatives to be part of IT Architecture & Solution wheel Integrated asset management solutions bringing synergy between all the divisions Harnessing the power of technologies to facilitate efficient maintenance Internet of Things driving cloud computing, with emphasis on security & autonomics Predictive analytics to facilitate better decision-making process More opportunities across Corporate and Heli business for off the shelf solutions Seamless information sharing through common source data platform Source: Frost & Sullivan analysis 30

18 Solution Alignment Key Value Proposition expected from Aerospace IT Solution Providers What customers need What Aerospace IT Solution Providers must offer 1. Application and IT infrastructure upgrades and modernization 2. Mobility of solutions Application architecture & advanced tech support Mobile support platforms Adopting SOA & best practices in application architecture Flexibility in the number of mobile support platforms software can run on 3. Moving applications to the cloud Option of cloud deployment Software can be accessed readily via the cloud 4. Better data sharing integration 3rd party interface and APIs Strong 3 rd party interfacing capabilities and APIs that can integrate with existing platforms 5. Use of data for forecasting scenarios Big data analytics Technology that can support robust predictive analytics 31

19 Agenda Global Aerospace IT Solutions Market Assessment Industry Eco-system Key stakeholders & their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 32

20 Key Solution Providers & Their Offerings Main players in the Aerospace IT Solutions market and key benchmarks for comparison Main players Basis of comparison Technology Innovation Geographical Ambition Growth in Market Penetration (formerly known as Volartec) 33

21 Technology Innovation Rate scorecard for overall Technology Innovation by identified key criteria Technology Innovation RAMCO SAP RUSADA MXI Swiss Aviation Software Ltd TRAX IFS ORACLE CAMP PENTA- GON Component Control Ultramain Seabury MRO Corridor Application Architecture Mobile support platforms Option for Cloud Deployment support 3 rd party interfacing capabilities and APIs Big Data Analytics 34

22 Technology Innovation Consolidated Overall Technology Innovation Technology Innovation Overall Technology Innovation: Aerospace IT Solutions Ultramain Seabury Corridor Ramco SAP Rusada Mxi Component Control SASL Pentagon TRAX CAMP Oracle IFS Source: Frost & Sullivan analysis 35

23 Growth in Market Penetration Consolidated Growth in Market Penetration scores Overall Growth in Market Penetration in Identified Sectors Corridor Ramco SAP Growth in Market Penetration Ultramain Seabury Rusada Mxi Component Control SASL Pentagon TRAX CAMP IFS Oracle Source: Frost & Sullivan analysis Note: Growth in market penetration refers to the growth in the past 36 months 38

24 Agenda Global Aerospace IT Solutions Market Assessment Industry Eco-system Key stakeholders & their priorities 4 Key solution providers & their offerings 5 Frost IQ: Aerospace IT Solution Providers 39

25 Technology Innovation Frost IQ: Aerospace IT Solution Providers The Frost IQ matrix identifies the Champions, Challengers, Defenders and Explorers HIGH RAMCO Oracle SAP Component Control Pentagon Rusada MXI Swiss Aviation Software TRAX LOW LOW Corridor Ultramain CAMP Geographic Ambition Seabury MRO IFS HIGH 40

26 Thank You