Aerospace IT Technology Innovations: The changing ... · 5 Frost IQ: Aerospace IT ... • Airlines...

28 October 2015

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

2

Agenda

2

3

1

Industry Eco-system

Key stakeholders & their priorities

Global Aerospace IT Solutions Market Assessment

5 Frost IQ: Aerospace IT Solution Providers

4 Key solution providers & their offerings

3

Aircraft Deliveries

APAC is expected to be the single largest market for aircraft deliveries

Source: Frost & Sullivan

26%

32%

21%

6% 6%6%

3%

Asia Pacific36%

North America22%

Europe18%

Middle East8%

Latin America9% CIS

4%Africa

3%

Global Market Share of Aircraft Deliveries by Region (2014-2033)

Region with

largest fleet

APAC share of world

aircraft market share

will expand from its

current 26% to 36%

by 2033

As new players emerge from growth economies, the opportunities for Aerospace IT

solution providers will shift towards Asia.

4

Growth in Aerospace MRO


Overall Market growing. APAC expected to become the second largest region for MRO services by 2024

• APAC is clearly gaining share in the MRO market

• Emergence of new private players expected to bring newer opportunities for the

Aerospace IT market

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

MR

O S

pen

din

g in

$U

S B

illio

n

Total MRO Spending Forecast, Global, By Regions, 2015-2024

Eastern Europe

Western Europe

North America

Latin America

India

Africa

China

Asia Pacific

Middle East

4.68%Global CAGR

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

• 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

1.78

$bn

2.02

$bn

6.03

$bn

6.94

$bn

7.81

$bn

8.95

$bn

2015A&D IT : MRO

A&D IT: MRO+ Manufacturing

A&D IT : Manufacturing

2020

6

Agenda

2

3

1

Industry Eco-system





Industry

Technology

Regulation

7

Industry Eco-system

Macro dynamics in the Aerospace IT industry are shaped by industry, technology and regulatory trends

Industry Technology Regulation

• Maintenance ‘at the

asset’

• Cloud computing

• Business analytics

• Growing consolidation

in MRO

• Vertical integration of

OEMs

• Preference for parts

pooling

• Going green

• Continual liberalization

of airspace

• Increasing regulatory

compliance

8

Agenda

2

3

1

Industry Eco-system





Industry

Technology

Regulation

9

Industry Trends

Various trends are observed in the Aerospace IT Solutions market

1Growing

consolidation

in MRO

• Consolidation of MROs

providing full range of

services

2Vertical

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

15

Agenda

2

3

1

Industry Eco-system

Key stakeholders and their priorities




Industry

Technology

Regulation

16

Technology Trends

Technological innovation is driving significant change in the Aerospace IT Solutions Market

1Maintenance

‘at the asset’

• Mobile-ready solutions

• Wearable technology

2Cloud

computing• Advent of cloud computing

3Business

analytics• Predictive analysis of Big Data

21

Agenda

2

3

1

Industry Eco-system





Industry

Technology

Regulation

22

Regulatory Trends

Continual airspace liberalization and move towards common-source data platform

1Continual liberalization

of airspace

• Greater freedom rights for

corporate aviation and

helicopter operators

2Seamless information

sharing through common

source data platform

• Continual implementation of

FAA’s NextGen initiatives

25

Agenda

2

3

1

Industry Eco-system





26

Key Stakeholders & Their Priorities

IT Engineers

• Traceability

• Scalability

• Mobility

C-level Executives

• Cost efficiency

• Business analytics

• Regulatory compliance

Maintenance

• Maintenance optimization

• Efficient shift planning

Change Management

• Ease of integration

• Modularity

Mechanics

• Ease of use

• Functional width and

breadth

Finance

• Ease of financial

reporting

Aerospace IT Solutions need to address issues & concerns of various purchase decision influencers

27

Aerospace IT Investments Priorities

Source: CSC and Aerospace Industries Association, Frost & Sullivan

0 10 20 30 40 50 60

None, we don’t have an application or IT infrastructure modernization strategy

Migration off the mainframe onto less expensive platforms

Moving our applications to the cloud

Transitioning our applications to a virtualized infrastructure

All of the strategies

Integrating what we have for better data sharing

IT infrastructure modernization

Application replacement or modernization

%

Key considerations & strategies for investments in IT solutions

Modernization of application and IT infrastructure, as well as data integration are key

considerations.

Demands of key stakeholders for IT investments

30

Industry Mega-Trends

Source: Frost & Sullivan analysis

Harnessing the

power of

technologies to

facilitate efficient

maintenance

Integrated asset

management

solutions bringing

synergy between

all the divisions

Technology which

offer efficient

inventory

management by

driving lean supply

chains

Solutions which

create seamless

interactions

between OEMs,

MROs & Airlines

Greater

modularity in IT

Solutions to

promote flexible

future integration

Green initiatives

to be part of IT

Architecture &

Solution wheel

Seamless

information

sharing through

common source

data platform

Predictive

analytics to

facilitate better

decision-making

process

Internet of Things

driving cloud

computing, with

emphasis on

security &

autonomics

More opportunities

across Corporate

and Heli business

for off the shelf

solutions

Top 10 macro trends observed in the Aerospace IT market

31

Solution Alignment

1. Application and IT

infrastructure upgrades and

modernization

2. Mobility of solutions

3. Moving applications to the

cloud

4. Better data sharing

integration

5. Use of data for forecasting scenarios

What customers need

Adopting SOA & best practices in application architecture

Flexibility in the number of mobile

support platforms software can

run on

Software can be accessed readily

via the cloud

Strong 3rd party interfacing

capabilities and APIs that can

integrate with existing platforms

Technology that can support

robust predictive analytics

Application architecture & advanced tech

support

Mobile support platforms

Option of cloud deployment

3rd party interface and APIs

Big data analytics

What Aerospace IT Solution Providers must offer

Key Value Proposition expected from Aerospace IT Solution Providers

32

Agenda

2

3

1

Industry Eco-system





33

Key Solution Providers & Their Offerings

Main players in the Aerospace IT Solutions market and key benchmarks for comparison

Main players Basis of comparison

(formerly known

as Volartec)

Technology

Innovation

Growth in

Market

Penetration

Geographical

Ambition

34

Rate scorecard for overall Technology Innovation by identified key criteria

Technology Innovation

RAMCO SAP RUSADA MXI

Swiss Aviation Software

Ltd

TRAX IFS ORACLE CAMPPENTA-

GON

Compo-nent

ControlUltramain

Seabury MRO

Corridor

Application

Architecture

Mobile

support

platforms

Option for

Cloud

Deployment

support

3rd party

interfacing

capabilities

and APIs

Big Data

Analytics

Technology

Innovation

35

Consolidated Overall Technology Innovation

Technology Innovation

Overall Technology Innovation:

Aerospace IT Solutions


Technology

Innovation

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5Ramco

SAP

Rusada

Mxi

SASL

TRAX

Oracle

IFS

CAMP

Pentagon

Component Control

Ultramain

Seabury

Corridor

38

Consolidated Growth in Market Penetration scores

Growth in Market Penetration

Growth in

Market

PenetrationOverall Growth in Market Penetration

in Identified Sectors


0

5

10

15

20

25

30Ramco

SAP

Rusada

Mxi

SASL

TRAX

Oracle

IFS

CAMP

Pentagon

Component Control

Ultramain

Seabury

Corridor

Note: Growth in market penetration refers to

the growth in the past 36 months

39

Agenda

2

3

1

Industry Eco-system





40

The Frost IQ matrix identifies the Champions, Challengers, Defenders and Explorers

Frost IQ: Aerospace IT Solution ProvidersTechnolo

gy I

nnovation

Geographic Ambition HIGHLOW

LOW

HIGH

MXI

SAP

Oracle

RAMCO

Swiss Aviation

Software

Rusada

Component

ControlPentagon

IFS

TRAX

Seabury MRO

Corridor

Ultramain

CAMP

Thank You

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