Passenger Service System Market to Exceed USD 28.1 Billion by 2032 Due to Airline Growth & Digital Shift

Passenger-Service-System-Market

Passenger-Service-System-Market

The Passenger Service System market is expanding rapidly as the aviation industry increasingly focuses on enhancing passenger experiences.

AUSTIN, TX, UNITED STATES, February 18, 2025 /EINPresswire.com/ -- The Passenger Service System Market size was USD 7.6 Billion in 2023 and is expected to reach USD 28.1 Billion by 2032 and grow at a CAGR of 15.6% over the forecast period of 2024-2032.

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Mobile Integration and SaaS Adoption Drive Passenger Service System Market Growth
The growing adoption of mobile applications and SaaS-based solutions is enhancing convenience and personalization in the Passenger Service System (PSS) market. Airlines are also working to make their booking, check-in, and real-time updates mobile-friendly. Around 50 percent of passengers want to use airline apps to select their seats and track their flights, showing increasing demand. However, U.S. Department of Commerce 2024 projections reveal that with scalability, flexibility, and cost-effective updates, SaaS solutions can help airlines modernize services while increasing efficiency.

By Component, Services Segment Leads Passenger Service System Market with 68% Share in 2023 Due to Increased Complexity
The Services segment dominated the market in 2023, holding around 68% of the share. The growing complexity of modern product-service system solutions e.g., cloud-based solutions, and subscription models bestows a significant advantage to the established players. Airlines do not have the in-house expertise to run these systems, resulting in a greater need for professional services including system monitoring, technical support, and system customizations. Specialized services are also in high demand due to rapid technological advancements within the industry.

By Service, Airline Reservation System Dominates the Market with 32% Share in 2023
The Airline Reservation System (ARS) segment led the market with a share of 32% in 2023. It is at the core of how any airline works since it handles essential operations, such as the booking of flights, sale of tickets, and allocation of seats. Its dominance can be attributed to the increasing importance of digital transformation in the airline industry. The ARS becomes the central point around which reservations can be coordinated for internet bookings, loyalty programs, personal service, and customer care at the majority of airlines moving towards the online.

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By Solution, Inventory Management Dominates the Market in 2023 Due to Its Key Role in Airline Operations
In 2023, Inventory Management emerged as the dominant segment within the Passenger Service System (PSS) market. The segment accounted for the highest share, owing to its integral role in maintaining smooth operations for the airline industry. Since their operations have direct effects on seat production, flight availability, and therefore revenue generation, inventory management is one of the core processes of the airline industry. Furthermore, airlines employ inventory management systems to efficiently track seat availability, manage bookings, and manage pricing across multiple distribution channels, such as travel agencies, online travel marketplaces, and direct customer distribution channels.

By Deployment, On-Premises Deployment Dominates the Market with 62% Share in 2023
The On-Premises deployment segment was the most dominant in 2023, holding approximately 62% of the market share. This preference is partly because airlines have an aversion to data-sharing or transferring control. On-premises systems enable the airlines to store sensitive passenger data in-house rather than relying on a third-party cloud provider. Moreover, on-premises systems can be (and often are) highly customized to suit the operations of airlines, which can be helpful for larger carriers or those based in countries with stringent data regulations.

By Region, North America Leads Passenger Service System Market, Asia Pacific Set for Fastest Growth
The North American region held the largest market share of 49% in 2023. This is due to the advanced aviation infrastructure in the region and its early adoption of cutting-edge technologies. The presence of major airlines in the U.S. and Canada, which are pioneering the adoption of innovative solutions to enhance customer experience and improve operational efficiency, plays a significant role in driving market growth.

The Asia Pacific region is projected to register the fastest CAGR of 12%. This rapid growth can be attributed to the ongoing digital transformation of the aviation industry in countries like India, China, and Japan. The increasing adoption of digital solutions such as online booking capabilities, self-service kiosks, mobile apps, and personalized digital experiences is accelerating the growth of the PSS market in the region.

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