Passenger Service System Market to Reach USD 28.1 Billion by 2032 | SNS Insider

The Passenger Service System market is expanding rapidly, driven by mobile app adoption, subscription models, and digital transformation in aviation.

AUSTIN, TX, UNITED STATES, February 20, 2025 /EINPresswire.com/ -- The Passenger Service System market was valued at USD 7.6 Billion in 2023 and is projected to reach USD 28.1 Billion by 2032, growing at a CAGR of 15.6% from 2024 to 2032.
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Keyplayers:
IBM Corporation (IBM Cloud Pak for Integration, IBM Travel and Transportation Solutions)
Travelport Worldwide Ltd. (Travelport Smartpoint, Travelport+)
KIU System Solution (KIU Passenger Service System, KIU Booking Engine)
Information Systems Associates FZE (ISA PSS, ISA Departure Control)
IBS Software Services Pvt. Ltd. (iFly Res, iFly Loyalty)
Bravo Passenger Solutions Pte Limited (BravoPSS, BravoCheck-in)
Hewlett Packard Enterprise (HPE GreenLake, HPE Cloud Storage)
Enoya-one LTD. (Enoya PSS, Enoya Check-in Solution)
Travel Technology Interactive (e-PAX, TT Interactive Suite)
Unisys Corporation (Unisys PSS, Unisys Cyber Security Solutions)
Hexaware Technologies Ltd. (HexaPSS, Hexaware Travel Solutions)
Mercator Limited (Mercator PSS, Mercator Loyalty Suite)
Hitit Computer Services A.S. (Hitit PSS, Hitit Flight Operations)
Intelisys Aviation Systems Inc. (Intelisys PSS, Intelisys Flight Control)
Amadeus IT Group SA (Amadeus Altea Suite, Amadeus Selling Platform Connect)
Radixx International, Inc. (Radixx Res, Radixx Go)
Travelsky Technology Ltd. (Travelsky PSS, Travelsky Distribution Solutions)
Sabre Corporation (SabreSonic, Sabre Red Workspace)
Sirena-Travel JSCS (Sirena PSS, Sirena PNR Management)
KIU System Solutions (KIU PSS, KIU Fare Management)
Increasing Adoption of Mobile Applications and Subscription Models in the Passenger Service System Market
The rising trend of the use of mobile applications within the Passenger Service System (PSS) market demonstrates the airlines' emphasis on boosting the convenience and customization of the passengers. Owing to the rise of smartphone technology and consumers' demands for unified digital experiences, airlines are going for mobile solutions that provide functionalities like booking, check-in, and itineraries management. Passengers can monitor bags, choose seats, view real-time flight information, and pay for additional services via these apps. Personalized functions such as trip suggestions and special offers enhance customer experience and loyalty.
The transition towards subscription-based services, particularly SaaS solutions, reflects a preoccupation with cost-efficient, flexible offerings. Airlines are embracing scalable platforms that scale with varying passenger loads and operational requirements, offering frequent updates, enhanced security, and hassle-free integration with digital products. The strategy assists in modernizing services while streamlining budgets for airlines.
By Component, Services Dominate the Passenger Service System Market with 68% Share in 2023
In 2023, services dominated the Passenger Service System (PSS) market with the biggest market share of 68%. Airlines are dependent on expert services because they lack in-house competence to deal with the complexities of contemporary cloud-based and subscription-based PSS solutions. This leaves a strong demand for ongoing monitoring, tailoring, and strengthened cybersecurity. Moreover, the speed of technology advancements requires regular updates and technical support, and thereby services are an essential element in updating and enhancing PSS functions over software in terms of market share.
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By Service, Airline Reservation Systems Lead the Passenger Service System Market with 32% Share in 2023
In 2023, the Airline Reservation System was the leading Passenger Service System (PSS) player with a share of 32%. This superiority is attributed to its pivotal role in handling flight reservations, ticket sales, and seat assignment, catering to individual travelers, travel agencies, and third-party sites. With the growing trend among airlines to adopt digital operations, the reservation system has emerged as a central concern, interfacing with other systems such as internet booking and loyalty systems. Increasing mobility-driven bookings and travel personalization further reinforce the role of such systems in boosting revenue and customer satisfaction.
By Deployment Mode, On-Premises Lead the Passenger Service System Market with 62% Share in 2023
On-premises captured the largest share of 62% in the Passenger Service System (PSS) market in 2023, led by their security, personalization, and control of data advantages. Several airlines prefer on-premises solutions to keep sensitive passenger information within their own facilities, lowering dependency on third-party cloud vendors and limiting data breach possibilities. The model is highly sought after by legacy carriers and operators in jurisdictions with strict data sovereignty laws. On-premises solutions also provide customized systems for complicated operations, with numerous airlines focusing on reliability and control for core functions such as reservations and departure control.
By Solution, Reservation Management Dominates the Passenger Service System Market
Reservation Management is the market leader in the Passenger Service System market based on its critical function in airlines. It controls flight reservations, ticketing, and seat distribution, thus requiring airlines to be able to properly coordinate with travelers, travel agents, and third-party websites. Reservations systems can be easily integrated with other main functionalities like loyalty and inventory management to enable streamlined processes and customer delight. With digital transformation being the core focus of airlines, optimizing reservations is their priority to boost revenue and operation efficiency, making Reservation Management the leading solution in the PSS segment.
North America Leads the Passenger Service System Market with 49% Share,Asia Pacific Set to Register Fastest Growth in the Passenger Service System Market
North America accounted for the largest passenger service system market share of 49% in the region due to advanced aviations infrastructure, technology adoption rates, and concentrations of major players. US and Canadian carriers with a reputation of being early and willing adopters of new-fangled solutions aim to boost the customer experience as well as internal efficiency. Airlines in these markets intend to migrate to sophisticated PSS platforms ranging from reservations through inventory management and loyalty to customer care systems.
The Asia Pacific will witness the fastest growth in the Passenger Service System market at a projected Compound Annual Growth Rate of 12%. It is driven by the prevailing digitalization trend as industries like aviation are adopting PSS solutions such as online check-in, self-service, mobile applications, and personalized experiences. The growth of the aviation industry, especially in nations such as India, Japan, and China, creates demand for PSS to cope with growing passenger volumes and enhance operational effectiveness.
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