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he aerospace industry is vast (in 2018, revenues were US$838 billion),
complex, and interconnected — and growing rapidly. Demand for
new commercial aircraft may reach approximately 40,000 planes over
the next 20 years. As the companies that manufacture, operate, and
service aircraft expand, they are seeking out AI, 3D printing, and other capabili-
ties, technologies, and tools that will allow them to optimize perform ance. There’s
another cutting-edge technology they should consider: blockchain.
W hat does blockchain, most closely associated in the public mind with cr yp-
tocurrencies, have to do with the process of moving 250-ton machines through
the air? Simply put, what the aerospace industry doesn’t know about its planes is
costing it serious money. Having a more accurate view of a plane’s configuration
and maintenance his tory could help re-
duce costs and losses, boost asset avail-
ability and increase the value of planes
in the secondary market and at the end
of leases, and improve worker product-
ivity. And blockchain has some unique
attributes that will enable it to serve as
a powerful tool to help the industry. PwC analysis has found that efficiency gains
enabled by blockchain could in crease in dustry revenue by as much as 4 percent
annually, or $40 billion, while cutting maintenance, repair, and overhaul (MRO)
costs by about 5 percent annually, or $3.5 billion. So it’s not surprising that near-
ly a quarter (24 percent) of aerospace and defense executives who participated in
PwC’s 2018 Digital Trust Insights Survey said blockchain was critical to all their
lines of business, compared with 20 percent for all respondents across sectors.Blockchain’s benefits for
the aviation industry
Sharing data about aircraft history, maintenance,
and operations could improve aerospace businesses.
by Chuck Marx, Rachel Parker Sealy, and Scott ThompsonWhat the aerospace industry
doesn’t know about its planes
is costing it serious money.
Having a more accurate view
could help reduce losses.