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World Aviation Festival growth and significance

Since its inception 21 years ago, the World Aviation Festival has grown from a modest gathering to a major industry event. This year’s festival highlighted this transition, with post-pandemic recovery driving significant attendance and engagement. The rapid growth of the event underscores the relevance and importance of the topics discussed, especially with the aviation industry experiencing a vibrant resurgence, growing 24% to a market worth $1.5 trillion.¹

As a supporter of the event, Microsoft met with industry leaders, customers, and partners to discuss the impact of growth, technological advancements, and a secure future for the industry. Our industry executives participated in three panels covering the topics of:

• Understanding how CEOs are approaching structural industry shifts, potential for growth, sustainability implications, and AI business transformation.
• How will generative AI impact the aviation sector, and what strategies can be employed to harness its potential.
• How can the aviation industry accurately identify risks and develop robust cybersecurity strategies to address global threats.

These panels inspired deeper follow-up conversations with conference attendees who we hosted in our meeting room suite and at our evening customer engagement event along with our industry partners. This provided an excellent opportunity to hear about the challenges and opportunities our customers face in an evolving industry and share success stories from industry peers who are leading change and delivering business results. Attendees were encouraged by this evidence and wanted to learn more about our cloud, AI, and data capabilities, including where we can support:

• Enhancing the employee experience—leveraging AI for communication and collaboration platform and digital tools that create connection and inspire collaboration with more insights.
• Innovating the traveler journey—by unlocking data intelligence to create frictionless, multi-modal travel solutions for customers.
• Creating efficient operations—that improve asset utilization, planning, and management of real-time operational impacts.
• Delivering a more engaging customer experience—to improve customer value, drive growth, and brand affinity.

Addressing aviation industry challenges and opportunities

With the many attendees at the event absorbing information across more than 600 speakers and 327 sessions, the following themes resonated as key to addressing the challenges and opportunities facing the industry.

Importance of information sharing

A recurring theme at the festival was the critical need for enhanced information sharing among airlines and airports. By integrating customer data from the moment a traveler leaves home through their entire travel experience, the industry has a significant opportunity to create personalized offers and services within their own, and extended ecosystems. This seamless customer journey was emphasized as crucial for enhancing the travel experience and operational efficiency. Another impact on information sharing is the operational differences between European and US airports that can impact data sharing and efficiency. European airports often have more integrated operations, which can enhance data sharing and streamline processes.

Focus on technology

The festival also placed a strong emphasis on leveraging new technologies, particularly AI, generative AI, and data analytics. These technologies were viewed as pivotal for the aviation industry’s growth, enabling better customer insights, personalized services, and operational efficiencies. Discussions also covered security and sustainability, highlighting their growing importance in today’s aviation landscape along with the increasing concerns over data privacy.

Legacy systems and new equilibrium

The aviation industry is at a crossroads, balancing legacy systems with the adoption of new technologies. While legacy systems still play a significant role, there is a strong push towards new distribution capabilities (NDC) and standards, such as those set by the International Air Transport Association (IATA). This shift is driven by the need to move away from outdated technologies and embrace solutions that utilize data effectively to enhance customer experience, operational efficiency, and to attract a new and more engaged workforce.

Startups leading the way

Startups are at the forefront of this technological revolution, unburdened by legacy systems and able to implement modern architectures and processes at speed. These innovative and agile companies are leading the charge in adopting new technologies and driving the industry forward. This enables a healthy and needed expansion of the industry ecosystem, and while it might pose some challenges for incumbents to compete, it also provides great opportunities to innovate and partner, further stressing the importance of re-thinking how the industry conducts its business to meet the demands of their customers.

Sustainability

Sustainability is a significant challenge, with the aviation industry aiming to be carbon neutral by 2050.² One area discussed is the introduction of sustainable aviation fuel (SAF). However, shortages of supply make the exploration of alternative fuels and sustainable practices beyond SAF important. For example, some industry scenarios are exploring electrification and hydrogen as a potential for specific use cases that can improve sustainable travel.

Technology enablers

Several key discussions at the festival highlighted the industry’s challenges and opportunities. Conversations with airlines like Alaska Airlines and Emirates provided insights into how AI and personalization technologies are being used to enhance customer experiences.

Agentic AI

While the focus on generative AI was pervasive, we also discussed the interest in AI agents, or agentic agents. Agentic agents are autonomous software programs that perform specific tasks on behalf of and alongside users, making decisions based on data, predefined rules and learning from experience. The benefits include a streamlined and user-friendly booking process, faster bookings, higher conversion rates, around-the-clock availability, personalized recommendations and potential upselling. We found companies were very interested in learning more about successful use cases where agentic AI has delivered results.

Reference architectures

In an environment where technology creates positive disruption that drives transformation, many different paths to an outcome may be explored. Rather than create a “one size fits all” approach to achieving those outcomes, we have created a composable base that partners and customers can leverage to develop their innovations using the Microsoft cloud, Azure, and industry focused reference architectures. This enables development of value-creating solutions on top of the Microsoft Cloud technology stack, helping airlines and airports manage data, break down silos, and improve operations. Customers like Adami and Fraport are leveraging these architectures to integrate data from various sources and enhance operational efficiency. Watch here to learn about our reference architecture for airlines and airports.

One major challenge is unbundling legacy systems that have been in place for decades. These systems need to be updated to utilize data effectively and implement new technologies that can help airlines operate more like e-commerce businesses.

Next steps for aviation industry innovation

The 2024 World Aviation Festival was a testament to the resilience and innovation of the aviation industry. With a focus on new technologies, information sharing, and sustainability, the festival showcased the industry’s commitment to enhancing customer experiences and operational efficiency. We were encouraged by participants’ interest in emerging cloud, data, and AI capabilities which are now seen as driving key competitive differentiation among airlines and a key opportunity to improve airport operations and services.

Moving forward from the event, we now look ahead to our key industry programs including Microsoft Ignite, and the global Microsoft AI Tour series underway, as well as the focus on the overall mobility landscape at CES 2025. We look forward to continue to working closely with our customers, ecosystem and industry to contribute and innovate for an even brighter and exciting future.

To learn more about Microsoft solutions for travel and hospitality, visit Microsoft for travel and transportation.

¹ Travel Professional News, Global travel industry roars back, reaching $1.5 trillion in 2023, August 2024.

² IATA, Net Zero Roadmaps.

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It has been 30 years since author Neal Stephenson’s sci-fi novel Snow Crash appeared and the term metaverse was coined. During that timeframe, we have seen the launch of online networks that embody many of the metaverse’s most important concepts, without ever using the term.

The rebranding of Facebook to Meta in October 2021 significantly increased metaverse conversation, and the hype has been driven by a variety of technology players preemptively claiming to be metaverse companies or to be creating a metaverse.

Metaverse is one of the latest technology buzzwords to hit the headlines. What is it and will it revolutionize everything? The answer is yes, no, and maybe. Is it simply the latest phase in the evolution of business transformation? Certainly, the metaverse expands the traditional notion of an ecosystem into a 21st-century virtual business, social, and collaborative interaction space.

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I hope to shed a bit of light and stimulate conversation about this latest evolution of the internet.

What is the metaverse?

According to Matthew Ball—venture capitalist and author—the metaverse is a massively scaled and interoperable network of real-time rendered 3D virtual worlds that can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.¹

We see it as a set of technologies that allow for persistent digital representation, connected to aspects of the real world. Meta means, “beyond,” and verse means “universe.” Together, the metaverse refers to a virtual world parallel to the real world that can be experienced more completely with technologies such as augmented reality (AR) and virtual reality (VR). These virtual worlds will connect to a social system and fully functioning economy in which data, digital goods, content, and intellectual property (IP) can pass, and individual users, organizations, and companies can create content and goods to ensure that the metaverse continues to expand and evolve.

In 2014, Microsoft acquired Mojang Studios, which launched Minecraft, for $2.5 billion (about $8 per person in the United States) and over time, made virtual reality versions available on Oculus Rift, PlayStation, and Microsoft HoloLens.

The beauty of Minecraft is that like Lego blocks, it offers infinite possibilities within an infinite digital space to allow anyone to create their own metaverse. With over 130 million monthly users, Minecraft is but one early example of the metaverse impacting our daily lives.

The metaverse: An evolution of the internet

The metaverse will not fundamentally replace the internet, but instead, build upon and iteratively transform it. It is a logical evolution of the internet. Just like fixed-line internet ushered in the age of personal computing and mobile internet increased the proliferation of content and access to the internet, the metaverse will place everyone inside a “virtual” version of the internet on a continuous basis. It will enable us to constantly be “within” the internet, creating more immediate experiences.

Technology is extending the imagination boundary

From a technical standpoint, the building blocks of the metaverse, VR, AR, AI, and blockchain are rapidly evolving. VR enables the use of computer simulation to generate a three-dimensional space of the virtual world, and a way to provide the user the visual and other sensory stimulation to feel as if they are in the real world.

Identity and the economic system will leverage blockchain technology to establish credibility. As a distributed database or ledger shared among computer network nodes, blockchain guarantees the accuracy and security of a record of data without the need for a trusted third party.

To ensure the plurality of the metaverse, edge computing technology is needed to ensure a consistent experience for all users.

Metaverse use cases

A quick web search for metaverse shows increased mentions across the entire mobility sector. Microsoft is also active in this space by supporting both the consumer and industrial metaverse. A recent announcement mentioned how Microsoft and Meta are partnering to deliver immersive experiences for the future of work and play. And, at the Microsoft Ignite conference in September, examples of current industrial metaverse applications were shared, like Kawasaki Heavy Industries demonstrating metaverse enabling collaborative spaces for engineers, service technicians, and frontline workers utilizing the Internet of Things (IoT), digital twins, and mixed reality.

Metaverse in automotive

We see the convergence of digital and physical worlds evolving in the automotive industry in areas including virtual vehicle design and physical production, led by real-time collaboration on engineering design and materials.

In manufacturing and supply chain operations, the metaverse and digital twin models are enabling rapid production processes that require significantly less physical testing, improving efficiency. This results in reduced risk and improved quality control with detailed, physics-based designs to shrink the margin of error for production. A metaverse-based digital twin can also be used to streamline and optimize supply chain management, from product design through procurement, manufacturing, and inventory.

With vehicle sales, the metaverse is bridging the gap between the dealership and customers opting for online purchasing. 2D and 3D solutions in this space are offering virtual viewing of vehicles, test drives, and explanations of complex technology features to create a more fluid customer journey and buying experience for consumers.

Opportunities to enhance the in-car customer experience are also being explored. Entertainment, gaming, and productivity are all potential opportunities that can engage vehicle occupants where appropriate. When it comes to service, the metaverse is accelerating the upskill of existing technicians and enabling remote virtual diagnostics and repair of vehicles. This touchless, frictionless approach will result in greater customer satisfaction to improved customer retention.

Metaverse in transportation

While some argue that the metaverse will enable more satisfying virtual social interaction and therefore less need for physical mobility, others look towards a more efficient multi-modal mobility future.

The metaverse will enable intelligently networked, constantly evolving, and integrated multi-modal transportation networks. By leveraging digital twins of physical infrastructure like airports and major roadway systems, all the way down to transit infrastructure, the coordination of transporting people and goods will improve dramatically. With AI automation dynamically creating less friction between origins, stops, and destinations, travelers will plan and execute journeys across multiple transportation modes in an increasingly more cost-effective and efficient manner as these services become part of the larger metaverse network.

Metaverse in travel and hospitality

While the metaverse cannot replace travel, it can enable the travel industry to provide enhanced experiences and the opportunity to engage with the customer more deeply with new and unexpected adventures.

The metaverse will help the hospitality business meet evolving guest expectations. In the area of pre-travel planning, a virtual concierge can enable travelers to take virtual, three-dimensional walkthroughs of hotel room options, airport terminals, destinations, and attractions. The objective will be to provide travelers with options and a clear idea of what they might expect when they visit their destination. This will enhance the booking experience, improve guest satisfaction, and increase booking volume.

Status—where are we now?

As I have shared, there are several examples of actual metaverse scenarios impacting the industry today. There are also many opportunities yet to be explored as the technology is still in its initial stages. As these examples continue to develop, we see metaverse experiences classified as industrial or consumer metaverse, further defining the intended applications. In either application, removing walled gardens is important to ensure continued growth and adoption. This means that the metaverse will require a mutually agreed-upon set of underlying standards that make it possible for people to live, work, and play in the metaverse together and to move between different instances with persistent digital identities and profiles.

Other key elements will include the creator economy, universally accepted rules of behavior, recognition of digital currencies and a means of converting them into real-world currencies, digital object ownership rights, security standards and processes, and Web 3.0.

Web 3.0 and the metaverse

In Web 1.0, internet browsers connected everyone online. Web 2.0 extended this connectivity and has revolutionized the availability, speed, and access to information and transformed the way we connect and interact with people and the world around us.

Web 3.0 is known as the next generation of the internet. It will introduce new capabilities such as blockchain with aspirations to become more equitable, transparent, and decentralized, concentrating the power (and data) in the hands of users, instead of entities. It will analyze, understand, intelligently integrate, and interpret information to provide users with an enhanced, hyper-personalized, and interactive experience.

While Web 3.0 is focused on who will own and control tomorrow’s decentralized internet, the metaverse is focused on new ways in which users will experience the internet of the future. Web 3.0 and the metaverse complement each other, with Web 3.0 serving as the basis for connectivity in the metaverse, and the creator economy in the metaverse supplementing the vision of Web 3.0.

What’s next

We have only begun to scratch the surface of possibilities with the metaverse. It will continue to be an evolving platform that will dramatically change the way we interact with the world around us. From an industrial metaverse or consumer metaverse point of view, we see growing interest, application, and exploration of metaverse capabilities in the broader mobility industry, and with adjacent industries like retail, banking and insurance, and energy as well. The future may well be shaped by the visions created within the metaverse today.

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¹Framework for the Metaverse, The Metaverse Primer, MatthewBall.vc.

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Microsoft is certainly no stranger to transforming industries, from financial services and healthcare to retail, manufacturing, and others, we are focused on empowering companies to innovate and thrive in today’s evolving business environments. Automotive has been no exception and we now have expanded scope on mobility and transportation to provide a more holistic view on the movement of people and goods.

CES has acknowledged the increasing role that technology, data, and evolving consumer experiences have played in the automotive industry by creating a dedicated automotive industry hall at the annual electronics show. Given this opportunity, Microsoft will again participate at CES, January 5 through 8, 2022, where the industry represents the latest advances, industry innovations, and future ambitions. Register for CES 2022 today. Microsoft will focus its innovation on the future of mobility with an on-floor and digital presence where we will demonstrate our unique industry capabilities supported by our core Microsoft solutions including, Microsoft Azure, Microsoft Dynamics 365, Microsoft 365, Microsoft Teams, and Microsoft Power Platform, built on an intelligent and secure cloud. Together, these solutions enable an “ecosystem of innovation”, including:

Accelerated innovation

Beginning with innovation, we will focus here on advanced engineering, connected, autonomous, and software-defined vehicles. The static display of a turbo-hybrid Formula 1® car in the Microsoft booth will certainly gain attention but not for the reasons you may think. This is not a focus on the speed of Formula 1®, rather the speed of engineering. Alpine F1 leverages real-time data analytics to dramatically shorten the cycle of design to production in the high-pressure environment of a Formula 1® race weekend, highlighting what is possible with advanced, digital engineering capabilities. With Ansys, we will demonstrate the power of high-performance computing (HPC) and simulation to rapidly innovate and validate design ideas over traditional methods. With the advancement of driver-assisted and driverless systems, dSPACE will demonstrate how they are improving the success, safety, and homologation of advanced driver assistance systems, autonomous vehicles, and toolchains. As the shift to digital continues, we see Bosch advancing the platform to support the development and deployment of the software-defined vehicle.

Mobility services

According to a Mckinsey industry study, one-third of all miles driven will be shared in 2030. With the increase of electric vehicles and growing opportunities for connectivity, driven by advances in communications like 5G, mobility is transitioning far beyond just single-car ownership. Mobility itself will evolve from singular experiences inside the vehicle as a single system to a much broader ecosystem encompassing players far beyond core automotive. We will see collaboration across financial services, retail, gaming, and logistics as well as energy, utilities, and smarter cities. With our presence at CES, Wejo, Accenture, and Brightdrop will show us how the new data currency is enabling and monetizing these transactions across the ecosystem, and, how advances in electrification are providing smart fleet and delivery solutions for a more sustainable transportation network.

Customer experiences   

As in other industries, customers are demanding more personalized, and seamless interaction with the world around them through more frictionless interfaces. These very impactful disruptions drive opportunities for original equipment manufacturers (OEMs) and suppliers to create new experiences that can drive deep engagements over the lifecycle of product ownership, including Mercedes-Benz, and MØller Mobility Group, a customer example that demonstrates how Annata is transforming digital sales, service and customer engagement.

Resilient operations

Nearly every industry has felt deep impacts by supply chain disruptions. Having an efficient, resilient supply chain is no longer a “nice to have”. It is the imperative that will mark the success or failure of future advancements in the industry. With a focus on smart factory and supply chain innovation, PwC and ZF will light up a key success story along with PTC who will demonstrate data-driven industrial IoT solutions that optimize operations and improve KPIs.

Driving the future of mobility.

Through these experiences at the Microsoft booth, we will share our key differentiators that are enabling a sustainable, secure, and open ecosystem. As stated by Sanjay Ravi, General Manager for Microsoft’s automotive, mobility, and transportation industry:

“There has been tremendous dynamics affecting the automotive, mobility, and transportation industries. The past two years have been exceptionally challenging but has also created opportunities for companies to drive significant innovation. You will get to experience many of these innovations with our customers and partners at CES. We are excited to demonstrate how we are uniquely positioned to enable, and not compete with the broader ecosystem to innovate. Built on the foundation of security and trust, our partner and core Microsoft solutions empower a hybrid, diverse workforce to do their best work to create solutions that drive real impact.”

We are excited to share our vision for innovation around automotive, mobility, and transportation at CES 2022 and encourage you to visit with us at booth #4029 in the Las Vegas Convention Center West Hall.

Register for CES 2022 today.

To learn more about Microsoft in automotive, mobility, and transportation, visit the future of automotive industry solutions.

References: ¹McKinsey, Accenture Microsoft Analysis

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In a recent survey conducted and published by KPMG, automotive executives weighed in on the future of the automotive industry, and discussed how the emergence of autonomous driving is poised to profoundly transform the criteria used by customers in selecting an automobile—before consumer automobile ownership falls off all together. As autonomous driving technology becomes the norm, 2 out of 3 executives surveyed at least partially agree that the current criteria used by consumers will soon be rendered either irrelevant or commoditized. The entire automotive industry is poised for transformation as consumer car ownership becomes a thing of the past—in a shift to mobility-as-a-service.

As automotive companies look to the future, it is becoming more and more apparent that autonomous driving will transform the way consumers think about cars. Soon, customers will care less about what they can do with a vehicle and more about what they can do in a vehicle they utilize as a service, like Uber or Lyft. The popular cars of the future will be equipped to facilitate productivity while providing cutting edge in-vehicle infotainment services leaning on a new generation of IoT products, and they will be owned in large fleets by companies instead of individually by consumers. Mobility-as-a-service represents a new opportunity for monetization, leading to new and diverse revenue opportunities for the companies that can grab a share of the market. With so much opportunity on the line, automotive companies first need to get there—and to get there first—to position themselves to capitalize.

The long road ahead—leveraging deep learning to provide safety and peace of mind to a generation of passengers

While the technology behind autonomous vehicles has advanced by leaps and bounds as companies continue to invest, safety and trust remain the two obstacles to achieve NHTSA level 4 classification. To achieve this level of safety, massive amounts of training and testing is required.

In a recent study by non-profit research organization Randcorp entitled, Driving to Safety: How Many Miles of Driving Would It Take to Demonstrate Autonomous Vehicle Reliability, researchers concluded that 10 billion miles of testing is required to reach the NHTSA level 4 classification.

To reach this goal, automotive companies need to leverage deep learning and digitally recreate the physical world to train and validate autonomous vehicles by leveraging hyper-cloud infrastructure to hasten the process—all while ingesting and processing massive amounts of data from test fleets almost daily.

Training and testing autonomous vehicles requires data ingestion of LIDAR, video, and other sensor data from geographically dispersed test fleets. Sampling and data-wrangling to abstract the data for training is a highly labor-intensive process. Moreover, even though there is a significant reduction in the size of the data, the image training jobs are still run on very large datasets that require the ability to scale as high as 128 GPUs as increasingly higher camera resolution is adopted. This makes it increasingly difficult to secure a turnaround time before the next ingestion cycle commences as models must be trained and ground truth must be updated before new data can be utilized.

Furthermore, once an algorithm is trained, the logical controls and vehicle design spec must be digitally validated. Essentially, it is one giant validation control loop exercise where once the algorithm is updated, the vehicle performance must also be confirmed. In sum, you have massive ingestion, storage, and compute needs—all of which are very difficult to accommodate via on-premise infrastructure in the race to be first to hit level 4 certification.

High-powered GPUs such as those found in Azure’s datacenters are essential for enabling the processes necessary for deep learning. These GPUs can train large data sets at scale, cutting the time necessary to train neural networks dramatically.

A gating factor for many organizations is they are either unwilling or unable to expend the upfront capital required to build compute, storage, and networking assets at the edge where their test fleets are. By leveraging Microsoft Azure, manufacturers can take advantage of the same high-powered GPUs without investing in costly infrastructure that also rapidly becomes obsolete.

Microsoft Azure is the platform best positioned to help automotive companies win the race to fully autonomous vehicles. In addition to possessing large scale capacity of GPUs on the cloud, Microsoft offers support for all major deep learning frameworks, support for specialized hardware including Infiniband-equipped clusters for multi-node scaling and PaaS-type capabilities that provide this scaling as a managed service. By offering scaling compute power as a managed   service, customers can save time and reduce costs, as compute resources automatically scale as needed preventing unnecessary spend on provisioning time. Moreover, Microsoft has access to ingestion tools, broad, open, and transparent support for container standards and a proven track record managing global, multisite, distributed big data implementations.

The end of the road—the future of smart and connected cities

The Microsoft Azure platform is not only the development and testing platform but also the runtime platform at scale required for the successful deployment of fully autonomous vehicles—a crucial step with broad implications for the future of intelligent transportation and mobility-as-a-service which Microsoft is uniquely situated to service. Vehicle-to-everything (V2X) initiatives promise a future where these connected and autonomous vehicles become vital sources of data in a connected, urban setting. These vehicles will communicate information with other vehicles, infrastructure, and public services regarding accidents, road conditions, and other key data—allowing others to intelligently avoid adverse road conditions, high-traffic areas, and crash sites, preventing traffic blockages, shortening commutes, and improving safety.

An autonomous vehicle would never be constrained to park near its passenger’s destination, enabling it to vacate heavily trafficked downtown areas to relieve congestion and at least partially eliminate the need to construct large parking centers in densely populated areas. Further, local events with large attendances can be more easily accessible, reducing the need for police to monitor traffic and ward against accidents involving thousands of vehicles and pedestrians entering and exiting large parking areas. As a source of data, autonomous vehicles can become the listening mechanism by which city officials monitor and improve the infrastructure we interact with every day, optimizing the way in which traffic flows through the city, providing valuable feedback on the construction of new roadways, and keeping the city up to date and maintained. Autonomous vehicles and mobility-as-a-service also stand to revolutionize access in urban spaces, providing safe and affordable transportation to passengers who otherwise couldn’t operate a vehicle including elderly and disabled citizens and children – who may no longer need to be shuttled from place to place by their busy parents.

The impact of autonomous vehicles and mobility-as-a-service will ultimately be felt across multiple industries. Electric vehicles could communicate with charging stations throughout the city, charging themselves while their owners are at work. Renewable energies can be more efficiently siphoned into these charging stations, reducing the need for excess energy to be stored in batteries. Ultimately, all of these initiatives are intertwined, and stand to have an impact spanning far beyond the automotive industry, helping to revolutionize the energy and public-sector industries to name only a few.

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44 companies have announced significant autonomous vehicle investments—a number that should continue to grow. Microsoft Azure has the hyper-scale cloud and hyper-scale network to cover the end-to-end workflow needed to train autonomous vehicles at scale, with the performance to meet required turnaround times in a secure way without an upfront investment in infrastructure. Let us help you take the future of intelligent products out of your imaginations and onto the road.

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