Market Trends of On-board Connectivity Industry
This section covers the major market trends shaping the On-Board Connectivity Market according to our research experts:
Aviation Industry Expected to Witness Significant Growth
Many commercial airlines and private jet companies use in-cabin Wi-Fi systems and inflight internet provided either through a satellite or air to the ground network. Airplanes deliver Wi-Fi either using air-to-ground services (connecting to towers on the ground that deliver data to smartphone or laptop) or through increasingly satellite-based service. There is a rise in IT spending in the aviation industry which will further decrease operating expenditure and modern technologies such as the Internet of Things (IoT), wireless connectivity, automated solutions, and check-in kiosks can be installed.
For instance, Airplane manufacturer Boeing was the first to implement inflight connectivity. Boeing's inflight online internet connectivity service Connexion was designed to deliver in-flight broadband to commercial airlines and private jets.
Airbus A380 provides data communication via a satellite system that allows travelers to connect to the internet from individual in-flight entertainment units.
According to a survey conducted by Inmarsat, around 44 % of the passengers are no longer interested in flying with their preferred airline in the coming years if they are not offered in-flight connectivity. Many new aviation technologies are being developed to improve an aircraft’s ability to deliver fast and uninterrupted inflight Wi-Fi. For example, ATG-4 is one such technology with four antenna placed strategically along a plane's fuselage.
North America Expected to Hold Significant Market Share
North America is expected to hold a significant share in the on-board connectivity market during the forecast period. Growth in this region is due to technological advancements and strong adoption and penetration of on-board connectivity platform across the region. Additionally, presence of major key players in countries of North America along with increasing IT and huge investment by leading vendors to enhance travelling experience are some factors expected to drive the growth of the North America market.
In the United States, all electronic devices can be left on during take-off and landing with airlines that have proven to Federal Aviation Authority (FAA) officials that these devices won’t interfere with their equipment. There is an increase in investments by government organizations in this region.
According to Gogo which provides inflight broadband internet service for business aircraft, the market for onboard connectivity in this region is becoming saturated, and demand is lowering due to increase in the on-board connectivity services provided by airlines outside North America region.
