5G in Aviation Market Research, 2030
The global 5G in aviation market size was valued at $0.70 billion in 2020, and is projected to reach $4.68 billion by 2030, registering a CAGR of 22.8%. North America was the highest revenue contributor, accounting for $0.25 billion in 2020, and is estimated to reach $1.74 billion by 2030, with a CAGR of 23.6%.
5G or 5th generation mobile network has the capability to connect practically everyone and everything together comprising objects, devices, and machines. The deployment of 5G technology is gradually increasing across the globe. 5G will considerably increase the speed of data transfer and improve bandwidth over 4th generation or 4G technology, in turn supporting the changing outlook of aviation industry.
Market Dynamics
5G in aviation refers to the 5th generation network utilized for the effective airplane and airport operations. Adoption of the 5G technology in aviation industry enables the improved communication for aircraft and control towers with time effectiveness. 5G network solution enables the transfer of real time information and perform the airport as well as aircraft operation with improved convenience and effectiveness. Rise in focus toward 5G deployment, government initiatives and support for 5G based infrastructural development, and technological advancement on the IoT front and implementation of AI for improved air travel comfort are the key driving factors for 5G in aviation market.
Factors such as upsurge in airline passenger traffic, and government initiatives to support the development of 5G are expected to drive the 5G in aviation market growth. However, high infrastructure cost involved in 5G technology deployment restrain the market growth. On the contrary, contracts and agreements with aviation industry players, and continuous advancements in 5G network are projected to offer lucrative growth opportunities for the market players.
By Communication Infrastructure
Small cell segment is projected as the most lucrative segments
Upsurge in Airline Passenger Traffic
Most passengers across the globe prefer to travel by air than other conventional modes of transportation such as road and sea, as it is the safest and fastest mode of transportation with a few cancelled flights.
This makes air travel more reliable than other modes of transportation and offers comfortable experience during the journey. Though expensive, customers prefer air travel, owing to rise in disposable income followed by reduced travel time. Further, in accordance with the data released by the International Civil Aviation Organization (ICAO), 4.3 billion passengers were carried by airlines in 2018.
Moreover, number of airline passengers is expected to cross 10.0 billion by the year 2040, which creates need for additional aircrafts to transport passengers from point A to point B. The change in aviation industry outlook, and change in air passenger preferences, creates a demand for high-bandwidth, real-time, densely-connected network solutions for operational effectiveness. The continuous upgradation of the aviation assets based on smart technology such as IOT is anticipated to spur the demand for 5G in aviation.
By Technology
eMBB segment is projected as the most lucrative segments
High Infrastructure Cost Involved in 5G Technology Deployment
5G is an ultrafast broadband technology being developed by the government, industrial, and academic stakeholders. The cost of deployment of 5G technology is dependent on factors such as base station price, periodic interest rate, and required throughput density. Some of these costs can be reduced, but the cost reduction will notably affect the quality of the deployed network; therefore, which fails to suit the need for robust connectivity. Many operators upgrade their existing capacity for the 4G macro network through 3G and 2G spectrum instead of installing new infrastructure to save high spectrum costs.
Moreover, these upgrades will not be sufficient for longer time frames and eventually, high investments will have to be made for the installation of the latest 5G infrastructure. For instance, in September 2020, Verizon placed a bid of US$1.89 billion for auction of 3.5 GHz (sub 6Ghz 5G network) Priority Access Licenses (PALs) from the Federal Communications Commission (FCC). Several other companies namely T-Mobile, AT&T, and Dish Network are making huge investments toward the development of the 5G network.
Investments made toward 5G R&D further reduces the short-term margin for the 5G vendors. Furthermore, massive additional costs such as installation costs, site cost, cost of fiber and power distribution, operational costs, and others, have to be paid by the organizations for the establishment of a 5G network. Therefore, high costs associated with 5G infrastructure restrain the growth of the 5G in aviation market.
Contracts and Agreements with Aviation Industry Players
5G network solutions are widely and majorly demanded by commercial as well as general aviation players, and airport operators for effective operations through 5G based systems and network services. This technology acquisition and procurement witnesses open contracts and agreements between aviation players, & airport operators and developers of 5G in aviation related technology.
The commencement of the 5G in aviation solution is expected to be carried out through contracts and agreements between end users and developers of 5G in aviation solutions. These contracts mention a set of requirements that must be met in a certain timeframe. These contracts and agreements are associated with long-term business opportunities with end users. Market participants need to focus on winning the contracts and agreements to gain a competitive advantage and retain long-term business opportunities in the global market.
Segments Overview
The global 5G in aviation market share is segmented on the basis of communication infrastructure, technology, end use, and region. Depending on communication infrastructure, the market is segregated into small cell, DAS, and RAN. By technology, it is categorized into eMBB, URLLC or MMTC, and FWA. Depending on end use, it is fragmented into airport, and aircraft. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Action
Automatic is projected as the most lucrative segments
Competitive Analysis
Leading players and their key business strategies have been analyzed in the 5G in aviation market report to gain a competitive insight into the market. Key players covered in the report include Cisco Systems, Inc., Gogo Inc., Huawei Technologies Co., Ltd., Inseego Corp., Nokia Corporation, OneWeb, Panasonic Avionics Corporation, Qualcomm Technologies, Inc., Smartsky Networks, LLC, and Telefonaktiebolaget LM Ericsson.
5G in Aviation Market
By Region 2030 North America Europe Asia-Pacific LAMEA North America would exhibit the highest CAGR of 7.8% during 2021-2030.
By Region
North America would exhibit the highest CAGR of 7.8% during 2021-2030.
Key Benefits For Stakeholders
This study presents analytical depiction of the global 5G in aviation market analysis along with the 5G in aviation market trends and future estimations to depict imminent investment pockets.
The overall 5G in aviation market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities of the global 5G in aviation industry with a detailed impact analysis.
- The current 5G in aviation market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
5G in Aviation Market Report Highlights
| Aspects | Details |
 By COMMUNICATION INFRASTRUCTURE |
|
 By TECHNOLOGY |
|
 By END USE |
|
 By Region |
|
 Key Market Players | Panasonic Avionics Corporation, Gogo Inc., HUAWEI TECHNOLOGIES CO., LTD., OneWeb, INSEEGO CORP., CISCO SYSTEMS, INC., QUALCOMM TECHNOLOGIES, INC., NOKIA CORPORATION, Smartsky Networks, LLC, TELEFONAKTIEBOLAGET LM ERICSSON |
Analyst Review
The global 5G in aviation market is expected to witness significant growth, owing to the rising demand for 5G services to modernize airports and aircraft operations across the globe with superior interconnection of equipment and aviation assets. Superior communications are a crucial component of any aviation operation and connections must be unfailing, protected, and without interruptions between aircraft and control tower. 5G based technology strengthen the network performance for operational effectiveness. In the recent years, aviation market players focus on adopting 5G solutions to increase speed of internet and reduce network related issues in organizations, thereby positively impacting the growth of the market. North America is a leader in the 5G in aviation market, owing to the changing aviation industry outlook and growth in deployment of 5G network across the region. Furthermore, emerging economies such as Brazil, China, India, Indonesia, Mexico, South Korea and others, are inclined toward development of the well-developed 5G network in the country to support the improved analytics for cross industry requirements.
The global 5G in aviation market is a fairly consolidated market in which limited market participants are operating in the global market. Market participants are focused to develop their sales footprints by entering into long-term contracts and agreements with the aviation industry players. Moreover, market players are focused in the agreement, collaboration, investment, partnership, product development, and product launch, activities to gain competitive advantage. Numerous developments have been carried out by top companies, such as Cisco, Gogo Inc., Huawei, Nokia, Panasonic Avionics, Qualcomm, Ericsson and others, which supplements the growth of the global 5G in aviation market. The impacts of COVID-19 significantly affected the global 5G in aviation market in 2020.
Factors such as upsurge in airline passenger traffic, and government initiatives to support the development of 5G are expected to drive the growth of the 5G in aviation market.
By region, North America dominated the global 5G in aviation market in 2020 in terms of market share.
HUAWEI TECHNOLOGIES CO., LTD., OneWeb, CISCO SYSTEMS, INC., Panasonic Avionics Corporation, QUALCOMM TECHNOLOGIES, INC., TELEFONAKTIEBOLAGET LM ERICSSON, INSEEGO CORP., Smartsky Networks, LLC, NOKIA CORPORATION, Gogo Inc. are key players in the 5G in Aviation market.
The global 5G in aviation market to register a CAGR of 22.8% during 2021-2030.
The global 5G in aviation market was valued at $0.70 billion in 2020, and is projected to reach $4.68 billion by 2030, registering a CAGR of 22.8%.
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