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2019

Ground to Air On-Board Connectivity Market

Ground to Air On-Board Connectivity Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, Technology, Application and End Use : Global Opportunity Analysis and Industry Forecast, 2019-2026

IC : Entertainment & Media Technologies

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Author's: Sneha Korad & Makarand Sinnarkar | Vineet Kumar
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Ground to Air On-Board Connectivity Market Outlook: 2026

The global ground to air on-board connectivity market was valued at $9.68 billion in 2018, and is projected to reach $24.44 billion by 2026, registering a CAGR of 13.8% from 2019 to 2026. The on-board connectivity typically refers to connecting smartphones, tablets, and laptops to the internet services through cellular data, Wi-Fi, or satellite networks on various transportation or travelling modes. As an emerging trend, the on-board connectivity in airplanes, ships, railways, and other modes of transport provides numerous benefits to providers as well as customer that provides access to online content and apps. In addition, it further allows people to book taxi or cab, order food even before flight landing, which in turn saves a lot of time for people.

The entertainment segment dominated the ground to air on-board connectivity market share in 2017 and is expected to continue this trend during the forecast period, due to increase in IT investment in aviation, maritime, and railways by government organizations and several other companies. In addition, increase in demand for live streaming videos and rise in use of social media apps are also drive the growth of this segment.

Ground to Air On-board Connectivity Market

North America dominated the overall ground to air on-board connectivity market in 2017, the U.S. was the major contributor in the region. The dominance of this region is primarily due to the presence of major market players in this region. In addition, availability of strong on ground as well as satellite connectivity is also the major factor that fuels the ground to air on-board connectivity market growth in this region. However, Asia-Pacific has grown significantly in the last few years and is expected to attain the highest CAGR during the forecast period, owing to rise in communication services in countries such as Japan, India, and China. 

The report focuses on the growth prospects, restraints, and trends of the global ground to air on-board connectivity market. The study provides Porter’s five forces analysis of the ground to air on-board connectivity industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the on-board connectivity market growth.

Ground to Air On-Board Connectivity Market
By Component
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Services would exhibit the highest CAGR of 12.7% during 2019-2026.

Segment review

The market is segmented into component, technology, application, end use, and region. Based on component, the ground to air on-board connectivity market is classified into hardware and services. In terms of technology, it is bifurcated into satellite and air to ground. As per application, it is bifurcated into entertainment and communication. By end use, the market is divided into maritime, railway, aviation, and on-road transit. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global ground to air on-board connectivity market is dominated by the key players such as ALE International, Bombardier Inc., Global Eagle Entertainment Inc., Gogo Inc., Honeywell International Inc., Inmarsat Plc., Panasonic Corporation, Rockwell Collins, Thales Group, Viasat, Inc., and others.

Top impacting factors

Current and future on-board connectivity industry trends are outlined to determine the overall attractiveness of the global market. Top impacting factors highlight on-board connectivity market opportunities during the ground to air on-board connectivity market forecast period. Factors such as increase in IT expenditure in aviation, maritime, and railway industries, and rise in disposable income of consumers are expected to fuel market. However, high cost associated with the deployment of on-board connectivity systems is expected to impede the market growth. Furthermore, increase in government initiatives to enhance customer services is expected to provide major opportunities for the ground to air on-board connectivity market growth.

Ground to Air On-Board Connectivity Market
By Application
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Communication would exhibit the highest CAGR of 13.1% during 2019-2026.

Rise in disposable income of consumers

Increase in penetration of smartphones is the major reason for people to become more technologically active and thus, willingly spend more on related services. In addition, rise in disposable income of the people is also the major factor that triggers such technological advancements. For example, disposable income of people in the most populous countries such as India and China has increased over the past few years, which, in turn, has fueled their expenditure on various factors such as, luxury, food, technologies, and others. Moreover, people are willing to spend more for staying connected with their family and friends while travelling. For instance, according to Inmarsat’s Global Inflight Connectivity Survey, 61% people said high-quality inflight Wi-Fi is more important to them than onboard entertainment and 45% people were willing to pay for the on-board Wi-Fi service.

Ground to Air On-Board Connectivity Market
By End Use
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On-road Transit would exhibit the highest CAGR of 15.6% during 2019-2026.

Growth in number of airline passengers

Increase in number of airline passengers worldwide drives the ground to air on-board connectivity market. The reason behind this growth is mainly attributed to tremendous growth in the developing Asian markets, as the new low-cost carriers are providing air fares at reasonable prices, which attracts middle-class people in the region. Moreover, increase in infrastructural investment by governments in this region also plays a vital role in the rise in number of passengers. For instance, according to a report by the International Air Transport Association (IATA) in 2017, the number of passengers in Asia-Pacific increased by 36.3% of market share and 1.5 billion passengers annually. Following Asia-Pacific, Europe accounted for 26.3% market share, with1.1 billion passengers yearly. North America experienced 941.8 million passengers per annum and comprised 23% market share.

Ground to Air On-Board Connectivity Market
By Region
2026
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific would exhibit the highest CAGR of 14.3% during 2019-2026.

Key Benefits for Ground to Air On-Board Connectivity Market :

  • This study presents the analytical depiction of the global ground to air on-board connectivity market trends and future estimations to determine the imminent investment pockets.
  • A detailed ground to air on-board connectivity market analysis of the segments measures the potential of the global market. These segments outline the favorable conditions for the market.
  • The report presents information related to key drivers, restraints, and opportunities.
  • The current ground to air on-board connectivity market size is quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the industry.

Ground to Air On-Board Connectivity Market Report Highlights

Aspects Details
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By Component
  • Hardware
    • Antennas
    • Transceivers
    • Ethernet Switches
    • Wireless Access Point
    • Others
  • Services
    • Managed Service
    • Consulting Service
    • Integration and Implementation Service
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By Application
  • Entertainment
  • Communication
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By End Use
  • Maritime
  • Railway
  • Aviation
  • On-road Transit
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

INMARSAT PLC., HONEYWELL INTERNATIONAL INC., GOGO INC, PANASONIC CORPORATION, ROCKWELL COLLINS (UNITED TECHNOLOGIES), THALES GROUP, Deutsche Telekom AG, GLOBAL EAGLE, BOMBARDIER, ALE INTERNATIONAL

Analyst Review

According to the insights of CXOs of various companies, ground to air on-board connectivity market is expected to witness a significant growth during the forecast period due to increase in IT spending in various transportation industries and growth in consumer disposable income in developing economies. Positive growth in consumer disposable income enables passengers to spend on value added services provided, thereby, drives the growth of the global market. Moreover, on-board connectivity system manufacturers are introducing innovative products to transportation service providers to expand their market share. For instance, in November 2018, Gogo entered into a partnership with Airshare to provide Gogo AVANCE L3 installation across its entire fleet of Embraer Phenom 100 aircraft. This partnership brings connectivity and inflight entertainment to its travelers. Gogo LLC. is one of the leading inflight entertainment and connectivity solutions provider to customers all over the globe. Most of the airlines prefer a solution with minimum operation costs and lower bulk due to limited availability of space on aircraft. As per statistics provided by International Air Transport Association (IATA), the airline industry is witnessing a significant growth in number of airline passengers each year.

Moreover, the demand for on-board connectivity solutions is continuously increasing in Asia-Pacific as well as Europe, which is expected to provide lucrative opportunities for the market expansion during the forecast period. The countries with population more then billion such as China and India create new revenue opportunities for leading vendors operating in the Asia-Pacific region. In addition, growth in consumer disposable income in these countries is expected to drive the market growth for the next few years. Furthermore, the ground to air on-board connectivity market in Asia-Pacific is driven by the growing need for innovative and efficient on-board connectivity infrastructure solutions.

Moreover, in North America and Europe a number of companies mainly focus on the reduction of costs associated with hardware solutions, which has augmented the need for efficient on-board connectivity solutions. In addition, strong network connectivity technology in North America and Europe drives the market growth. 

The global ground to air on-board connectivity market is highly competitive due to strong presence of the existing vendors. On-board connectivity system vendors who have access to extensive technical and financial resources are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the global market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, changing government regulations, and different strategies adopted by the key vendors.
 

Author Name(s) : Sneha Korad & Makarand Sinnarkar | Vineet Kumar

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Ground to Air On-Board Connectivity Market

Global Opportunity Analysis and Industry Forecast, 2019-2026