The demand for on-board connectivity is expected to thrive at a robust growth rate, fueled by various factors such as increasing consumer disposable income and the liberalization of the transportation sector in emerging markets. This burgeoning market is poised for significant expansion, with the market size projected to reach $30.24 billion in 2024 and $60.83 billion by 2031, growing at a CAGR of 10.5%. This offers a wide array of opportunities for stakeholders and industry players.
Industries are leveraging on-board connectivity for various applications, such as providing in-air connectivity through satellites for communication, entertainment, and more. This trend is expected to augment market demand significantly. The rising consumer disposable income and liberalization of the transportation sector in emerging markets are other major factors boosting the demand for connectivity solutions.
The surge in the use of portable electronic devices and the growing inclination of people to travel by air are creating substantial opportunities for this market. Various regulatory frameworks and certifications are in place, contributing to market expansion. The mounting demand for Wi-Fi connectivity and technological developments are also driving market growth.
Companies are making significant investments in installing connectivity solutions. For instance, Inmarsat PLC has invested heavily in global satellite networks, with a strategy for further investment. The demand for high-speed and network connectivity by passengers is driving investment in networking equipment. Government initiatives to enhance customer services are providing substantial opportunities for vendors, as airlines, railways, and marine sectors emphasize the installation of connectivity services.
A key trend boosting market growth is the growing ancillary revenues. Connectivity providers aim to offer global Ka band coverage, with lower prices expected due to reduced connectivity costs. Additionally, companies generate more revenue from advertisements and sponsorships.
However, the benefits of the Internet of Things (IoT) are majorly being experienced in the consumer domain, such as transport, which comprises aviation, maritime, railway, and other road transits. This drives market growth. Additionally, the growth in the use of social media and the trend of staying connected with friends and family through various apps are major factors providing opportunities for market growth.
The increase in smartphone penetration is a significant reason for people becoming more technologically active and willing to spend more on related services. The rise in disposable income is also a major factor triggering technological advancements. The growing number of airline passengers worldwide is another major driver, attributed to the tremendous growth in developing Asian markets, where new low-cost carriers are attracting middle-class travelers with reasonable airfares.
The Asia-Pacific market has also grown significantly and is expected to attain a substantial share, driven by the rise in communication services in countries such as Japan, India, and China. Passengers in the Asia-Pacific region have high expectations for connectivity, with many willing to pay for Wi-Fi on long-distance flights, providing major opportunities for market growth.
This product will be delivered within 1-3 business days.
Factors Influencing the Growth of the On-Board Connectivity Market
The increase in the number of air passengers globally is acting as a major catalyst for investment in this market. Additionally, the bolstering use of portable electronic devices and the rise in disposable income are expected to accelerate the growth of the on-board connectivity market. Emerging trends show that on-board connectivity in railways, airplanes, ships, and other modes of transport provides substantial benefits to both providers and customers. Liberalization of transportation in emerging markets and increased investment in maritime, aviation, and railway sectors in on-board connectivity technology are key drivers of market demand.Industries are leveraging on-board connectivity for various applications, such as providing in-air connectivity through satellites for communication, entertainment, and more. This trend is expected to augment market demand significantly. The rising consumer disposable income and liberalization of the transportation sector in emerging markets are other major factors boosting the demand for connectivity solutions.
Lucrative Opportunities in the On-Board Connectivity Market
Current and future industry trends are outlined to determine the overall attractiveness of the global market. Factors such as the rise in disposable income of consumers are expected to fuel market demand. The growth in the number of airline passengers in recent years is a major driver for this market. Increased government initiatives to enhance customer services are also expected to provide significant opportunities for market growth.The surge in the use of portable electronic devices and the growing inclination of people to travel by air are creating substantial opportunities for this market. Various regulatory frameworks and certifications are in place, contributing to market expansion. The mounting demand for Wi-Fi connectivity and technological developments are also driving market growth.
Companies are making significant investments in installing connectivity solutions. For instance, Inmarsat PLC has invested heavily in global satellite networks, with a strategy for further investment. The demand for high-speed and network connectivity by passengers is driving investment in networking equipment. Government initiatives to enhance customer services are providing substantial opportunities for vendors, as airlines, railways, and marine sectors emphasize the installation of connectivity services.
A key trend boosting market growth is the growing ancillary revenues. Connectivity providers aim to offer global Ka band coverage, with lower prices expected due to reduced connectivity costs. Additionally, companies generate more revenue from advertisements and sponsorships.
Challenges Faced by the On-Board Connectivity Market
Despite numerous benefits, the on-board connectivity market faces several challenges. The high cost associated with the deployment of on-board connectivity systems is expected to hamper market growth. Connectivity issues are also a major factor anticipated to impede growth, as high-speed trains move quickly from one cellular tower to another. The high cost of deploying connectivity equipment on airplanes, which increases the overall weight of aircraft, is another factor expected to hinder market growth.However, the benefits of the Internet of Things (IoT) are majorly being experienced in the consumer domain, such as transport, which comprises aviation, maritime, railway, and other road transits. This drives market growth. Additionally, the growth in the use of social media and the trend of staying connected with friends and family through various apps are major factors providing opportunities for market growth.
The increase in smartphone penetration is a significant reason for people becoming more technologically active and willing to spend more on related services. The rise in disposable income is also a major factor triggering technological advancements. The growing number of airline passengers worldwide is another major driver, attributed to the tremendous growth in developing Asian markets, where new low-cost carriers are attracting middle-class travelers with reasonable airfares.
Segmentation Outlook for the On-Board Connectivity Market
The on-board connectivity market is segmented into transportation, application, and region. Based on transportation, the aviation segment is expected to experience significant growth. Many private jet and commercial airline companies use in-cabin Wi-Fi systems and inflight internet provided either through satellite or air-to-ground networks. Airplanes deliver Wi-Fi using air-to-ground services or increasingly through satellite-based services. There is a rise in IT spending in the aviation industry, further decreasing operating expenditure. Modern technologies such as IoT, wireless connectivity, automated solutions, and check-in kiosks can be installed. For instance, Boeing was the first to implement inflight connectivity with its Connexion service.Application Outlook: Entertainment Segment Leading the Way
Based on application, the entertainment segment is anticipated to grow rapidly. This segment dominates the on-board connectivity market share due to increased IT investment in aviation, maritime, and railways by government organizations and several companies. The rising demand for live streaming videos and the use of social media apps are also major factors driving growth.Regional Insights: Key Markets for On-Board Connectivity
North America dominates the on-board connectivity market, owing to technological advancements and strong adoption and penetration of on-board connectivity platforms. The presence of major key players, increasing IT investments, and significant investment by leading vendors to enhance travel experiences are some factors driving market growth in North America.The Asia-Pacific market has also grown significantly and is expected to attain a substantial share, driven by the rise in communication services in countries such as Japan, India, and China. Passengers in the Asia-Pacific region have high expectations for connectivity, with many willing to pay for Wi-Fi on long-distance flights, providing major opportunities for market growth.
Competitive Analysis: Key Players and Strategies
Top companies in the global on-board connectivity market include ALE International, Huawei, ZTE Corporation, Nokia, Bombardier Inc., Global Eagle Entertainment Inc., Gogo Inc., Honeywell International Inc., Inmarsat Plc., Panasonic Corporation, Rockwell Collins, Thales Group, and Viasat, Inc. These companies are focused on industry collaborations, mergers & acquisitions, and partnerships to strengthen their market position.Key Companies Profiled
- ALE International
- Bombardier Inc.
- Huawei
- ZTE Corporation
- Nokia
- Global Eagle Entertainment Inc.
- Gogo Inc.
- Honeywell International Inc.
- Inmarsat Plc.
- Panasonic Corporation
- Rockwell Collins
- Thales Group
- Viasat, Inc.
Key Segments Covered in the On-board Connectivity Market Study
On-board Connectivity by Transportation
- Aviation On-board Connectivity
- Maritime On-board Connectivity
- Railways On-board Connectivity
On-board Connectivity by Application
- On-board Connectivity for Entertainment
- On-board Connectivity for Monitoring
- On-board Connectivity for Communication
On-board Connectivity by Region
- North America On-board Connectivity Market
- Europe On-board Connectivity Market
- Asia Pacific On-board Connectivity Market
- Middle East and Africa On-board Connectivity Market
- South America On-board Connectivity Market
This product will be delivered within 1-3 business days.
Table of Contents
1. Executive Summary
2. Market Overview
3. Global On-board Connectivity Market Outlook, 2018 - 2031
4. North America On-board Connectivity Market Outlook, 2018 - 2031
5. Europe On-board Connectivity Market Outlook, 2018 - 2031
6. Asia Pacific On-board Connectivity Market Outlook, 2018 - 2031
7. Latin America On-board Connectivity Market Outlook, 2018 - 2031
8. Middle East & Africa On-board Connectivity Market Outlook, 2018 - 2031
9. Competitive Landscape
10. Appendix
Companies Mentioned
- AT&T Inc.
- Bombardier Aerospace
- Honeywell International Inc.
- Huawei Technologies Co., Ltd
- Panasonic Corporation
- Nomad Digital
- Qualcomm Inc.
- Rockwell Collins
- ZTE Corporation
Methodology
LOADING...
