The on-board global connectivity market is seeing a surge as part of better customer facilities
Surge in IT expenditure in the maritime, aviation, and railway industries coupled with rise in number of airline passengers is driving growth in the global on-board connectivity market. According to Allied Market Research, by 2025 the on-board global connectivity market will reach $36.84 billion at 14.3% CAGR from 2018 to 2025.
The research titled ‘On-Board Connectivity Market by Component, Technology, Application, and End Use: Global Opportunity Analysis and Industry Forecast, 2018–2025’, mentions that a significant increase in disposable income of consumers has resulted in an increase in the number of airline passengers. This is the main reason that has led to the growth in the on-board connectivity market.
The main challenges for on-board connectivity include high initial cost of the systems and connectivity deployments. The report also suggests that the ground to air segment accounts for more than two-thirds of the total share in 2017 and is expected to maintain its dominance in terms of revenue till 2025.
According to SITA Air Transport IT Insights report 2018, the main focus of airline companies while investing on the on-board connectivity is on providing wireless services. Almost three quarters of airlines have a major program or R&D in place to provide wireless in-flight services for passengers and wireless services for cabin crew/pilots.
81% of airlines are taking a step towards aircraft connectivity with full satellite broadband connectivity to the aircraft. The satellite segment will be growing at the highest CAGR of 15.3% between 2018 and 2025, due to requirement of constant high-speed broadband connectivity from steerable spot beams and the ability to offer flexible bandwidth.
Currently airlines like Nok Air, Norwegian Air Shuttle, Qantas and Vueling Airlines provide free on board and ground Wi-Fi. Other airlines like Aer Lingus, China Eastern, Emirates, Etihad, Finnair, Philippine Airlines, Qatar Airways, and Scandinavian Airlines (SAS) have mixed packages of free and paid Wi-Fi.
In the significant rise in demand for connectivity in maritime, aviation, railway, and road transit vehicles; the entertainment segment. It accounts for nearly two-thirds of the total market share and will take the highest prominence (spot) by 2025. With better on-board connectivity, better entertainment and social media will be available for passengers, adding value to their transit time.