On-board Connectivity Market: Outlook, Trend, Growth And Share Estimation Analys
Posted by surendra choudhary on January 28th, 2021
On-board Connectivity Market - Snapshot
On-board connectivity refers to internet connectivity in aircrafts, ships, railways, or other transportation systems. On-board connectivity services offer wireless internet access, mobile phone internet access, data sharing services, and group internet packages. These services allow mobile devices to send and receive text messages and multi-media messages. Rising consumer disposable income and liberalization of the transportation sector in emerging markets is expected to boost the demand for connectivity solutions in the coming years. The market for on-board connectivity is estimated to rise to US$ 43.20 Bn by 2026, recording a CAGR of 13.8%.
The on-board connectivity market has experienced substantial growth due to increasing use of portable electronic devices.The proliferation of devices on-board an airplane, train, or ship is further fuelling the demand to deploy equipment enabling on-board Wi-Fi. People across the globe are relying on airways and railways as one the safest modes of transportation. The growing number of air passengers worldwide is acting as a major catalyst for rising investment in on-board connectivity. The global on-board connectivity market is anticipated to grow significantly during the forecast period, attributed to rising IT spending in the aviation industry. Companies are investing huge amounts to install connectivity solutions. For instance, Inmarsat has invested billions in wholly-owned and operated global satellite networks, and has a strategy for further investment. The investment in networking equipment is growing due to the increasing demand for high speed and network connectivity by passengers.
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However, high cost associated with the deployment of equipment enabling on-board connectivity isexpected to hamper the largescale adoption of on-board connectivity. For instance, installing tools on every flight can be expensive for airlines. This means the price of Wi-Fi services is expected to be much more than what customers pay for 4G data that is available on public Wi-Fi networks on the ground. Thus, high initial cost of deployment to offer smart and add-on services and security solutions to commuters is expected to limit the growth of the on-board connectivity market. Nevertheless, government initiatives to enhance customer services are providing huge opportunities to vendors as most airlines, railways, and marines are emphasizing on the installation of connectivity services.
A key trend boosting market growth is the growing ancillary revenues. In an on-board connectivity market, connectivity providers are aiming at offering global Ka band coverage. Prices are expected to be lower due to lower connectivity costs. Moreover, companies tend to generate more revenues from advertisement and sponsorship.
The on-board connectivity market is segmented on the basis of transportation and application. On the basis of transportation, the market has been segmented into aviation, maritime, and railways. Based on application, the market is segmented into entertainment, monitoring, and communication. Aviation is expected to hold majority share in the global market in 2018 due to rising demand for in-flight broadband connectivity.
From a geographical viewpoint, North America is anticipated to hold a major share in the on-board connectivity market in 2018. Growth in this region is attributed to strong adoption and penetration of on-board connectivity platform, services, as well as technological advancements across the region. The market in Asia Pacific is expected to witness strong growth due to rising demand for on-board Wi-Fi in countries such as India, Japan, and China. Furthermore, the markets in Middle East & Africa (MEA) and South America are also expected to grow significantly during the forecast period.
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Rising awareness and adoption of on-board connectivity across Asia Pacific and South Americais providing new opportunities for key players operating in the global on-board connectivity market. Airlines and railways in Asia Pacific require on-board connectivity solutions due to the rising need for monitoring and communication.
Attracted by this quickly expanding market, various technological advancements, and increasing trend of on-board connectivity, many players are driven to develop comprehensive services. Existing vendors are rapidly escalating their distribution network in order to influence the most distant clients. Some of the key players profiled in the on-board connectivity market report include Alcatel-Lucent S.A, AT&T Inc., Bombardier Aerospace, Honeywell International Inc., Huawei Technologies Co., Ltd, Panasonic Corporation, Qualcomm Inc., Rockwell Collins, and ZTE Corporation
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About the Authorsurendra choudhary
Joined: February 12th, 2019
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