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According to Stratistics MRC, the Global On-Board Connectivity Market is accounted for $8.70 billion in 2022 and is expected to reach $17.37 billion by 2028 growing at a CAGR of 12.2% during the forecast period. On-board connectivity refers to internet access aboard aircraft, ships, railroads, or other modes of transportation. Safety for the crew and patients, operational effectiveness, patient care, and communication are all advantages of on-board connection. Satellite and wireless networking technologies are both utilised to provide on-board connectivity. LTE, Wi-Fi, HSPA, and WIMAX are examples of wireless technology.
According to a survey conducted by Inmarsat, around 44 % of the passengers are no longer interested in flying with their preferred airline in the coming years if they are not offered in-flight connectivity.
Market Dynamics:
Driver:
Increase in IT expenditure in the aviation, railway and maritime industry
The benefits of the Internet of Things are mostly felt in the consumer sector, such as transportation, which includes aircraft, maritime, railroad, and other forms of road transit. This, in turn, propels the market for on-board connectivity to expand. Additionally, adding on-board networking devices to the systems of ships, trains, and aeroplanes offers more capability. Also, it enables service providers to amuse customers while they are travelling, which in turn helps draw in additional customers. This is the main element driving the market's expansion.
Restraint:
High cost
On-Board Connectivity market expansion is anticipated to be constrained by the high cost of on-board connectivity system adoption. In addition, installing on-board networking technology on aeroplanes is expensive and adds to the total weight of the aircraft. During the anticipated period, this aspect is anticipated to restrain the market's expansion for on-board connectivity.
Opportunity:
Growth in number of airline passengers
The primary driver propelling the market for on-board connectivity is an increase in airline passengers globally. Due to the new low-cost airlines' affordable flight prices, which are luring the region's middle class, the main cause of this growth can be linked to the rapid expansion of the growing Asian markets. Additionally, a key factor in the increase of passengers is the region's governments' increased investment in infrastructure. Thus, all these factors are contributing toward the growth of the market and are expected to provide major opportunities throughout the forecast years.
Threat:
Connectivity issue
On-board connectivity offers various benefits, including deeper win insights and attribution around drivers, as well as improved sales targeting efficiency, but it also has some limitations. As high-speed trains move quickly from one cellular tower to another, connectivity is expected to be one of the primary factors impeding market growth.
Covid-19 Impact
The usage of internet services expanded significantly during the COVID-19 pandemic. However, there is less demand for online connectivity services because to the fall in travel and tourism brought on by the closing of country borders during the pandemic. In order to stabilise financial issues, a lot of privately owned transportation service providers delayed their planned investments during this period. Furthermore, many governments' tight lockdown policies have halted logistical services, which has ultimately limited the market's expansion for onboard connectivity. The worldwide on-board connectivity market's expansion in 2020 was constrained by these issues.
The entertainment segment is expected to be the largest during the forecast period
The entertainment segment is estimated to have a lucrative growth, due to a rise in IT investments by government agencies and numerous other businesses in the fields of aviation, shipping, and railroads. Additionally, the demand for live streaming videos and the increased use of social media apps are the two main reasons promoting the expansion of this market.
The aviation segment is expected to have the highest CAGR during the forecast period
The aviation segment is anticipated to witness the fastest CAGR growth during the forecast period, due to due to In-cabin Wi-Fi systems and in-flight internet services delivered either by a satellite or air to ground network are used by many private jet and commercial aircraft businesses. The aviation sector is investing more in IT, which will cut operating costs even more. Additionally, check-in kiosks, wireless connectivity, automated solutions, and the Internet of Things (IoT) can all be installed.
Region with highest share:
North America is projected to hold the largest market share during the forecast period owing to the technological advancements and strong adoption and penetration of on-board connectivity platform across the region. The presence of significant key players, rising IT spending, and significant investments by top vendors to improve the travel experience are some other factors anticipated to fuel the expansion of the on-board connectivity market in North America. During the projection period, the United States is anticipated to experience enormous growth.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period, owing to rise in communication services in countries such as Japan, India, and China. Furthermore, passengers in the Asia-Pacific region had the highest expectations for connectivity, according to a global Inflight Connectivity Survey conducted by Inmarsat in 2017. For instance, 91% of consumers are willing to pay for Wi-Fi on long-haul flights, which is likely to present significant market growth prospects.
Key players in the market
Some of the key players profiled in the On-Board Connectivity Market include Rockwell Collins, Qualcomm Inc., Intelsat US LLC, Bombardier Inc., Thales Group, Alcatel-Lucent S.A., Nomad Digital, Teleste Corporation, Panasonic Corporation, Honeywell International Inc., ZTE Corporation, AT&T Inc., Huawei
Key Developments:
In August 2022, Intelsat entered into a global distribution partnership with OneWeb to provide multi-orbit In-flight Connectivity (IFC). The partnership enables Intelsat to distribute OneWeb’s Low Earth Orbit (LEO) satellite services to airlines worldwide.
In April 2022, Huawei launched its commercial 5G indoor positioning solution. This is the first ever a toB-focused 5G positioning solution, offering an accurate positioning to 1–3 m@90%, making beacon-free positioning easier even in complex indoor use cases, while supporting open standard interfacing to industry applications.
In April 2022, ZTE Corporation announced its collaboration with PT Link Net Tbk, one of the leading cable TV and fixed broadband internet providers in Indonesia with the brand “First Media”, to deliver excellent digital experiences with ZXONE 9700 DWDM in boosting Link Net's network services in Jayabaya Project.
Components Covered:
• Hardware
• Services
Technologies Covered:
• Satellite
• Ground To Air
Applications Covered:
• Communication
• Entertainment
• Monitoring
End Users Covered:
• On-road Transit
• Maritime
• Railway
• Aviation
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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