In-Flight Connectivity Market By Type (Hardware, Service), By Hardware (Antenna, LAN Controller, Access Point, Hotspot Gateway And Other Hardware), By Service (Entertainment, Connectivity) By Technology (Satellite, Air-To-Ground) - Growth, Share, Opportunities & Competitive Analysis, 2016 - 2023

In-flight connectivity has become a buzzword in the aviation industry with the increasing roll-outs of wireless communication and entertainment devices on aircraft. Also, the growing shift of airline passengers towards high-bandwidth applications, especially when traveling on long-haul flights, is encouraging airline operators to introduce value-added services to enhance the overall passenger experience.

Further, increasing demand for onboard content services and the introduction of favorable government initiatives to use personal electronic devices on aircraft during all phases are boosting the market's growth. The global in-flight connectivity market is projected to experience a healthy CAGR of over 14% throughout the forecast period, 2016–2023. In contrast, the high cost associated with the deployment of connectivity hardware and data privacy and security threats is likely to impede market growth, especially in developing regions such as Asia Pacific and Latin America, to a certain extent.

Report Scope

This report analyses the global in-flight connectivity market in terms of type, hardware, service, technology, and geography. The global in-flight connectivity market has been segmented based on type into hardware and services. The hardware segment is further sub-segmented into the antenna, LAN controller, access point, hotspot gateway, and other hardware. Based on services, the market is bifurcated into connectivity and entertainment services.

The sub-segment connectivity service includes consulting, implementation and integration, network designing and planning, and repair and maintenance services. On the basis of technology, the global in-flight connectivity market is segmented into satellite technology and air-to-ground technology. Also, based on satellite technology, the market is sub-segmented into Ka-band technology, Ku-band technology, and SwiftBroadband (SBB) technology. The global in-flight connectivity market covers major geographies such as North America, Europe, Asia Pacific, and the Rest of the World.

The increasing inclination of airlines towards satellite-based networking technology and the introduction of hybrid antennas have become emerging trends in the market. Also, a surge in acquisitions and mergers by major players to enter untapped markets is intensifying competition in the market.

1.1 Report Description

Purpose of the Report

The purpose of this strategic research study titled "Global In-Flight Connectivity Market: Growth, Share, Opportunities, and Competitive Analysis, 2016–2023" is to offer industry investors, company executives, and industry participants with in-depth insights to enable them to make informed strategic decisions related to the opportunities in the global in-flight connectivity market.

Target Audience

• Industry Investors
• Connectivity Hardware Providers
• Onboard content service providers
• Wi-Fi Connectivity Service Providers
• End-users

On the basis of hardware, the global in-flight market is categorized into the following sub-segments:

• Antenna
• LAN Controller
• Access Point
• Hotspot Gateway
• Other Hardware

As of 2015, antennas were the dominant sub-segment among all types of hardware in the global in-flight connectivity market, accounting for over half of the overall market. Additionally, the sub-segment is expected to continue its dominance by 2023. This is mainly attributed to the increasing demand for hybrid antennas utilizing both air-to-ground and satellite-based technologies. However, the wireless access point sub-segment is projected to exhibit strong growth in terms of CAGR between 2016 and 2022. The deployment of wireless access points is increasing due to ongoing technological advancements and the introduction of various IEEE standards to bring innovation and enhance security in wireless devices.

On the basis of service, the global in-flight connectivity market is categorized into the following sub-segments:

• Entertainment
• Connectivity
• Consulting
• Implementation and Integration
• Networking, Designing, and Planning
• Maintenance and Repair

Among services, the connectivity service was the largest segment, constituting over 60% of the overall market in 2015. With the increasing deployment of communication devices and networking technologies on aircraft, demand for major connectivity services such as implementation and integration is growing at a significant pace.

Additionally, the connectivity service segment is projected to witness the highest CAGR from 2016 to 2023. Of the connectivity service sub-segments, the repair and maintenance service sub-segment is anticipated to exhibit the fastest growth in terms of revenue over the forecast period. Communication systems and devices require support services, primarily repair and maintenance services, at regular intervals.

On the basis of technology, the global in-flight connectivity market is categorized into the following segments:

• Air-to-Ground Technology
• Satellite Technology
• Ka-band
• Ku-band
• SBB

As of 2015, the global in-flight connectivity market was dominated by the air-to-ground technology segment. The air-to-ground technology segment accounted for over two-fourths of the global in-flight connectivity market revenue in the same year.

However, the satellite technology segment is likely to outpace the air-to-ground technology segment by the end of 2023. An increasing shift of major airlines in developed regions such as North America and Western Europe towards Ku-band and Ka-band satellite technology is anticipated to create favorable opportunities for prominent satellite networking technology service providers in the near future.

On the basis of geography, the global in-flight connectivity market is segmented into the following regions and countries:

• North America
• U.S.
• Canada
• Europe
• United Kingdom
• France
• Germany
• Rest of Europe
• Asia Pacific
• Japan
• China
• India
• Rest of Asia Pacific
• Rest of the World
• Latin America
• Middle East and Africa

In 2015, North America was the largest regional market, with more than 50% market share, followed by Europe. This growth is mainly attributed to the rising adoption of hybrid networking technologies by airlines to offer enhanced onboard internet services to passengers.

Also, the introduction of favorable policies by the Federal Aviation Administration to allow the use of personal electronic devices on aircraft is expected to fuel market growth in the near future in the region. However, Asia-Pacific is expected to emerge as a lucrative market, expanding at the highest CAGR during the forecast period, driven by increasing awareness regarding the benefits of in-flight networking technologies among airlines.

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