Global In-flight Broadband Market 2016-2020

Overview of the global in-flight broadband market

Technavio’s market research analyst predicts the global in-flight broadband market to grow at a CAGR of almost 11% during the forecast period. The growing demand for in-flight connectivity is primarily driven by the significant growth of Internet usage among passengers, surging requirement for large business jet cabins, and the business models of airlines offering premium economy class seat-centric solutions to the passengers. Most air passengers, especially the millennials, prefer in-flight connectivity through Wi-Fi to play online games or watch videos. Technavio foresees that around 75% of the passengers are likely to avail in-flight Wi-Fi services to surf the web, access their email, and use social media apps by 2020. The growing inclination toward the utilization of the Internet through mobile gadgets such as smartphone, tablets, and laptop, is a major factor propelling the demand for the use of in-flight Wi-Fi. It is very crucial for the air carriers to establish a conducive environment for in-flight connectivity to enhance customer loyalty and satisfaction. Airlines should work in collaboration with partners that majorly engage in the mobile communication business so that they can provide an in-flight internet connectivity solution like what most passengers experience on the ground.

APAC is expected to be the largest region in the in-flight broadband market over the next four years. The growing preference for air travel is driving the market in APAC region as the passengers are shifting to smarter and more comfortable travel attributes, where in-flight connectivity is a major requirement. Analysts expect that several regional airlines will start offering in-flight connectivity solutions over the forecast period, which will positively accelerate growth in the global in-flight broadband market.

Competitive landscape and key vendors

Several prominent players compete in the global in-flight broadband market to gain greater market shares in terms of technological innovation, satellite bandwidth capacity, and cost. To survive in such an intensely competitive scenario, several vendors are developing new technologies to make their products distinguishable. The global vendors are likely to strengthen their presence across the globe through acquisitions during the forecast period, leading to increased market consolidation. Many airline operators are also deploying strategies like the use of frequent flier miles for better connectivity or higher internet speed.

Leading vendors in the market are -

• GEE
• Gogo
• Panasonic Avionics
• ViaSat

Other prominent vendors in the in-flight broadband market include Airbus, SITAONAIR, Rockwell Collins, and Zodiac Aerospace.

Segmentation by application and analysis of the in-flight broadband market

• Narrow-body
• Wide-body
• Business jet

The narrow-body segment accounted for the largest market portion in 2015 and is expected to grow steadily in the coming years.  The penetration rate of in-flight broadband in narrow-body aircraft is increasing on average with connectivity platforms such as L-band, Ku-band, and HTS. The majority of the revenue in this market segment is likely to come from Ku-band during the forecast period owing to the significant growth in short-to-medium term with the rising production rates of the antenna at 47 units/month. Also, LCCs, which operate through narrow-body aircraft, are expected to implement models like pay-as-you-go where the passenger will only pay for the specific limit of data transmission to access in-flight broadband.

Segmentation by in-service platforms and analysis of the in-flight broadband market

• L-band
• Ku-band
• HTS

The growing demand for multiple connected devices in the aircraft is driving the growth of Ku-band, which acts as a solution for airline operators and passengers. In December 2015, GX network introduced three Ka-band satellites to offer global bandwidth to airline customers. The increasing demand of the passengers for access to superior quality internet services will further propel the use of Ku-band connectivity.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global in-flight broadband market?
• What are the key market trends impacting the growth of the global in-flight broadband market?
• What are the challenges to market growth?
• Who are the key vendors in the global in-flight broadband market?
• What are the market opportunities and threats faced by the vendors in the global in-flight broadband market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global in-flight broadband market?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Global Airline Passenger Communications System Market 2016-2020
• Global In-Flight Entertainment Market 2016-2020