On-Board Connectivity Market by Component (Hardware and Services), Technology (Satellite and Air to Ground), Application (Entertainment, Communication), and End Use (Maritime, Railway, Aviation, and On-road Transit): Global Opportunity Analysis and Industry Forecast, 2018

Overview

According to a recent report published by Allied Market Research, titled, "On-Board Connectivity Market by Component, Technology, Application, and End Use: Global Opportunity Analysis and Industry Forecast, 20182025," the global on-board connectivity market size was valued at $12,811.0 million in 2017 and is projected to reach $ 36,842.3 million by 2025, growing at a CAGR of 14.3% from 2018 to 2025.
On-board connectivity market trends include an increase in the number of air passengers worldwide which is also the major factor fueling the increased investment in this market. With the significant growth of disposable income, passengers from emerging economies are preferring to travel by airlines. In addition, the surge in the use of portable electronic devices is also acting as a major driver for the on-board connectivity industry growth. Emerging economies from Asia Pacific region such as China and India have witnessed a strong proliferation of mobile devices including smartphones and tablets. However, the high cost associated with the deployment of on-board connectivity on airplanes is expected to hinder the market growth. Airlines have to invest significant capital on hardware installations of on-board connectivity solutions on individual airplanes. Also, numerous governing frameworks & certification issues in several countries are anticipated to impede the growth of the on-board connectivity market.

Furthermore, technological advancements and growth in demand for Wi-Fi connectivity are generating major opportunities for the on-board connectivity market, which is expected to increase their demand during the forecast period.

Based on application, the entertainment segment dominated the overall on-board connectivity market share in 2017 and is expected to remain dominant during the forecast period, due to increase in IT investment into aviation, maritime, and railways by government organizations and several other companies. Further, connected services provided by market players either through Air to ground or satellite is charged as per the data consumption. Passengers usually consume a significant amount of data on various entertainment elements including Video on Demand (VoD), and Live Television services while traveling.

North America accounted for the highest share of the global on-board connectivity market size in 2017 and is projected to remain dominant during the forecast period owing to the presence of major market players in this region. In addition, the availability of strong on the ground as well as satellite connectivity is also the major factor fueling the market growth in this region. Further, the Asia-Pacific region is expected to attain the highest CAGR for the market during the forecast period.

KEY FINDINGS OF THE STUDY

Based on technology, the ground to air segment is expected to exhibit a significant share in the global onboard connectivity market during the forecast period. A significant number of connectivity service providers prefer to use well-established ground cellular networks for connectivity.

Based on end use, the aviation segment generated the highest revenue share in 2017. With the growing demand for in-car infotainment services, cars segments are expected to grow with lucrative CAGR over the forecast period.

Based on the region, the Asia-Pacific on-board connectivity market is anticipated to experience rapid growth during the forecast period due to the increase in investments by government organizations. Presence of economies with over a billion population as consumers or passengers in China and India are expected to further fuel the market growth in the coming years.

Some of the key market players profiled in the report include ALE International, Bombardier Inc., Global Eagle Entertainment Inc., Gogo Inc., Honeywell, International Inc., Inmarsat Plc., Panasonic Corporation, Rockwell Collins, Thales Group, and Viasat, Inc. among others.