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On-board Connectivity Market Segmented By Aviation, Maritime, Railways On-board Connectivity Transportation for Entertainment, Monitoring, Communication
Demand for on-board connectivity is expected to flourish at a robust 10% value CAGR from 2022-2032. By the end of the said assessment period, the market is poised to be valued at US$ 65.2 Billion. As of 2021, the industry was valued at US$ 22.2 Billion, and is projected to incline at a Y-o-Y rate of 13.5% to reach US$ 25.2 Billion.
“The major factor that is expected to accelerate the growth of the on-board connectivity market during the forecast period includes the rising consumer disposable income and liberalization of the transportation sector in emerging markets.”
| Attributes | Details |
|---|---|
|
On-Board Connectivity Market CAGR (2022-2032) |
10.0% |
|
On-Board Connectivity Market Size (2022) |
US$ 25.2 Billion |
|
On-Board Connectivity Market Size (2032) |
US$ 65.2 Billion |
An increase in government initiatives to enhance customer services, are expected to provide major opportunities for the growth of the on-board connectivity market during the forecast period.
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An increase in the number of air passengers globally is acting as a major catalyst for growing investment in this market. In addition, the bolstering use of portable electronic devices as well as rise in the growth of disposable income are expected to accelerate the growth of on-board connectivity market during the forecast period.
Moreover, as an emerging trend, the on-board connectivity in railways, airplanes, ships, and other mode of transports provides many major benefits to the providers as well as customers. Also, liberalization of transportation in the emerging markets and increase in investment of maritime, aviation, and railway sector in on-board connectivity technology are the major factors fueling the on-board connectivity market demand.
Further, industries are using on-board connectivity for various applications such as, providing on air connectivity through satellite to passengers for communication and connecting with people on ground, entertainment, and others, which in turn is expected to augment the market demand over the analysis period. Additionally, the rising consumer disposable income and liberalization of the transportation sector in emerging markets is another major factor expected to boost the demand for connectivity solutions in the forthcoming years.
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Get a Customized VersionCurrent and future on-board connectivity industry trends are outlined to determine the overall attractiveness of the global market. Top impacting factors highlight on-board connectivity market opportunity during the forecast period. Factors such rise in disposable income of consumers are expected to fuel the on-board connectivity market demand.
Moreover, growth in number of airline passengers in past few years is also the major factor driving the on-board connectivity market growth. In addition, increase in government initiatives to enhance customer services are expected to provide major opportunities for the growth of the on-board connectivity market.
The surge in the use of portable electronic devices and growing inclination of people to travel in airlines is creating huge opportunities for this market. Various regulatory frameworks & certification are taking place in the market. However, the mounting demand for Wi-Fi connectivity and technological developments are creating opportunities which will increase the demand for on-board connectivity market.
Companies are investing enormous amounts in installing connectivity solutions. For instance, Inmarsat PLC 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. Also, 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.
Furthermore, 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.
On-board connectivity provides numerous features such as deeper win insights and attribution around drivers, as well as greater sales targeting efficiency, but has few restraints as well. The high cost associated with the deployment of on-board connectivity systems is expected to hamper the growth of the On-Board Connectivity market.
Additionally, the connectivity issue is also a major factor anticipated to impede the market growth as high-speed trains move quickly from one cellular tower to another. Moreover, there is high cost associated with the deployment of on-board connectivity equipment on airplanes causing a rise in the overall weight of aircraft. This factor is expected to hinder the growth of on-board connectivity market during the forecast period.
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| Attributes | On-Board Connectivity Market |
|---|---|
|
CAGR (2022-2032) |
10.0% |
|
Market Value (2032) |
US$ 65.2 Billion |
|
Growth Factor |
An increase in investment of maritime, aviation, and railway sector in on-board connectivity technology are the major factors boosting the on-board connectivity market demand. |
|
Opportunity |
The rise in disposable income of consumers are expected to fuel the on-board connectivity market demand. |
|
Key Trends |
Companies are investing enormous amounts in installing connectivity solutions, which in turn is expected to fuel the market growth. |
| Attributes | Network Monitoring Market |
|---|---|
|
CAGR (2022-2032) |
9.9% |
|
Market Value (2032) |
US$ 12.5 Billion |
|
Growth Factor |
The major factor that is expected to accelerate the growth of the Network Monitoring market includes the demand for continuous monitoring due to rise in network complexities and security concerns. |
|
Opportunity |
Optimizing business operations through network management tools is one of the factors that is expected to create lucrative opportunities for the market growth. |
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Key Trends |
The need for robust network monitoring capabilities to ensure smooth operations of mission-critical network infrastructure. |
| Attributes | Wireless Connectivity Monetization Market |
|---|---|
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CAGR (2022-2032) |
15.4% |
|
Market Value (2032) |
US$ 152.0 Billion |
|
Growth Factor |
An increased demand for wireless sensor networks in the development of smart infrastructure is expected to propel the market growth. |
|
Opportunity |
An increased demand for low-power wide-area (LPWA) networks in the IoT applications is a major factor that is expected to create lucrative opportunities for the market growth. |
|
Key Trends |
The growth in adoption of the internet of things (IoT) is a major factor that is expected to fuel the market growth. |
The benefits of Internet of Things are majorly being experienced in consumer domain such as transport, which comprises aviation, maritime, railway and other road transits, which in turn drive the growth of the on-board connectivity market.
Additionally, growth in usage of social media and increase in trend of continuously being connected with friends and families through various social media apps are the major factors expected to provide major opportunities for the growth of the on-board connectivity market.
Moreover, an increase in penetration of smartphones is the major reason for people to become more technologically active and thus, willingly spend more on related services. In addition, rise in disposable income of the people is also the major factor that triggers such technological advancements.
Increase in number of airline passengers worldwide is the major factor driving the on-board connectivity market. The reason behind this growth is mainly attributed to tremendous growth in the developing Asian markets, as the new low-cost carriers are providing air fares at reasonable costs, which are attracting the middle-class people in this region.
The on-board connectivity market is segmented into Transportation, Application, and Region. On the basis of transportation, the aviation segment is expected to experience a CAGR of 12.0% during the forecast period. Many private jet and commercial airlines companies use in-cabin Wi-Fi systems and inflight internet provided either through a satellite or air to the ground network.
Airplanes deliver Wi-Fi either using air-to-ground services (connecting to towers on the ground that deliver data to smartphone or laptop) or through increasingly satellite-based service. There is a rise in IT spending in the aviation industry which will further decrease operating expenditure and modern technologies such as the Internet of Things (IoT), wireless connectivity, automated solutions, and check-in kiosks can be installed. For instance, Airplane manufacturer Boeing was the first to implement inflight connectivity. Boeing's inflight online internet connectivity service Connexion was designed to deliver in-flight broadband to commercial airlines and private jets.
Based on application, the entertainment segment is anticipated to grow with the highest CAGR of 10.5%. The entertainment segment dominates the on-board connectivity market share during the forecast period, attributed to an increase in IT investment in aviation, maritime, and railways by government organizations and several other companies.
Moreover, an increase in demand for live streaming videos and rise in use of social media apps are also the major factors driving the growth of this segment.
| Regions | CAGR (2022-2032) |
|---|---|
|
United States |
9.8% |
|
China |
12.1% |
|
Japan |
13.4% |
|
India |
14.5% |
How will Market Expansion Prospects Shape up across North America?
North America dominates the on-board connectivity market owing to the technological advancements and strong adoption and penetration of on-board connectivity platform across the region.
In addition, presence of major key players along with increasing IT and huge investment by leading vendors to enhance travelling experience are some factors expected to drive the growth of the On-Board Connectivity market in North America. The U.S is expected to represent a massive growth of US$ 16.7 Billion in, with a CAGR of 9.8% during the forecast period.
How will Asia Pacific perform in the Global Market for On-board Connectivity?
The Asia-Pacific market has also grown significantly in the last few years and is expected to attain a significant share during the forecast period owing to rise in communication services in countries such as Japan, India, and China.
Furthermore, according to a global Inflight Connectivity Survey by Inmarsat in 2017, the passengers in the Asia-Pacific region have highest expectations of connectivity. For instance, 91% people are ready to pay for Wi-Fi on long-distance flights, which is expected to provide major opportunities for the market growth.
China is expected to represent a CAGR of 12.1%, to reach a market share of US$ 4.7 Billion during the forecast period. Whereas, Japan is expected to represent a CAGR of 13.4%, to reach a market share of US$ 4.4 Billion during the forecast period. On the other hand, India is expected to represent a CAGR of 14.5%, to reach a market share of US$ 4.0 Billion during the forecast period.
ALE International, Huawei, ZTE Corporation, Nokia, Bombardier Inc., Global Eagle Entertainment Inc., Gogo Inc., Honeywell International Inc., Inmarsat Plc., Panasonic Corporation, Rockwell Collins, Thales Group, and Viasat, Inc., among others are the top companies in the global on-board connectivity market.
In order to strengthen their position in the global on-board connectivity market, organizations are focused on industry collaborations, mergers & acquisitions, and partnerships.
The research offers a comprehensive competition analysis of some top competitors in the on-board connectivity market, including company biographies, recent developments, and significant market strategies. It shows how the competitors are taking advantage of the opportunities present in the on-board connectivity market.
| Attributes | Details |
|---|---|
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Forecast period |
2022-2032 |
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Historical data available for |
2015-2021 |
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Market analysis |
USD Mn for Value |
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Key Countries Covered |
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By Market Segments |
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Key Companies Profiled |
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Pricing |
Available Upon Request |
On-board Connectivity by Transportation
On-board Connectivity by Application
On-board Connectivity by Region
The on-board connectivity market is projected to have a CAGR of 10.0% from 2022-2032.
The US is the leading country, with an anticipated market share of US$ 16.7 Billion by 2032.
On the basis of transportation, the aviation category leads the market with the projected CAGR of 12.0% by 2032.
The on-board connectivity market is predicted to grow US$ 65.2 Billion by 2032.
By application, the entertainment segment leads the market with the projected CAGR of 10.5% in 2032.
