Cost-effective and High-speed Wi-Fi to Create New Revenue Streams in the In-flight Wi-Fi Market, Says PMR
Date : Feb 25, 2020 Author : PMR Editorial Staff Category : Technology
Emphasis of major airlines on equipping their aircrafts with cost-effective and high-speed in-flight Wi-Fi systems is one of the key imperatives that is fueling the growth of the in-flight Wi-Fi market.
Emphasis of major airlines on equipping their aircrafts with cost-effective and high-speed in-flight Wi-Fi systems is one of the key imperatives that is fueling the growth of the in-flight Wi-Fi market. With many airlines delving into digital space, the in-flight Wi-Fi market is experiencing significant disruption in order to offer uninterrupted internet services to passengers, thereby enhancing overall passenger experience and satisfaction. Prolific satellite technologies such as Ka band and SBB band are being deployed by major stakeholders to gain a strategic advantage in the in-flight Wi-Fi market. PMR in its newest research report reveals that the optimal combination of these technologies will propel the in-flight Wi-Fi market which is projected to grow at an astounding CAGR of 13.5% over the forecast period (2017-2025)
Key Takeaways of In-Flight Wi-Fi Market
- In terms of value the antenna segment is projected to be the most attractive segment. Valued at US$ 800Mn in 2016, it will witness steady growth in terms of revenue throughout the forecast period.
- With North America capturing ~ 45% of the market share in the year 2016, it will continue to maintain its hegemony and be the fastest growing region in the global In-flight Wi-Fi market through 2025.
- Airlines are showcasing an inclination towards adoption of hybrid technology involving both ATG and satellite based networking technologies. This technology promises stellar connectivity on both short and long haul flights
- In terms of value, network planning and designing segment is anticipated to increase at an impressive CAGR and is projected to grow three fold by the end of the forecast period
“Obviating the premium pricing associated with implementation, integration and network planning of in-flight Wi-Fi systems through mutually beneficial partnerships and acquisitions, among leading stakeholders, can provide lucrative opportunities for the growth of the market “, says a PMR analyst.
Competition heating up with High Bandwidth Application Trends – A High Selling Point
A massive proliferation of high bandwidth applications is being witnessed with passengers watching HD videos and live broadcast and surfing media rich webpages. Thus enhanced bandwidth capacity is becoming the newest rage in the in-flight Wi-Fi market. Moreover major airlines are slowly shifting to satellite networking technology. For instance:
- In 2013, Gogo announced plans to introduce ground to orbit – a hybrid connectivity technology utilizing both air-to-ground and satellite connectivity – in order to enhance bandwidth capacity up to 60 Mbps
- In 2013, United Airlines signed a deal with Panasonic Avionics to deploy its Ku-band technology in United’s Boeing 747-400 aircraft to offer faster in-flight internet service to customers
Cybersecurity Solution to Spur In-flight Wi-Fi Market Growth, as Threats to Data Breaches Loom Large
Data privacy and system security threats loom large with advancements in the communication technology ecosystem. Sensitive customer information such as e-payment transactions are soft targets and are vulnerable to hacking. In instances of system failure, third parties are beckoned to troubleshoot and recover data which can pose a serious risk to data privacy. While this could pose as an impediment to market growth, successful airline companies and stakeholders will harness the power of cybersecurity to create a step change in in-flight Wi-Fi operations to enable growth.
More Valuable Insights on In-Flight Wi-Fi Market
Persistence Market Research offers an unbiased analysis of the global In-flight Wi-Fi market, providing historical data for 2012-2016 and forecast statistics from 2017-2025. To understand opportunities in the in-flight Wi-Fi market, the market is segmented on the basis of technology, hardware, service and type across five major regions.
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Expert analysis, strategic recommendations and actionable insights- the electronics, semiconductors, and ICT team at Persistence Market Research helps clients from across the globe with their unique business intelligence needs. With a repository of over 500 reports on electronics, semiconductors, & ICT, of which 100+ reports are specifically on IT software, the team provides end-to-end research and analysis on regional trends, drivers for market growth, and research development efforts in the electronics, semiconductors, and the ICT industry.