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Growing at a CAGR of 14.3% | The On-Board Connectivity Market Reach USD 36,842.3 Million by 2025
Surge in 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 strong proliferation of mobile devices including smartphones and tablets. Airlines have to invest significant capital on hardware installations of on-board connectivity solutions on individual airplanes.
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The global on-board connectivity market size was valued at USD 12,811.0 million in 2017 and is projected to reach USD 36,842.3 million by 2025, growing at a CAGR of 14.3% from 2018 to 2025.
The global on-board connectivity market is segmented into component, technology, application, end use, and region. Based on component, the market is classified into hardware and services. In terms of technology, the market is bifurcated into satellite and Ground to Air. As per application, the market is categorized into entertainment, and communication. Based on end use, the market is divided into maritime, railway, aviation, and on-road transit. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Key Findings of the Study
● Based on technology, the ground to air segment is expected to exhibit a significant share in the global on-board 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 region, the Asia-Pacific on-board connectivity market is anticipated to experience rapid growth during the forecast period due to an 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 coming years.
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The ground to air segment dominated the overall on-board connectivity market in 2017 and is expected to remain dominant during the forecast period, due to significant growth and adoption of wireless communication technologies such as 4G LTE and expected launch of 5G are the major factors fueling the market growth. On the contrary, the satellite segment is also expected to grow at a rapid pace throughout the forecast years.
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 travelling.
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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 presence of major market players in this region. In addition, availability of strong on 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.
The global on-board connectivity market is dominated by the key players such as ALE International, Bombardier Inc., Global Eagle Entertainment Inc., Gogo Inc., Honeywell International Inc., Inmarsat Plc., Panasonic Corporation, Rockwell Collins, Thales Group, Viasat, Inc. and others.
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