On-board Connectivity Market Share, Growth & Forecast [2031]

Report Description

The global on-board connectivity market size was USD 9.37 Bn in 2022 and is likely to reach USD 19.53 Bn by 2031, expanding at a CAGR of 10.4% during 2023–2031. Rising demand for communication and entertainment services in various modes of transportation is projected to fuel the market.

On-board connectivity refers to internet connectivity in various traveling or transportation systems such as aircraft, railways, ships, and other modes of transportation. It offers wireless internet access, data-sharing services, and group internet packages, which allow electronic devices to connect and interact with one another.

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Many commercial airlines and private jet companies use inflight internet providers or in-cabin Wi-Fi systems either through a satellite or air-to-ground network to attain connectivity. For instance, Boeing was the first to implement inflight connectivity in several commercial airplanes and some large private and government-owned business jets.

Boeing's first inflight online internet connectivity service “Connexion” was designed to deliver in-flight broadband to private jets and commercial airlines. This service allowed passengers to access high-speed internet connection through a wired Ethernet or wireless 802.11 Wi-Fi connection while on board a plane.

On-board connectivity plays a crucial role during traveling. The most common on-board connectivity standards are Wi-Fi, Bluetooth, and inflight broadband used for entertainment, communication, and monitoring purpose. Inflight broadband is changing the whole airline industry and revolutionizing passengers’ expectations, as it become a major factor when choosing an airline.

According to the third annual global Inflight Connectivity Survey, published by Inmarsat in 2017, nearly 60% of passengers believe inflight Wi-Fi is a necessity. Whereas, about 44% of passengers said that they would stop using their preferred airline in the coming years if the airline did not offer connectivity.

The COVID-19 pandemic affected the market, due to a decrease in the number of passengers. Traveling and transportation activities have decreased drastically, due to restrictions to avoid social contact. Furthermore, preventive measures imposed by the government such as emergency lockdowns and several limitations on traveling have resulted in a halt in logistics services, which further hampered the market.

On-board Connectivity Market Dynamics

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Major Drivers

The growing number of air passengers at a rapid pace is expected to drive the market in the coming years. On-board connectivity helps air passengers remain connected with the outside world during traveling, as it enables mobile devices to send or receive messages and provides real-time information. It allows passengers to connect their smart devices to the internet service through Wi-Fi or satellite networks. It offers real-time access to data through constant connection.

Rising demand for in-flight entertainment and connectivity due to the growing trend of bringing your own device is likely to boost the demand for on-board connectivity solution. As per the latest Passenger Experience Survey conducted by Inmarsat, around 97% of respondents use their personal devices on flights for entertainment purposes and to keep up with their work.

The proliferation of connected devices and Internet of Things (IoT) devices in marine communication are likely to boost the market. IoT offers full onboard wireless connectivity and delivers high-speed communication in maritime. It connects data, assets, cargo, and people with a simple API (Application Programming Interface) system. Using IoT in maritime optimizes and streamlines every aspect of operation at sea, port, and fleet, as it is widely used in vessel tracking.

Existing Restraints

The lack of flexibility and reliability of satellite communication, due to the congestion of frequencies is likely to hinder the market. Congestion in the frequencies of satellites disrupts the communication service and reduced the operational efficiency of flights. Furthermore, the high cost associated with the deployment of on-board connectivity is expected to restrain the market.

Emerging Opportunities

Rising investment in the aviation and marine sector in the IT infrastructure industry to attain improved connectivity solutions is likely to create immense growth opportunities for the key players competing in the market. The aviation sector highly investing in IT infrastructure, such as IoT, wireless connectivity, Check-in kiosks, and automated solutions to lower their operating expenditure and enhance flight efficiencies. Moreover, increasing advancements in wireless technology, such as the 5G network and Wi-Fi service enable higher bandwidth, which is likely to fuel the market in the coming years.

Scope of On-board Connectivity Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

On-board Connectivity Market Segment Insights

Component Segment Analysis

On the basis of component, the on-board connectivity market is bifurcated into service and solution. The service segment is anticipated to expand at a significant growth rate during the projected period, as it provides group internet packages, wireless internet access, and data-sharing services. These services allow passengers to utilize their time during traveling for both official and personal work. The segment growth is further attributed to the increasing demand for Wi-Fi and cell phone services from airlines.

Technology Segment Analysis

Based on technology, the market is divided into ground to air and satellite. The ground to air segment is expected to register a robust growth rate in the coming years, due to the increasing adoption in aircraft. Many commercial airlines use inflight internet or in-cabin Wi-Fi systems through ground-to-air networks. It is a type of communication system that allows pilots to communicate with air traffic controllers. It further allows an aircraft to send and receive data from ground stations.

The satellite segment is projected to grow at a rapid pace during the assessment period, as it allows airlines to access real-time information about weather, air traffic control, and aircraft position. It offers flexible communication for digital signal processing and provides on-air connectivity to passengers for entertainment, communication, and connecting with people on the ground.

Satellite delivers critical information whether on the ground or in the air. For instance, Boeing Commercial Satellite Services (BCSS) delivers satellite communications to its partners that operating on sea, land, and in air. The service offers scalable and secure military-grade solutions that are responsive and flexible to dynamic mission needs.

Type Segment Analysis

On the basis of type, the on-board connectivity market is classified as railways on-board connectivity, aviation on-board connectivity, and maritime on-board connectivity. The aviation on-board connectivity segment is anticipated to expand at a considerable CAGR during the forecast period, due to the increasing demand for in-flight connectivity. Aviation on-board connectivity defines the communication capabilities of an aircraft and navigates the pilot to fly more efficiently. It includes video, voice, data, and entertainment services. It provides real-time weather data along with the other essential information required during takeoff and landing.

The segment growth is further attributed to the increasing demand for in-flight entertainment to enhance passengers’ travel experiences and the rising investment by aviation companies to offer internet connectivity to their passengers. For instance, Inmarsat, an inflight internet provider, has invested billions in wholly-owned and operated global satellite networks to enable airlines to offer streaming, browsing, and gaming to their passengers.

The maritime on-board connectivity segment is projected to grow at a rapid pace during the projection period, as it enables ships to stay connected with shore stations while at sea. Maritime on-board connectivity helps in navigation tasks such as cargo handling and ship operation. Growing requirements to attain improved connectivity between land and sea operations are further likely to boost the segment.

The railways on-board connectivity segment is likely to grow at a significant pace. Internet connectivity on trains enhances the safety of the train, as it allows train operators to exchange critical data, such as emergency information to centralized control to monitor, real-time train-related information and passenger safety related like IP-Based CCTV. Rising adoption of the railway as a mode of transportation due to its cost-effectiveness is expected to boost the segment.

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Application Segment Analysis

In terms of application, the market is segregated into communication, monitoring, entertainment, and others. The entertainment segment is anticipated to hold a key share of the market in the coming years, due to the rising usage of entertainment and social media apps among the population. On-board connectivity allows service providers to keep passengers entertained during their journey. The segment growth is further attributed to the increasing trend of BYOD (Bring Your Own Device) while traveling.

The monitoring segment is expected to expand at a high CAGR, as it provides real-time information regarding weather and flight traffic, which helps to make better decisions while operating flights. Furthermore, growing concerns regarding aircraft safety and reliability are likely to boost the segment.

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Regional Analysis

Based on region, the global on-board connectivity market is categorized into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to dominate the market during the assessment period, owing to the availability of strong ground and satellite connectivity and the presence of major market players. Moreover, the rising adoption of connected cars in this region is likely to fuel the demand for on-board connectivity solutions.

The market in Asia Pacific is anticipated to grow quickly during the forecast period, due to the increasing demand from merchant shipping, oil and gas, and mining sectors. Rising communication services and the rapid expansion of airline services in developing countries of the region are likely to fuel the market.

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