On-board Connectivity Market - Snapshot
On-board connectivity refers to internet connectivity in aircrafts, ships, railways, or other transportation systems. On-board connectivity services offer wireless internet access, mobile phone internet access, data sharing services, and group internet packages. These services allow mobile devices to send and receive text messages and multi-media messages. Rising consumer disposable income and liberalization of the transportation sector in emerging markets is expected to boost the demand for connectivity solutions in the coming years. The market for on-board connectivity is estimated to rise to US$ 43.20 Bn by 2026, recording a CAGR of 13.8%.
The on-board connectivity market has experienced substantial growth due to increasing use of portable electronic devices.The proliferation of devices on-board an airplane, train, or ship is further fuelling the demand to deploy equipment enabling on-board Wi-Fi. People across the globe are relying on airways and railways as one the safest modes of transportation. The growing number of air passengers worldwide is acting as a major catalyst for rising investment in on-board connectivity. The global on-board connectivity market is anticipated to grow significantly during the forecast period, attributed to rising IT spending in the aviation industry. Companies are investing huge amounts to install connectivity solutions. For instance, Inmarsat 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.
However, high cost associated with the deployment of equipment enabling on-board connectivity isexpected to hamper the largescale adoption of on-board connectivity. For instance, installing tools on every flight can be expensive for airlines. This means the price of Wi-Fi services is expected to be much more than what customers pay for 4G data that is available on public Wi-Fi networks on the ground. Thus, high initial cost of deployment to offer smart and add-on services and security solutions to commuters is expected to limit the growth of the on-board connectivity market. Nevertheless, 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.
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.
The on-board connectivity market is segmented on the basis of transportation and application. On the basis of transportation, the market has been segmented into aviation, maritime, and railways. Based on application, the market is segmented into entertainment, monitoring, and communication. Aviation is expected to hold majority share in the global market in 2018 due to rising demand for in-flight broadband connectivity.
From a geographical viewpoint, North America is anticipated to hold a major share in the on-board connectivity market in 2018. Growth in this region is attributed to strong adoption and penetration of on-board connectivity platform, services, as well as technological advancements across the region. The market in Asia Pacific is expected to witness strong growth due to rising demand for on-board Wi-Fi in countries such as India, Japan, and China. Furthermore, the markets in Middle East & Africa (MEA) and South America are also expected to grow significantly during the forecast period.
Rising awareness and adoption of on-board connectivity across Asia Pacific and South Americais providing new opportunities for key players operating in the global on-board connectivity market. Airlines and railways in Asia Pacific require on-board connectivity solutions due to the rising need for monitoring and communication.
Attracted by this quickly expanding market, various technological advancements, and increasing trend of on-board connectivity, many players are driven to develop comprehensive services. Existing vendors are rapidly escalating their distribution network in order to influence the most distant clients. Some of the key players profiled in the on-board connectivity market report include Alcatel-Lucent S.A, AT&T Inc., Bombardier Aerospace, Honeywell International Inc., Huawei Technologies Co., Ltd, Panasonic Corporation, Qualcomm Inc., Rockwell Collins, and ZTE Corporation
On-board Connectivity Market: Overview
The on-board connectivity market report provides analysis for the period 2016 – 2026, wherein the period from 2018 to 2026 is the forecast period and 2017 is the base year. The report covers all the major trends and technologies playing an influential role in the market’s growth over the forecast period. It also highlights the drivers, restraints, and opportunities of the market during the said period. The study provides a complete perspective on the evolution of the global on-board connectivity market throughout the above mentioned forecast period in terms of revenue (US$ Bn)
The market overview section of the report demonstrates market dynamics such as the drivers, restraints, and opportunities that influence the current nature and future status of this market, key indicators, end-user adoption analysis, and trends of the market. Key market indicators included in the report provide significance of the factors which are capable of changing the market scenario. These indicators are expected to define the market position during the forecast period and provide an overview about the global on-board connectivity market. A market attractiveness analysis has been provided for every segment in the report, in order to provide a thorough understanding of the overall scenario in the on-board connectivity market. The report also provides an overview of various strategies adopted by key players in the market.
Global On-board Connectivity Market: Scope of the Report
The report segments the market on the basis of transportation into aviation, maritime, and railways. Based on application, the market has been segmented into entertainment, monitoring, and communication. The report provides in-depth segment analysis of the global on-board connectivity market, thereby providing valuable insights at the macro as well as micro levels.
The report also highlights the competitive landscape of the global on-board connectivity market, positioning all the major players according to their presence in different regions of the world and recent key developments initiated by them in the market. The comprehensive on-board connectivity market estimates are the result of our in-depth secondary research, primary interviews, and in-house expert panel reviews. These market estimates have been analyzed by taking into account the impact of different political, social, economic, and technological factors along with the current market dynamics affecting the growth of the on-board connectivity market.
This report provides all the essential information required to understand the key developments in the on-board connectivity market, and growth trends of each segment and region. It also includes companies’ strategies, financial information, and developments under the company profile section. The report also provides insights related to trends and their impact on the market. Furthermore, Porter’s Five Forces analysis explains the five forces, namely buyers bargaining power, suppliers bargaining power, threat of new entrants, threat of substitutes, and degree of competition in the on-board connectivity market. The report also provides a comprehensive value chain analysis for the on-board connectivity market. It explains the various participants including software & platform vendors, system integrators, and equipment providers of the ecosystem in the market.
Global On-board Connectivity Market: Research Methodology
The research methodology is a perfect combination of primary research, secondary research, and expert panel reviews. Secondary research sources such as annual reports, company websites, broker reports, financial reports, SEC filings and investor presentations, national government documents, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, statistical databases, World Bank database, and industry white papers are usually referred.
Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews on the on-board connectivity market, across geographies. Primary interviews are usually conducted on an ongoing basis with industry experts and participants in order to get latest market insights and validate the existing data and analysis. Primary interviews offer firsthand information on important factors such as market trends, market size, competitive landscape, growth trends, and outlook, etc. These factors help to validate and strengthen secondary research findings and also help to develop the analysis team’s expertise and market understanding. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.
Global On-board Connectivity Market: Competitive Dynamics
The research study includes profiles of leading companies operating in the global on-board connectivity market. Some of the key players profiled include Alcatel-Lucent S.A, AT&T Inc., Bombardier Aerospace, Honeywell International Inc., Huawei Technologies Co., Ltd, Panasonic Corporation, Qualcomm Inc., Rockwell Collins, and ZTE Corporation.
The on-board connectivity market has been segmented as below:
Market Segmentation: Global On-board Connectivity Market
In addition, the report provides analysis of the on-board connectivity market with respect to the following geographic segments:
- North America
- The U.S.
- Rest of North America
- Rest of Europe
- Asia Pacific (APAC)
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA
- South America
- Rest of South America