5G in Aviation Market Share, Size & COVID-19 Impact Analysis, By Platform (5G Airport and 5G Aircraft), Technology (FWA, URLLC/MMTC, and eMBB), Communication Infrastructure (Small Cell, Radio Access Network (RAN), and Distributed Antenna Systems (DAS)), 5G Services (Airport Operations, and Aircraft Operations), and Regional Forecast, 2021-2028

The global 5G in aviation market size was USD 0.35 billion in 2020 and is projected to grow from USD 0.54 billion in 2021 to USD 9.92 billion in 2028 at a CAGR of 47.03% in 2021-2028. The global impact of COVID-19 has been unprecedented and staggering, with 5G aviation services witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global 5G in the aviation market exhibited a y-o-y growth of 25.40% during 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

5G in Aviation is a core wireless communication and networking system connecting the aviation infrastructure and technologies which facilitate data exchange to their end-users. The mobile networks of the fifth-generation broadly commercialize wireless communication and networking technology through the 4G LTE communication and hardware infrastructure replacement. The 5G connectivity up-gradation offers faster internet connectivity compared to previous technologies. Expanding the technical scope of aviation Internet of Things (IoT) along with Augmented Reality (AR) and Virtual Reality (VR) concepts is the main object of 5G in the aviation market. 5G in aviation facilitates the tremendous potential of integrating digital technology with mass utilization, thus fueling the market growth of 5G in the aviation market. 5G in the aviation industry is at a nascent stage. However, the aviation industry's adoption rate and application are well-articulated due to its low latency and ultra-high reliability with technological assimilation in digital aviation. Market forecasting for digital aviation is estimated to encompass the whole ecosystem of commercial and business aviation from aircraft OEMs to airlines and towards their facility users from MRO service providers to all stakeholders.

Covid-19 Pandemic: Worldwide Travel Restriction, And Reduced Aircraft Deliveries to Adversely Impact Aviation Industry

The aviation industry in 2020 has been one of the most adversely impacted industries amid the ongoing COVID-19 pandemic. Prominent factors such as global travel restrictions and reduced aircraft deliveries are responsible for the harshly decline in market growth. The market players and the service providers in the aviation industry emphasize new technologies adopted for the reinvigoration of the sector, such as 5G in the Aviation Market.

• As per the International Air Transport Association (IATA), international passenger demand was reduced by 75.6% in 2020, and the domestic market dipped by 48.8% compared to 2019.


• As per General Aviation Manufacturers Association (GAMA), the manufacturers have witnessed a reduction in aircraft orders and delays in aircraft deliveries. For example, Airbus S.A.S. delivered 566 aircraft deliveries in 2020 compared to 863 in 2019, while The Boeing Company delivered 157 aircraft in 2020 to 380 in 2019.


• The International Civil Aviation Organization (ICAO) report 2020 suggests a 60% reduction in the overall air passengers (2.69 billion) compared to 4.49 billion in 2019 with a loss of approx. USD 371 billion to the airlines.

LATEST TRENDS

Collaborations between Leading Telecom Players to Augment Market Development

The company Seamless Air Alliance is a non-profit organization formed in 2019. The alliance aims to facilitate the usage of 5G technology in mobile devices while traveling. The coalition was established by the leading technology companies such as One Web, Airtel, GoGo, and Sprint. Among these, One Web is a multi-global communications company. It has several objectives, chief among which is launching a network within low earth orbit microsatellites. GoGo is a multinational company that operates with airlines on in-flight broadband systems, and Sprint and Airtel are leading telecommunications companies that mainly provide wireless services. These companies use their core competencies to facilitate advanced infrastructure to provide 5G connectivity in the aviation industry. The alliance offers several benefits, comprising of in-cabin broadband services. Its main aim is to allow passengers to use their mobile devices and connect to the network using satellite systems. Technology standardization will be addressing the issues related to access to the internet to the passenger onboard and login system, which requires a more sophisticated network. These companies are making these technologies for commercial use, meaning that 5G roaming should only be available in aircraft cabins from 2019 onwards.

Moreover, several industry players have already spent on the 5G infrastructures, which will enable IoT for baggage handling, passenger boarding, security check-ins, and other several airport side operations. The augmentation of 5G technology would improve passenger experience and boost up operational efficiencies. On the other hand, aviation MRO operations will be assisted by IoT to anticipate and resolve several issues before it becomes bothersome.

DRIVING FACTORS

Increasing Demand for Aviation 5G Industry to Propel Market Growth of Market

Factors such as a rise in demand for 5G infrastructure for aircraft flight operations, several applications of 5G, such as high-speed data streaming and real-time health monitoring, are projected to be some of the leading 5G in aviation market trends. In drones, 5G technology can be used to provide real-time data effectively. Growing demand for high-speed internet connectivity for airport and aircraft communication and networking is also expected to fuel the market's growth. 5G technology in aviation used for aircraft safety and security purposes at the airport. It can also use voice communication, high-speed internet connection at airports and air traffic control towers, and air traffic management.  The introduction of the 5G connectivity for the Nextgen air traffic system is estimated to grow the demand for 5G in the aviation industry.

On the airport side, ground operators send across real-time data with the help of a fast internet connection towards baggage and gates, which is projected to fuel the growth of 5G infrastructure for airports. Moreover, increasing demand for better flight experience and fast internet connection throughout the flight journey is expected to boost up the growth of the 5G services market in aircraft operations.

Rising Demand for Fast Internet Connectivity in Aviation Industry to Boost 5G in Aviation Market

Internet connectivity plays a crucial role in better aircraft connectivity. 5G represents a technologically advanced seismic shift along with fast internet service. 5G technology can be used a hundred times faster than its predecessor, 4G LTE. In addition, 5G networks have much higher capacity, providing a constant, guaranteed, and high-speed connection to passengers. The effects of better Wi-Fi connectivity are a primary aspect of the aviation industry. Passengers can watch high-definition video access according to their preference during air travel, substantially augmenting the 5G in aviation market revenue. Seamless Air Alliance, which determines a host of airlines, telecommunications providers, and other tech firms, provides Wi-Fi connectivity in the air as it is on the ground. It aims to create industry standards that enable travelers on any flight to go online with their own devices.

RESTRAINING FACTORS

High cost of infrastructure and technology development to restrain the 5G in Aviation Market Growth

High infrastructure development cost, lack of 5G infrastructure availability, 5G spectrum distribution issues, and technology adoption rate are the major factors hampering the market growth of aviation 5G market. As per Forbes, Non-standalone 5G networks vastly dependent on the 4G infrastructure which hampers the populace’s 5G expectation owing to high latencies and lower internet speed. Network aggregators can’t maximize their network user’s experience, as the current infrastructure doesn’t facilitate the network slicing. Thus, the network aggregators need to transition the non-standalone 5G networks to standalone 5G networks. The lack of market growth is also influenced by inability in organizing the global events such as Olympics alike Pre-COVID times. This development may hamper the deployment and development of 5G mmWave infrastructure, as such global level events may propel the demand in densely populated locations, such as airports, stadiums, and malls.

SEGMENTATION

By Platform Analysis

“Growing Demand for Internet Connectivity at Airports Estimated to Boost 5G in Aviation Market”

The 5G in the aviation market is segmented into 5G airports and 5G aircraft based on the platform. The 5G airport segment holds a higher market share in the 5G in the aviation market. The growth of this segment is projected to the increasing demand for better Wi-Fi connectivity for passengers. In July 2020, in accordance with 3GPP R16 standards has been approved and released, which has paved the way for the spectrum distribution and 5G deployment on large scales within airports worldwide.

On the other hand, the 5G aircraft segment is estimated to grow at a higher CAGR during the forecast period. This growth is due to the several applications of 5G in flight and passenger drone operations, such as technologically advanced real-time monitoring and in-flight entertainment services. The factors such as the proliferation of 5G technologies, high inflight entertainment adoption rate, and the standardization of inflight 5G Communication equipment and services are expected to influence the market growth in the 5G aircraft segment.

By Technology Analysis

“Increasing Demand for Latent-free Cloud Access and Real-Time Air Traffic Alerts Drives Market Growth”

By technology, the market segmented into Massive Machine Type Communications (mMTC) and Ultra-Reliable Low-Latency Communications (URLLC), enhanced mobile broadband segment (eMBB), and Fixed Wireless Access (FWA). The enhanced mobile broadband segment (eMBB) is estimated to hold a significant market share of the 5G in the aviation market. In April 2020, Gogo and Airspan launched the 5G air-to-ground broadband for aviation, in which Gogo is utilizing Airspan’s carrier-grade 5G technology for its inflight entertainment services.

 The ultra-reliable and low latency communications (URLLC) segment is anticipated to be the fastest-growing segment by technology with the highest CAGR during the forecast period. This growth is attributed to the high demand and adoption rate of the URLLC apart from eMBB, low latency, and better serviceability. The mMTC (massive Machine Type Communications) holds a significant market share in the market during the forecast period attributed to technologically advanced IoT-based 5G technology for aircraft and airport operations the accessibility in the no network areas. In November 2020, NEC Corporation announced the selection of NTT DOCOMO Inc. as a service provider for 5G network compatible with Standalone 5G for NTT Docomo. The provision of UPF mini supports 5G technological features such as URLLC, eMBB, and mMTC.

By Communication Infrastructure Analysis

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“Increasing Demand for Sophisticated Communication Infrastructure at Airport is Responsible for Market Growth”

Based on communication infrastructure, 5G in the aviation market is segmented into a small cell, Radio Access Network (RAN), and Distributed Antenna System (DAS). The small cell segment is projected to lead the market during the forecast period. This growth attributed to the exponentially growing aviation sector across the globe owing to increasing air passengers, increasing demand for Wi-Fi connectivity from the onboard passengers, and digital connectivity from the aviation industry. The small cell segment is more environment-friendly and will deliver a more seamless 5G signal with reduced power consumption.

Thus, airlines are projected to focus on developing small cells due to better coverage and quality of 5G networks. Due to this, the demand for small cells in the 5G market in aviation is witnessing high market growth. The RAN segment is anticipated to hold a significant market share during the forecast period attributed to the high adoption rate of RAN-based technology and Open Ran Network service providers. For instance, Gogo entered into a partnership with Cisco, Airspace, and First RF to provide Air to Ground (ATG) 5G network for the US market. Gogo will be offering its Air5G product to provide 5G through a virtualized RAN-based station technology, along with development on new antennas and modems for commercial and business aircraft. The company’s 5G bandwidths network will be using 2.4GHz and 850Mhz spectrum frequencies. 

By 5G Services Analysis

“Increasing Number of Tasks Associated with High-Speed 5G Services to Support Market Growth”

Based on 5G Services, the market is classified into airport operations and aircraft operations. The airport operation segment is projected to grow at the highest CAGR during the forecast period due to the acceptance of high-speed 5G Connected services for ground operations to send real-time data towards the baggage system and check-in gate system. In May 2021, NTT Ltd. and Cologne Bonn Airport are mulling the experimental joint research for intelligent airport operations. Intelligent airport networks help revolutionize passenger experience, specifically at security checkpoints, runway monitoring, and building management. Passenger demand and airport fleets increase in size, IoT, 5G usage, effectively changing the aviation and aerospace industry, which will help to boost up the market.

The aircraft segment is anticipated to grow with the steady growth in the forecast period, attributed to the high demand for inflight connectivity among the OEMs and airlines for their commercial and business aircraft fleets. In March 2021, Global Eagle has received the STC certification to install the Airconnect Global Ku inflight connectivity (IFC) system, which can be installed onboard a Boeing 737 aircraft. It is anticipated to demonstrate the inflight connectivity solutions capability on Turkish Airlines’ short-haul narrow-body aircraft fleet for international and domestic routes.

REGIONAL ANALYSIS

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North America is expected to lead the 5G in the aviation market share throughout the forecast period due to the aviation industry's expansion. Key players such as Cisco Systems, ANUVU, Gogo, Inseego Corp, Intelsat, Smartsky Networks, Panasonic Avionics, At & At&T, T-Mobile, Sprint, Verizon, and Charter will further drive the growth of the 5G in the aviation market.  The market majorly moves by the increasing demand for air travel and better flight experience. In addition, increasing passenger traffic in this region leads to an increased need for better internet connectivity in domestic & international airports and aircraft. Besides, the expansion of connected aircraft and smart airports in this region boosts the regional market's growth.

Asia-Pacific is the second-largest market and competing with North America to become the largest market. Asia-Pacific also shows remarkable growth due to an increase in the budget allocated for the aviation infrastructure sector in China, Japan, and India. Along with the rest of Asia-Pacific, these countries are projected to drive the 5G in the aviation market. China is a prime leader in providing 5G technologies due to Huawei and China Mobile providers. In May 2021, ZTE and Chinese telecom operators discuss establishing the ATG 5G network to support inflight connectivity for the Chinese Domestic Aviation Market. In Japan, the government is increasingly focusing on building 5G infrastructure at airports. In Australia, Telstra is Australia's largest telecommunications company, has indicated its plan to build 180 5G-ready sites by 2019 in Australia, which are expected to support the infrastructure demand for 5G connectivity.

KEY INDUSTRY PLAYERS

As per the 5G in the aviation market forecast, this market is dominated by a few key companies due to their prime product portfolio, informed strategic decisions, and market share dominance. Furthermore, these companies have a widespread geographic presence and are continuously investing in R&D, resulting in secure regulatory approvals. In addition, companies are continually expanding their business by adopting strategies such as sizable investments in mergers & acquisitions, capability enlargement, joint development ventures, design and engineering, and long-term contracts & agreements. As a result, market players such as Huawei, Cisco Systems, Gogo, and others will strengthen the market position concerning 5G in aviation across the globe.

List of Key Companies Profiled:

• AeroMobile Communications Limited (U.K.)


• Cisco Systems Inc. (The U.S.)


• Telefonaktiebolaget LM Ericsson (Sweden)


• ANUVU Inc. (Global Eagle Entertainment Inc.) (U.S.)


• Gogo LLC (U.S.)


• Huawei Technologies Co., Ltd. (China)


• Inseego Corp. (U.S.)


•  Intelsat Corporation (U.S.)


•  Nokia Corporation (Finland)


•  OneWeb Ltd (U.K.)


•  Panasonic Avionics Corporation (U.S.)


•  SmartSky Networks LLC (U.S.)

REPORT COVERAGE

An Infographic Representation of 5G in Aviation Market

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This report mainly provides an all-inclusive analysis for the 5G in the aviation market across the globe. The market estimates presented in the report are a result of in-depth secondary research, primary interviews, and in-house expert reviews. In addition, these market estimates are considered by studying the impact of several social, political, and economic factors affecting the growth of the 5G in the aviation market.

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