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The global connected aircraft market size was valued at USD 2.89 billion in 2021. The market is projected to grow from USD 3.45 billion in 2022 to USD 16.58 billion by 2029, exhibiting a CAGR of 25.14% during the forecast period. The global COVID-19 pandemic impact has been unprecedented and staggering, with connected aircraft experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global experiencing market exhibited a decline of -25.41% in 2020 as compared to 2019.
Connected aircraft is a broader term comprising of the Internet of Things (IoT) based aircraft systems, in-flight entertainment and related Wi-Fi facility, air-to-air connectivity, and air-to-ground connectivity. In the last couple of years, the rise in the trend of ‘Bring Your Own Device’ and ‘Always Connected’ passengers will boost the product demand. Moreover, the increasing demand for Very Small Aperture Terminal (VSAT) used in transmitting and receiving data, video, and signals over Satellite Communication (SATCOM) has facilitated the use of communication devices by the passenger and crew members.
The growth of the market is due rise in demand for modern generation aircraft in developing and developed economies. Moreover, the growing trend of long flight routes will boost the market growth during the forecast period.
Impact of the Russia-Ukraine War Crisis on the Aviation Sector
Increasing Adoption of Big Data Analytics and Real-time Data Analytics to Boost Connected Aircraft Market Growth
Due to technological improvements, the way businesses communicate with their consumers, make business decisions, and construct workflows is changing dramatically. Without a doubt, data is revolutionizing airline operations from pre-flight to post-flight, including ticketing, seat selection, luggage, boarding, ground transportation, and so on. As a result, as a passenger travels through the various stages of their journey, the data required for dozens of use cases are recorded.
Big Data analytics' ultimate benefits include timely reactions to present and future market demands, improved planning and strategically aligned decision making, and crystal clear comprehension and monitoring of all key performance drivers pertinent to the airline business.
Data analytics aids the sector in gaining a better understanding of client preferences as well as other maintenance difficulties. For example, by utilizing predictive analysis tools, the sector can target clients with customized offers while simultaneously optimizing the price in real-time. As a result of collecting useful data, airlines can obtain more bookings in the period allotted.
Furthermore, airlines have to bear high costs owing to the cancellations and delays in flights due to technical issues. Due to predictive analytics in the aircraft, monitoring system alerts or notifies the current technical conditions that can help the maintenance crew spot issues and repair, thereby decreasing the downtime of the aircraft.
Surge in Procurement of Technologically Advanced Aircraft by Airlines to Increase the Product Demand
The increase in procurement of new aircraft and drones by the commercial and defense sectors has proven beneficial for the market as each service flight requires efficient SATCOM service along with better connectivity, satellite components, airplane hardware, airtime connectivity, apps, services, and others.
An increase in passenger travels across the globe has revealed the demand for the deployment of more fleet toward managing the civilized transportation and delivery operations. With the installation of an embedded aircraft system, the communications and maintenance operation can be made reliable restricting upcoming component failures and repair services.
In April 2022, Turkish airlines announced to expand its U.S. presence by increasing the number of flights in the region. This would give rise to an opportunity for investors in the field of maintenance to provide effective services.
In April 2022, Universal Avionics announced its Connectivity Ecosystem Technology, which allows the aircraft pilots to connect its Apple iPad to the flight management system. It allows two-way communications, data collection, uploading/downloading of FMS, and other avionics systems data.
In April 2022, BAE Systems received an award of USD 22 million for supplying AN/AAR-57, a common missile warning system; it is an electronic warfare system that provides threat detection in order to protect aircraft and their crews. BAE Systems already recorded the installation of more than 3,000 CMWS units.
In February 2022, India’s aviation minister announced 8 new fully automated airports to build and 120 new aircraft to be added to the fleet every year, which this would boost the requirement of the essential services for aircraft maintenance and flight operations.
Rise in Demand for Modernization of Existing Aircraft Fleet to Boost Growth
The increase in operational efficiency requirements has created a huge demand to replace conventional data optimization and data connection systems with more reliable systems. Aircraft are being equipped with aircraft interface devices and wireless electronic flight bags.
The rise in demand for high-speed internet connectivity is in demand for various applications. Moreover, major companies are adopting SATCOM and broadband as solutions, thus requiring alternate speeded transmission modules, thereby leading to the market growth.
The demand for technologically advanced commercial aircraft has increased drastically over the last few years. Major key players in developed countries are currently focusing on innovative manufacturing of advanced aircraft. Modernization of air traffic management infrastructure improves the efficiency of the global aviation industry. They connect multiple aircraft in their airspace. Air traffic management infrastructure consists of air navigation services to handle air traffic more efficiently to reduce flight delays.
In the fields, maintenance is naturally a critical department for operators; mainly, 86% of the service providers are focusing on major IT aircraft maintenance programs and mobile apps for passengers for detailed analysis. 95% of airlines are indulged in promoting their cloud initiatives, and cloud computing complement cyber security efforts due to security benefits of technology.
Qatar Airways is providing Ku-band high-speed connectivity solutions for access to live television on 70 aircraft orders. This resembles the powerful, uninterrupted connections throughout the flight for both the service providers and passengers. With the vision of more space for improvement, additional growth is anticipated in the coming years.
Cyber Threats Posed in Aviation Industry to Hamper Market Growth
Cyber-attacks can pose a major threat to the aviation industry. It can lead to a potential number of flight delays along with data theft and massive flight cancellations. If a terrorist can malfunction the system, then the situation can be direful.
The aviation sector has embraced the Internet of Things (IoT), connected technologies, and artificial intelligence. Such technologies have been beneficial for the industry in varied ways, but with its effect, the industry has become more vulnerable to cyber threats.
In connected services, applications, such as air traffic control, airports system and infrastructure, aircraft operators and management operations, aircraft maintenance, access, departures, internet-enabled ground, and on-board connectivity systems, are considered and managing all functions with trajectory is hampering with the market growth.
In February 2022, British Airways talked about IT technical issues, which resulted in numerous flight cancellations and delays; simple internal software issues can also cause severe problems due to lack of care and malware in software. This could lead to major disruptions in airline responsiveness, which could lead to a major loss.
System Segment Dominated the Market in 2021 Due to Growing Demand from Satellite Communication
Based on type, the connected aircraft market is segmented into system and solutions.
The system segment had the largest market share in 2021, and it is projected to be the fastest-growing segment from 2022 to 2029. The system segment comprises satellite communication systems, data management systems, and others. The demand for satellite communication for commercial and military applications has been rising for the last couple of years. Satellite communication systems comprise basic components such as basic tracking devices, installed communication systems, and high-capacity multi-systems. The installation and operation cost of satellite communication comprises a major share of the market. Thus, a higher segment growth rate is projected during the forecast period.
The solutions segment is estimated to grow significantly in the next few years. The solutions segment comprises fuel monitoring systems, flight management systems, electronic flight bags, aircraft monitoring & communication systems (antenna, antenna control unit, transceivers), and passenger & crew connectivity (Wi-Fi) systems. Among these, passenger and crew connectivity systems comprise a major share of the total software segment revenue. The rise in demand for in-flight connectivity in Asia Pacific countries, such as China, India, and Australia, will facilitate the growth of this market.
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In-flight Entertainment Segment Will Showcase Highest Growth Owing to Rising Use in Wi-Fi Based Devices in Flight
Based on connectivity, this market is classified into the in-flight connectivity, air-to-air connectivity, and air-to-ground connectivity.
The in-flight connectivity segment is projected to be the largest segment during the forecast period. The growth is due to the high demand for lightweight vessels. Growing demand for Wi-Fi existing connectivity systems and 5G internet connectivity for crew and passengers is one of the major reasons for segment growth.
The air-to-ground connectivity segment held a market share of 33.85% in 2021. The growth of the segment is attributed to the increasing demand for a Very Small Aperture Terminal (VSAT) used in transmitting and receiving data, video, and signals over SATCOM.
Adoption of Ka-band Systems for High-Speed Connectivity in Advance Business Jets Will Boost the Demand for Ka-Band Frequency Segment
Based on frequency, the market is divided into Ka-band, Ku-band, and L-Band.
The Ka-band segment is anticipated to grow at a higher growth rate through the forecast period. Increasing demand for 27 to 40 GHz frequency-based systems in aircraft for faster connectivity and global coverage will boost segment growth during the forecast period.
The L-band held a major market share in 2021. Earlier, most airline communication preferred L-band for most of the flight connectivity ecosystem. A major disadvantage of the L-band is related to the speed and data sharing bandwidth.
Rise in Passenger Air Traffic with Increasing Demand for Lightweight Electric Aircraft to Boost the Growth of Market
Based on application, the market is segmented into commercial and military.
The commercial segment is estimated to be the largest segment in 2021. The rise in passenger traffic along with increasing demand for lightweight electric aircraft is expected to increase the development of IoT-based systems and solutions. Thus, higher growth numbers are expected during the forecast period.
The military segment will witness the highest growth during the forecast period. The growth is attributed to increased demand for military aircraft for surveillance, combat operations, and special military operations. The rising use of Ka-band in military aircraft has significantly boosted the growth of the market.
North America Connected Aircraft Market Size, 2021 (USD Billion)
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This market is segmented into North America, Europe, Asia Pacific, and the rest of the world.
North America dominated the market in 2021. North America's market size stood at USD 1.10 billion in 2021. The growth is attributed to the presence of a large number of aircraft systems and service providers such as Gogo LLC, Viasat, Inc., Collins Aerospace, and others. These companies comprised a major connected aircraft market share in 2021.
The Europe market is projected to grow at a significant growth rate through the forecast period. The market in Europe to growing at a moderate rate owing to increase in passenger air traffic and the presence of prominent key players and OEMs who play a major role in the market growth in the region.
The market in Asia Pacific is projected to grow at the highest CAGR during the forecast period. The growth can be attributed to the improving economy of emerging countries such as India and China. The rising demand for new aircraft from China and India is expected to fuel the growth of the market.
The market in the rest of the world is anticipated to grow at a significant growth rate during the forecast period. The growing investment by airlines in modification in aircraft avionics and software is anticipated to drive the market in the region.
Key Market Players Focus on Research & Development Activities to Gain Competitive Edge
The introduction of technologically advanced aircraft and the development of 5G-based systems for aircraft are the upcoming trends in the market. A diversified product portfolio of aircraft and rising spending on research and development from the OEMs boost the market growth. Moreover, the rise in the use of the internet in aircraft is compelling OEMs to invest in R&D of the systems and software.
An Infographic Representation of Connected Aircraft Market
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The market research report provides an in-depth technical analysis of the market and majorly focuses on key aspects such as leading players, government projects, product systems, operational efficiency, leading technological trends, and research ideology of the product. Besides this, the report offers insights into the connected aircraft market trends, SWOT analysis, and highlights key industry developments & trends. In addition to the factors described above, the report provides several factors that will contribute to the growth of the market during the forecast period.
Value (USD Billion)
Fortune Business Insights says that the global market size was USD 2.89 billion in 2021 and is projected to reach USD 16.58 billion by 2029.
In 2021, North America market stood at USD 1.10 billion.
Growing at a CAGR of 25.14%, the market will exhibit steady growth in the forecast period (2022-2029).
The usage of Wi-Fi in aircraft connectivity is the key factor driving the market.
BAE Systems, Anuvu, Cobham PLC, and GOGO Inc. are the major players in the global market.
North America dominated the market share in 2021.
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