Connected Aircraft Market Size, Share & COVID-19 Impact Analysis, By Type (System and Solutions), By Connectivity (In-Flight Connectivity, Air-to-Air Connectivity, Air-to-Ground Connectivity), By Application (Commercial and Military), By Frequency (Ka-Band, Ku-Band, L-Band), and Regional Forecast, 2020-2027

The global connected aircraft market size was USD 4.18 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with aircraft witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a huge decline of -39.9% in 2020. The market is projected to grow from USD 2.51 billion in 2020 to USD 10.49 billion in 2027 at a CAGR of 22.9% in the 2020-2027 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Connected technologies on an aircraft can transfer the real-time data to several hardware and software systems generated by it during travel to improve passenger, pilot, and operator experience. The global market forecast by Airbus SAS predicts that the number of connected aircraft will rise from 5,000 connected fleets in 2015 to 23,100 by 2025. The connected aircraft market growth can be attributed to the rising demand for high-speed internet access from passengers. Several airlines around the globe have installed satellite and broadband-based connectivity solutions on their aircraft.

Moreover, the increased adoption of connected technologies for data transmission to ground-based air traffic controllers and in-flight aircraft to reduce maintenance costs and increase safety is expected to fuel market growth. Additionally, the rising usage of the new-generation aircraft by airlines is anticipated to boost growth.

COVID-19 Pandemic to Drastically Impact Connected Aircraft Domain Due to Slump in Air Travel Demand

The outbreak of the COVID-19 pandemic has resulted in a drastic reduction in passenger traffic. According to the Airport Council International (ACI), a reduction of more than 4.6 billion passengers is expected in 2020.

Moreover, the cancellation of flights and travel restrictions has massively reduced airline revenues. Several airlines have canceled their new aircraft orders, which, in turn, is expected to affect this market severely. The connected technology is mostly used in the next-generation aircraft, and due to this pandemic, the delivery of these aircraft was postponed. It has thus impacted the growth of the market. Furthermore, tier three and tier four suppliers have halted their production due to the unavailability of the workforce. It will negatively affect the market.

LATEST TRENDS

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Growing Adoption of Real-time and Big-data Analytics for Predictive Maintenance Initiatives is a Prominent Trend

Various advanced technologies such as real-time and big data analytics provide connections that are more reliable to link the airplane hardware with the internal system, along with the ground control system to analyze the information. Airlines have to bear high costs owing to the cancellations and delays in flights due to technical issues. Predictive analytics in the aircraft condition monitoring system alerts or notifies the current technical conditions that can help the maintenance crew spot issues and repair proactively, thereby decreasing the downtime of an aircraft. The aviation industry is setting up new standards due to the emergence of advanced technologies that would fulfill the customer needs and provide real-time data for predictive maintenance.

DRIVING FACTORS

Surging Procurement of New Aircraft to Increase Demand for Connected Technologies

New aircraft orders are increasing owing to the rising air passenger travels. The rapid urbanization and increased disposable incomes of individuals have further created a high demand for air travel. Thus, the passenger traffic is increasing. The rising aircraft deliveries are anticipated to fuel the market growth.

Moreover, the increasing procurement of the next-generation aircraft integrated with improved inflight entertainment and connectivity (IFEC) services, such as aircraft health monitoring systems, real-time weather information, and flight management systems for passengers is expected to be the key market drivers.

• For instance, in May 2019, TAP Air Portugal signed an agreement with Panasonic Avionics Corporation TAP Air Portugal to offer (IFEC) inflight entertainment & connectivity solutions for the airline’s new fleet of 14 A321neo LR aircraft.

Rising Demand for Modernization of Existing Connectivity Systems to Boost Growth

The increasing operational efficiency requirement has created a huge demand to replace conventional data optimization and data connection systems with more efficient systems. They include aircraft equipped with aircraft interface devices (AID) and wireless electronic flight bags (EFB). At the same time, the rising demand for high-speed internet connectivity from passengers is leading airlines to adopt satellite (SATCOM) and broadband connectivity solutions. Major airlines such as Qatar Airways invested in providing a better in-flight experience for their passengers by adopting the Ku-band high-speed connectivity solution that provides access to Live Television on 70 airplanes of the airline.

RESTRAINING FACTORS

Cyber Threats in the Aviation Industry to Hamper Growth

Cyberattacks are the most severe threats to the aviation industry. The aviation sector has embraced digital transformation owing to the emergence of the Internet of Things (IoT), connected technologies, and artificial intelligence (AI). However, these connected technologies make the industry more vulnerable to cyberattacks.

A cyberattack has the potential to lead to a massive number of flight delays and cancellations. It is the most threatening event if the terrorist manages to hack the system, putting thousands of lives in danger. Today’s IT infrastructure was not designed to cope up with such modern cybercrime challenges. The lack of security design systems can increase the risk of cybercrime, which, in turn, is expected to restrain market growth.

• For instance, in January 2019, Airbus SAS noticed suspicious activity on its network. The professional data of the company’s European employees were hacked.

SEGMENTATION

By Type Analysis

Rising Demand for In-flight Connectivity to Drive Growth of the Solution Segment

Based on type, the market is divided into systems and solutions. The solution segment is anticipated to grow at a higher CAGR during the forecast period, owing to the increasing demand for in-flight connectivity. Moreover, the rising passenger traffic is expected to fuel the market growth due to the high demand for at-home network experience from the air passengers. The system segment, on the other hand, is predicted to exhibit substantial growth owing to the surging procurement of the new generation aircraft.

By Connectivity Analysis

In-flight Connectivity Segment to Grow Rapidly Backed by High Demand for In-flight Entertainment

Based on connectivity, the market of connected aircraft is classified into in-flight connectivity, air-to-air connectivity, and air to ground connectivity. The in-flight connectivity segment is anticipated to be the largest and the fastest-growing segment during the forecast period due to the increasing demand for passenger connectivity and in-flight entertainment. Advancements in in-flight connectivity offer multiple facilities such as broadband Wi-Fi service and entertainment services. It is expected to drive the in-flight connectivity segment's growth.

The air to ground connectivity segment is set to showcase significant growth throughout the forthcoming years on account of the surging demand for predictive maintenance by transferring real-time flight data to ground stations.

By Application Analysis

Commercial Segment to Dominate Stoked by Rising Number of Commercial Aircraft Deliveries

Based on the application, the market is segmented into commercial and military. In 2019, the commercial segment dominated the market owing to the increasing number of aircraft deliveries. Moreover, a rise in the adoption of connected technologies by commercial airliners is anticipated to fuel growth.

The military segment is expected to grow at a higher rate during the forecast period. This growth can be attributed to the increasing demand for connected technologies by several countries' air forces to modernize their fleets.

• For instance, in September 2020, Raytheon Intelligence & Space received a contract worth USD 13.1 million from the U.S. Air Force to offer Low Earth Orbit (LEO) satellite connectivity to military jets. This would enable the company to test the usage of commercial space internet services on various military aircraft.

Moreover, a shift in the advanced warfighting methods such as cyber warfare and electronic warfare is anticipated to propel the growth of this segment.

By Frequency Analysis

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Ku-Band Predicted to be the Fastest-Growing Segment Owing to Rising Demand for SATCOM Connectivity

Based on the frequency, the market for connected aircraft is classified into Ka-band, Ku-band, and L-band. The Ku-band segment is anticipated to be the fastest-growing segment throughout the coming years due to the rising demand for satellite communication. The Ku-Band frequency is primarily used for satellite communication (SATCOM) as it provides high-speed data transmission. The rising demand for SATCOM connectivity in an aircraft is anticipated to boost the growth of the segment. The Ka-band segment is expected to witness significant growth due to rising demand for Ka-band frequency owing to its capability to provide a 12 Mbps data range to each customer. The L-band segment is anticipated to grow due to the rising adoption of L-band frequencies in intelligence, surveillance, and reconnaissance aircraft.

REGIONAL INSIGHTS

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Asia Pacific is anticipated to be the fastest-growing region. The growth can be attributed to the increasing aircraft deliveries owing to the rising demand for air travel in the region. Moreover, the increasing air passenger demand for in-flight internet connectivity due to the emergence of portable entertainment devices is anticipated to boost the regional market growth.

The market in North America stood at USD 2.00 billion in 2019 and is predicted to lead the market during the forecast period due to the presence of key players in the region. The U.S. is considered to be the aviation industry's major manufacturing capital due to the presence of renowned aviation companies, such as the Boeing Company, Lockheed Martin Corporation, and Honeywell International. Moreover, the rising military modernization and upgradation programs are expected to increase the demand for connected technologies for military applications in the region.

Europe's market is anticipated to grow substantially due to the rising implementation of SATCOM intermediate frequencies by key players such as Inmarsat Global Ltd.

The rest of the world is expected to show moderate growth owing to the improving economy and increasing demand for new aircraft.

KEY INDUSTRY PLAYERS

Honeywell International Holds Leading Position in Market Owing to Continuous Innovation of IoT-based Products

Honeywell International is one of the significant players that offer connected aircraft solutions. The company’s satellite communication suite provides fast and reliable in-flight connectivity for airlines, helicopters, and business aviation. A comprehensive IoT-based product portfolio and a strong branding strategy of the company are the reasons behind its success. Moreover, strategic contracts & agreements, acquisitions, and new product developments are some of the company’s other strategies to sustain its market position.

Other major players such as Inmarsat Global Ltd., Collins Aerospace, and others are focused on the development of technologically advanced connected technologies. These companies are also focusing on strategic acquisitions, mergers, and partnerships to expand their portfolio.

LIST OF KEY COMPANIES PROFILED:

• Honeywell International (The U.S.)


• Gogo LLC (The U.S.)


• Thales Group (France)


• Inmarsat Global Ltd. (The U.K.)


• Collins Aerospace (The U.S.)


• Viasat (The U.S.)


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

KEY INDUSTRY DEVELOPMENTS:

• July 2020 – Airbus Interior Services (AIS) signed an agreement with Aerkomm Inc. (AKOM) to install an Aerkomm K++ connectivity solution on Airbus A320 family aircraft. The Aerkomm K++ system will be developed, installed, and certified by AIS. The Aerkomm K++ Inflight Entertainment & Connectivity system provides free Wi-Fi internet connectivity to passengers using the Ka-band technology solution.


• February 2020 – Panasonic Avionics Corporation signed an agreement with Nelco Limited to offer satellite connectivity services to passengers flying to India over the Indian Airspace. Due to this agreement, Panasonic and its subsidiary, ITC Global would offer connectivity to maritime vessels and aircraft that are operating within India.

REPORT COVERAGE

An Infographic Representation of Connected Aircraft Market

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The connected aircraft market research report provides a detailed industry analysis and focuses on crucial aspects such as leading companies, reputed connectivity systems, and leading applications. Moreover, the report offers insights into connected aircraft market trends and highlights key industry developments. In addition to the factors mentioned above, it encompasses several direct and indirect factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation