The global 5G in aviation market size is slated to reach USD 4.2 billion 2026 owing to growing need for efficient integration of digital technologies. As per the new Fortune Business Insights report, titled “Global 5G in Aviation Market Size, Share & Industry 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, 2019-2026”, the value of the market stood at USD 0.2 billion in 2019 and is projected to soar at a 53.46% CAGR from 2019 to 2026.
Increasing Uptake of 5G Technology in Aviation to Favor Growth
One of the key 5G in aviation market trends is the steadily climbing adoption rate of 5G connectivity in the aviation industry. This technology is seen to be revolutionary in terms of internet speed and also in the context of integrating futuristic technologies such as Internet of Things (IoT) and Virtual Reality (VR). Its uptake in the aviation industry is premised on the increasing passenger demand for better in-flight connectivity. 5G-enabled and connected aircraft are desirable due to the variety of luxuries they offer to passengers. For instance, frequent fliers can stream high-definition videos using 5G-powered Wi-Fi during long flights, making their journey fun and entertaining.
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- By Platform: Based on platform, the market is segmented into 5G airport and 5G aircraft. Here, the 5G airport segment is expected to hold a larger market share on account of the rising demand for Wi-Fi connectivity at airports by passengers. The 5G aircraft segment is predicted to register a high CAGR.
- By Technology: Based on technology, the market is divided into Massive Machine Type Communications (MMTC) and Ultra-Reliable Low-Latency Communications (URLLC), enhanced mobile broadband segment (Embb), and Fixed Wireless Access (FWA). Here, the 5G in aviation market analysis says that the enhanced mobile broadband segment (Embb) segment will lead. This technology is expected to play a bridging role between 4G and 5G technologies in the aviation industry. It can be utilized in a variety of applications such as accessing real-time traffic alerts. The other segments are also anticipated to offer promising prospects.
- By Communication Infrastructure: Based on communication infrastructure, the market is categorized into small cell, Radio Access Network (RAN), Distributed Antenna System (DAS). Here, the small cell segment is expected to lead owing to increasing demand for digital connectivity at airports and rising requirement of passengers for fast in-flight connectivity. The other segments are also expected to grow healthily during the forecast period.
- By 5G Services: Based on 5G services, the market is segregated into airport operations and aircraft operations. Here, the airport operations segment is anticipated to exhibit the highest CAGR as a result of rapid adoption of 5G services for ground operations such as check-in information of passengers and real-time information about baggage handling. The aircraft operations segment will also rise at a considerable rate in the stipulated time period.
- By Region: Geographically, the market is segmented into North America, Europe, Asia-Pacific, the Middle East, and Rest of the World. Here, North America is forecasted to dominate the 5G in aviation market share as the region had generated USD 0.1 billion in revenue in 2019. This continued dominance of the region will be a result of a speedily expanding domestic aviation industry and presence of major telecom operators such as AT & T and T-Mobile who are heavily investing in 5G technology. Asia-Pacific is projected to be the second largest market for 5G aviation, followed by the other regions.
Enlargement of Service Portfolio to Intensify Competition
This market is set to witness intense competition as key players look to solidify their position through mergers and acquisitions, collaborations, contracts and agreements, and new product launches. Some of
List of prominent players profiled in the 5G in aviation market report include;
- Smartsky Networks
- Nokia Corporation
- Panasonic Avionics Corporation
- Aeromobile Communications
- Inseego Corp.
- Cisco Systems
Key Industry Developments:
- April 2019: Lockheed Martin and Raytheon secured a contract with the US government to modernize their National Airspace System (NAS) and lay the groundwork for 5G technology.
- June 2019: SmartSky and Honeywell signed a deal to bring sophisticated 5G connectivity in air-to-ground services for airliners operating in North America.
The global 5G in aviation market is segmented as follows:
Value (USD Million)
By Communication Infrastructure
By 5G Services
- Airport Operations
- Aircraft Operations
- North America (U.S. and Canada)
- Europe (U.K., Germany, France, Spain, and Rest of Europe)
- Asia Pacific (Japan, China, Australia, India, South-Korea, and Rest of Asia Pacific)
- Middle East (UAE, Saudi Arabia, and Rest of the Middle East)
- Rest of The World (Latin America, and Africa)