LONDON--(EON: Enhanced Online News)--Technavio market research analysts forecast the global in-flight broadband market to grow at a CAGR of close to 11% during the forecast period, according to their latest report.
“The rapid growth in bandwidth consumption with the use of mobile and other digital devices has encouraged airlines to offer similar on-board connectivity solutions, which is giving rise to the concept of”
The market study covers the present scenario and growth prospects of the global in-flight broadband market for 2016-2020. The report also lists narrow-body, wide-body, and business jets as the three main application segments for the in-flight broadband market.
“The rapid growth in bandwidth consumption with the use of mobile and other digital devices has encouraged airlines to offer similar on-board connectivity solutions, which is giving rise to the concept of "office in air,” says Avimanyu Basu, a lead analyst at Technavio for aerospace components research.
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Technavio aerospace and defense analysts highlight the following three market drivers that are contributing to the growth of the global in-flight broadband market:
- Passengers' predisposition to remain connected
- Growth in business jet connectivity market
- Influence of benefit programs for frequent fliers
Passengers' predisposition to remain connected
Mobile data consumption has considerably increased over the past few years with a CAGR of over 100% between 2010 and 2014. As per Technavio analysis, it is estimated that by 2020, the global data consumption will exceed 36 exabytes per month, which represents a 10 times increase as compared to 2014. Such changes are also expected to reflect an increase in the demand for Wi-Fi in the aircraft.
According to Technavio, around 75% of the passengers are likely to avail in-flight Wi-Fi services to surf the web, access their email, and use social media apps. The growing inclination toward the use of the internet through mobile gadgets (smartphone, tablets, and laptops) on the ground remains the major factor propelling the demand for the use of in-flight Wi-Fi.
“Several global carriers like Emirates, Turkish Airlines, JetBlue, Norwegian, Philippine Airlines, Air China, Hong Kong Airlines, and Nok Air offered complimentary in-flight services to their passengers, in 2015,” says Avimanyu.
Growth in business jet connectivity market
The statistics and trends associated with the adoption of business and private jets reflect a growing market, and this is led by the economic recovery in North America and Europe. In recent years, many private airlines have started to offer enhanced value-added services to their business jet passengers.
There have also been significant investments in the development of hybrid technology. A French telecommunication company, Alcatel-Lucent (a subsidiary of Nokia), has developed a 4G LTE solution, which claims to offer the fastest in-flight connectivity services (up to 75 Mbps) to business jet travelers. This hybrid technology is expected to be deployed across Europe by the end of 2016.
The North American market is also witnessing partnership efforts both for the development and operation of in-flight connectivity in the business jet segment. Apart from the provision of connectivity services, these partners are also assisting business jet OEMs in the testing process to ensure that these connectivity solutions meet all service requirements. These developments will have a significant positive impact on the growth of the in-flight connectivity market during the forecast period.
Influence of benefit programs for frequent fliers
Most airlines nowadays have an associated privilege program. These programs are directed towards ensuring continuity of service to a client, and accordingly, the airlines have separate departments dedicated to these programs. The benefits are particularly feasible for frequent fliers who can accumulate points on each flight and redeem the points later for upgrades in travel class or complimentary tickets.
The carriers usually stay in touch with the passengers through various modes of communication and track their consumer behavior to customize services for them. It may soon become a practice to offer redemption of frequent flier points by availing the in-flight connectivity services.
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