Global Aviation Satcom Growth Opportunities
By 2030, Partnerships Between Satellite Operators and Media Content Providers will Drive In-flight Entertainment and Connectivity (IFEC)
The aviation satcom market is poised for improved flight operations and connectivity that will improve passenger experience, enhance safety, and increase the efficiency of flight operations of airlines. This study covers the global aviation sitcom market and provides a 10-year forecast from 2020 to 2030. The total aviation satcom market was worth $527.2 million in 2020 and, considering the impact of COVID-19, it is expected to expand at a Compound Annual Growth Rate (CAGR) of 3.3% until 2030. This research covers the satcom service used for cockpit, cabin, and IFEC. Cockpit accounts for 80.9% of the market share. The share of cockpit satcom is expected to increase, as the airline will add more next-generation aircraft in the existing fleet, whereas the demand for cabin and IFEC is expected to increase, as airlines want to provide extra services to customers. This will not only increase the passenger experience and process efficiency but also help in making aircraft more connected during the flight to further reduce the chances of losing signals.
The demand for new aviation satcom will largely come from Asia-Pacific due to the increase in aircraft orders from China and India, whereas the demand from replacement of older aircraft will be mainly seen in North America and Europe. Globally, Full Service Carriers (FSCs) are already using satcom services to a large extent compared to Low Cost Carriers (LCCs). A large number of FSCs are in the process of expansion or have long-term plans to optimize their route networks. Leading FSCs (e.g., Emirates) are also focusing on digital transformation, which will help them to improve their process efficiency. However, the COVID-19 pandemic has led to a liquidity crisis for airlines that has, in turn, halted expansion plans and forced airlines to realign their digitalization journey. Similar to hybrid airlines, LCCs are expected to focus more on customer experience by providing IFEC services during the forecast period. This opens the gate for them to earn from online advertisement and eCommerce activity.
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