Untapped In-Flight Connectivity Market Represents Huge Potential for Satellite Industry
April 9, 2015
NSR’s Aeronautical Satcom Markets, 3rd
Edition report, forecast commercial aircraft connectivity
markets to reach retail revenues of US $3.2 billion by 2024.
In-flight connectivity (IFC) FSS Ku-band and HTS installs on
wide-body and narrow-body airplanes will drive the market
growth.
“Today’s passengers expect IFC. It is no longer a 'Luxury
Item' for their journey. It's place in the journey has become
almost as expected as the emergency card in the seat pocket in
front of them,” states NSR Research Director and report author,
Claude Rousseau. “This expectation fuels airlines’ investment
projects in IFC. They see take-up rates of satcom and
air-to-ground services grow faster, as more terminals are
installed on aircrafts worldwide.” For the more than
100,000+ airframes in the addressable market, NSR projects that
today’s business is a fraction of the potential for satcom
connectivity with only 47,500 in-service satcom units deployed.
As more satellite flavors are available to link aircraft with
the ground for popular social media applications or
bandwidth-hungry video applications, every indications points to
a surge in capacity demand that could shake-up the market and
extend connectivity to more airlines for both long and
medium-haul.
“The past year as seen some airlines diversify their satellite
solutions to adapt services to the demand from passengers and
crew alike on regional and trans-oceanic routes,” Rousseau adds,
“and this has meant more bandwidth has been consumed in more
aircrafts at cruising altitude to satisfy the growing base of
passengers that want always-on connectivity, anywhere.”
Building on passengers’ thirst for connectivity, the market is
expanding globally. The applications will reach further
into the operations of aircraft fleets, and bring more safety
during flight. Mostly an L-band market today, customer
requirements are moving airlines to adopt more FSS Ku-band and
GEO/Non-GEO HTS satellite bandwidth. By 2024, NSR forecasts the
market for Aeronautical SATCOM connectivity will reach 160
transponder equivalents for FSS Capacity, and 81 Gbps of
bandwidth across GEO/Non-GEO systems.