The connected aircraft market (henceforth, referred to as the market studied) is expected to register a CAGR of above 8% during the forecast period.
- The increasing procurement of new generation aircraft and the need to upgrade the existing connectivity systems to new more efficient ones are driving the market studied.
- The growing emphasis on the reliability and safety of the aircraft and the passengers has made the airlines to invest in these connected aircraft technologies. The need to enhance the passenger experience is also a huge driver for the growth of the market studied.
- Through the air-to-ground connectivity, continuous monitoring of various aircraft components becomes possible, which may reduce maintenance costs and make the process of maintenance faster and easier, thereby reducing the turnaround times of the aircraft.
Key Market Trends
The Commercial Aircraft Segment Accounted for the Highest Market Share in 2019
In 2019, the commercial aircraft segment of the market studied has a higher market share, compared to military aircraft segment. The higher share is primarily attributed to the demand for the connected aircraft technology from commercial airliners. Inflight connectivity has been a prime matter of focus for commercial aviation for the past few years, and airlines started to adopt these connected aircraft technologies in the recent past. Connected aircraft technology is relatively new for the military, and thus the demand from the segment is expected to be more, due to the growing adoption of this technology by the military. However, the military segment is expected to grow with the highest CAGR during the forecast period, as the armed forces of several countries are expected to modernize their aircraft fleet and incorporate these technologies in their aircraft in the coming years.
North America is Expected to Continue to be the Largest Market in the Coming Years
North America currently has the largest market share in the connected aircraft market. The region is also expected to grow with the highest CAGR during the forecast period. The growing number of aircraft orders from the region and the increasing commercial usage of connected aircraft technologies are the main growth drivers for the market in the region. Connected aircraft technology is slowly gaining importance in the military also, especially in the United States, where military aircraft modernization and upgrade of the existing technologies are given the utmost importance.
The connected aircraft market is highly fragmented, with many players giving hardware, software, and solutions separately for air-to-air, air-to-ground, and inflight connectivity. The market studied is relatively new, and hence there is a lot of scope for both new and existing players to grab new opportunities through technological pioneering. Strategic partnerships may also help the market players to penetrate further in the market studied. Recently, Panasonic Avionics formed two separate partnerships with Inmarsat and Ericsson in late 2018 to work together in the field of connected aircraft technologies.
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