Report: Aero satcom market to reach $4.6Bn by 2025

BAE Systems' Intellicabin
BAE Systems’ Intellicabin

NSR’s Aeronautical Satcom Markets 4th Edition report forecasts commercial aircraft connectivity markets reaching retail revenues of US$4.6 billion by 2025.

It says market growth is driven by in-flight passenger connectivity, reaching new heights with HTS capacity.

Claude Rousseau, NSR Research Director and report author, said: “For most airlines today, in-flight connectivity (IFC) is no longer a question of ‘if,’ but ‘when’ and ‘how’ as passengers now see it as part of essential services they expect.

“Quality of IFC service is an issue that airlines will need to consider seriously as part of their brand value, if take rates of expensive satcom and air-to-ground services are to grow in step with the interest of travellers.”

In a market where more than 115,000+ aircraft, across all airframes, could benefit from some form of connectivity, NSR notes there are only 49,500 in-service satcom units deployed.

With the number of passengers flying for business and tourism growing yearly, such amenities as IFC are an ever more important part of passengers’ onboard experience.

Recent capacity deals with HTS operators point to a huge supply jump in capacity for long and medium-haul aircraft that will address demand brought about by passengers bringing more personal electronic devices (PEDs) with them on commercial flights.

Now, with over 60 airlines offering some form of IFC solution to connect passengers and crew alike, competition is heating up across the board. In a currently small market, this means there may be contraction and fewer players in the future.

As a result, it says lower prices with better bandwidth available everywhere will enable more services, such as operational connectivity that airlines are evaluating more closely today.”

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