In-flight Connectivity to Generate US$ 37 Billion in Next Decade
Cambridge, Mass,June 4, 2018–NSR’s Aeronautical Satcom Markets, 6th Edition report, published today, forecasts inflight connectivity (IFC) will generate $37 billion in cumulative revenue by 2027. This revenue driven primarily by new HTS services and greater penetration in all regions of the world. NSR projects demand will reach almost 295 Gbps of HTS capacity and more than 92 transponders of FSS Ku-band demand by 2027.
The battle for customers is well underway, shifting to a more practical terrain where passenger experience and business models are essential. “Many airlines are still unsure of what they receive when they install IFC on their planes,” stated Claude Rousseau, NSR Research Director and report author. “They aim to know exactly what passengers receive and not just what the network can deliver. To get there, service providers, who still are not profiting from the IFC boom, will need a multitude of tools and value -added services to improve delivery and address huge demand for IFC for the coming decade.”
NSR estimates only one-quarter of all IATA-registered airlines had some type of passenger IFC under contract at the end of 2017. HTS capacity deals signed in the last 3 years are starting to roll-out across fleets of both wide-body and narrow-body aircraft. However, a slower than expected pace of installs delayed revenue generation as margins suffer in the face of lower capacity prices and airlines wanting in on ‘sharing the savings’.
As such, NSR expects 2018 to see a near-doubling of revenues and 50% more aircraft with inflight connectivity capabilities. Over the next decade, overall aero satcom markets will still be led by MSS L-band units, which are taking a turn for the better with more demand for safety services and increased supply from both LEO and GEO satellites enter service. NSR’s Aeronautical Satcom Markets, 6th Edition is built on the longest running, most in-depth analysis and forecasts of aeronautical satellite and air-to-ground connectivity markets for commercial aircraft. With coverage extending from emerging High Throughput Satellites (GEO-HTS & Non-GEO HTS) to MSS L-band and ATG, it provides a unique tool to evaluate and assess addressable markets, in-service units, revenues and capacity demand for in-flight connectivity. It delves into take-up rates, pricing, business models, connected airlines, satellite capacity procurement models and market shares to offer reader an exceptional tool for planning in this highly competitive market.
For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1-617-674-7743.
