According to a new report published by MarketsandMarkets, the 5G market in aviation is will be worth USD $500 Million in 2021 and will grow to USD $3.9 billion by 2026, at an expected CAGR of 52.7% from 2021-2026. The growing demand for a better in-flight experience and the need for fast internet connectivity at airports and in the aircraft are expected to drive the market in the coming years.
Small Cell Segment to Grow at Highest CAGR
Small cell is more environmentally friendly, and is anticipated to provide a clearer 5G signal with less power. Thus, airlines are expected to focus on the deployment of small cells in their aircraft fleet owing to the better coverage and quality of 5G network provided by them on an aircraft, which, in turn, is fueling the demand for small cell in the 5G market in aviation.
5G Infrastructure for Airport Segment Projected To Lead 5G Market in Aviation
Based on end-use, 5G infrastructure for the airport is estimated to account for a larger share of the overall market in 2021. 5G infrastructure for aircraft is expected to grow at the highest CAGR during the forecast period, owing to the rise in the development of smart connected aircraft across the globe. 5G infrastructure and services would be used in various flight operations as well as drone operations, such as real-time data acquisition & monitoring and in-flight entertainment.
North America to be the Biggest Market
The market growth in North America is driven majorly by the high demand for air travel, and better flight experience. The rise in passenger traffic in this region is leading to an increase in the demand for good internet connectivity in airports as well as aircraft. In addition, the expansion of connected aircraft and smart airports in this region is boosting the growth of the regional market.
The key market players in the North American region are Cisco Systems (US), Panasonic Avionics Corporation (US), Gogo LLC (US), Global Eagle Entertainment (US), ONEWEB (US), Smartsky Networks (US), Inseego Corp (US) and Intelsat (US). Ericsson (Sweden), Nokia (Finland), Aeromobile Communications (UK) are the key market players in Europe who have robust product offerings. Huawei Technologies Co. Ltd. (China) is the key market player in the Asia Pacific region.
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