According to the latest report by Fortune Business Insights, the global market size of 5G technology in the Aviation industry is projected to reach USD $4.2 Billion by 2026, surging at a CAGR of 53.46% during the forecast period. Increasing need to replace 4G LTE with 5G technology in aviation is foreseen to be one of the central factors driving the growth of this market.
The global aviation industry is expanding at breakneck speed and 5G technology is slated to play a crucial role in charting its development. Introduction of 5G in this industry is aimed at establishing a robust connectivity infrastructure that would facilitate seamless communication between aircraft and their ground control systems. Moreover, high-speed internet on planes would enable people to conduct business activities whilst they are flying, saving them precious time and energy. More importantly, 5G will be instrumental in strengthening the integration of Internet of Things (IoT) technology in the aviation domain, a feat that would be difficult to attain with 4G LTE. This would greatly augment the 5G in Aviation Market growth till 2026.
According Fortune Business Insights’ report, the market value stood at USD $0.2 billion in 2019. The report shares profound insights into the various drivers, dynamics, and other factors that will shape the development of this market during the forecast period. Besides this, it also provides an elaborated overview of the overall industry outlook that will also influence the market. Lastly, the research contained in the report will aid businesses to take important strategic decisions in a well-informed manner.
Rising Utility of 5G Technology in Aviation to Boost Growth Prospects
Increasing demand for 5G connectivity in flying operations is expected to be one of the leading 5G in Aviation Market trends. This is because 5G can be utilized in a wide range of applications. For instance, 5G technology can prove to be critical in drone operations as high-speed connectivity can provide crucial real-time data for any kind of military activity. Furthermore, 5G in aviation can elevate the safety and security quotient of airplanes as pilots will able to communicate swiftly with air control towers in times of distress. One of the most important benefits of aviation 5G is real-time aircraft health monitoring, which can be accomplished through predictive maintenance tools and techniques. These benefits are likely to accelerate the 5G in Aviation Market revenue in the near future.
North America to Lead the Pack; Asia-Pacific to Follow
With a revenue generation of USD $0.9 billion in 2019, North America is poised to dominate the 5G in Aviation Market share during the forecast period. The main forces propelling the market in the region include rising demand for better in-flight experience, increasing air travel, and a thriving aviation industry. Development of small regional airports and growing investments by in-flight entertainment service providers such as GoGo in 5G will also play a pivotal role in driving the market in North America.
In Asia-Pacific, rapid expansion of aviation infrastructure and increasing adoption of 5G technology in aviation, especially in China, will be the two key factors driving the growth in this region. China would be one of the early movers for adopting 5G technologies at airports. Moreover, Japan, Australia, and South Korea are doubling down their investment in developing 5G infrastructure, which will augur well for the market in Asia-Pacific.
Prudent Partnerships to Stimulate Competition
The 5G in Aviation Market forecast by Fortune Business Insights paints a dynamic picture of the competition in this market owing to increasing strategic collaborations between competitors. Such collaborations are aimed at consolidating the players' hold on the market through broadening of their service offerings.
Key Industry Developments:
- Gogo joined hands with Airspan Networks to develop a novel air-to-ground (ATG) 5G network. It will be designed for business aviation aircraft, small mainline jets, and commercial regional jets shuttling along the US-Canada border areas. (October, 2019)
- Vodafone installed its 5G network at London's Gatwick Airport. This is part of Gatwick Airport's five-year digital transformation program, which will make Gatwick one of the first smart airports in the whole of UK. (September 2019)
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