The Global 5G Market in Aviation was valued at USD 210.31 million in 2020, and it is expected to reach USD 4190.91 million by 2026, registering a CAGR of 54.23%, during the period 2021-2026. The COVID-19 pandemic has resulted in a historical shift in the aviation industry, while introducing new airport stakeholders' challenges. Public health measures raised amid the pandemic scenario have been worsening the bottlenecks in ground operations processes, adding up to the challenges that were already present in the pre-COVID era. However, new technologies, such as the deployment of 5G, offer ways to ease these operational constraints. The powerful features provided by a 5G network can also enable greater efficiency.
- 5G is one of the most invested technologies by several end-user industries in the global market. While the industrial sectors, such as manufacturing, IT and telecom, robotics, etc., are expected to witness the earliest commercial advantages of 5G, developments regarding applications in several other industries remain unclear. In the aviation industry, while 5G is thriving in the areas of unmanned aerial vehicles and drones' segment, applications in civil aviation and private networks are still in an early phase of development.
- Automating the airports and various facilities in such premises is increasingly becoming a reality due to higher communication speeds enabled by the 5G technology. For example, London's Heathrow Airport has invested about EUR 5.6 million in EV infrastructure throughout the airport, and now operates 75 EVs in its fleet of ground vehicles and is planning to replace all of its small vans and cars by 2020.
- The adoption of IoT is increasingly becoming part of the global digitalization trend in the aviation industry, and the network operating IoT in such facilities requires a high-speed communication network. For example, Schiphol in the Netherlands has about 70,000 sensors collecting real-time information on the performance of elevators and walkways. Wearables can also be used in an airport to drive efficiency. The Cincinnati/Northern Kentucky International Airport improved facility management using a solution that combines mobile devices, smart sensors, and a cellular network.
- Various industry associations are also further helping adopt the technology in the industry; one of the primary focuses currently is offering a better in-flight connected experience for customers. The Seamless Air Alliance has been formed by OneWeb (a global communications company), Airtel (an Indian Mobile Network Operator), GoGo (a company that works with airlines on in-flight broadband systems), and Sprint (a telecommunications company that delivers wireless services and is an internet service provider (ISP)); whereas the composition of the coalition is completed by Airbus and Delta Airlines.
- 5G connected Artificial Intelligence (AI) is expected to solve major pain points at airports, border checking, and other facilities in the industry. For instance, the technology can help match passengers to their bags as AI will be able to recognize unique scuff marks, creases, and material characteristics to distinguish between seemingly identical bags and match them to the correct passenger.
Key Market Trends
Ground-to-Ground Communication type is Expected to Register a Significant Growth
- As 5G Use Cases are becoming more and more well-articulated by the industry and the ultra-high reliability and low latency of 5G come into the picture, their presence in the aerospace sector will surely be increasing in the years to come.
- The growth of 5G broadband is expected to complement the existing 4G technology, using similar frequency bands, but with higher data rates, greater reliability and lower latency or lag. Further, carriers and device manufacturers will be able to use frequency bands that have not been used in cellular communications before but are commonly used in aerospace and radar applications.
- The 5G mobile communications technology using the Ground-to-Ground Communicatiohas has already completed the first phase of full-function standardization, and by the end of 2019, the 3GPP R16 standard will be approved. With the launch of independent 3GPP R15 networking standards, 5G communications spectrum has been distributed in some countries, and 5G communications will enter the large-scale deployment phase.
- Apart from technological innovation in the equipment used in the industry, the ground staff and airports are expected to see a significant change over the coming years due to 5G. With the growing proliferation of technology and smartphones, consumers are increasingly expecting digital engagement and personalized experiences in airports.
North America to Register the Largest Growth During the Forecast Period
- Although the majority of these subscribers are being served using proprietary technologies in the unlicensed 5GHz spectrum, the use of 5G technologies in the licensed spectrum is expected to grow across the aviation sector across the region.
- Also, the rise in passenger traffic is leading to an increase in demand for good internet connectivity in airports as well as connected aircraft, hence smart airports across this region is boosting the growth of the 5G market in the Aviation sector.
- eMBB is an evolution to the existing 4G network across the US region which is the initial phase of 5G services. Prominent applications involved with eMBB including in-flight entertainment, real-time air traffic alerts, real-time video streaming, games with 3D and 4K resolutions, and high-speed internet access for latent-free cloud access are expected to fuel the demand for 5G market across the region.
- eMBB is an evolution to the existing 4G network across the US region, which is the initial phase of 5G services. Prominent applications involved with eMBB, including in-flight entertainment, real-time air traffic alerts, real-time video streaming, games with 3D and 4K resolutions, and high-speed internet access for latent-free cloud access, are expected to fuel the demand for the 5G market across the North American region.
The 5G market in aviation is moderately competitive and consists of a few players. In terms of market share, some of the major players currently dominate the market. However, with the advancement in the frequency band thereby growing application in the aviation sector, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.
- November 2020 - The new SESAR project funded by a European government-industry consortium will use Nokia’s 4G and 5G wireless network infrastructure to test new wireless network technologies for commercial airline controller to pilot data link communications (CPDLC).
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Technology Snapshot
4.4 5G in Aviation Use Cases
4.5 COVID-19 impact on the market
4.6 Market Drivers
4.6.1 Growing Need for Fast Internet Connectivity and Better Flight Experience Service
4.6.2 Rising Application of IoT across the Aviation Sector
4.7 Market Challenges
4.7.1 High Initial Investment Involved in Expanding 5G Infrastructure
5 MARKET SEGMENTATION
5.1 Connectivity Type
5.1.1 Ground-to-Ground Communication
5.1.2 Air-to-Ground Communication
5.2.1 North America
5.2.4 Rest of the World
6 COMPETITIVE INTELLIGENCE
6.1 Company Profiles*
6.1.1 T-Mobile US Inc.
6.1.2 SK Telecom Co. Ltd
6.1.3 KT Corporation
6.1.4 Deutsche Telekom AG (T-Mobile)
6.1.5 Telefonaktiebolaget LM Ericsson
6.1.6 Huawei Technologies Co. Ltd
6.1.7 Nokia Corporation
6.1.8 Inseego Corp.
6.1.9 AeroMobile Communications Limited
6.1.10 SmartSky Networks LLC
6.1.11 Telia Company AB
6.1.12 Gogo LLC
7 INVESTMENT ANALYSIS
8 Future OF THE MARKET
- T-Mobile US Inc.
- SK Telecom Co. Ltd
- KT Corporation
- Deutsche Telekom AG (T-Mobile)
- Telefonaktiebolaget LM Ericsson
- Huawei Technologies Co. Ltd
- Nokia Corporation
- Inseego Corp.
- AeroMobile Communications Limited
- SmartSky Networks LLC
- Telia Company AB
- Gogo LLC