Northern Sky Research

NSR Report: Satcom Onboard Aircraft Represents $32 Billion Revenue Opportunity

Mon 22, May 2017

Two-thirds of All Passenger Aircraft to be Outfitted with Broadband Connectivity by 2026 

Cambridge, MA – NSR’s Aeronautical Satcom Markets, 5th Edition report, published tomorrow, forecasts in-flight connectivity (IFC) to be installed on 2 out of every 3 commercial passenger aircraft by the end of 2026. Driven by higher demand for broadband connectivity, this installed base will generate over $32 billion in revenue over the next decade, as air travel continues its rise around the world.  The imminent start of service by highly-touted HTS will help meet the tall expectations of passengers for quality inflight connectivity (IFC) experience at the right price.

“Late Millennials and Generation Z passengers comprise an increasing portion of air travelers, and they will board with their social network on hand.  No longer closed during flights, airplanes will become an Internet hub, where connecting with thousands of people is necessary and normal for passengers.”  states Claude Rousseau, NSR Research Director and report author.  As a result, the behavior of this class of passengers will eventually drive the installation and utilization of IFC as it becomes one of the box customers tick to choose their airline.

  • To address this upcoming surge, IFC service will ramp up significantly in both quantity and quality. NSR forecasts broadband VSAT connectivity will be installed on 1 out of every 3 commercial passenger aircraft by the end of 2019.
  • With the start of GEO-HTS service, the next three years will see steep growth such that by 2021, over 50% of all the addressable commercial passenger aircraft market will have inflight connectivity served by FSS and/or HTS.

With HTS operator deals now being implemented globally, and with IFC take rates up and prices coming down, this will serve as an indicator of elasticity in a market where no entities serving connectivity are generating a profit.  

One potential hurdle is the ban on use of personal electronic devices (PEDs) on some lucrative routes, which will put a damper on expectations for a few years. The mid-long term impact on this potentially expanding ban is still unclear, as any prolonged or expanded ban would have severe negative impact on the IFC market.

About the Report

Aeronautical Satcom Markets, 5th Edition is the latest NSR analysis of over a decade-long of in-depth and highly detailed analysis and forecasts of aeronautical satellite and air-to-ground connectivity demand.   Its extensive coverage of emerging High Throughput Satellite capacity in GEO (Ku-band and Ka-band) and non-GEO offerings provides an unparalleled assessment of addressable markets, in-flight connectivity take-up rates and pricing, business models, demand elasticity and revenues across all the value chain of this expanding 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. 

About NSR

NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR’s global team, unparalleled coverage and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings.  First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries.  Contact us at info@nsr.com to discuss how we can assist your business.

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