NSR Projects Aero Satcom Markets to Reach $4.6 Billion by 2025
HTS Capacity Essential to Aero Growth Story as In-Flight Connectivity Achieves Broader Acceptance
Cambridge, MA – April 12, 2016 – NSR’s Aeronautical Satcom Markets, 4th Edition report, published tomorrow, forecasts commercial aircraft connectivity markets reaching retail revenues of US$4.6 billion by 2025. Market growth is driven by in-flight passenger connectivity, reaching new heights with HTS capacity.
“For most airlines today, in-flight connectivity (IFC) is no longer a question of ‘if’, but ‘when’ and ‘how’ as passengers now see it as part of essential services they expect,” states Claude Rousseau, NSR Research Director and report author. “Quality of IFC service is an issue that airlines will need to consider seriously as part of their brand value, if take rates of expensive satcom and air-to-ground services are to grow in step with the interest of travelers.”
In a market where over 115,000+ aircrafts, across all airframes, could benefit from some form of connectivity, NSR notes there are only 49,500 in-service satcom units deployed. With the number of passengers flying for business and tourism growing yearly, such amenities as IFC are an ever more important part of passengers’ onboard experience. Recent capacity deals with HTS operators point to a huge supply jump in capacity for long and medium-haul aircraft that will address demand brought about by passengers bringing more personal electronic devices (PEDs) with them on commercial flights.
Now, with over 60 airlines offering some form of IFC solution to connect passengers and crew alike, competition is heating up across the board. In a currently small market, this means there may be contraction and fewer players in the future. As a result, lower prices with better bandwidth available everywhere will enable more services, such as operational connectivity that airlines are evaluating more closely today.”
About the Report
The ASM 4th Edition report is the latest in a decade-long, in-depth and highly detailed analysis and forecasts of aeronautical satellite and air-to-ground connectivity demand for commercial markets. It has the most extensive coverage of emerging High Throughput Satellite capacity in GEO (Ku-band and Ka-band) and non-GEO offerings. It provides an assessment of in-flight connectivity take-up rates and pricing, business models, partnerships and deals for this expanding market.
NSR is a leading international market research and consulting firm with a core focus on the satellite sector and related industries. Founded in 2000 and with an experienced group of analysts located in all regions, NSR specializes in analysis of growth opportunities across four core sectors: Satellite Communications, Broadcasting & Digital Media, Hybrid & Emerging Applications and Commercial Space.
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