Dublin, Dec. 15, 2020 (GLOBE NEWSWIRE) -- The "In-Flight Wi-Fi - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
Monster Waves of the COVID-19 Storm Washes Out the Aviation Industry. In-Flight Wi-Fi Declines by -30.8%
The global market for In-Flight Wi-Fi is expected to decline by -30.8% in the year 2020 and thereafter reach a market size of US$6.6 billion by the year 2027, trailing a post COVID-19 CAGR of 10.6% over the analysis period 2020 through 2027. The COVID-19 pandemic has disrupted majority of economic activities across countries.
The pandemic is estimated to cost trillions of dollars to the global economy. Commodity-rich exporting countries are expected to experience a US$2- US$3 trillion fall in investments in the near term. Aviation industry is worst hit by the crisis, as the lockdowns and shutdowns in almost all countries across the world led to widespread restrictions being imposed on international air travel but soon domestic travel was also limited.
The cancellation of flights is wielding an adverse impact on the global airline industry. The airline industry has been severely impacted by the COVID-19 outbreak and the ensuing lockdowns, travel bans and other restrictions, which have significantly impacted the business travel industry. The US airlines have been facing catastrophic losses in terms of passenger numbers and revenues due to the coronavirus crisis. Delta Air Lines, Inc. for instance recorded $2.8 billion in losses for Q1 2020.
The aerospace industry is heading for a devastating year in 2020, and estimated to register notable losses of $83.3 billion due to COVID-19 pandemic. Total revenues for the industry are projected to fall from $830 billion to $418 billion over 2019-2020. Despite generating around $590 billion in 2021, the industry is forecast to bear a significant loss of $15.8 billion. Restrictions on international travel and lockdowns evaporated passenger demand, with total passenger traffic estimated to decline by 52.7%.
The number of passengers is projected to drop dramatically to the 2006 levels, around 2.26 billion. Despite efforts by airlines to drive passenger traffic through price stimulation, passenger revenues are anticipated to reduce to $241 billion, a major fall in comparison to $612 billion recorded in 2019. While fuel prices provided some relief, overall expenses and revenues are estimated to decline by 34.2% and 51%, respectively. Low utilization of seats and aircraft are expected to add to mounting costs. While cargo remains a bright spot and freight tons are expected to drop by around 10.1 million tons, unavailability of the belly cargo is likely to affect cargo capacity.
On the other hand, cargo revenues are expected to grow from $102.4 billion to $110.8 billion over 2019-2020, enabling the segment to push its share in industry revenues from 12% to 26%. COVID-19 has severely disrupted the aerospace industry across all regions, starting with Asia-Pacific, which is projected to bear the major absolute loss in 2020. The aerospace industry is anticipated to remain soft despite attempts to re-open the borders & economy. Airlines are unlikely to touch the pre-crisis levels in terms of passenger traffic and overall revenues.
Long-term growth of the global in-flight Wi-Fi market however remains positive despite the significant challenges posed. Although the market is expected to continue facing challenges over the next 18-24 months with Wi-Fi expansion plans delayed and cancelled, the resumption of air travel and gradual increase in aircraft passenger numbers will give rise to even greater need for connectivity, providing a the market an opportunity to expand in the post COVID-19 period.
Demand during this period will continue to arise from business jets segment, while in the longer-term commercial aviation markets are expected to drive the growth. Airlines are likely to continue transitioning from traditional fixed-satellite service (FSS) networks to GEO-HTS (high-throughput satellite), while Free Wi-Fi adoption is anticipated to significantly drive capacity demand over the long-term. MSS/L-band will continue to drive operational connectivity and growth in general aviation. Personal electronic devices (PEDs) are expected to play a central role in ensuring a safe and contact-free passenger journey. Mobile devices are already increasingly being used as a remote control for various types of touchpoints at airports, such as check-in kiosks and self-bag drops.
Service providers will focus on offering solutions for providing similar remote control capabilities via PEDs for IFC services, enabling passengers to avoid touching non-personal equipment, such as seat-back inflight entertainment screens, thereby respecting social distancing as well as boosting confidence and satisfaction among passengers onboard. In addition, inflight connectivity solutions will be developed for providing passengers digital access to onboard menus and relevant sanitization information on their PEDs.
Moreover, integration of IFC services with frequent flyer and passenger manifest programs can help passengers in quickly and safely viewing personalized information regarding their route and aircraft using their PEDs.
Key Topics Covered:
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
- Impact of COVID-19 Pandemic and Looming Global Recession
- Despite COVID-19 Crisis, Long-Term Outlook for In-Flight Wi-Fi Market Remains Positive
- Personal Electronic Devices to Play Central Role in Ensuring Contact-Free IFC Services
- Pandemic Brings Forth the Need for Cost-Effective IFE Solutions
- An Introduction to In-Flight Wi-Fi
- In-Flight Wi-Fi Technology
- In-flight Wi-Fi Components
- In-Flight Wi-Fi Services
- In-Flight Wi-Fi: Internet Connectivity in the Sky for Highly Mobile, Digital, and Agile Passengers
- Key Components Enabling In-Flight Connectivity Summarized
- Global Market Prospects and Outlook
- Satellite Connectivity Gathers Pace
- Developed Regions Lead In-flight Wi-Fi Market, Developing Economies to Spearhead Growth
- Competition
- Airlines, Connectivity and Content Providers Collaborate for In-Flight Connectivity
- Popular Airlines with Free and Paid In-Flight Wi-Fi Connectivity
- Recent Market Activity
2. FOCUS ON SELECT PLAYERS
- PJSC Aeroflot Russian Airlines
- Aeroflot
- AirAsia Berhad
- American Airlines, Inc.
- British Airways PLC
- British Airways
- Cathay Pacific Airways Limited
- AeroMobile Communications Ltd.
- Astronics Corporation
- Avionica, Inc.
3. MARKET TRENDS & DRIVERS
- Air Travel Dynamics and Passenger Traffic: Key Determinants of Growth in In-Flight Wi-Fi Market
- Aircraft Fleet Expansion Presents Long-term Opportunities for the Market
- Inflight Connectivity (IFC) in terms of Available Seat Miles (ASMs)
- Demand Rises for High Quality, Secure, High Speed, and Economical Connectivity during Air Travel
- In-Flight Wi-Fi Emerges as Primary Mean to Elevate In-Flight Passenger Experience
- With Air Travel and In-Flight Connectivity Demand Closely Mirroring Trends in Travel & Tourism Industry, COVID-19 Pandemic Hurts Industry Revenues
- Airlines Focus on Enhancing Operational Efficiencies and Inflight Connectivity
- Airlines Working To Enhance Inflight Wi-Fi
- In-flight Internet Access Drives Brand Loyalty among Air Passengers
- Surging IP Traffic Provides the Perfect Platform for Penetration of Inflight Wi-Fi
- Rising Penetration of Smartphones Augurs Well for the Market
- 5G Networks to Enable Lightning-Fast, Seamless In-Flight Connectivity
- Social Networking on the Move Fuels IP Traffic, Necessitating Airline Wi-Fi Connectivity
- Digitization to Gain Momentum, Gen Z Passengers to Fuel In-Flight Wi-Fi Installations
- Rising Demand Non-Stop Inflight Connectivity Among Millennials Drives Market
- Satellite-Based Solutions Emerge to Address Challenges with ATG Networks
- High Throughput Satellites (HTS): The Next Big Thing for In-flight Connectivity
- Declining Costs of Hardware Drives Adoption of High-Speed In-Flight Wi-Fi
- In-Flight Entertainment (IFE): A Strong Base for Increasing Demand for In-flight Wi-Fi Market
- In-Flight Streaming Grows in Popularity
- Airlines Compete Over Offering Faster In-Flight Services
- Emergence of Connected Aircrafts Raise Risk of Cyber Security Breaches
- Enterprise Mobility Offers a Strong Business Case for In-flight Wi-Fi Market
- Trends in Private Jet Segment Impact Market for In-Flight Wi-Fi
- With Airlines Operating More Number of Low-Cost Long-Haul Flights, the Need for Inflight Wi-Fi Grows
- IFE OEM move towards Lightweight Equipment
- Innovations & Advancements Fuel Market Growth
- Seamless Air Alliance Unveils Key Technologies for In-Flight Wi-Fi Connectivity
- Innovations in In-flight Entertainment and Connectivity
- Key Issues & Challenges Confronting In-Flight Wi-Fi Market
- High Usage Costs Hinder Wider Adoption
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
- GEOGRAPHIC MARKET ANALYSIS
IV. COMPETITION
- Total Companies Profiled: 68
For more information about this report visit https://www.researchandmarkets.com/r/n5t42h
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