The 5G market in aviation is estimated to be USD 0.5 billion in 2021 and is projected to reach USD 3.9 billion by 2026, at a CAGR of 52.7% from 2021 to 2026. The growing demand for better flight experience and the need for fast internet connectivity at airports and aircraft is expected to drive the market in the coming years. Based on end-use, 5G infrastructure for airport segment is estimated to account for the largest share of the market in 2021 Based on end-use, 5G infrastructure for airport is estimated to account for the largest share of the overall market in 2021. With the growing establishment of smart connected airports, the demand for the 5G network to support these smart connected airports is also increasing. For instance, London City Airport (UK), in 2018, invested around USD 900,000 for the establishment of the interconnected sensor network and data hub to track the flow of passengers in the airport. With rising air passenger traffic across the world, the installation of 5G will help in enhancing such operations in airports by facilitating ultra-high-speed connectivity, thereby fueling the growth of aviation 5G, across the globe. Based on technology, the enhanced mobile broadband segment estimated to account for the major market share in 2021 eMBB is an evolution to the existing 4G network and can also be termed as the initial phase of 5G services. Prominent applications involved with eMBB include 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. There is a growing demand for better flight experience, which, in turn, is fueling the demand for eMBB technology used in in-flight 5G connectivity. Based on application, the aircraft operations segment estimated to account for the major market share in 2021 Based on application, the aircraft operations segment is estimated to account for the major market share in 2021. 5G services for aircraft operations comprise the facilitation of 5G services to airlines. Airlines install 5G infrastructure to enhance the existing Wi-Fi connectivity in their aircraft. They procure a one-time package of 5G network for their aircraft fleet from the vendors operating in the telecom industry. The adoption of 5G network will be higher for international flights as these are long haul flights with a mandatory requirement for Wi-Fi connectivity. Rise in demand for better flight experience and fast internet connection throughout flight journey will fuel growth of 5G services market in aircraft operations. Driver: Need for fast internet connectivity Passengers spend a lot of time at airports. According to a survey by Dufry (Switzerland) in 2018, passengers across the globe spend an average of 180 minutes at airports; this can reach as high as 4 hours when passengers have connecting flights. With many airports being constructed on the outskirts of cities, the unavailability of strong and fast internet connectivity is a major issue faced by travelers. The high-speed and long-range capabilities of 5G is expected to effectually address this issue. In 2018, the International Air Transport Association (Canada) forecast that air passengers across the globe would double to 8.2 billion by 2037. Along with this tremendous growth in air passenger traffic, the demand for fast internet by air passengers will also rise, thereby leading to the growth of the market for 5G in aviation in the coming years Opportunity: Deployment of flying taxis and delivery drones While the early adopters of 5G in aviation would be commercial airlines and airports, there will be a huge opportunity for 5G connectivity providers from air taxis/eVTOL (electronic vertical takeoff and landing) aircraft as well as cargo drones/delivery drones. With a rise in demand for quick intercity and intracity transportation, the demand for eVTOL aircraft is expected to increase in the near future. In June 2019, Uber (US) partnered with AT&T (US) to research the applicability of 5G in air taxis. Challenge: Huge investment involved in developing 5G infrastructure With regard to the 5G market in aviation, in 2018, Air France (France) anticipated the initial cost of deploying 5G to range between USD 5 million and USD 6 million in aircraft, and between USD 4 million and USD 5 million at airports. The cost of deployment is high, owing to the lack of availability of infrastructure that would support 5G in the current market. For instance, 4G connectivity is provided through a low-band spectrum ranging between a width of 5 to 10 megahertz (MHz). 5G, which is estimated to be 10 times faster than 4G, would require spectrum bands with a width more than 200 MHz. Therefore, the huge investment requirement is one of the major challenges for the 5G market in aviation. Full Report @ https://www.marketsandmarkets.com/Market-Reports/5g-market-aviation-152979610.html About MarketsandMarkets™ MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions. Contact: Mr. Aashish Mehra MarketsandMarkets™ INC. 630 Dundee Road Suite 430 Northbrook, IL 60062 USA : 1-888-600-6441 sales@marketsandmarkets.com
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