5G in Aviation Market Expected to Reach $4.68 Billion by 2030-Allied Market Research

According to a recent report published by Allied Market Research, titled, “5G in Aviation Market by Communication Infrastructure, Technology, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global 5G in aviation market was valued at $0.70 billion in 2020, and is projected to reach $4.68 billion by 2030, registering a CAGR of 22.8%. North America was the highest revenue contributor, accounting for $0.25 billion in 2020, and is estimated to reach $1.74 billion by 2030, with a CAGR of 23.6%.

The growth of the global 5G in aviation market is driven by growth in air passenger traffic across the globe, rise in inclination toward R&D activities for 5G network and related technology development, and changing aviation industry outlook. Furthermore, growth in smart airports development activities and advancement of the commercial aircraft for improved safety, convenience and efficiency are anticipated to support the growth for 5G in aviation in the near future. In 2020, by considering the communication infrastructure of the 5G in aviation, Small cell has witnessed leading market share. Moreover, eMBB technology based 5G in aviation is expected to witness a leading market growth and dominate the market share by end of the forecast period.

In addition, market participants are entering into long term agreements and contracts with end users such as aviation industry players to gain competitive advantage in the global market. North America dominates the 5G in aviation market in the year 2020. The U.S., Germany, the UK, China, and India are expected to be the emerging countries in the global 5G in aviation market. The global 5G in aviation market is a fairly consolidated market with limited number of players operating in the global market. Majority of the market participants are strategically involved in agreement, collaboration, contract, investment, partnership, product development, and product launch.

The COVID-19 health crisis has adversely impacted international and domestic business aviation travel that adversely and materially affected business operations in 2020. The spread of the COVID-19 pandemic has negatively impacted the global 5G in aviation market, owing to commute restrictions, and is expected to weaken the financial performance of the market players in 2020. It has impacted the overall economy, and contributors such as market participants are formulating strategic cost-saving plans. In addition, this industry is governed by several regulations and all technologies have to pass strict standards set by global aerospace associations, and development of aviation 5G infrastructure. Owing to these factors, adoption of 5G technology is in early phases in the aerospace industry.

Key Findings Of The Study

• By communication infrastructure, the small cell segment is expected to register significant growth during the forecast period.
• By technology, eMBB segment is projected to lead the global market in terms of market share by the end of the forecast period.
• By end use, the airport segment is projected to lead the global market, in terms of market share, by the end of the forecast period.
• By region, North America dominated the global 5G in aviation market in 2020 in terms of market share.

Key players operating in the global 5G in aviation market include Cisco Systems, Inc., Gogo Inc., Huawei Technologies Co., Ltd., Inseego Corp., Nokia Corporation, OneWeb, Panasonic Avionics Corporation, Qualcomm Technologies, Inc., Smartsky Networks, LLC, and Telefonaktiebolaget LM Ericsson.