The size of 5G in the aviation market
The 5G in aviation market is expected to exceed USD 844.9 million in 2023, registering a CAGR of over 45% between 2024 and 2032. Passengers increasingly expect high-speed internet connectivity to stay connected, work, and stay entertained during their flights. 5G technology offers significantly faster data speeds and lower latency compared to previous generations, improving the in-flight connectivity experience and driving demand for 5G-enabled services.
For example, in October 2022, Banyan Air Services began equipping its aircraft with Gogo’s upcoming 5G service for business jets in the southeastern United States. Airlines are investing in connected aircraft solutions to improve operational efficiency, enhance passenger experiences and enable new services. 5G technology will enable real-time data exchange between aircraft systems, crew and ground operations to facilitate predictive maintenance, health monitoring and optimization of flight operations.
Additionally, 5G networks offer the potential for more precise navigation, communication and surveillance capabilities in aviation, including improved air traffic management systems, greater situational awareness for pilots, and better coordination between aircraft and ground control, contributing to making air transportation safer and more efficient overall.
| Report Attributes | detail |
|---|---|
| Base year: | 2023 |
| 5G in aviation market size in 2023: | $844.9 million |
| Forecast period: | 2024 to 2032 |
| Forecast period 2024 to 2032 CAGR: | 45% |
| Value projection for 2032: | $30 billion |
| Historical Data: | 2021 – 2023 |
| Number of pages: | 250 |
| Tables, graphs, and charts: | 293 |
| Target segments: | Components, Connectivity, Applications and End Uses |
| Growth drivers: |
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| Pitfalls and challenges: |
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Deploying 5G infrastructure in aviation, including upgrading aircraft and ground systems, can be costly. Airlines and airports may face significant upfront costs, including hardware, software, and deployment costs, which may hinder widespread adoption, especially for smaller operators. Additionally, the integration of 5G technology in aviation will raise regulatory and safety considerations. Regulatory bodies will need to establish standards and protocols to ensure the safe and reliable operation of 5G-enabled systems in aircraft and airport environments. Electromagnetic interference and cybersecurity concerns will also need to be addressed to mitigate potential risks.
5G Trends in the Aviation Market
Airlines are increasingly investing in enhancing in-flight connectivity to meet growing passenger demand for seamless internet access and digital services. With the introduction of 5G technology, airlines are exploring new ways to provide faster and more reliable connections, helping passengers stay connected and productive during their flights. The concept of connected aircraft, enabled by 5G technology, is gaining traction as airlines seek to improve operational efficiency, enhance safety, and offer personalized services. Connected aircraft solutions leverage real-time data exchange between aircraft systems, crew, and ground operations to optimize flight operations, maintenance, and passenger services.
5G technology is accelerating digital transformation efforts across the aviation industry, from airlines and airports to air traffic management organizations, including the adoption of advanced analytics, artificial intelligence (AI), and automation to optimize processes, improve decision-making, and enhance the overall passenger experience.
Analysis of 5G in Aviation Market
Based on component, the market is divided into hardware, software, and services. The services segment dominated the global market with a share of over 40% in 2023. In the aviation industry, services enable the deployment, integration, and maintenance of technology solutions. This includes consulting, implementation, integration, support, and managed services offered by vendors, system integrators, and service providers. The complexity of integrating 5G technology into existing aviation infrastructure and operations often necessitates specialized services to ensure smooth deployment and ongoing support.
Consulting and integration services companies help airlines, airports and other aviation stakeholders assess their 5G readiness, develop deployment strategies and integrate 5G technology into existing systems and processes. Managed service providers offer ongoing support, monitoring and management of 5G networks and related infrastructure to ensure optimal performance, reliability and security. Maintenance and support services are essential to ensure the continued operation and performance of aviation’s 5G-enabled systems, including hardware and software components.
Based on end-use industry, the 5G in aviation market is categorized into manufacturing, automotive, energy & utilities, transportation & logistics, healthcare, and others. The transportation and logistics segment is expected to register a CAGR of over 50% during the forecast period, reaching a revenue of over USD 10 billion by 2032. Transportation and logistics supports aviation operations, including ground handling, air traffic control, cargo logistics, and passenger transportation.
Therefore, the adoption of 5G technology in this sector will significantly improve efficiency, safety, and connectivity across the aviation ecosystem. 5G will revolutionize air traffic management systems by enabling real-time data exchange, precise navigation, and increased situational awareness for air traffic controllers. This will result in more efficient airspace management, reduced delays, and improved safety in aviation operations, thus driving the adoption of 5G solutions in air traffic management.
In 2023, North America will dominate the global 5G in aviation market, accounting for over 30% share. North America, especially the United States, has been at the forefront of technological innovation and investment. Major airlines, airports, and technology providers in the region are actively exploring 5G solutions to enhance passenger experience, improve operational efficiencies, and ensure aviation safety. In addition, regulatory initiatives and spectrum allocation efforts in North America are helping to foster a favorable environment for 5G deployment in aviation. The United States has a strong ecosystem of aerospace companies, communications providers, and technology companies. This environment will foster significant investment and adoption of 5G technology across various industries, including aviation.
5G’s share of the aviation market
Key players deploying 5G in the aviation industry include:
- Honeywell International Inc.
- Huawei Technologies Co., Ltd.
- Ericsson
- Nokia
- Cisco Systems, Inc.
- Panasonic Avionics Co., Ltd.
- GOGO LLC
Honeywell and Huawei Technologies Co., Ltd. Ltd hold a large share of the market, exceeding 10%. Honeywell provides a variety of avionics systems and connectivity solutions for aircraft, including satellite communication systems, in-flight Wi-Fi, and cabin connectivity solutions. As 5G technology becomes increasingly important in the aviation industry, Honeywell is likely to develop and integrate 5G-enabled connectivity solutions to improve in-flight connectivity, passenger experience, and operational efficiency.
Huawei Technologies Co., Ltd. is a global leader in communications equipment, consumer electronics, and technology solutions. Although Huawei faces challenges in some markets related to geopolitical tensions, it remains a significant player in the communications industry, including in the development and deployment of 5G technology.
5G news in aviation
- Launched in November 2020, the new SESAR project, funded by a coalition of European governments and industry, will use Nokia’s 4G and 5G wireless network infrastructure (CPDLC) to test new wireless network technologies for civil aircraft controllers to test data link communications.
The 5G in Aviation market research report includes detailed information about the industry. Revenue (USD Million) estimates and forecasts from 2021 to 2032, For the following segments:
click here Buy sections of this report
Markets by Component, 2021-2032
- Hardware
- software
- service
Market, Connectivity Gender, 2021-2032
- eMBB (Enhanced Mobile Broadband)
- URLLC (Ultra Reliable Low Latency Communications)
- mMTC (Massive Machine-Based Communication)
- Network Slicing
- others
Markets, by Application, 2021-2032
- Monitoring and Tracking
- Connected Vehicles
- Smart Surveillance
- VR and AR
- others
Market, by end-use, 2021-2032
- Manufacturing
- car
- Energy & Utilities
- Transportation and Logistics
- health care
- others
The above information is provided for the following regions and countries:
- North America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Other Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- latin america
- Brazil
- Mexico
- Rest of Latin America
- Ministry of Foreign Affairs
- United Arab Emirates
- Saudi Arabia
- South Africa
- Remaining MEA
