5g Market In Aviation - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026)

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5G technology is starting to appear in a few cities and on a few consumer devices, and the phrase itself is stirring up excitement across aviation industries.

- The fifth-generation cellular network standard has promises extremely fast communication, with ultra-reliable low-latency links for real-time communication and interaction, along with the support for huge numbers of connected devices in small areas.

- 5G will be able to support the rapidly growing number of connected and smart devices in both the consumer context (IoT) and industry (IIoT).

- On the consumer side, users will experience reliable and fast communication and new real time applications such as virtual or augmented reality and highly responsive gaming. Vehicles and their sensors will be constantly connected to both each other (V2V) and also to local infrastructure (V2I) enabling efficient, safer and autonomous driving.

- Adoption of IoT is increasingly becoming part of the global digitalization trend in the aviation industry, and the network operating IoT in such facilities requires a high-speed communication network. For example, ...
... Schiphol in the Netherlands has about 70,000 sensors collecting real-time information on the performance of elevators and walkways. Wearables can also be used in an airport to drive efficiency. The Cincinnati/Northern Kentucky International Airport improved facility management using a solution that combines mobile devices, smart sensors, and a cellular network

Key Market Trends

Ground-to-Ground Communication type is Expected to Register a Significant Growth

- As 5G Use Cases are becoming more and more well-articulated by the industry and the ultra-high reliability and low latency of 5G come into the picture, their presence in the aerospace sector will surely be increasing in the years to come.

- The growth of 5G broadband is expected to complement the existing 4G technology, using similar frequency bands, but with higher data rates, greater reliability and lower latency or lag. Further, carriers and device manufacturers will be able to use frequency bands that have not been used in cellular communications before but are commonly used in aerospace and radar applications.

- In October 2018, the Civil Aviation Administration of China has organized an experimental verification project for the ATG-LTE technology in civil aviation applications. CAAC has approved the technical verification of 10 routes in China.

- The 5G mobile communications technology using the Ground-to-Ground Communicatiohas has already completed the first phase of full-function standardization, and by the end of 2019, the 3GPP R16 standard will be approved. With the launch of independent 3GPP R15 networking standards, 5G communications spectrum has been distributed in some countries, and 5G communications will enter the large-scale deployment phase.

- Apart from technological innovation in the equipment used in the industry, the ground staff and airports are expected to see a significant change over the coming years due to 5G. With the growing proliferation of technology and smartphones, consumers are increasingly expecting digital engagement and personalized experiences in airports.

North America to Register the Largest Growth During the Forecast Period

- Although the majority of these subscribers are being served using proprietary technologies in the unlicensed 5GHz spectrum, the use of 5G technologies in the licensed spectrum is expected to grow across the aviation sector across the region.

- Also, the rise in passenger traffic is leading to an increase in demand for good internet connectivity in airports as well as connected aircraft, hence smart airports across this region is boosting the growth of the 5G market in the Aviation sector.

- eMBB is an evolution to the existing 4G network across the US region which is the initial phase of 5G services. Prominent applications involved with eMBB including 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 are expected to fuel the demand for 5G market across the region.

- eMBB is an evolution to the existing 4G network across the US region, which is the initial phase of 5G services. Prominent applications involved with eMBB, including 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, are expected to fuel the demand for the 5G market across the North American region.

Competitive Landscape

The 5G market in aviation is moderately competitive and consists of a few players. In terms of market share, some of the major players currently dominate the market. However, with the advancement in the frequency band thereby growing application in the aviation sector, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.

- November 2020 - The new SESAR project funded by a European government-industry consortium will use Nokia's 4G and 5G wireless network infrastructure to test new wireless network technologies for commercial airline controller to pilot data link communications (CPDLC).

- Feb 2020 - Nokia deployed 5G private wireless network for Lufthansa Technik virtual inspection trial. The trial is to utilize hyperfast wireless connectivity to enable remote engine parts inspection, offer high definition video link which takes customers directly to the overhaul shop floor, and the 5G network to save time and cost, as well as improving efficiency and operational performance.

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