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InFlight Wifi Market Analysis, Challenges, Strategies & Forecasts

Friday, October 21, 2016 5:27
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Asia-Pacific in-flight Wi-Fi market of the region is majorly boosted by the increasing number of air passengers. In the past 20 years, Asia Pacific region has witnessed an increase in the number of air passengers by over 6.5%. This trend of growth is anticipated to continue for the coming 10-12 years. Backed up by this trend, Asia Pacific is expected to account for 40.8% of the global air transport in comparison to that of 28% at present.
Citing the above mentioned scenario, the in-flight Wi-Fi market is projected to expand at a CAGR>26.35% during 2015-2021.

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In addition to that, rising penetration of smartphones and formulation of favorable guidelines by the aviation authorities from countries like India for the use of in-flight Wi-Fi services inside an aircraft would further bid to boost the airborne wireless connectivity market over the next few years. In August 2016. Aviation Ministry of India has given a green signal to launch in-flight wifi services in the country. Hence, a spur a expected by the launch of such services. Over the past 10 years, the jetliners fleet in the Asia-Pacific region has experienced almost double increment in its number from 2,901 to 5,852 aircrafts. The number of jet operators in the region also increased from 151 to 226 registering a growth of almost 51% in the past decade. The capacity of the aircrafts also witnessed an annual growth of 7.1% and the number of flight routes within and from the region increased from 2,210 to 3,820, exhibiting a growth of around 58% during the same period.
The two major airline companies of the Asia-Pacific region i.e. Boeing and Airbus further anticipates that in order to satisfy the growing air passenger traffic, the demand for new aircrafts would soar from 12,520 to 15,010 aircrafts in the coming 20 years. This burgeoned increase in the total number of aircrafts would surely lead Asia-Pacific to achieve the fastest growth in the in-flight Wi-Fi market in the coming future.

With rising use of social media platforms like Facebook, Twitter, LinkedIn etc. in the country, the number of social media users would also increase in future. This trend would surely expand the opportunities for the growth of in-flight W-Fi in India. 

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The year-on year (Y-O-Y) growth rate of most of the Asia-Pacific countries would observe an increase during the period of 2015-2016 (except that of Japan, Singapore and Indonesia). The reason behind this growth could be attributed to strengthening of the economy of most of the Asia-Pacific countries which would lead to larger investments for the development of in-flight Wi-Fi in the region.
In a major country such as India, the penetration of social media is witnessing a continuous increase in recent few years. Currently, the total number of social media users in the country is approximately 144 million. Out of this, 120 million users belonged to the urban areas and 24 million from that of rural areas in India.

Initially, the passenger traffic at the airports in Asia-Pacific declined from 1.8% in 2012 to 0.6% in 2013. But, with the commencement of the year 2014, the passenger traffic started rising and the growth rate climbed to 4.6% in comparison to 2013. Further, in 2015, the passenger traffic at airports again witnessed a growth at an average of 5.2% over 2014.

However, lack of safety and security, higher costs and lack of technology are some of the major challenges that would restrain the growth of in-flight Wi-Fi market during the forecast period.
The global in-flight Wi-Fi market is segmented on the basis of type such as hardware and services. . By 2021, the service segment is believed to have the highest market share by 2021.


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