Total revenues from passenger connectivity services are expected to grow from $700 million in 2015 to nearly $5.4 billion by 2025, a 23% CAGR over the 10-year period. At the end of 2015, 72 airlines had already installed or announced plans to install passenger connectivity systems on board, and the number of connected commercial aircraft had increased by 21% compared to the end of 2014.
The launch of High Throughput Satellites (HTS) in both Ku-band and Ka-band is expected to be a game-changer for the in-flight connectivity market. Total Ka-band HTS supply will increase threefold to reach 1,500 Gbps by 2018, while Ku-band HTS supply will increase fivefold to reach 285 Gbps in 2018. Beyond 2018, an even larger volume of capacity, targeting the in-flight connectivity market, is expected. HTS systems will not only tremendously increase data speeds to the plane compared to regular satellite systems, but will also significantly lower costs, thereby further driving the adoption of IFC services. With more airlines opting for cabin connectivity, companies that have not yet made a decision will be increasingly pressured to offer such services to match their competitors.