5G In Aviation Market Insights, Segmentation, Trends And Forecast, 2028

According to Fortune Business Insights™, the global 5G in aviation market was valued at USD 0.35 billion in 2020 and is projected to expand from USD 0.54 billion in 2021 to USD 9.92 billion by 2028, registering a remarkable CAGR of 47.03% during the forecast period. This explosive growth reflects the aviation industry’s increasing reliance on next-generation wireless connectivity.

5G represents more than just faster internet—it is a core enabler of digital aviation, powering real-time communication, advanced passenger services, and smart airport operations. By replacing legacy 4G LTE systems, 5G brings the aviation sector closer to a future defined by IoT, Augmented Reality (AR), Virtual Reality (VR), and seamless connectivity.

Why 5G Matters in Aviation
The aviation ecosystem is evolving rapidly, and 5G is at the center of this transformation:

Ultra-fast passenger connectivity: Travelers benefit from real-time streaming, smooth video calls, and uninterrupted internet access both at airports and onboard aircraft.
Smarter airports: From automated check-ins to baggage tracking, 5G enhances efficiency across operations.
Next-generation air traffic management: 5G supports NextGen systems, enabling safer and more reliable communication between aircraft and ground stations.
Digital aviation growth: AR/VR for pilot training, IoT-enabled aircraft monitoring, and predictive maintenance are now becoming a reality.

The Future of 5G in Aviation
The aviation industry is steadily moving toward connected, digital-first operations. From passenger comfort to safer skies, 5G is reshaping how airports, airlines, and aircraft operate. Despite infrastructure and regulatory challenges, the long-term outlook remains highly positive, with 5G becoming a cornerstone of next-generation aviation.

Key Market Drivers
Rising Demand for High-Speed Connectivity
Airlines and airports are under pressure to meet growing passenger expectations for reliable, high-speed internet. 5G’s low latency and high throughput make this possible.
Integration of IoT, AR/VR, and Smart Operations
From real-time aircraft health monitoring to advanced ground operations, 5G-enabled systems are streamlining aviation processes.
Modernization of Air Traffic Control
As global skies become more crowded, 5G ensures better coordination, secure communication, and enhanced aircraft safety.
Challenges to Growth
Despite its promise, the rollout of 5G in aviation faces certain barriers:

High Infrastructure Costs: Building small cells, RAN systems, and upgrading base stations requires massive investments.
Spectrum Allocation Issues: Regulatory hurdles often delay deployment.
Dependence on 4G Systems: Non-standalone 5G networks still rely on 4G, limiting the full benefits of 5G.
Information Source:

https://www.fortunebusinessinsights.com/industry-reports/5g-in-aviation-market-101778

Market Segmentation Highlights
By Platform:

5G Airports lead the market, driven by demand for high-speed connectivity and smart passenger services.
5G Aircraft is the fastest-growing segment, with applications in in-flight entertainment, connected cockpits, and drones.
By Technology:

Enhanced Mobile Broadband (eMBB) dominates due to its role in delivering high-speed internet.
URLLC (Ultra-Reliable Low Latency Communication) is set to grow fastest, supporting autonomous navigation and mission-critical systems.
mMTC (Massive Machine-Type Communication) drives IoT adoption for real-time tracking and monitoring.
By Communication Infrastructure:

Small Cells lead due to their efficiency in delivering seamless coverage inside terminals and cabins.
RAN and DAS support robust signal distribution across wide areas.
By Services:

Airport Operations grow fastest, enabling smart baggage handling, security, and passenger management.
Aircraft Operations leverage predictive maintenance, flight data exchange, and in-flight connectivity.
Regional Insights
North America dominates the market with 42.86% share in 2020, driven by strong aviation infrastructure and rapid 5G adoption.
Asia Pacific is the fastest-growing market, led by China, India, and Japan, where governments and telecom companies are investing heavily in 5G-ready airports and air-to-ground networks.
Europe benefits from strong telecom presence (Ericsson, Nokia, OneWeb) and collaborative projects focused on digital aviation.
Competitive Landscape
The market is highly competitive, with global telecom and aviation leaders investing in large-scale 5G deployments, R&D, and partnerships.

Key Companies Include:

Cisco Systems (U.S.)
Huawei Technologies (China)
Gogo LLC (U.S.)
Nokia Corporation (Finland)
OneWeb Ltd (U.K.)
Panasonic Avionics (U.S.)
Ericsson (Sweden)
SmartSky Networks (U.S.)
AeroMobile Communications (U.K.)
Intelsat (U.S.)
ANUVU Inc. (U.S.)
Strategic alliances, satellite integration, and connected aircraft initiatives are central to their growth strategies.

Recent Industry Development
May 2021: ANUVU Inc. signed an agreement with Breeze Airways to deliver wireless in-flight entertainment (W-IFE) using its IRIS and Airconnect systems on E195 and E190 aircraft.