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Air Transport: Generating USD1.4 billion through IoT by monitoring aircraft and providing on-board connectivity to passengers

  • Internet of Things
  • IoT
  • Hyperconnectivity
  • Aeroplanes
  • Aircraft
  • Air Cargo
  • Air Freight
  • Air Travel
  • Cargo Monitoring
  • Charter Flights
  • Connected Vehicles
  • Emissions
  • Flight Management Systems
  • Helicopters
  • High Throughput Satellite (HTS) systems
  • In-flight Wi-Fi
  • In-flight Entertainment & Connectivity (IFEC)
  • Location Tracking
  • Military Vehicles
  • On-board Connectivity
  • Public Transport
  • Sustainability
  • Transportation
  • Weather Information Services (WIS)
  • Paras Sharma
  • Matt Arnott
This report provides Transforma Insights’ view on IoT in the Air Transport market. This segment comprises Cargo Aircraft, Public Transport Services – Air, and Other Aircraft. IoT has been implemented in the aviation industry to benefit both operators and passengers in various ways, smoothing the process of travel and ensuring that cargo reaches its destination safely and on time with minimal emissions caused. Most communication is achieved through satellites, while some also rely on cellular to transmit data using air-to-ground (ATG) connectivity. This option offers a compelling alternative, especially in short-haul and medium-haul flights, by creating a direct link between an aircraft and the ground to provide cellular connectivity and thus reducing the latency and cost associated with satellite communications. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite, and others), as well as the revenue split between module, value-added connectivity, and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

Report summary

This report provides Transforma Insights’ view on IoT in the Air Transport market. This segment comprises Cargo Aircraft, Public Transport Services – Air, and Other Aircraft.

IoT has been implemented in the aviation industry to benefit both operators and passengers in various ways, smoothing the process of travel and ensuring that cargo reaches its destination safely and on time with minimal emissions. Most communication is achieved through satellites, while some also rely on cellular to transmit data using air-to-ground (ATG) connectivity. This option offers a compelling alternative, especially in short-haul and medium-haul flights, by creating a direct link between an aircraft and the ground to provide cellular connectivity and thus reducing the latency and cost associated with satellite communications.

The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue. A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.

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Key market developments in the Air Transport Application Group

This section begins with a general discussion of how IoT is being implemented in the aviation industry to benefit operators and passengers in various ways (like ensuring that cargo reaches its destination in a timely and safe manner with minimal emissions). It then explains how the demand for connectivity and internet services on flights has also been increasing and goes on to further explain how airlines are partnering with advertising companies to provide reliable network connectivity to their passengers free of cost.

It also discusses how predictive maintenance capabilities provided by implementing IoT solutions in aircraft also make it a compelling technology. For instance, sensors are being deployed on all critical machinery (like landing gear) to allow operators to collect comprehensive data to help analyse the symptoms of aircraft malfunctions.

The report then talks about how various flight operators are collaborating with communication operators to provide connectivity services inside aircraft and the connectivity technologies used (like cellular – via ATG and satellite) and charts the features, advantages (like cost-effectiveness), and disadvantages of ATG (like being unable to connect when travelling above oceans).

It also explains that satellite and network connectivity providers are also developing advanced solutions, including airlines that can provide uninterrupted network connectivity. Case in point, introduced in May 2024, SES Open Orbits is a multi-orbit in-flight connectivity solution that dynamically selects between different satellite networks. It combines GEO and MEO satellite networks from SES, AeroSat Link (ASL), NEO Space Group, and Hughes Communications India.

It then talks about the scope of 5G in this space. For instance, European carriers have been some of the earliest adopters of 5G technology in aircraft, and currently, Lufthansa, Swiss International Air Lines, and British Airways offer the service on certain aircraft models.

The ‘Market development’ section has been further categorised into Cargo Aircraft, Public Transport Services – Air, and Other Aircraft.

Cargo Aircraft

This section of the report begins with some statistics on the volume of goods that are transported via aeroplanes. For instance, air freight typically accounts for over 33% of the global trade by value and is equivalent to USD8.3 trillion worth of goods, although less than 1% by volume.

It then charts the potential of this market in terms of geography. For example, the Asia Pacific accounted for the largest share of global air cargo (35.8%) in April 2026, followed by North America, Europe, and the Middle East respectively. It then explains how implementing IoT solutions has enabled operators to keep a real-time check on the movement and status of cargo. This includes monitoring sensitive and perishable cargo (like pharmaceutical products) in real time. It also considers the challenges of IoT solutions in this context, including sustainability, since air is the worst form of freight transport in terms of GHG emissions.

Public Transport Services – Air

This section begins with some figures of global air traffic and their associated revenues. It then talks about how IoT is being implemented to continuously provide onboard connectivity services to passengers to enhance their travel experience, which, in turn, is helping airlines earn more ancillary revenues. In a tabular format, it then charts some major airlines, their in-flight Wi-Fi usage statistics, and their Wi-Fi partners. The airlines included in this table are Delta Airlines, United Airlines, Alaska Airlines, American Airlines, Hawaiian Airlines (part of Alaska Airlines), JetBlue, Southwest Airlines, Spirit Airlines, British Airways, Lufthansa, KLM, Aer Lingus, and AirAsia India.

It also considers some of the challenges (like lower efficiency and poor sustainability of flights) which may reduce the potential for the adoption of IoT solutions as consumers become more conscious about the environment.

Other Aircraft

This section of the report focuses on the adoption of IoT in military and private aircraft. It talks about how IoT enables predictive maintenance, where the health of critical components of aircraft is continuously monitored by sensors, which enhances overall fleet reliability, prevents unexpected failures, and enables more efficient maintenance scheduling.

It then talks about how IoT can also support the enhancement of mission planning and execution by providing real-time data on various dynamic factors (allowing authorities to make informed decisions at times of war) and for cybersecurity and threat detection. The report also discusses how IoT enhances the in-flight experience for passengers and crew among private jets (by providing a comfortable and personalised environment) and plays a crucial role in aviation safety by allowing data-driven decision-making.

Case Studies

This section of the report provides some examples of relevant IoT deployments in this Application Group, including American Airlines is offering free Wi-Fi services to all AAdvantage members and Etihad Cargo introducing SmartTrack, a shipment monitoring solution.

Key vendors for Air Transport

The key vendors section lists some of the main providers of products and services related to the market such as Arviem, Gogo Business Aviation (Intelsat), Honeywell Aerospace, Moment, Panasonic, and Tata Communications. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.

Market forecasts for Air Transport

In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:

Devices

The report charts the growth in the number of devices, which will grow from 423,000 devices in 2025 to 465,000 devices in 2035. Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.

Technologies

Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.

This section discusses which technologies will be used in the air transport application group.

Revenue

This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Air Transport Application Group will grow at a CAGR of 0.5%.

  • AirAsia
  • AirBridgeCargo
  • Arviem
  • British Airways
  • CargoLogicAir
  • Gogo Business Aviation
  • Honeywell Aerospace
  • Inmarsat
  • Iridium
  • Moment
  • Panasonic
  • SITAONAIR
  • Tata Communications
  • TrueNorth Avionics.
  • Internet of Things
  • Hyperconnectivity
    • Transportation & Storage