In-flight Entertainment & Connectivity Market

Global Ifec Market Statistics 2022-2030: 

The in-flight entertainment & connectivity market was valued at $4.13 billion in 2020, and is projected to reach $11.65 billion in 2030, registering a CAGR of 11.36%.    

The COVID-19 outbreak proved very drastic for a variety of businesses and forced governments across the globe to implement strict lockdowns, which led to social distancing being made mandatory to contain the spread of the virus. As a result, people started avoiding visiting places, and the demand for all means of transportation, including air travel, observed a huge decline in 2020-2021. As a result, thousands of airplanes were grounded worldwide, and the industry witnessed a huge slump in revenues. The aviation sector witnessed significant losses during 2020 and 2021, owing to the uncontrolled situation of the pandemic across several parts globally. The losses witnessed by the aviation sector have impacted the adoption of vital services such as in flight entertainment and connectivity. Airports and airlines suffered to a large scale by the pandemic that stopped the companies and authorities to invest in advanced in flight entertainment and connectivity systems throughout the world.

In-flight entertainment and connectivity (IFEC) refers to the onboard internet service offered by airlines to business and commercial aircraft passengers. This service can be accessed via personal electronic devices (PEDs) such as smart phones and laptops for internet surfing, playing games, watching movies, and serials. IFEC systems appear to function without the need of visible wires. The wiring is stowed away in the aircraft walls, with the wire beginning in the top panel, adjacent to the oxygen masks and air conditioning controls. These wires are then connected to the power units, which are located in a few rows along the aircraft's sidewall. 

The advancement in connectivity technologies in developed regions, supportive policies to use personal electronic devices onboard, and growth in  number of airline passengers fuel demand for advanced in-flight connectivity & content streaming services. However, high costs associated with networking technologies & connectivity hardware and an increase in data privacy & security issues are projected to limit the adoption of wireless communication & connectivity services. 

Emerging markets such as Asia-Pacific and Latin America are projected to create new growth opportunities for prominent players. For instance, in October 2021, Viasat Inc. expanded its Ka-band In-Flight Connectivity (IFC) coverage for its Business Aviation services across Brazil. In addition, Viasat expanded its high-capacity, Ka-band coverage areas to business jet operators, covering more than 90 percent of the most-traveled business aviation flight paths with its industry-leading connectivity solution.

The global in-flight entertainment & connectivity market is segmented on the basis of type, aircraft, connectivity, and region. Based on type, the global in-flight entertainment & connectivity market has been categorized into IFE hardware, IFE connectivity, and IFE content. Based on aircraft, the market has been classified into wide-body, narrow-body, and business jets. Based on connectivity, the market has been bifurcated into satellite connectivity and air-to-ground connectivity. The market is analyzed based on four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

Key players profiled in this report include Anuvu, EcoStar Corporation, Honeywell International Inc, Intelsat, Kymeta Corporation, Panasonic Corporation, SITA (OnAir), Thales Group, Thinkom Solution, and Viasat Inc.

Advancement In Connectivity Technologies

Continuous investment in networking and connectivity technology innovation has prompted major businesses in in-flight connectivity to create upgraded technologies in order to stay competitive and obtain a first-mover advantage. Prominent players in the market are aimed at launching new connectivity technologies and advanced portals that can be integrated on aircraft to enhance bandwidth capacity & connectivity speed and provide smart connectivity to passenger’s electronic devices such as smart phones, laptops, and tablets. For instance, in September 2021, Global Eagle Entertainment (GEE) (ANUVU is the new name for Global Eagle Entertainment) launched a series of connectivity improvements across Southwest Airlines’ In-flight Entertainment Portal, which allows customers to stream in-flight content direct to their smart phone, laptop, or tablet without having to download an app before they board. 

Moreover, several in-flight entertainment & connectivity market players such as Honeywell International Inc., Viasat Inc., Intelsat, EchoStar Corporation, and others have adopted development strategies to improve their connectivity solutions. For instance, in February 2022, Intelsat entered into a partnership with SKY Perfect JSAT Corporation to expand the high-throughput in-flight connectivity network in Asia. The partnership benefits both airlines and passengers as it promotes an exceptional passenger experience with faster internet connection speeds onboard flights. And in June 2021, Honeywell International Inc. signed an agreement with SmartSky, an air-to-ground (ATG) network provider, to provide its customers with the best and most extensive in-flight connectivity services. Such advancements and developments in network & connectivity technologies are projected to continue throughout the forecast period. This in turn is anticipated to fuel the market growth.

Growth In Number Of Airline Passengers

According to the International Civil Aviation Organization (ICAO), by 2035, passenger traffic and freight volume should be double. Factors such as growth in disposal income of the middle-class population and the emergence of low-cost airlines have led to an increase in number of airline passengers. With surge in number of airline passengers, demand for in-flight entertainment and connectivity services has increased at a significant rate. Major countries such as Canada, U.S., Brazil, Indonesia, Philippines, China, Saudi Arabia, and India witnessed rise in number of air passengers. For instance, according to the Bureau of transportation, in October 2021, U.S. Airlines’ passengers increased 119% from October 2020. According to International Air Transport Association (IATA), passenger numbers could double to 8.2 billion in 2037 at 3.5% compound annual growth rate (CAGR).

High Cost Associated With Networking Technologies And Connectivity Hardware

High initial cost associated with installation of networking technologies and connectivity hardware is anticipated to hamper the growth of the market. For instance, air-to-ground technology costs around $80,000 per aircraft, however, cost associated with deployment of satellite technology is around $400,000. This hinders the adoption rate of connectivity hardware and services by airlines, particularly in the developing regions, such as Asia-Pacific and Latin America to a considerable extent. Moreover, in-flight connectivity services such as network planning & designing and implementation & integration services are highly priced. These services, if related to deployment of satellite networking technology or equipment, are estimated to cost over $100,000.

Huge Untapped Market Opportunity In Developing Regions 

Emerging markets in developing regions such as Asia-Pacific, the Middle East, and Latin America are projected to create new growth opportunities for prominent players. In-flight entertainment & connectivity market players such as Viasat Inc., Intelsat, Honeywell International Inc., and others are expected to supplement the growth of the market over the forecast period through their developments and expansions in developing regions. For instance, in January 2022, Anuvu entered into a partnership with Asiana Airlines Inc. as Content Service Provider (CSP). This partnership expands Asiana Airlines' in-flight entertainment (IFE) offering including worldwide films and diverse TV options. Moreover, in October 2021, Viasat Inc. started a new office in Dubai, United Arab Emirates (UAE), which is expected to help to expand their business in the Middle East. The company even expanded its Ka-band In-Flight Connectivity (IFC) coverage for its Business Aviation services across Brazil. In addition, in 2019, it entered into a partnership with China Satellite Communications Co., Ltd. to jointly provide in-flight connectivity (IFC) services within China for domestic and international airlines.

Covid-19 Impact Analysis

• The COVID-19 impact on the in-flight entertainment & connectivity market is unpredictable, and is expected to remain in force for a few years. 
• The COVID-19 outbreak forced governments across the globe to implement stringent lockdown and ban import–export of raw material items for most of 2020 & few months in 2021. This led to sudden fall in the availability of important raw materials for manufacturing in-flight entertainment (IFE) screens and other components.
• Moreover, nationwide lockdown forced IFE manufacturing facilities to partially or completely shut their operations.
• Adverse impacts of the COVID-19 pandemic have resulted in delays in activities and initiatives regarding development of advanced IFE components globally.

Key Benefits For Stakeholders

• This study presents analytical depiction of the global in-flight entertainment & connectivity market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall in-flight entertainment & connectivity market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities of the global in-flight entertainment & connectivity market with a detailed impact analysis.
• The current in-flight entertainment & connectivity market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers in the industry.

 In-flight Entertainment & Connectivity Market Report Highlights