✷ Report Code: A01815 | Pages: 242 | ||
Tables: 130 | Charts: 69 |
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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.
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.
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 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.
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.
In-flight Entertainment & Connectivity Market Report Highlights
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By Aircraft |
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The global in-flight entertainment and connectivity market is expected to witness significant growth due to rise in need for advanced internet connectivity services from air passengers, increase in number of connected aircraft, introduction of supportive policies to use personal electronics devices on-board, and growth in number of air passengers.
Moreover, prominent players that operate in the in-flight entertainment and connectivity industry are anticipated to incline toward investment in the setup of more connectivity base stations to achieve uniform coverage across the globe. For instance, in January 2022, Anuvu secured a commitment for $50 million of growth capital that is expected to allow it to focus on the expansion of the Anuvu Constellation ground & space networks, including its network management, data platforms, and advanced mobility-focused antennas. Moreover, in December 2020, Hanwha Systems (HSC) invested $30 million in the development of Kymeta’s next-generation solutions, the Kymeta u8 and Kymeta Connect. In addition, availability of high speed, low cost, and reliable network for aircraft is anticipated to cater to the requirement of the end-user.
Furthermore, numerous developments have been carried out by key players that operate in the industry, which are anticipated to create remunerative opportunities for expansion of the market during the forecast period. For instance, in December 2021, Anuvu launched Explore, a user-friendly and comprehensive online library that simplifies choosing in-flight entertainment content. The innovative solution delivers to airlines a modern and efficient alternative to the industry’s legacy approach to content & media selection.
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.
A. The global in flight entertainment and connectivity market valued $4.13 billion in 2020, and is projected to reach $11.65 billion by 2030, registering a CAGR of 11.36% between 2021 and 2030
A. In-flight entertainment and connectivity (IFEC) include services such as video streaming, text messaging, and internet browsing that airliners offer to air passengers on-board
A. The report sample for global in flight entertainment and connectivity market report can be obtained on demand from the website
A. Driven by factors such as advancement in connectivity technologies and growth in number of airline passengers, the in flight entertainment and connectivity market is expected to register a significant growth during the forecast period
A. Increasing product launches of IFE hardware; and the increasing demand for streaming services
A. The company profiles of the top players of the market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the industry along with their last three-year revenue, segmental revenue, product offerings, key strategies adopted, and geographical revenue generated
A. By type, the IFE hardware held the highest market share in 2020
A. Rise in demand for faster ad secure in flight entertainment and connectivity services globally
A. The leading companies operating in the in flight entertainment and connectivity market are Honeywell International Inc., Panasonic Corporation, Thales Group, and Viasat Inc.
A. Rise in adoption of satellite-based connectivity
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