In-flight Entertainment and Connectivity Market Outlook 2031
The global In-flight entertainment and connectivity market size was valued at USD 7.78 Billion in 2022 and is expected to surpass USD 17.46 Billion by 2031, expanding at a CAGR of 9.4% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing usage of personal electronic devices (PEDs) along with the Internet access. Moreover, rising developments in wireless connectivity is spurring the market growth.
In-flight entertainment and connectivity (IFEC) are the facilities through which one can get access to video streaming, Internet browsing, and text messaging, among others that airlines provide to their on-board passengers. The IFEC services support any portable devices including laptops, smartphones, and tablets, which allow on-board passengers to download IFE content on their personal electronic devices (PEDs).
An increasing number of technological advancements has aided market players to provide airlines with various on-board passenger solutions and services. IFEC services have replaced the traditional seatback screens, which were providing limited entertainment content to the air passengers. Several market players are focusing on improving the overall content offering services, which in turn, is expected to increase the demand for IFEC services in the coming years.
The integration of multipurpose in-flight entertainment and connectivity systems in traditional IFE systems is anticipated to propel the market growth. Rising adoption of smart devices and penetration of consumer electronics into the on-board system segment and has encouraged industry players to integrate in-flight Wi-Fi and commodify hardware.
The enlarged usage of digital technologies has increased the passenger demand for uninterrupted connectivity during the entire flight journey. An ideal in-flight entertainment and connectivity solution should seamlessly integrate with an airline’s business model as well as industrial ideas to improve the overall passenger experience.
In-flight Entertainment and Connectivity Market Trends, Drivers, Restraints, and Opportunities
- Increasing usage of social media platforms is one of the major factors influencing the market growth.
- Growing focus of airlines toward satisfying passengers’ demand for IFEC services is expected to contribute to the market expansion in the coming years.
- High cost of in-flight Wi-Fi equipment and its installation can hinder the market growth during the forecast period.
- On-board passengers are willing to pay an additional cost for the in-flight entertainment and connectivity services, which is increasing the demand for IFEC services. This is anticipated to present numerous opportunities in the coming years for the expansion of market.
Scope of In-Flight Entertainment and Connectivity Market Report
The report on the global in-flight entertainment and connectivity market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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In-Flight Entertainment and Connectivity Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Components (Content [Stored and Streamed], Connectivity [Wired and Wireless], and Hardware [Non-Portable and Portable]), Aircrafts [Narrow-Body Aircraft (NBA), Very Large Aircraft (VLA), and Wide-Body Aircraft (WBA)], and Offerings [In-flight Connectivity (IFC) and In-flight Entertainment (IFE)]
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Panasonic; ViaSat Inc., and Gogo LLC.
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In-Flight Entertainment and Connectivity Market Segment Insights
Component Segment Analysis
Based on components, the market is segmented into content, connectivity, and hardware. The content segment is further divided into stored and streamed. On the other hand, the hardware segment is further divided into non-portable and portable while the connective segment is bifurcated into wired and wireless.
The connectivity segment accounted for considerable growth during the forecast period due to the increasing demand for passengers’ to staying connected during the flight journey. Increasing adoption of wireless communication and entertainment services by airlines, to improve the overall passenger flight experience is fostering the segment growth.
The hardware segment is anticipated to account for a large revenue share in the coming years owing to the continuous product advancements and improved inflight entertainment and connectivity system. Moreover, the trend of bring your own device (BYOD) and development in wireless portable electronic devices are expected to influence the market segment.
Aircraft Segment Analysis
On the basis of aircraft, the market is classified as narrow-body aircrafts (NBAs), very large aircrafts (VLAs), and wide-body aircraft (WBAs). The NBAs segment is anticipated to account for a large revenue share as well as a high CAGR owing to the increasing number of travel routes, airports, and enlarged demand for short-haul journeys.
Several leading airline companies are switching their older fleet of NBA with the latest upgraded fuel-efficient fleet, which is significantly contributing to the segment growth. During the long-haul and international flights, IFEC systems are present in majority of the WBAs, which is boosting the growth of the WBA segment.
Offerings Segment Analysis
By offerings, the market is divided into in-flight connectivity (IFC) and in-flight entertainment (IFE). The IFE segment is anticipated to dominate the market owing to the rising number of long-haul journeys, which has increased the adoption of IFE services by airlines.
The IFC segment is expected to account for substantial growth owing to the increasing demand for Wi-Fi services and live video streaming during the journey. These efforts are expected to develop a digital atmosphere for the travellers, which is similar to their residential or workplace.
Regional Analysis
In terms of regions, the global in-flight entertainment and connectivity market share is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market in coming years due to the growing penetration of IFEC systems in the airlines of this region, especially in the US and Canada.
Regional airlines such as Delta airlines, Inc. and United Airlines, Inc. are significantly taking efforts to provide high-quality content by offering Wi-Fi services and tablets to passengers. Moreover, they’re eliminating backseat screens from the aircraft, to reduce the overall aircraft's weight.
The market in Asia Pacific is anticipated to expand at a high CAGR owing to the rising number of air passengers, which in turn, increasing the demand for aircrafts that are integrated with advanced entertainment and connectivity technologies. Several prominent regional airlines are offering IFEC services to their first-class air passengers.
For instance, Garuda Indonesia, a flag carrier airline of Indonesia, provides a huge range of entertainment services onboard, including games, in-flight shopping, video streaming, and other such services to its premium-class passengers.
Segments
The global in-flight entertainment and connectivity market has been segmented based on
Components
- Content
- Connectivity
- Hardware
Aircrafts
- Narrow-Body Aircrafts (NBAs)
- Very Large Aircrafts (VLAs)
- Wide-Body Aircrafts (WBAs)
Offerings
- In-flight Connectivity (IFC)
- In-flight Entertainment (IFE)
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Some major market players competing in the global in-flight entertainment and connectivity market share include Panasonic; ViaSat Inc., and Gogo LLC.These market players are mainly focusing on resolving the specific needs of the airlines, which in turn, helps airlines to improve passenger interaction and create new revenue sources by providing advanced connectivity solutions. Several innovations by key market players are expected to play a significant role in the development of the in-flight entertainment end connectivity market.Companies including Gogo LLC. and ViaSat Inc., have begun to provide systems with a high-speed Wi-Fi connectivity, which in turn, is anticipated to boost the passenger requirement for wireless inflight connectivity services.
In November 2020, Panasonic announced that the Qatar Airways has been enrolled its EcoFW 10 in-flight entertainment (IFE) upgrade program. Under this program, the seatback IFE monitors on the airline’s fleet of 37 Boeing 777 aircraft, is expected to get replaced with Panasonic’s new EcoFW 10 monitor upgrade, which in turn, may create next generation HD passenger experience, while exceeding the lifespan of the flights IFE system and diminish the operational cost.
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