In-flight Entertainment & Connectivity Market 2020 and Forecast 2021-2027

  • TBI500691
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research
                                              

Report Overview: In-flight Entertainment & Connectivity Market

The global in-flight entertainment and connectivity market size was valued at around USD 4.8billion in 2020 and is anticipated to witness a substantial CAGR of 8.4% between 2020 and 2028. Factors such as advancements in wireless connectivity and upsurge in the use of internet-enabled Personal Electronic Devices (PEDs) are stimulating market growth. Additionally, increased passenger demand for internet access and media streaming onboard, along with their willingness to pay an additional cost for these services is anticipated to create lucrative growth opportunities in the coming years. The aviation sector is undergoing a tremendous technological transition, necessitating market players to offer passengers the latest onboard solutions and services. In-flight entertainment and connectivity is playing a pivotal role in this shift, replacing the traditional seatback screens offering limited entertainment content with a relatively personalized model catering to the unique passenger requirements. In addition, advances in seat design, connectivity, and real-time data are some of the other factors positively impacting the market for in-flight entertainment and connectivity. The key players are focusing on improvising the overall content delivery services, further resulting in a surging demand. Traditional IFE systems have successfully incorporated various connectivity technologies to transform into more versatile and robust in-flight entertainment and connectivity systems. These systems have witnessed significant developments over the past few years owing to the emergence of various technological breakthroughs. The market for in-flight entertainment and connectivity is experiencing a positive revolution owing to the rising demand for improving the passenger experience among the market participants. The industry players are increasingly incorporating in-flight Wi-Fi and commoditizing hardware essentials, due to the rapid adoption of smart device paradigm and influx of consumer electronics into the onboard ecosystem. The increasing focus of airlines towards addressing the travelers’ demand for in-flight entertainment and connectivity services is anticipated to foster industry growth. In-flight entertainment and connectivity services continue to form a cornerstone for sustainability, and in most cases, garner profit for the airline industry. Regulatory intervention pertaining to onboard connectivity offerings is expected to remain high over the forecast period 2021-2027. Innovation is expected to remain a critical factor responsible for the development of the market for in-flight entertainment and connectivity. The key In-flight entertainment and connectivity system fabricators are witnessing a growing preference towards adopting the Bring Your Own Device (BYOD) trend and integrating advanced connectivity technologies in their systems. There has been an increasing passenger demand for seamless connectivity during the entire flight duration due to the augmented usage of the internet on digital technologies in everyday life. One of the major catalysts for amplified internet consumption is the use of social media and increasing amount of time spent online. Leading airlines worldwide are adapting to the changing passenger behavior and experimenting with various digital options, in an attempt to provide seamless and personalized travel experience. Apart from improving the overall passenger experience, a well-optimized in-flight entertainment and connectivity solution should completely align with an airline’s business model and commercial objectives, providing a tailored approach to marketing.

Component Insights: In-flight Entertainment & Connectivity Market

Based on the components, the global in-flight entertainment and connectivity (IFEC) market has been segregated into hardware, connectivity, and content. The hardware segment was the highest revenue-generating segment in 2019. The emergence of the BYOD trend and wireless portable electronic devices, is anticipated to revolutionize segment growth. Additionally, the segment is anticipated to be characterized by a high degree of dynamism, owing to continual product developments in the quest to fabricate lightweight and advanced in-flight entertainment and connectivity systems. The connectivity segment is poised for considerable growth throughout the forecast period owing to rising passengers’ need to stay connected throughout the flight. The segment is further broken-down into wireless as well as wired connectivity. Wireless connectivity services are expected to witness considerable growth in the coming years due to the growing adoption of wireless onboard communication and entertainment service offerings by airlines to enhance the overall passenger travel experience. The advent of onboard Wi-Fi has enabled passengers to opt for personal devices, including phone, tablet, phablet, and others, as a portal to stream films, TV shows, and live content, thereby eliminating the need to install hardware at every seat.

Aircraft Type Insights: In-flight Entertainment & Connectivity Market

The three primary aircraft types analyzed in the report include Narrow-Body Aircraft (NBA), Wide-Body Aircraft (WBA), and Very Large Aircraft (VLA). The NBA segment is anticipated to emerge as the fastest-growing as well as the highest revenue generating segment over the forecast period. The significant growth in this segment can be attributed to increased demand for short-haul flights as well as the expansion of new travel routes and airports. In addition, NBAs exhibit optimal fuel efficiency and ergonomics as compared to its counterpart, resulting in their increased preference. Currently, some of the leading airlines are replacing their older fleet of NBA with a new generation fuel-efficient fleet, in turn creating substantial growth opportunities in the near future. The WBA segment accounted for a considerable share of the global IFEC market in 2019 and is anticipated to witness substantial growth over the forecast period. In-flight entertainment and connectivity systems on long-haul and intercontinental flights are present in almost all of the WBAs, in turn propelling the growth of this segment. The need for onboard entertainment and connectivity services are of integral importance while traveling on long-routes to keep the passengers engaged and offer an enhanced travel experience to the passenger.

Offering Type Insights: In-flight Entertainment & Connectivity Market

The two primary offering types analyzed in the report include In-Flight Entertainment (IFE) and In-Flight Connectivity (IFC). The IFE segment registered the highest market share in 2019 and is anticipated to retain its dominance throughout the forecast period. IFE is one of the integral services offered by airline operators to augment the overall passenger travel experience, primarily on long-haul flights. The newly developed IFE systems provide various advantages to airline operators as well as passengers, including minimal cabling infrastructure, reduced flight weight (further leading to relatively low fuel consumption), and flexibility for the passengers to use their own devices. The IFC segment is anticipated to foresee considerable growth over the coming years. Substantial investments by the industry players in enhancing wireless connectivity infrastructure has helped the airlines to effectively address the rising demand for live media streaming and Wi-Fi services onboard. These expansion efforts are anticipated to establish a digital environment for passengers that is similar to their home or workplace. Leading airline operators across the globe are continuously working on enhancing their connectivity service offerings, in an attempt to provide passengers with better speed and greater capacity, resulting in an increased ancillary revenue generation.

Regional Insights: In-flight Entertainment & Connectivity Market

North America lead the market for in-flight entertainment and connectivity in 2019. Higher penetration rate of such systems in the regional airlines, typically across the matured economies, is anticipated to support the regional market growth. Some of the major airlines across the region, such as Delta Air Lines, Inc., and United Airlines, Inc., are increasingly making efforts to offer premium content through Wi-Fi or provide tablets to the passengers onboard. In addition, the growing trend of BYOD is anticipated to allow airlines to eliminate the need for installing back-seat screens and reduce the overall aircraft weight. Asia Pacific is anticipated to grow at an exponential rate of almost 13% between 2020 and 2028. The prime factor stimulating the market growth is the increasing passenger traffic, in turn creating the demand for aircraft integrated with next-generation entertainment and connectivity technologies. Some of the leading airlines in this region offer contemporary In-flight entertainment and connectivity services for their first-class passengers. For instance, Garuda Indonesia, the flag carrier of Indonesia, offers a wide range of onboard entertainment services, such as live streaming of TV shows, in-flight shopping, and games to its premium travel class passengers. In-flight Entertainment & Connectivity Market Share Insights The competitive rivalry between the key market players is significant with a handful of players acquiring a majority of the market share. The industry participants are focusing on effectively addressing the precise requirements of the airlines, thereby enabling them to enhance efficiency, passenger engagement, and their potential to generate new revenue sources by offering cutting edge and innovative connectivity solutions. Innovations by major market participants are expected to remain a cornerstone development of the market for in-flight entertainment and connectivity. In an attempt to provide a versatile solution to the airlines, Panasonic launched its ‘eXO IFE/wIFE mix in-flight entertainment solution’ that permits airlines to modify their aircraft configuration for the overhead IFE, embedded IFE, wireless IFE, or all the three offerings. Such solutions are anticipated to help the airlines to easily upgrade their existing IFE equipment with contemporary systems. Furthermore, companies, such as have started offering systems with high-speed Wi-Fi connectivity, which is expected to drive the passenger demand for wireless in-flight connectivity services on short-haul flights. This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Trusted Business Insights has segmented the global in-flight entertainment and connectivity market report on the basis of component, aircraft type, offering type, and region:

Component Outlook (Revenue, USD Million, 2016 - 2028)

  • Hardware
  • Non-Portable
  • Portable
  • Connectivity
  • Wired
  • Wireless
  • Content
  • Stored
  • Streamed

Aircraft Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Narrow-Body Aircraft (NBA)
  • Wide-Body Aircraft (WBA)
  • Very Large Aircraft (VLA)

Offering Type Outlook (Revenue, USD Million, 2016 - 2028)

  • In-flight Entertainment (IFE)
  • In-flight Connectivity (IFC)

Table of Contents
Chapter 1 Methodology and Scope
1.1 Market Segmentation & Scope
1.2 Market Definitions
1.3 Information Procurement
    1.3.1 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum)
    1.3.2 IFF internal database
    1.3.3 Secondary sources & third party perspective
    1.3.4 Primary Research
1.4 Information Analysis
    1.4.1 Data analysis models
1.5 Market Formulation and Data Visualization            
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