Top Facts You Didn’t Know About In-flight Entertainment & Connectivity market

Posted by Mrudula Anil Karmarkar on January 19th, 2022

The global in-flight entertainment and connectivity market size is anticipated to reach USD 13.6 billion by 2028, growing at a CAGR of 9.5% from 2020 to 2028, according to a new report by Grand View Research, Inc. The evolving passenger demand for seamless connectivity onboard is one of the crucial factors propelling the growth of the market. Additionally, the increasing number of non-stop long-haul flights worldwide is anticipated to create significant growth opportunities over the coming years.

Airlines often tend to change their IFC service provider, in an attempt to better understand the technologies in terms of performance and overall experience to the passengers, ultimately delivering the best value to the airlines. This trend is anticipated to increase the competition as well as the number of collaboration and partnerships in the marketplace as satellite connectivity providers and airlines work hand in hand to ensure a seamless IFEC services onboard.

The key airlines across the globe are replacing heavy cablings and screens with onboard Wi-Fi systems for passengers to accommodate the BYOD model, thereby reducing the overall weight of the aircraft. There has been an increasing trend of passengers bringing their Personal Electronic Devices (PED) onboard and willing to pay an additional fee for using Wi-Fi during the flight. Moreover, there is an upsurge in the demand for streaming live TV onboard directly on the passengers’ device, ultimately creating lucrative growth opportunities for the in-flight entertainment and connectivity (IFEC) market.

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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.

Further key findings from the report suggest:

• In an attempt to retain a competition edge, major airlines worldwide are embracing the replacement of conventional seatback IFE systems with wireless in-flight entertainment systems
• Passenger’s demand for IFE has now transformed from the traditional ‘please entertain me’ into a more contemporary ‘I want to entertain myself’ attitude
• Leading service providers are forming long-term partnerships with the airlines to provide a wider coverage and capacity
• Growing adoption for in-flight entertainment and connectivity systems by LCCs to enhance the passenger experience in short-haul flights
• Using wireless, in place of wired networks, have substantial compensations for the airlines, such as weight saving due to the abolition of cabling, thereby enabling simpler installation, and reducing fuel and maintenance costs.

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.

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 Gogo LLC. and ViaSat Inc., 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.