The in-flight entertainment & connectivity (IFEC) market is expected to grow at a CAGR of around 7.5% during 2022-2028. Significant growth in the aviation industry, coupled with the increasing adoption of wireless entertainment solutions, is one of the most important factors contributing to the market growth. In addition, the increasing demand for luxury air travel with premium in-flight amenities is driving market expansion. IFEC systems provide passengers with personalized wireless and seat-centric entertainment.
Satellite is the most suitable technology for the IFEC solutions as it provides wide coverage all around the globe. Though, inflight Wi-Fi is still not very common in airplanes. Satellite technology has enabled the offering of basic voice and messaging services on long-haul flights. The primary factor hampering the market is the cost of the service as well as the high latency of Geostationary satellites located at more than 36,000 km above the earth. However, owing to this wide coverage capacity, the satellite is also very efficient in broadcasting content. This is also the reason why satellite has been quite logically used to provide Inflight Entertainment, especially live TV and radio programs on board. IFEC is still a limited market but is set to boom in the forthcoming period.
Satellite connectivity and Bring Your Own Device (BYOD) trend are gaining traction
The global in-flight entertainment and connectivity (IFEC) market has been segmented into hardware, connectivity, and content based on the components. The hardware segment is anticipated to generate the highest revenue. It is anticipated that the emergence of BYOD and wireless portable electronic devices like Smart Beacons will revolutionize segment growth.
In addition, the segment is anticipated to be characterized by a high level of dynamism as a result of ongoing product developments in the quest to produce lightweight and advanced in-flight entertainment and connectivity systems. The connectivity segment is poised for significant growth over the forecast period due to the increasing demand from passengers to remain connected throughout the flight. The segment is subdivided further into wireless and wired connectivity. There is an increased penetration of personal and mobile devices including smartphones and tablets, which has led to increased adoption of onboard communication and entertainment services by airlines to improve the overall passenger travel experience.
According to the International Air Transport Association (IATA), more than half of passengers would prefer to use their own devices onboard to access entertainment options such as movies, web series, games and other contents. Moreover, the introduction of onboard Wi-Fi in long haul flights has made it possible for passengers to use personal devices, such as their phone, tablet, phablet, and others, to stream movies, television shows, and live content, eliminating the need to install hardware at each seat.
North America leads the global IFEC market
North America dominates the global IFEC market in 2021 and is further anticipated to expand significantly during the forecast period. Increased penetration of personal and mobile devices, a substantial airplane fleet, and the presence of key original equipment manufacturers in the region are some of the pivotal growth factors for the market. Moreover, airlines companies operating in the region are focusing on the offering of the IFEC solutions by observing the phenomena of American passengers, which in turn, is further spurring the regional market growth. Europe is anticipated to observe substantial demand for IFEC solutions in the near future as a result of manufacturers’ increasing emphasis on the development of IFEC solutions.
Further, due to a surge in commercial aircraft deliveries in developing nations such as India and China, Asia-Pacific is projected to experience significant growth over the forecast period. The presence of industrialized nations such as China, South Korea, India, and Japan in this region indicates a lucrative market for the aviation industry. This demonstrates the region’s substantial potential to become a promising market for personal electronic devices.
Moreover, the emergence of new players in the region’s airline industry has made it imperative for operators to upgrade their IFEC solutions and maintain industry competitiveness. Due to a large number of air passengers in the Middle East, the region’s market is anticipated to experience significant growth over the forecast period. In addition, rising airline operator investments to improve the in-flight experience for passengers are driving the market.
Market Structure and Competition Landscape
Some of the prominent players operating in the market include BAE Systems plc, Collins Aerospace, Lufthansa Systems Gmbh & Co. KG, Panasonic Corporation, ViaSat Inc., Thales Group, Honeywell International Inc., Anuvu Operations LLC, Inmarsat Global Limited, Eutelsat Communications SA, Gogo LLC, Iridium Communications Inc., Astronics Corporation, Stellar Entertainment Group, and Burrana Pty Ltd. among others. To maintain their position in the market, the companies are employing various business strategies, such as expanding cooperation, partnerships, and mergers & acquisitions. For instance,
- In February 2022, Thai Airways partnered with Stellar Entertainment. Under the agreement, Stellar Entertainment will provide account management, content delivery, TV and audio content, production services, strategic curation, film licensing, and technical services under the agreement.
- In June 2021, Thales introduced AVANT UP. A 4K HDR in-flight entertainment system with in-seat power and an open OS. The company aims to further strengthen its market position in IFEC market by the product launch.
- In May 2021, Viasat, Inc. signed a contract with JetBlue to provide in-flight connectivity (IFC) for its new A220-300 and A321 LR aircraft.
- In January 2021, Panasonic Avionics Corporation and IMG extended their agreement to continue streaming Sport 24 and Sport 24 Extra for international airline customers.
Key Market Segmentation
RationalStat has segmented the global IFEC market on the basis of offering type, aircraft, class, distribution channel, and region
- By Offering Type
- In-Flight Connectivity
- In-Flight Entertainment
- In-Flight Connectivity
- By Aircraft
- Narrow body
- Business Jet
- By Class
- First Class
- Business Class
- Premium Economy
- By Distribution Channel
- Original Equipment Manufacturer (OEM)
- By Business Model
- Revenue Sharing (Retail)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, company documents, International Air Transport Association (IATA),
- Industry and market-related documents available in the public domain.
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for IFE providers, IFC providers, airline companies, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global in-flight entertainment & connectivity (IFEC) Market is expected to grow at a CAGR of approximately 7.5% during the forecast period 2022-2028.
North America holds a prominent share of the market.
The global market for in-flight entertainment & connectivity (IFEC) was US$ 6 Billion in 2021.
The emergence of Bring Your Own Device (BYOD) concept and wireless portable electronic devices like Smart Beacons are the major factors fuelling to the growth of the global in-flight entertainment & connectivity (IFEC) market.
Major companies operating in the global in-flight entertainment & connectivity (IFEC) market are BAE Systems plc, Collins Aerospace, Lufthansa Systems Gmbh & Co. KG, Panasonic Corporation, ViaSat Inc., Thales Group, Honeywell International Inc., Anuvu Operations LLC, Inmarsat Global Limited, Eutelsat Communications SA, Gogo LLC, Iridium Communications Inc., Astronics Corporation, Stellar Entertainment Group, and Burrana Pty Ltd. among others.