In-flight entertainment & connectivity services enhance the experience of passengers during air travel.
The services include live video streaming, access to internet services, and text messaging.
The IFEC devices are generally portable and non-portable that provide a plethora of entertainment services for the passengers.
Increasing Adoption of Advanced SATCOM Technology
The global In-flight entertainment & connectivity industry is expected to showcase an exponential future
by reaching USD 7.68 billion by 2027 while exhibiting a CAGR of 9.76% between 2020 and 2027.
Although, the future is attributed to the growing adoption of advanced SATCOM technology and the increasing demand for technologically advanced 5G technology that is likely to drive the manufacturers to develop innovative in-flight entertainment & connectivity solutions globally.
This technology is capable of providing seamless connectivity at any given latitude. Owing to their high-reliability to provide advanced
in-flight entertainment & connectivity solutions, SATCOM antennas are extensively adopted by several airline operators.
Additionally, the increasing demand for advanced technologies such as 5G to provide faster and non-stop entertainments solutions is likely to contribute to the global in-flight entertainment & connectivity industry future during the forecast period.
Although, this information in its latest research, titled, “In-Flight Entertainment & Connectivity Industry Size, Share & Analysis,
By Type (IFE Hardware (Portable IFE System, and Non-Portable IFE System), IFE Connectivity (Wired Connectivity, and Wireless Connectivity), and IFE Content),
Reduced Number of Flights amid COVID-19
Several countries have imposed a ban on air travel to contain the widespread effects of the novel coronavirus. This has led to significant decline in revenues witnessed by major aircraft operators.
“It’s about wearables that supplement rather than supplant genuine human interaction,” says Leader.
Digital technologies will also transform the overall inflight entertainment experience.
That, argue the experts, is rather unlikely, and not just because of the technical challenges.
Also, the research provides insights into the regional analysis that covers different regions, contributing to the future of the industry. It includes the competitive landscape that involves the leading companies.
Presence of Established Companies in North America to Lead to Development
Among all the regions, North America stood at USD 2.70 billion in 2019 and is projected to hold the highest position in the global in-flight entertainment & connectivity industry during the forecast period.
This is attributable to the presence of established players such as Collins Aerospace, Gogo LLC.
And Panasonic Avionics Corporation that are focusing on developing advanced in-flight entertainment & connectivity solutions in the region.
Although, on the other hand, Europe is expected to hold the second position in the industry owing to the increasing adoption of. Up gradation of in-flight entertainment & connectivity services in the region between 2020 and 2027.
Prominent Companies Focus on Product Innovation to Amplify Their Industry Positions
Still, the global in-flight entertainment & connectivity industry is consolidated by the presence of
key players that are focusing on developing innovative in-flight entertainment & connectivity products to maintain their stronghold.
Another emerging technology in search of a solution is virtual and augmented reality (VR and AR).
Many airlines are exploring VR as part of their inflight entertainment strategies, says Ghee.
The airline is also in the early stages of exploring ways to enhance the inflight dining experience using AR.
Worldwide Industry Development
July 2020 – Qingdao Airline’s A320 completed its flying journey equipped with a Ka-band Satcom based IFEC system provide a truly personalised service; offer locally suitable services; and deliver a consistent experience.
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Opportunities: Emerging markets in South-East Asia
The emerging markets contribute significantly to the growth of in-flight entertainment and connectivity market.
Countries in Southeast Asia such as India, Pakistan, China, Nepal are emerging markets for IFE&C.
For example, in India, majority of airlines are low-cost carriers or ultra-low-cost carriers. Indigo, GoFirst, Spice jet are the major airlines.
Providing only economy seating in their aircrafts. Passengers don’t have in-flight entertainment available to them
Challenges: High-Cost IFE
IFE&C market is characterized by high research & development and installation cost.
As per Zauba data, seat electronic components cost USD 4500 for a single unit.
The modem unit for connectivity cost USD 18000 per unit.
The installation cost for IFE systems goes up to USD 6 million. Hence, high cost of IFEC systems might hamper the growth of the market.
In-flight entertainment & connectivity market in North America is projected to hold the highest market share during the forecast period.
North America accounted for the largest share of 50.0% of the in-flight entertainment & connectivity market and is expected to grow at a CAGR of 5.7% during the forecast period.
The presence of major in-flight entertainment & connectivity manufacturers like Viasat, Inc.,
Astronics Corporation ridium Communications Inc. and Gogo LLC is one of the major reasons for the growth.
Still, based on end user, the OEM segment is projected to grow at the highest
CAGR rate for the in-flight entertainment & connectivity market during the forecast period.
Although, the new airlines focus on pre-installed in-flight system provided by manufacturers. With the increase in number of passengers aided by the increase in number of aircrafts around the world.
The demand of in-flight entertainment has also picked up pace.