In-Flight Entertainment and Connectivity Market Size, Share & COVID-19 Impact Analysis, By Type (IFE Hardware (Portable IFE System and Non-Portable IFE System) and IFE Connectivity (Wired Connectivity and Wireless Connectivity)), By Aircraft Type (Narrow Body, Wide Body, Business Jets, and Regional Jets), By End-User (OEM and Aftermarket) and Regional Forecast, 2023-2030

The global in-flight entertainment and connectivity market size was valued at USD 6.37 billion in 2022 and is projected to grow from USD 7.48 billion in 2023 to USD 21.03 billion by 2030, exhibiting a CAGR of 15.9%. North America dominated the in-flight entertainment & connectivity market with a market share of 32.5% in 2022.

The in-flight entertainment and connectivity (IFEC) system enhances the passenger's travel experience and makes them feel safe and comfortable during air travel. These technology devices are portable and non-portable. Recently, airline operators started to offer in-flight entertainment (IFE) systems that permit passengers to use mobile phones and video stream on personal devices using in-flight Wi-Fi facilities.

In-flight entertainment systems include map systems, audio entertainment, video entertainment, personal television, in-flight movies, in-flight games, and others. In-flight connectivity systems include satellite and internal telephone, data communication, Wi-Fi, mobile phone, and backbone connectivity. Moreover, the introduction of technologically advanced interiors and entertainment facilities by various airlines around the globe is projected to boost global in-flight entertainment & connectivity market growth during the forecast period.

COVID-19 IMPACT

Decrease in Passenger Travel Amid Lockdown Hindered Market Growth

According to Airport Council International (ACI), in the year 2019, airlines carried around 9.10 billion passengers globally, an increase of 3.5% compared to 2018. However, in 2020, the COVID-19 pandemic had a drastic impact on air passenger traffic globally. The market during COVID-19 decreased to 7.01% in the year 2020 when compared to 2019.  According to ACI, post-COVID-19 effect, the number of passengers traveling reduced to around 59% compared to 2019. This has changed the dynamics of the global inflight entertainment and connectivity market. Moreover, in July 2020, Panasonic Aviation Corporation confirmed a decline in the sale of IFEC hardware and repair and maintenance services in the first-quarter report. However, several key players are focusing on adopting new strategies to overcome the impact of the novel coronavirus.

LATEST TRENDS

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Adoption of Personal Electronic Devices (PED) is a Key Market Trend

A Portable Electronic Device (PED) is defined by the International Air Transport Association (IATA) as a lightweight electrically powered device. These devices are typically consumer electronic devices capable of communication and computing. Examples include laptops, tablets, smartphones, MP3 players, drones, and electronic toys. Furthermore, owing to the rise in the adoption of used PED in aircraft the U.S. Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) have issued various regulatory guidelines on expanding the use of passenger PEDs.

Various aircraft are equipped with “Picocells” to increase the usage of PED. Picocells act as pseudo-cellular phone towers to communicate with T-PEDs onboard aircraft by relaying signals to satellite or ground-based receivers. Picocell is designed and maintained for full compatibility with other onboard avionics. Communication between the pico cell and the rest of the cellular network occurs on a separate frequency that does not interfere with ground-based cellular systems or aircraft avionics. Such factors are anticipated to boost the market growth of in-flight entertainment and connectivity.

DRIVING FACTORS

Growing Need to Improve Passenger’s In-Flight Experience to Drive Market Growth

The cabin interiors, comfortable seat structures, entertainment solutions, and high-speed internet access facilities together play an essential role in improving the passenger’s overall travel experience. Therefore, the key IFE service providers in the market are focusing on developing technologically advanced solutions that help keep passengers delighted and safe during long haul flights. Besides, the airline operators invest in modernizing  IFE connectivity and content facilities to replace conventional solutions. Also, low-cost carriers are replacing the conventional aircraft seating structures integrated with in-flight entertainment systems with premium seat structure, which is expected to propel the growth of the market during the forecast period.

Increasing Focus on Maintenance of IFEC Equipment to Propel Market Growth

Improper handling of airplane IFEC equipment by passengers can increase the chances of damage to an IFE hardware system and associated components. Subsequently, the failure of such electronic devices results in the frequent maintenance of these gadgets. This, in turn, upsurges the demand for repairing and replacing hardware components. The increasing focus on maintenance and repair activities will be driving the market for global in-flight entertainment connectivity.

RESTRAINING FACTORS

Complex IFEC System Design Architecture to Impede Market Growth

The complete in-flight entertainment & connectivity system architecture comprises the hardware setup, hassle-free connectivity solution, and large data content for media streaming, which increases the design complexity. Moreover, the IFEC hardware system includes costly media devices such as gaming consoles, monitors, headphones, and electronic media devices. The damage to these devices requires a high cost associated with the repair service. This increases the overall operating cost of the IFEC hardware system. These factors are likely to hamper market growth during the forecast period. Moreover, the rising trend of offering media content streaming on passengers own devices is anticipated to hamper the global in-flight entertainment connectivity market.

IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET SEGMENTATION

By Type  Analysis

IFE Connectivity Segment Dominates the Market Owing to the Increased Use of Satellite Communication

By type, the market is bifurcated into IFE hardware and IFE connectivity. IFE connectivity segment is anticipated to grow with the highest CAGR during the forecast period. The growth in the region is supported by the use of internet and satellite communication in aircraft. For example, in February 2022, Viasat and Aerosat announced to installation IFEC system on board of Sichuan Airlines which can be connected to China’s Ka-ban satellite.

IFE hardware segment is anticipated to witness significant growth in the market. The growth in the region is owing to the rise in aircraft fleet around the world. In March 2023, Airbus delivered a total of 14,589 aircraft including A300/310, A330, A340, A350, A380. Such developments lead to growth of IFE hardware segment.

By IFE Hardware Analysis

The non-Portable IFE Segment Dominates the Market Owing to the Increased Applications in Flight 

The market by IFE hardware is segmented into portable IFE and non-portable IFE.

The non-portable segment dominates the market and will witness moderate growth owing to the aircraft regulations by various aviation authorities. Furthermore, with the demand for advanced electronic systems by passengers to enhance travel experience, the segment will showcase substantial growth.

The portable IFE segment is anticipated to be the fastest growing market during the forecast period owing to the greater flexibility, lower installation cost, increase in control for passengers, and personalized entertainment.

By IFE Connectivity Analysis

Wired Connectivity Segment Dominates the Market Owing to the Improved Security Factors in Airlines 

The market by end-user is segmented into wired connectivity and wireless connectivity. The wired connectivity segment is projected to lead and record highest CAGR during the study period. Wired connections are generally considered more secure and require physical access from the flight deck, which is considered a secure domain. Many aircraft leaving the assembly line today already have network systems installed. Owing to such factors the segment will have highest the in-flight entertainment and connectivity market share during the study period.

Wireless connectivity is anticipated to grow significantly owing to the development and production of wireless IFEs by various airlines for international flights. 

By Aircraft Type  Analysis

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Narrow Body Segment Holds the Highest Market Share Owing to the Increased Aircraft Fleet Size Globally 

The market by aircraft type  is segmented into narrow body, wide body, business jets, and regional jets.  The narrow body segment is anticipated to dominate the market during the year 2022 and the segment is projected to be the fastest-growing segment during the forecast period. The growth in the segment is owing to the increase in aircraft fleet size and demand for narrow-body aircraft. For instance, according to a report by Airbus, the total number of Airbus A220 narrow-body aircraft increased from 227 in 2021 to 649 in 2022.

The wide body segment is projected to witness significant growth during the study period. The growth in the segment is due to the installment of more number of IFEs in the wide-body aircraft as per the total seating and aircraft class type.

By End-User  Analysis

Aftermarket Segment Led the Market Owing to the Increase in Retrofit of IFEs 

The market by end-user is bifurcated into OEM and aftermarket. The aftermarket segment is anticipated to dominate and register the highest CAGR during the forecast period. The growth in the region is owing to the increase in maintenance, and retrofit activities in commercial aircraft around the globe.

The OEM segment will witness significant growth during the study period owing to the rise in the upgradation of the IFEs to enhance the passenger travel experience.

IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET REGIONAL INSIGHTS

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In terms of geography, the market is divided into North America, Europe, Asia Pacific, and Rest of the World.

North America held the largest market share in 2022. The market in North America was valued at USD 2.07 Billion in 2022. The dominance of North America is due to the increasing demand for electric jets and long-range business jets in the U.S. Moreover, several key market players in the U.S. such as Panasonic Avionics Corporation, Gogo LLC, and Collins Aerospace, among others, are likely to boost the market growth in the region. In addition to this, the strong presence of top airline operators in the region will aid market growth. The U.S. registered 13,000 jet aircraft in 2019 to propel the demand for advanced in-flight entertainment and connectivity systems during the forecast period.

Europe is estimated to hold the second-largest market share owing to the rising adoption of 5G technology in the aviation industry. This will facilitate the adoption and up-gradation of the IFEC system to enhance in-flight connectivity. Furthermore, Europe has primary market players such as Lufthansa Systems GmbH & Co. KG, Safran, and Thales Group. These factors help to drive the growth of the market in Europe.

The market in Asia Pacific is projected to grow at the highest growth rate during the forecast period. This growth is due to the rising adoption of the in-flight entertainment & connectivity system by low-cost airline carriers to enhance passengers' travel experience. Besides, the rising number of air passengers in developing countries such as China and India is likely to support the region's growth.

Rest of the World is anticipated to witness moderate growth in the market during the forecast period. The rise in the market is due to the significant growth of a number of air passengers in this region Besides, the rising investment by the airline operators to provide an improved inflight experience to the passenger is driving the market.

KEY INDUSTRY PLAYERS

Key Players Focusing on Product Innovation to Offer Wide Range of IFEC Solutions to Sustain in Market

The global market of in-flight entertainment and connectivity is fragmented with several key players such as Panasonic Avionics Corporation, Gogo LLC, Collins Aerospace, Burrana Pty Ltd, and Viasat, Inc., among others. These key players involved in the market are mainly focusing on the innovation and development of new IFEC technology.

The strategic acquisition and the increasing investment in research and development activities are a few additional factors responsible for the dominance of these companies. For Instance, in June 2020, Burrana Pty Ltd launched its new in-flight entertainment & connectivity platform, known as RISE. This new IFEC platform is expected to improve the passenger experience, and operational efficiency, and help airline operators increase revenue generation and reduce capital and operating budget

LIST OF KEY COMPANIES PROFILED:

• Astronics Corporation (U.S.)


• Burrana Pty Ltd (Australia)


• Collins Aerospace (U.S.)


• FDS Avionics Corp. (U.S.)


• Global Eagle Entertainment, Inc. (U.S.)


• Gogo LLC (U.S.)


• Honeywell International Inc (U.S.)


• Lufthansa Systems GmbH & Co. KG (Germany)


• Panasonic Avionics Corporation (U.S.)


• Safran (France)


• Sitaonair (Switzerland)


• SmartSky Networks, LLC (U.S.)


• Thales Group (France)


• Viasat, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023 – Delta Air Lines announced the launch of "full, fast, free" WiFi for all SkyMiles members. It is available on most domestic flights from February 1^st 2023. Regional flights will get this facility by the end of 2024.


• March 2023 – China Airlines announced that it has partnered with "SoundOn", a leading brand in Taiwan's audio industry, to launch a brand-new high-quality podcast program for its in-flight entertainment system.


• December 2022 – Singapore Airlines has extended its partnership with Anub for in-flight entertainment and content services with a long-term deal that includes film, television and audio. The deal is based on a long-term partnership between the airline and a creative media and technology provider.


• September 2022 – Emirates plans to spend more than USD 350 million on in-flight entertainment systems for the Airbus A350, due for delivery in 2024. The Thales Avant Up system will be integrated into these 50 aircraft to create an unforgettable cinematic personalized passenger experience.


• August 2022 – Bluebox Aviation Systems and Jetstar Group announced an agreement to bring Bluebox's digital passenger experience, Blueview, to Jetstar's Airbus fleet. The agreement covers the implementation of Jetstar Entertainment on all Airbus aircraft of Jetstar Airways and Jetstar Asia with provisions to extend it to other aircraft types within the Jetstar Group.

IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET REPORT COVERAGE

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The market report provides a detailed market analysis. It comprises all major aspects, such as R&D capabilities, supply chain management, competitive landscape, and optimization of the manufacturing capabilities and operating services. Moreover, the market report offers insights into the market trends analysis, market size, and market segments analysis and primarily highlights key industry developments. In addition to the above-mentioned factors, it mainly focuses on several factors that have contributed to the global market's compound annual growth rate over recent years.

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