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The in-flight entertainment and connectivity market is valued at USD 364.0 million in 2021 and is expected to register a CAGR of 7.77% during the forecast period (2022-2027). The COVID-19 pandemic has led to a full-blown crisis, with travel restrictions and flight suspensions imposed to curb the spread of the virus.
NEW YORK, Aug. 24, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “In-Flight Entertainment and Connectivity Market – Growth, Trends, COVID-19 Impact and Forecast (2022 – 2027)” – https://www.reportlinker.com/p06316159/?utm_source=GNW
The airline industry is in survival mode due to traffic and revenue losses in 2020. This subsequently impacted aircraft deliveries and revenue for Tier 1 suppliers to the aircraft program. However, the aviation industry began to gradually recover from the pandemic in 2021, resulting in an increase in aircraft deliveries. This recovery in the airline industry and aircraft deliveries is driving airlines and aircraft operators to invest in lines and retrofit new in-flight entertainment systems to enhance the passenger experience.
The growing demand for streaming services has led passengers to expect high-definition content and uninterrupted connectivity at their fingertips. Additionally, the widespread use of electronic devices such as smartphones, tablets and laptops has led to a new trend in in-flight connectivity, with airlines offering passengers Wi-Fi connectivity to access in-flight and other entertainment content on their personal devices.
Key Market Trends
Content segment to hold largest market share in 2021
In-flight entertainment has always been a major value-added service for airlines on domestic and international flights in various regions. More specifically, flights on international long-haul routes place higher demands on the in-flight entertainment provided to passengers. Global passenger revenue for the airline industry has grown significantly, peaking at $607 billion as of 2019, a sharp decline from 2020 due to the impact of the pandemic. With so many passengers, many airlines have invested in offering new entertainment packages or updating existing inflight entertainment packages on their aircraft along multiple routes. E.g,
Emirates offers over 2,500 channels of movies, TV shows, music and games, all on demand in multiple languages. Likewise, Qatar Airways’ Oryx One inflight entertainment system offers passengers more than 3,000 viewing and listening options. There is a huge variety of movies available in different languages ​​and usually Hollywood movies. These large airlines have added content to their entertainment systems. E.g,
Emirates is introducing premium content from MBC Group Shahid (Arabic streaming platform) exclusively in its flights on the airline’s Ice platform from July 2022. Airlines with major operations in the domestic region have also been adding in-flight entertainment systems. India’s major passenger airlines SpiceJet and Air India have also increased their in-flight entertainment offerings by adding content and partnering with content providers. E.g,
In the wake of the pandemic, India’s national airline announced in December 2020 a partnership with boutique content service provider Aeroplay Entertainment to provide passengers with complete inflight entertainment content in an effort to encourage passengers to opt for air travel with enhanced precautions. passenger. Aeroplay’s experience in creating tailored in-flight entertainment content promises to redefine the passenger’s in-flight experience. The addition of multiple such content, airline partnerships with content providers, and projected growth in passenger traffic during 2023-2024 are expected to drive the demand for this segment over the forecast period.
Europe will witness the highest growth during the forecast period
Europe’s commercial aviation industry has made great strides over the past five years (before the COVID-19 outbreak), and is expected to improve further over the forecast period early 2021 as domestic passenger traffic steadily recovers from the impact of the COVID-19 pandemic. With passenger traffic expected to increase through 2023-2024, several airlines have invested in upgrading or replacing their existing in-flight entertainment systems. As Europe is home to some of the world’s largest airlines, the region is expected to benefit the most with the highest growth rate over the forecast period.
Major European airlines have been working with IFEC suppliers to meet the needs of passengers to choose an airline. For example, in May 2022, Air France presented a new long-haul business class seat designed and assembled by Safran Seating, which will be installed in its 12 Boeing 777-300 fleet from September 2022. The €180m seat investment is part of the airline’s strategy to move upmarket. These more comfortable seats feature the new Safran 4K screen, which is wider, anti-glare and has a higher image resolution, guaranteeing the best possible IFE experience. In October 2021, Air France will install Intelsat’s 2Ku high-speed satellite In-Flight Connect (IFC) service on 60 new A220-300 aircraft. Additionally, in May 2022, Panasonic Avionics (PAC) was selected by Lufthansa to provide NEXT In-Flight Entertainment (IFE) systems and connectivity solutions for its Boeing 747-8 fleet.​​​ The NEXT system will be retrofitted on Lufthansa’s 19 Boeing 747-8s and will be rolled out for the first time in summer 2024.
The demand for IFEC systems in Europe is expected to grow at a significant growth rate during the forecast period owing to the multiple such partnerships in the region and the large number of major airlines operating.
Competitive Landscape
The key players in the commercial aircraft inflight entertainment and connectivity market are Panasonic Corporation, Anuvu (formerly Global Eagle Entertainment Inc.), ViaSat Inc., Inmarsat Global Limited and Thales Group. Revenues for market players are also cyclical, as they rely on aircraft sales and airline retrofit programs. IFEC system manufacturers invest in developing advanced relevant systems for integration into modern aircraft to complement or enhance their features, including safety and aesthetics. Such investments expose companies to certain risks associated with design responsibilities, new production tool development, increased capital and funding commitments, delivery schedules and unique contractual requirements. Furthermore, depending on market conditions, new aircraft programs may be prone to cost overruns, delays or terminations, which could affect the market outlook for players over the forecast period. In addition to connectivity and entertainment system providers, content providers are gradually increasing their market share through partnerships with several airlines. In response, Asiana Airlines selected Anuvu as its Content Service Provider (CSP) in January 2022. Under the agreement, the company will offer global films and diverse TV shows on Asiana Airlines flights. These developments are expected to strengthen the geographic presence of various companies in the near future.
extra benefits:
Market Estimate (ME) table in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06316159/?utm_source=GNW
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