In-flight Entertainment Market 2018 World Analysis and Forecast to 2023

Posted January 2, 2019 by monicanerkar31

Market Research Future added New Report Named "Global In-flight Entertainment Market Research Report- Forecast 2023" to its Database
Global In-flight Entertainment (IFE) Market by Platform (Narrow-Body, Wide-Body, and Business Jets), Product Type (Hardware and Connectivity & Communication), Service Type (Video Display Systems, Data Connectivity, Flight Tracker, and Others), - Forecast to 2023

Market Scenario

Over the past decade, the airline industry has been tremendously influenced by copious changes in technology. Airline technology now cannot only transport travelers from one destination to another but can also provide an entertaining travel experience, tailored to meet the requirements of passengers. In the recent years, there has been an increase in the use of personal devices for availing in-flight entertainment service, and according to IATA Global Passenger Survey, nearly half of the North Asian passengers prefer to use their own devices for viewing digital content rather than the embedded equipment. When comparing with the seat-back in-flight entertainment display systems, personal devices are considered more beneficial by both passengers and airlines.

In-flight entertainment refers to entertainment that is targeted at potential consumers, onboard an aircraft, to enhance their flying experience. It entails entertainment in the form of movies, e-books, videos, games, and others. With technological advancements in satellite as well as air-to-ground networks, onboard connectivity is gaining significance in aircraft, and nowadays, it has become a necessity rather than a luxury. Increase in the number of aircraft deliveries and growing passenger traffic are some of the macro factors driving the in-flight entertainment market.

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For the purpose of the study, the global in-flight entertainment market is segmented into platform, product type, service type, and region.

In terms of product type, hardware segment accounted for the largest market share of 61.02% in 2016, with a market value of USD 2,011.3 million, which is projected to grow at a CAGR of 12.55% during the forecast period.

On the basis of service type, video display systems segment accounted for the largest market share of 51.94% in 2016, with a market value of USD 1,711.9 million, which is projected to grow at a CAGR of 13.17% during the forecast period.

In terms of platform, narrow-body segment accounted for the largest market share of 66.94% in 2016, with a market value of USD 2,206.4 million, which is projected to grow at the highest CAGR of 13.43%.

Furthermore, the markets in North America and Europe have been segmented, in terms of technology, into air-to-ground (ATG) technology and satellite technology.

On the basis of region, the market has been segmented into the following regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America region accounted for the largest market share of 32.99% in 2016, with a market value of USD 1,087.3 million and is projected to grow at a CAGR of 13.05% during the forecast period. The sheer existence of major in-flight entertainment companies, such as Global Eagle, Panasonic Avionics Corporation, and Gogo, combined with the availability of sophisticated technologies to deliver in-flight solutions through various platforms, result in the dominance of this region in the global market. Moreover, it is expected that approximately 10,000 aircraft would be in service in the region by 2035, which would create additional opportunities for major in-flight entertainment companies, along with the emerging companies of the region..

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Competitive Landscape

Various growth strategies are being adopted by the key players to retain and/or expand their market share. The key strategy followed by most companies within the in-flight entertainment market include contracts & agreements, followed by new product developments and mergers & acquisitions.

Industry News

In November 2017, Gogo was selected by Cathay Pacific Group to install Gogo's 2Ku in-flight connectivity solution on its fleet of Airbus A330 and Boeing 777 aircraft.

In September 2017, Inmarsat was selected by AirAsia Group to provide its next-generation GX Aviation in-flight broadband solution for more than 120 Airbus aircraft.

In October 2016, Global Eagle won a contract from Qatar Airways to provide a suite of core in-flight entertainment content services, including movies, music, TV, and audio on in-cabin and seat-back systems aboard 164 of Qatar Airways' commercial airliners, 8 Qatar Amiri charter aircraft, and 12 Qatar Executive business jets.

In April 2016, Zodiac Inflight Innovations, a part of Zodiac Aerospace was selected by Air France to install Zodiac’s Rave Centric In-Flight Entertainment solution as a retrofit option on the airline’s 15 Airbus A330.

In April 2014, Global Eagle Entertainment Inc. completed the acquisition of all remaining shares of Advanced Inflight Alliance AG (AIA) in order to solidify its position as an in-flight content and connectivity provider.

Hence, the global in-flight entertainment market is estimated to reach USD 7,756.8 million by 2023 at a CAGR of 13.07% during the forecast period.

Key Players

The key players of in-flight entertainment market are FDS Avionics Corp. (U.S.), Global Eagle Entertainment Inc. (U.S.), Gogo Inc. (U.S.), Honeywell International Inc. (U.S.), Inmarsat Plc (U.K), Lufthansa Systems (Germany), Panasonic Avionics Corporation (U.S.), Rockwell Collins, Inc. (U.S.) SITAONAIR (Switzerland), Thales Group (France), Viasat Inc. (U.S.), and Zodiac Aerospace (France).

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Last Updated January 2, 2019