In-flight Entertainment and Connectivity Market worth $6.1 billion by 2026
According to the new research report the “In-flight Entertainment and Connectivity Market, End User and Region – Forecast to 2026”, published by MarketsandMarkets™, the market is estimated to be USD 4.7 billion in 2021 and is projected to reach USD 6.1 billion by 2026, at a CAGR of 5.2% during the forecast period. The growth of this market is mainly driven by the increased demand for in-flight experience, increase in aircraft renewals and aircraft deliveries and technological shifts.
The in-flight entertainment & connectivity market includes major players Thales Group (France), Viasat, Inc. (US), Astronics Corporation (US), Iridium Communications Inc. (US), and Gogo LLC (US).
These players have spread their business across various countries including North America, Europe, Asia Pacific, the Middle East, and the Rest of the World. COVID-19 has impacted their businesses as well.
The COVID-19 pandemic has impacted the end-use industries adversely, resulting in a sudden dip in 2020 aircraft orders and deliveries. This is expected to negatively impact the aircraft market in the short term, with a slow recovery expected in Q1 of 2021.
Increasing product launches of IFE hardware are expected to fuel the growth of the in-flight entertainment & connectivity market during the forecast period.
The IFE hardware segment is estimated to lead the market during the forecast period, with a share of 60% in 2021. IFE hardware enables airline operators to upload, store, and transfer entertainment content on the in-flight entertainment systems. Increasing product launches by companies such as Thales Group drive the growth of the segment. These products offer features such as an open operating system and 4K HDR displays.
The first class segment is projected to witness the highest CAGR during the forecast period.
Based on class, the first class segment is projected to be the highest CAGR rate for the in-flight entertainment & connectivity market during the forecast period. The demand for in-flight comfort and premium services laid the foundation for the first-class segment. It is the most premium of all the segments. The services start even before the actual flight with transfer from hotels, private check-in, and premium lounge access. In-flight, the first-class seats are more comfortable and spacious with high quality.
The narrow-body aircraft segment is projected to witness the highest CAGR during the forecast period.
Based on the aircraft type, the narrow-body aircraft segment is projected to grow at the highest CAGR rate for the in-flight entertainment & connectivity market during the forecast period. In countries such as India, Japan, Australia, China, the US, and Russia, the demand for domestic air travel has been increasing over the years. According to IATA, in 2019, international air passenger traffic increased 4.1% compared to 2018. Due to the increase in air travel, the demand for narrow-body aircraft is expected to grow across the world.
The OEM segment is projected to witness the highest CAGR during the forecast period
Based on end users, the OEM segment is projected to grow at the highest CAGR rate for the in-flight entertainment & connectivity market during the forecast period. The new airlines focus on pre-installed in-flight systems provided by manufacturers. The increased demand for Low-cost carriers can also be seen in the Southeast Asian region. The increase in the number of passengers was aided by the increase in the number of aircraft around the world. The demand for in-flight entertainment has also picked up pace.
The North American market is projected to contribute the largest share from 2021 to 2026
The 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.
