Stratview Research, a Detroit-based global market research firm, stated in a recent report that the market size of In-flight Entertainment (IFE) could reach $3.2 billion by 2028.
The analysis looked at the global and regional industry forecast, current and emerging trends, segment analysis, and competitive landscape. Overall, the $3.2 billion figure represents a growth rate of 10.2 percent, with the North American market remaining the largest segment of IFE.
The In-flight entertainment market is segmented based on aircraft type, hardware type, product type, connection type, W-IFE connectivity type, fitment type, and region.
The aircraft in-flight entertainment market is further segmented into narrow-body aircraft, wide-body aircraft, regional aircraft, and business jets. Narrow-body aircraft is expected to maintain its largest share in the market during the forecast period, owing to the increasing penetration of seatback IFE in narrow-body aircraft and an expected healthy recovery of the segment.
Increasing demand for narrow-body aircraft installed with IFE systems for long-haul flights, as well as the expected introduction of COMAC 919, and A321XLR programs, are also likely to fuel good growth opportunities in the narrow-body aircraft segment over the next five years.
There are several IFE systems. They are IFE, overhead IFE, fixed IFE, and portable IFE. Seatback IFE is expected to maintain its dominance, whereas portable IFE is likely to be the fastest-growing product type in the market during the forecast period.
The majority of seatback IFE systems are connected through wires, providing a convenient way for the seatback screens to remain connected with minimal visible wiring and installations.
Portable IFE, however, is a new trend in the IFE market that provides wireless connectivity throughout the aircraft cabin by eliminating the need for complex wiring and lowering installation costs.
IFE is classified as wired and wireless. Wireless IFE connection (W-IFE) is expected to become the fastest-growing segment of the market during the forecast period. Despite a drop of 19-plus percent in the total installation of W-IFE in 2020, compared to 2019, the installation of IFE systems has still managed to grow.
Wireless connectivity is expected to take over the wired IFE market with almost three-fourths of the narrow-body fleet by 2030, globally. The market is segmented into internet-enabled and non-internet-enabled.
Internet-enabled W-IFE is expected to maintain its market dominance in the years to come. The connectivity type is also anticipated to experience faster growth during the forecast period, owing to passengers’ increasing need/demand for in-flight Wi-Fi connectivity for their engagement during flight.
Airlines’ perception of unconnected offerings has shifted to a more cost-effective approach, with a focus on passenger engagement and a better in-flight experience to reclaim passengers following the COVID crisis.
The market has retrofit and line fit. Retrofit is expected to command the market, whereas line-fit is likely to grow at a faster rate during the forecast period. IFE is strongly influenced by the airline’s offering, geographical area, cost, and passenger demand.
As a result, airlines always can modify and retrofit their fleet with IFE as needed. Thus, retrofitting has amassed a sizable market share of the IFE market. However, this is expected to change gradually by the end of this decade, as line-fit is expected to account for nearly half of the total global annual installations by 2030.
There are IFE systems (pre-fed boxes, etc.), display units, servers, and wireless access points (WAPs). The display unit is expected to remain dominant, whereas IFE systems are likely to be the fastest-growing hardware type in the market during the forecast period.
Display units need visual content provided by airlines such as movies, and video games, and premium content, such as Netflix and live matches. Airlines commonly offer seatback display screens to provide individual luxury to passengers to access content according to their tastes and preference.
The report suggests that North America is expected to maintain its supremacy in the market for in-flight entertainment during the forecast period.
This growth is majorly attributed to the following:
- North America is a highly connected region (with 50-plus percent penetration) in 2022 and is expected to remain dominant by the end of the decade.
- The region has the presence of the IFE giant, Panasonic Avionics Corporation, which is the sole company to supply IFE systems to all the top airlines around the globe with a total of 15,000-plus commercial aircraft to date.
- Asia-Pacific is likely to witness the fastest growth in the coming five years, driven by an expected rise in air passenger traffic and RPK; increasing acceptance of IFE in China and other developing countries, and the introduction of new aircraft programs such as C919.
Some of the key drivers listed in the report are:
- Technological advancements, such as the development of integrated seats with IFE, and electronically steered antennas.
- The growing acceptance of connected aircraft and the expansion of Satcom providers in emerging economies such as China.
- The expected ramp-up in production rates of key aircraft programs paired with increasing penetration of IFE in the global aircraft fleet.
The IFE market is highly consolidated with the presence of a few big players around the globe. Panasonic and Thales alone contribute 70-plus percent share in the IFE market. These players are the top IFE providers to almost all airlines across the globe. The following are the key players in the in-flight entertainment market.
- Panasonic Corp.
- Thales Group
- Safran S.A.
- Collins Aerospace
- Astronics Corp.
To learn more about the report, visit here.
