In-flight Entertainment Market Global Research Report 2018 Analysis & Forecast to 2023

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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.

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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.

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.

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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.

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.

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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