In-Flight Entertainment Market Growth Analysis | 2023-2028

Market Insights

The in-flight entertainment market is estimated to grow at a CAGR of 10.2% during 2023-2028 to reach USD 3.2 billion in 2028.

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Market Dynamics

Introduction

Over the years, in-flight entertainment (IFE) has emerged as an integral part of an aircraft, especially for long-haul flights, to provide engagement services and an enjoyable passenger experience while also benefiting airlines in terms of ancillary revenue generation. With booming in-flight connectivity across all major airline fleets around the world, the in-flight entertainment market is also continually evolving.

With the growing trends of connected aircraft and in-flight entertainment in the world's advanced economies, the IFE market for short-haul is expected to gain traction. Furthermore, technological advancements, such as the development of integrated seats with IFE, and electronically steered antennas, as well as the growing acceptance of connected aircraft and the expansion of Satcom providers in emerging economies such as China, are expected to drive the demand for the in-flight entertainment market in the aircraft industry in the coming years.

COVID-19 Impact

The COVID-19 pandemic has largely impacted the IFE market across regions with a massive decline in global air passenger travel, temporary halts in the production of aircraft by major OEMs, and temporary grounding of several aircraft fleets, particularly wide-body aircraft. The graver impact of the pandemic was registered across the supply chain including the equipment manufacturers, service providers, and airlines.

In-flight entertainment, a sizeable market, witnessed a colossal decline (-40%+ in 2020) amid the pandemic, quite aligned with the decline in the aircraft industry. However, the market is projected to return to its pre-pandemic level by 2025.

Market Drivers

The emergence of narrow-body aircraft, such as the A321XLR, and COMAC C919, as well as the increasing penetration of in-flight entertainment in narrow-body aircraft, owing to its increased usage in long-haul travel, are likely to promote a relatively early recovery of the market than the overall aerospace industry. For instance, United Airlines unveiled its plan to order about 200 long-haul narrow-body aircraft and also has plans to undergo a massive retrofit program for its older aircraft.

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Key Players

The IFE market is highly consolidated with the presence of a few big players around the globe. Panasonic and Thales alone contribute 70+% 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 (arranged alphabetically):

• Astronics Corporation
• Collins Aerospace
• Panasonic Corporation
• Safran S.A.
• Thales Group

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

By Product Type

“Seatback IFE is expected to maintain its dominance, whereas portable IFE is likely to be the fastest-growing product type in the market.”

The market is bifurcated into seatback 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. However, portable IFE 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.

By Connection Type

“Wireless IFE connection (W-IFE) is expected to become the fastest-growing segment of the market.”

The market 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+% 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 3/4^th of the narrow-body fleet by 2030, globally.

By Aircraft Type

“Narrow-body aircraft are anticipated to retain their dominant market share.”

The in-flight entertainment market is segmented into narrow-body aircraft, wide-body aircraft, regional aircraft, and business jet. 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.

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By W-IFE Connectivity Type

“Internet-enabled W-IFE is expected to maintain its market dominance in the years to come.”

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.

By Fitment Type

“Retrofit is expected to command the market, whereas line-fit is likely to grow at a faster rate.”

The market is segmented into 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.

By Hardware Type

“The display unit is expected to remain dominant, whereas IFE systems are likely to be the fastest-growing hardware type in the market.”

The market is segmented into 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 are required to enjoy 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 preferences.

Regional Insights

“North America is to remain dominant, with Asia-Pacific poised for the fastest growth in the in-flight entertainment market over the next five years."

The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW). In terms of regions, North America is expected to maintain its supremacy in the market for in-flight entertainment during the forecast period. North America is a highly connected region (with 50+% 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 of the top airlines around the globe with a total of 15,000+ 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.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s in-flight entertainment market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our in-flight entertainment market report from the industry stakeholders, we have tried to further accentuate our research scope to the in-flight entertainment market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The in-flight entertainment market is segmented into the following categories:

By Aircraft Type

• Narrow-Body Aircraft
• Wide-Body Aircraft
• Regional Aircraft
• Business Jet

By Hardware Type

• IFE Systems
• Display Units
• Servers
• Wireless Access Points (WAPs)

By Product Type

• Seatback IFE [Wired and Wireless]
• Overhead IFE [Wired and Wireless]
• Fixed IFE
• Portable IFE

By Connection Type

• Wired
• Wireless

By W-IFE Connectivity Type

• Internet-Enabled W-IFE
• Non-Internet Enabled W-IFE

By Fitment Type

• Line-fit
• Retro-fit

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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