Market Insights
In-flight entertainment & connectivity (IFEC) offers services, such as display devices, internet browsing, text messaging, premium content, e-commerce platforms, and wireless streaming, among other services. Suppliers and airlines are increasingly looking at IFEC as a means of managing the entire in-flight experience of passengers. It is one of the most exciting aspects, especially for long-haul travel, with most airlines installing screens on wide-body aircraft and business jets. Also, the development of advanced lightweight IFEC systems has enabled airlines to install more of IFEC without spending too much on the project.
The aviation industry plunged in 2019 and was expected to start rebounding from 2020 onwards. However, the sudden outbreak of the pandemic dashed the market hopes. As a result, the IFEC market suffered a massive decline across all regions. The delay in aircraft deliveries amid the pandemic impacted the IFEC sales for operators. In-flight entertainment & connectivity, a sizeable market, witnessed a colossal decline (-36%+ in 2020) amid the pandemic, quite aligned with the decline in the aircraft industry.
The year 2021 witnessed some disruptions, with the suspension of B787 aircraft deliveries due to technical glitches and a slow recovery of aircraft production paired with postponements of upcoming aircraft programs and refurbishment plans of several major airlines. The long-term market outlook still seems propitious with ample growth opportunities across regions. Furthermore, with airlines focusing on innovations and customizations, the in-flight entertainment market has a bright future. Overall, the IFEC market is likely to rebound at a promising CAGR of 12%, in the long run, to reach US$ 7.9 Billion in 2028.
Recent Market JVs and Acquisitions:
- In 2021, Viasat merged with Inmarsat to boost its offerings in broadband and IoT services.
- In 2020, Intelsat acquired the market-leading giant, Gogo’s commercial aviation segment.
- In 2022, Panasonic Avionics Corporation joined forces with Adobe to advance the next generation of IFEC.
Segments Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Aircraft Type
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Narrow-Body Aircraft, Wide-Body Aircraft, Regional Aircraft, and Business Jet.
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Wide-body aircraft is likely to be the fastest-growing aircraft type in the years to come, driven by the increasing penetration of IFEC.
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Product Type
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Hardware, Connectivity, and Content.
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Hardware was the dominant market in 2022, whereas connectivity is likely to grow at the fastest pace during the forecast period.
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End-User Type
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OE and Aftermarket.
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OE remains dominant in the market over the next five years.
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Sales Channel Type
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BFE and SFE
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BFE is to be the dominant as well as the faster-growing segment till 2028.
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Regional Analysis
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North America, Europe, Asia-Pacific, and RoW.
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North America is the biggest market, whereas Asia-Pacific is the fastest-growing region till 2028.
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Based on the aircraft type, the IFEC market is segmented into narrow-body aircraft, wide-body aircraft, regional aircraft, and business jets. Wide-body aircraft is expected to be the fastest-growing aircraft type in the market during the forecast period. The increasing number of non-stop long-haul flights worldwide is one of the key factors driving the segment's growth. With IFEC becoming a more acceptable low-cost alternative to new OEM components, the segment is expected to witness a significant increase in demand in the coming years.
Based on the end-user type, the market is bifurcated into OE and aftermarket. OE is expected to remain dominant, whereas aftermarket is likely to be the faster-growing market type in the market during the forecast period, due to the presence of a large number of pre-installed in-flight entertainment systems by airlines.
Based on the product type, the market is segmented into hardware, connectivity, and content. Hardware was the most dominating segment of the market in 2022. IFE hardware is the prime component in the IFEC market to experience visual entertainment content. In-flight connectivity is expected to be the fastest-growing segment of the market over the forecast period, with increasing penetration of wireless in-flight connectivity in aircraft fleets across the world coupled with high usage of Ku-band for commercial aircraft, whereas ATGs are used mostly in business jets as well as narrow-body aircraft.
In terms of regions, North America is expected to remain the largest market for IFEC during the forecast period, with IFC installed on more than 80% of all aircraft originating from North America, and the top six largest connected fleets are all based in this region, making it the most attractive market, globally. The presence of major IFEC vendors, such as Panasonic, Viasat, Astronics, and Gogo, is indicating the region's huge dominance and ongoing healthy growth opportunities.
Asia-Pacific is likely to grow at the fastest rate in the coming five years, driven by increasing penetration of IFEC systems in emerging economies, such as India; increasing acceptance of IFE in China and other developing countries; and expected market entry of new aircraft programs such as C919.
The in-flight entertainment & connectivity market is segmented into the following categories:
In-flight Entertainment & Connectivity Market, by Aircraft Type
- Narrow-Body Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Wide-Body Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Regional Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Business Jet (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
In-flight Entertainment & Connectivity Market, by Product Type
- Hardware (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Connectivity (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Content (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
In-flight Entertainment & Connectivity Market, by End-User Type
- OE (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Aftermarket (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
In-flight Entertainment & Connectivity Market, by Sales Channel Type
- BFE (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- SFE (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
In-flight Entertainment & Connectivity Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and the Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Key Players
The IFEC market is moderately consolidated with the presence of several big players around the globe. Panasonic, GoGo, Thales, and Intelsat contribute more than half of the IFEC market. These players are the top IFEC providers to almost all airlines across the globe. The IFEC value chain includes satellite operators, service providers, and airlines. The following are the key players in the in-flight entertainment & connectivity market.
- Panasonic Avionics Corporation
- Gogo Inc.
- Intelsat S.A.
- Thales Group
- Viasat, Inc.
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s IFEC market realities and future market possibilities for the forecast period of 2023 to 2028. The report segments and analyzes 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 1,000 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 the market dynamics and will enable strategic decision-making for the 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, Product portfolio, New Product Launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
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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