In-flight Entertainment & Connectivity Market Analysis

In-flight Entertainment & Connectivity Market Analysis

Based on the product, the market is divided into hardware, connectivity, and content. The hardware segment dominated the global market with a share of over 40% in 2023. Airlines are continuously upgrading & retrofitting older aircraft to meet the current passenger expectations for in-flight entertainment & connectivity. This involves installing new hardware components, such as satellite antennas, onboard servers, Wi-Fi access points, and seat-back screens, driving segment growth. As the global airline industry expands to meet the increasing passenger traffic, airlines are adding new aircraft to their fleets. These new aircraft require the latest IFEC hardware to provide passengers with high-quality entertainment and connectivity options from the outset.
 

Based on the aircraft type, the market is divided into narrow-body aircraft (NBA), wide-body aircraft (WBA), and very large aircraft (VLA). The NBA segment is expected to register a CAGR of over 8.5% during the forecast period and reached a revenue of over USD 5 billion by 2032. The rapid expansion of low-cost carriers (LCC), which primarily operate NBA, contributes significantly to this growth. LCCs are increasingly adopting IFEC solutions as a value-added service to enhance passenger experience and generate ancillary revenue, fostering growth in the NBA segment. Advancements in lightweight and compact IFEC technologies have made it more feasible and cost-effective to install these systems on NBA, which have less space and weight capacity compared to WBA. These advancements allow airlines to offer competitive IFEC options without compromising fuel efficiency or payload.
 

North America dominated the global In-flight entertainment & connectivity market in 2023, accounting for a share of over 35%. North American passengers, particularly business travelers, have a high expectation for continuous connectivity to stay productive and entertained throughout their flights. This demand encourages airlines to invest in IFEC systems that offer reliable, high-speed internet access. Regulatory bodies in North America, such as the Federal Communications Commission (FCC) and the Federal Aviation Administration (FAA), support the use of personal electronic devices and in-flight connectivity, facilitating the growth of the market by allowing airlines to expand their connectivity offerings.