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In-Flight Entertainment and Connectivity Market Worth $7.65 Billion by 2023
August 9, 2018 | PRNewswireEstimated reading time: 1 minute
The in-flight entertainment and connectivity market is estimated to be $5.03 billion in 2018 and is projected to reach $7.65 billion by 2023, at a CAGR of 8.72% from 2018 to 2023. The need to enhance the passenger experience, technological developments, and an increase in aircraft deliveries are factors expected to drive the market.
The OEM segment is expected to grow at a higher CAGR during the forecast period, as compared to the aftermarket segment. OEM refers to the installation of equipment during the manufacturing of a new aircraft. Leading airlines are focused on the installation of new IFEC systems. The installation of IFEC systems primarily depends on the number of aircraft manufactured in a year. Commercial aircraft manufacturers such as Airbus and Boeing are currently focused on the installation of advanced in-flight entertainment systems, which are currently in the production phase.
Based on aircraft type, the narrow-body aircraft segment of the in-flight entertainment & connectivity market is projected to grow at the highest CAGR during the forecast period. The growth of the narrow-body aircraft segment can be attributed to an increase in narrow-body aircraft deliveries worldwide. Airlines are presently replacing the older fleet of narrow-body aircraft with the introduction of latest aircraft, such as the A320neo and the 737 Max. They are also focused on the procurement of the next-generation narrow-body aircraft to improve profitability.
Based on product, the IFE content segment of the in-flight entertainment & connectivity market is projected to grow at the highest CAGR from 2018 to 2023. The growth of this segment can be attributed to the increasing use of onboard WI-FI service by passengers for web browsing, content streaming, SMS, e-mail, destination information, concierge services, and other airline information during air travel.
The in-flight entertainment & connectivity market in the Asia Pacific region is projected to grow at the highest CAGR during the forecast period, owing to the increasing aircraft deliveries and rising passenger traffic in this region. China is expected to be the major market in the region, owing to the reforms in their regulations and policies, innovative business models, and the development of aircraft with new technologies.
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