Global Inflight Entertainment & Connectivity Services Growth Opportunities

Global Inflight Entertainment & Connectivity Services Growth Opportunities

Partnerships Between Satellite Operators and Media Content Providers are Transforming the Industry

RELEASE DATE
09-Dec-2021
REGION
Global
Research Code: PC90-01-00-00-00
SKU: AE01533-GL-MT_26057
$2,450.00
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SKU
AE01533-GL-MT_26057
$2,450.00
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Description

The COVID-19 pandemic has drastically reduced the demand for air travel both on domestic and international routes. It has severely impacted the aircraft utilization rate and financial health of the airlines. Most of the airlines were forced to halt their digital transformation journey due to weak financial capability. Airlines are focusing more on passenger safety rather than enhancing their inflight experience. As the demand for air travel comes back to pre-pandemic numbers and airlines will be able to achieve financial stability, the demand for IFEC will be growing at a steady rate.

Globally, FSCs are key providers of the IFEC services compared to the hybrid and LCCs. Most of the leading FSCs have more than a decade of experience in providing the IFEC to their passenger. They fly on long-haul routes and face tough competition from their peers. IFEC has become one of the important aspects under customer centricity which need to be further developed. It has been observed that most of the airlines that previously provided the screen on the back of passenger seats are replacing them with inflight Wi-Fi that can be easily connected to the passengers' personal electronic devices, such as cell phones, tablets, and laptops. It helps the airlines to save the cost on the line fit of the screens and also on investing in retrofit and aftermarket activity.
Furthermore, the bring-your-own-device concept helps in the aircraft weight reduction as IFEC hardware adds a significant amount of weight. LCCs are also looking forward to bringing in inflight entertainment to their passengers. Inflight connectivity is still far from the reach of LCCs because of the high cost of the service that is not in line with their business model.

Inflight connectivity has been provided by GEO-based satellites; with the advent of the LEO-based satellites, it is expected that there will be a shift in demand from GEO to LEO due to low cost and low latency. However, airlines must update their equipment as old equipment will not be compatible with LEO capacity.

Satellite operators have sensed the potential of the market and are focused on direct involvement with the airlines by acquiring the inflight entertainment service providers. It will help them to get the ready-made client base and sell their satellite capacity directly to the airlines. Satellite operators are also directly partnering with the live TV channels to stream them inflight. On the other hand, the inflight entertainment service providers are partnering with new satellite operators to increase the market footprint.

Author: Waseem Ahmed Khan

Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Inflight Entertainment and Connectivity (IFEC) Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Key Vendors in the Inflight Entertainment & Connectivity Market

IFEC

IFEC (continued)

IFEC—Cabin Connectivity

IFEC—Cabin Connectivity (continued)

Advent of the Low Earth Orbit (LEO) Satellite Constellation

Growth Drivers for IFEC

Growth Driver Analysis for IFEC

Growth Restraints for IFEC

Growth Restraint Analysis for IFEC

IFEC—Demand and Supply Perspective

IFEC—By Region

IFEC—By Region (continued)

IFEC—By Region (continued)

Growth Opportunity 1: Airlines Need to Focus More on Providing the Regional Entertainment Content for Better Inflight Experience

Growth Opportunity 1: Airlines Need to Focus More on Providing Regional Entertainment Content for Better Inflight Experience (continued)

Growth Opportunity 2: Airlines Need to Provide More Live Content to Further Increase the Passenger Inflight Experience

Growth Opportunity 2: Airlines Need to Provide More Live Content to Further Increase the Passenger Inflight Experience (continued)

Growth Opportunity 3: Airlines Need to Shift to LEO Capacity for Low-cost Inflight Connectivity

Growth Opportunity 3: Airlines Need to Shift to LEO Capacity for Low-cost Inflight Connectivity (continued)

List of Exhibits

Legal Disclaimer

The COVID-19 pandemic has drastically reduced the demand for air travel both on domestic and international routes. It has severely impacted the aircraft utilization rate and financial health of the airlines. Most of the airlines were forced to halt their digital transformation journey due to weak financial capability. Airlines are focusing more on passenger safety rather than enhancing their inflight experience. As the demand for air travel comes back to pre-pandemic numbers and airlines will be able to achieve financial stability, the demand for IFEC will be growing at a steady rate. Globally, FSCs are key providers of the IFEC services compared to the hybrid and LCCs. Most of the leading FSCs have more than a decade of experience in providing the IFEC to their passenger. They fly on long-haul routes and face tough competition from their peers. IFEC has become one of the important aspects under customer centricity which need to be further developed. It has been observed that most of the airlines that previously provided the screen on the back of passenger seats are replacing them with inflight Wi-Fi that can be easily connected to the passengers' personal electronic devices, such as cell phones, tablets, and laptops. It helps the airlines to save the cost on the line fit of the screens and also on investing in retrofit and aftermarket activity. Furthermore, the bring-your-own-device concept helps in the aircraft weight reduction as IFEC hardware adds a significant amount of weight. LCCs are also looking forward to bringing in inflight entertainment to their passengers. Inflight connectivity is still far from the reach of LCCs because of the high cost of the service that is not in line with their business model. Inflight connectivity has been provided by GEO-based satellites; with the advent of the LEO-based satellites, it is expected that there will be a shift in demand from GEO to LEO due to low cost and low latency. However, airlines must update their equipment as old equipment will not be compatible with LEO capacity. Satellite operators have sensed the potential of the market and are focused on direct involvement with the airlines by acquiring the inflight entertainment service providers. It will help them to get the ready-made client base and sell their satellite capacity directly to the airlines. Satellite operators are also directly partnering with the live TV channels to stream them inflight. On the other hand, the inflight entertainment service providers are partnering with new satellite operators to increase the market footprint. Author: Waseem Ahmed Khan
More Information
No Index No
Podcast No
Author Waseem Ahmed Khan
Industries Aerospace, Defence and Security
WIP Number PC90-01-00-00-00
Is Prebook No
GPS Codes 9000-A1