The global in-flight entertainment market is expected to see a high growth on account of increasing air traffic coupled with upgrading old systems used in the aircraft. The market is supposed to grow at an approximate CAGR of 10% in the near future.
In the recent years, in-flight entertainment services have gained the advantage and are regarded as one of the major factors for choosing flights among passengers. An excellent IFE system helps in attracting customers and spread their goodwill in the market.
During the initial stages of the aircraft industry, in-flight entertainment services were mostly delivered through food and beverages, smoking rooms and musical instruments. Technology development coupled with changing consumer pattern has enabled aircraft carriers to provide amusement with the help of audio and video devices.
Increasing long distance flights is the major factor which is expected to contribute to the growing global IFE systems demand of as amusement devices make long journeys comfortable and enjoyable.
IFE systems include entertainment in the form of audio, video, and video games. Small LED TVs also helps in enhancing personal entertainment which is installed on seat back panel. Emerging economies including India, Brazil and China have shown enormous development in the aircraft industry.
There has been a significant rise in demand for new airliners with modern equipment and state of the art infrastructure on account of increasing air traffic. Service providers try to attract passengers through their value-added services and for this purpose, IFE plays a vital role.
Portable and compact LED video devices developments are expected to drive further the global in-flight entertainment market demand in near future. These devices are light in weight and therefore do not significantly increase aircraft carrying weight.
Also, the latest IFE consume less power thereby reducing energy cost. In-flight entertainment is used effectively by smart marketers to attract customers and create brand awareness. Television commercials and photographs used for advertisement purposes focus on IFE structures to gain popularity among people.
The global in-flight entertainment market is further expected to observe a significant development on account of rising customer demand for amusement and communication services.
Passengers need to have access to email and internet browsing for business purposes. Airline service providers seek to achieve competitive advantage by installing in-flight communication systems.
These systems enable passengers to send emails and undertake vital business calls while flying across regions. Working professionals are expected to favor airlines with IFE technology over the forecast period.
Technological advancement in the field of satellite communication is anticipated to propel the global demand in near future. The majority of the sales occur through the OEM market. Commercial aircraft manufacturing sector enjoys a duopoly with Boeing and Airbus as the leading players.
Their superior bargaining power is expected to hamper the overall industry growth. Therefore, manufacturers are focusing on generating revenues through collaboration with service providers.
These partnerships give them the responsibilities to undertake improvements and maintenance activities. High costs of these IFE systems are expected to act as a barrier to overall industry growth.
Short distance flights are not known to have these systems on board on account of increasing expenditures. These devices also tend to increase flight weight and therefore to lead to more fuel consumption.
Also, proper care is needed for system safety is it involves long wiring and risks associated with voltage leaks and arcing. Global in-flight entertainment market segmentation is done by the type of application which includes moving map systems, audio, video, in-flight games, and connectivity.
A moving map system provides real-time information including altitude, speed, and temperature. Passengers can listen to their favorite music using in-flight music systems.
Video devices are used to display movies or videos on demand. Connectivity deals with providing services associated with internet and email. North America was the primary market and is expected to continue its dominance over the forecast period on account of the developed commercial airline industry.
The presence of Boeing in the U.S. is also expected to contribute significantly towards the regional demand. The regional market was followed by Europe owing to the high concentration of service providers.
Asia-Pacific is projected to show an increasing growth mainly on account of emerging economies including India and China. These countries have shown tremendous growth in airline transport on account of privatization.
South America and Africa are projected to witness a significant growth on account of developing aviation industry. Key players in the global in-flight entertainment market include Panasonic Avionics, Thales group, Lumexis, Gogo, AdonisOne, Row44, Rockwell Collins, Live TV, Flight Display System and Jet Juke Box.
Manufacturers are focusing on developing products which have high safety and cost efficiency. Hardware maintenance is one of the major after sales service which companies provide for developing customer relationships.
Panasonic Avionics collaborated with Lufthansa in 2009, to introduce a satellite-based broadband technology. Trends have shown that major airline service providers name their systems which help them to differentiate themselves. Emirates have called their systems as Ice Digital Widescreen whereas Etihad refers IFE as E-Box.
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