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Valour Announces Several Key Improvements to its Quarterly IFE and IFC Trackers

In 2016, to supplement our in-depth annual deep dive into the in-flight connectivity (IFC) market, Valour Consultancy launched a quarterly tracker product designed to keep those with a vested interest in the area updated on installation activity and key trends. One year later, we announced a similar product, which tracks the market for wireless in-flight entertainment (W-IFE) systems. Both trackers were the first of their kind and have proved to be extremely popular with our client base, which, we’re proud to say, consists of a “who’s who” of the IFEC and cabin technology value chain.

Not content to rest on our laurels, and in keeping with our ongoing commitment to continually improve and adapt, both products have undergone a transformation in 2020. The quarterly IFC tracker, for example, has been hugely expanded to show the total addressable market of aircraft that have not yet installed a system and are not currently earmarked to have one fitted in future. As a result of the massive disruption caused by COVID-19, we also added a new feature allowing users to see which connected aircraft are currently active, versus those that are grounded. The quarterly W-IFE tracker saw the “W” dropped as we expanded our focus to the entirety of the IFE market, providing data on seatback and overhead IFE system equipage, in addition to wireless. Another addition to the IFE data was the inclusion of server and WAP manufacturers for each deployment.

The biggest change, however, is the way in which we present this data. For the last four years, subscribers have received an Excel workbook containing current and historic data, as well as a PowerPoint summary detailing key announcements during the reporting period and its effect on the numbers contained within. Starting with the IFC tracker, we’ve now created an additional online user-friendly dashboard that allows clients to better visualise and interact with the data. It includes:

  • Dynamic charts that allow you to remove specific data and export them to JPEGs for your presentations
  • Raw quarterly data that can be filtered based on your query and exported to CSV or Excel
  • Raw addressable market data that can be filtered based on your query and exported to CSV or Excel

We’re in the process of bringing to life our IFE data in the same way and starting in 2021, we’ll also begin to dive more deeply into the type of content being provided on wireless systems. This is especially important as the “E” in IFE moves away from entertainment in the traditional sense of the word and more about maximising engagement with passengers. To this end, you’ll soon be able to see whether a system shows movie/TV content, as well as games, ePublications/eBooks, destination content, seat-to-seat chat, music/other audio, buy-on-board, plus whether or not it forms the basis of an IFC portal too.

Looking ahead, we’ve every intention of continuing to modernise our deliverables to generate better insight in a more efficient way. What subscribers see today is stage one of this process and further enhancements will be made incrementally in the future. Indeed, we’re close to finalising a partnership that will give us the ability to provide IFE and IFC equipage down to the tail level. More information on this important development will be provided via the usual channels in due course.

If you’d like any additional information on these trackers or if you have any thoughts or feedback on other improvements that we could make, then we’d be delighted to hear from you. And if you’d like to arrange an online demonstration to take a closer look at what we have to offer, then please let us know. We can be reached at info@valourconsultancy.com.

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One year later, we announced a similar product, which tracks the market for wireless in-flight entertainment (W-IFE) systems. Both trackers were the first of their kind and have proved to be extremely popular with our client base, which, we’re proud to say, consists of a “who’s who” of the IFEC and cabin technology value chain. Not content to rest on our laurels, and in keeping with our ongoing commitment to continually improve and adapt, both products have undergone a transformation in 2020. The quarterly IFC tracker, for example, has been hugely expanded to show the total addressable market of aircraft that have not yet installed a system and are not currently earmarked to have one fitted in future. As a result of the massive disruption caused by COVID-19, we also added a new feature allowing users to see which connected aircraft are currently active, versus those that are grounded. The quarterly W-IFE tracker saw the “W” dropped as we expanded our focus to the entirety of the IFE market, providing data on seatback and overhead IFE system equipage, in addition to wireless. Another addition to the IFE data was the inclusion of server and WAP manufacturers for each deployment. The biggest change, however, is the way in which we present this data. For the last four years, subscribers have received an Excel workbook containing current and historic data, as well as a PowerPoint summary detailing key announcements during the reporting period and its effect on the numbers contained within. Starting with the IFC tracker, we’ve now created an additional online user-friendly dashboard that allows clients to better visualise and interact with the data. It includes:
  • Dynamic charts that allow you to remove specific data and export them to JPEGs for your presentations
  • Raw quarterly data that can be filtered based on your query and exported to CSV or Excel
  • Raw addressable market data that can be filtered based on your query and exported to CSV or Excel
We’re in the process of bringing to life our IFE data in the same way and starting in 2021, we’ll also begin to dive more deeply into the type of content being provided on wireless systems. This is especially important as the “E” in IFE moves away from entertainment in the traditional sense of the word and more about maximising engagement with passengers. To this end, you’ll soon be able to see whether a system shows movie/TV content, as well as games, ePublications/eBooks, destination content, seat-to-seat chat, music/other audio, buy-on-board, plus whether or not it forms the basis of an IFC portal too. Looking ahead, we’ve every intention of continuing to modernise our deliverables to generate better insight in a more efficient way. What subscribers see today is stage one of this process and further enhancements will be made incrementally in the future. Indeed, we’re close to finalising a partnership that will give us the ability to provide IFE and IFC equipage down to the tail level. More information on this important development will be provided via the usual channels in due course. If you’d like any additional information on these trackers or if you have any thoughts or feedback on other improvements that we could make, then we’d be delighted to hear from you. And if you’d like to arrange an online demonstration to take a closer look at what we have to offer, then please let us know. We can be reached at info@valourconsultancy.com. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

GX+ Further Evidence North America Remains Key IFC Battleground

Many reading this will be well aware of how important the North America region has been in the context of IFC. Carriers in the region were amongst the early adopters of IFC, globally, aided by the launch of Gogo’s Air-to-Ground network, which at one point served more than 2,600 aircraft. In true chicken and egg fashion, a number of familiar names in the industry are headquartered out of North America too, most notably Astronics, the aforementioned Gogo, Global Eagle, Honeywell, Intelsat, Viasat…the list goes on. As a result, the region accounted for 89 per cent of total connections back in 2014 and this share still hovered close to the 60 per cent mark at the end of Q2 2020, despite increased IFC adoption around the world.

Over time though, broad adoption of IFC has led to the addressable market in North America falling quite substantially in recent years, down to approximately 20 per cent of commercial aircraft originating in the region. Of these aircraft yet to find a home with an IFC service provider, most are now regional jets that tend to fly short segments and are therefore arguably better suited to wireless-IFE rather than full-blown IFC. This has naturally led vendors to seek new airline wins elsewhere, with a substantial number of aircraft originating out of Asia, Europe and South America still unconnected today.

Taking the above into account, one could be forgiven for questioning the decision to launch a US-based network, as Inmarsat and Hughes did last month with the unveiling of GX+. But it is worth noting that the top 6 largest connected fleets, globally, are all based in North America, and this doesn’t factor in Air Canada, which sits 11th on that list. Furthermore, a number of the aircraft within these connected fleets are coming to the end of existing contracts and/or are equipped with first generation hardware that is quickly becoming obsolete versus current demand and the new hardware now available on the market.

For the prize on offer, one need look no further than Viasat. In the last two years or so, the Carlsbad-based internet service provider has significantly increased its installed base of connected aircraft and is estimated to have a 16 per cent share of all connected commercial aircraft at the end of Q2 2020 (up from 0.5 per cent at the end of 2017*). A majority of this increase can be attributed to the retrofit programs it has won in the U.S alone, most notably with American Airlines and jetBlue. In the case of American Airlines, Viasat added more than 500 single aisle aircraft to its network across a two-year window. Opportunities of this size, globally, are becoming increasingly rare as more of the larger established carriers now typically offer an IFC service on board or are already under contract to do so in the near future. China is a notable exception here but is excluded from the point as regulation will limit involvement from vendors that are not registered in Mainland China and have the appropriate licences. The impact of COVID-19 is also expected to dampen new opportunities, globally, through airline bankruptcies and limiting non-essential expenditure.

It is common knowledge that Inmarsat has long sought a route into the North American IFC market, and it had previously hinted at collaborating with Hughes to support its cause. But to do so at this stage, the operator will go toe-to-toe with Intelsat (through its acquisition of Gogo) and Viasat, two players which, like Inmarsat, offer customers the cost and performance benefits that come through vertical alignment; a sign of things to come, globally, in the IFC sector as far as we’re concerned. Clearly then, whilst vendors will continue to skirmish for airline wins all over the world, North America is seen as a market ripe for disruption in the coming years. This is great news for carriers in the region but is anticipated to pose a significant challenge to incumbents such as Global Eagle and Panasonic Avionics that, like most, are hurting from the impact of COVID-19, but are not in the position to pass on the benefits of being vertically aligned.

*- excludes aircraft that were serviced by Thales

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[fusion_builder_container hundred_percent="no" hundred_percent_height="no" hundred_percent_height_scroll="no" hundred_percent_height_center_content="yes" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" border_size="" border_color="" border_style="solid" margin_top="" margin_bottom="" padding_top="" padding_right="" padding_bottom="" padding_left="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" spacing="" center_content="no" link="" target="_self" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" hover_type="none" border_size="0" border_color="" border_style="solid" border_position="all" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="" margin_bottom="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_image_id="" background_position="left top" background_repeat="no-repeat" background_blend_mode="none" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" filter_type="regular" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" last="no"][fusion_imageframe image_id="5604|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="none" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]https://valourconsultancy.com/wp-content/uploads/2020/11/pexels-pixabay-414916-2-e1604577799216.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] Many reading this will be well aware of how important the North America region has been in the context of IFC. Carriers in the region were amongst the early adopters of IFC, globally, aided by the launch of Gogo’s Air-to-Ground network, which at one point served more than 2,600 aircraft. In true chicken and egg fashion, a number of familiar names in the industry are headquartered out of North America too, most notably Astronics, the aforementioned Gogo, Global Eagle, Honeywell, Intelsat, Viasat…the list goes on. As a result, the region accounted for 89 per cent of total connections back in 2014 and this share still hovered close to the 60 per cent mark at the end of Q2 2020, despite increased IFC adoption around the world. Over time though, broad adoption of IFC has led to the addressable market in North America falling quite substantially in recent years, down to approximately 20 per cent of commercial aircraft originating in the region. Of these aircraft yet to find a home with an IFC service provider, most are now regional jets that tend to fly short segments and are therefore arguably better suited to wireless-IFE rather than full-blown IFC. This has naturally led vendors to seek new airline wins elsewhere, with a substantial number of aircraft originating out of Asia, Europe and South America still unconnected today. Taking the above into account, one could be forgiven for questioning the decision to launch a US-based network, as Inmarsat and Hughes did last month with the unveiling of GX+. But it is worth noting that the top 6 largest connected fleets, globally, are all based in North America, and this doesn’t factor in Air Canada, which sits 11th on that list. Furthermore, a number of the aircraft within these connected fleets are coming to the end of existing contracts and/or are equipped with first generation hardware that is quickly becoming obsolete versus current demand and the new hardware now available on the market. For the prize on offer, one need look no further than Viasat. In the last two years or so, the Carlsbad-based internet service provider has significantly increased its installed base of connected aircraft and is estimated to have a 16 per cent share of all connected commercial aircraft at the end of Q2 2020 (up from 0.5 per cent at the end of 2017*). A majority of this increase can be attributed to the retrofit programs it has won in the U.S alone, most notably with American Airlines and jetBlue. In the case of American Airlines, Viasat added more than 500 single aisle aircraft to its network across a two-year window. Opportunities of this size, globally, are becoming increasingly rare as more of the larger established carriers now typically offer an IFC service on board or are already under contract to do so in the near future. China is a notable exception here but is excluded from the point as regulation will limit involvement from vendors that are not registered in Mainland China and have the appropriate licences. The impact of COVID-19 is also expected to dampen new opportunities, globally, through airline bankruptcies and limiting non-essential expenditure. It is common knowledge that Inmarsat has long sought a route into the North American IFC market, and it had previously hinted at collaborating with Hughes to support its cause. But to do so at this stage, the operator will go toe-to-toe with Intelsat (through its acquisition of Gogo) and Viasat, two players which, like Inmarsat, offer customers the cost and performance benefits that come through vertical alignment; a sign of things to come, globally, in the IFC sector as far as we’re concerned. Clearly then, whilst vendors will continue to skirmish for airline wins all over the world, North America is seen as a market ripe for disruption in the coming years. This is great news for carriers in the region but is anticipated to pose a significant challenge to incumbents such as Global Eagle and Panasonic Avionics that, like most, are hurting from the impact of COVID-19, but are not in the position to pass on the benefits of being vertically aligned. *- excludes aircraft that were serviced by Thales [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]