November 21, 2024, 15:00 Greenwich Mean Time (GMT)
London. According to a new report from Valour Consultancy, the push for airlines to digitalise onboard services will drive the growth of wireless IFE (W-IFE) services to in excess of 17,000 equipped aircraft by the end of 2033 – up from around 10,000 today.
The report, “The Future of In-Flight Entertainment – 2024”, finds that the technology is in a period of evolution as IFE vendors tackle the growing ubiquity of onboard connectivity, and the transition away from traditional movie and TV content toward increasingly holistic digital platforms. IFE enables airlines to develop strong digital offerings for their passengers, and can empower airlines to improve the passenger experience, enable cost savings, increase brand loyalty, and perhaps even generate ancillary revenues.
An increasing number of low-cost carriers (LCCs), which are typically unconnected, are looking to wireless IFE to support their first steps on a path towards onboard digitalisation, and this market remains the most fertile ground for vendors in the space. “Many LCCs and regional airlines are in the early stages of their digital development and may find that going direct to a high-bandwidth connectivity solution does not yet make sense as a business model”, said the report author, David Whelan.
Opportunities are also aplenty on connected aircraft. In the W-IFE market, growth remains inextricably linked to IFC installations. Many of the leading IFC service providers (Viasat, Intelsat, and Panasonic Avionics) install W-IFE as a supporting platform alongside connectivity. The growing dominance of Starlink, which does not offer a digital platform alongside its IFC offering, presents a juncture in the W-IFE market. However, the hand that bites can also feed. While Starlink may help to bring about an end to the joint IFC/W-IFE offering, it creates a new market for digital service specialists to operate in a connected environment. Hawaiian Airlines, one of the first airlines to adopt Starlink, is continuing to offer a W-IFE solution from Anuvu. “It’s often assumed that because Starlink offers pure connectivity without any digital services packaged in that airlines will not source any of these services from elsewhere. However, our discussions with airlines suggest that many still value offering digital services onboard”, said the report author, David Whelan.
The secret for vendors in the market, is to create digital services which connectivity alone cannot provide, such as: interactive in-flight maps, unique ecommerce opportunities, and food & beverage services. Many portable W-IFE vendors and in-flight digital technology specialists are well placed to step into this gap in the market, with companies such as AirFi, Bluebox Aviation Systems, Immfly, and Inflight Dublin having built up strong positions in the market.
The seatback IFE market continues to demonstrate resilience, remaining a near-essential feature on wide-body aircraft. Over 7,000 aircraft are equipped with seatback systems today, with this figure expected to rise to more than 10,000 by 2033, driven largely by new wide-body deliveries. In 2023, 90% of the global wide-body fleet featured seatback IFE, with an attach rate of 93% on new deliveries. Despite this strong demand, the market remains firmly dominated by three main manufacturers, led by Panasonic Avionics. Attempts to disrupt this oligopoly, such as AERQ – a joint venture between Lufthansa Technik and LG Electronics – have been unsuccessful. AERQ’s recent closure, despite securing a launch customer in Discover Airlines, highlights the high barriers to entry in a market where established players maintain a commanding lead.
Valour Consultancy is a multi-award-winning provider of high-quality market intelligence and consultancy services. Now in its fifth edition, its latest study, “The Future of IFE – 2024”, was developed with input from over 30 companies across the value chain: seatback IFE system vendors, wireless IFE vendors, digital service specialists, content service providers, connectivity service providers, airframers, and airlines. The study offers detailed insights into the market dynamics: drivers, inhibitors, technology trends and the competitive environment, while market estimates and forecasts are provided out to 2033. The report provides over 150 pages of comprehensive analysis of the IFE market, and comes with a separate data deliverable of ten-year forecasts segmented across more than 50 tables and charts.
For a full table of contents and report scope, please see here.
To enquire about the report please contact:
Caroline Fearnley
