In todays “always on” culture, particularly the business traveler’s anticipation for the airline companies to embed digital technologies including In-Flight connectivity options amid aircrafts is burgeoning. The epical growth in usage of electronic devices from passengers has also evidently raised the demand for on board connectivity, especially for long haul flights. Furthermore, as the airline companies themselves are under a pressure to derive additional revenue streams expected to significantly, the In-Flight connectivity (Wi-Fi) is considered to be a win-win strategy as majority passengers globally are willing to pay for the high-speed internet connection while travelling by air.
Smaller airlines have also started offering Wi-Fi services in order to attract more customers and compete with large global airlines. In coming years, In-Flight Wi-Fi is expected to deliver higher speed. For instance, a company such as Inmarsat in collaboration with other companies is working on a high-capacity satellite Wi-Fi network supported by ground towers. It is expected to provide a consistent high bandwidth broadband service in the air. Gogo Inc., one of the major players in In-Flight Wi-Fi market has assured to reach the speed up to 70 Mbps using dual Ku-band antennas that connect to the satellite. Moreover, the satellite In-Flight Wi-Fi technology is expected to deliver up to 70 Mbps speed with upgraded antennas. While air to ground technology, providers is expected to meet In-Flight Wi-Fi speed up to 100 Mbit/s. With the technological improvement in the air to ground and satellite connectivity, In-Flight Wi-Fi is projected to offer better speed, improved experience, with optimal cost. The market for In-Flight Wi-Fi market is expected to flourish in coming years owing to the higher connection speed and increase in the number of routes covered.
Currently, among the overall travel spending, In-Flight retail accounts for merely around 5%. Owing to better connectivity airlines are now providing their customers with In-Flight retail shopping. For instance, carriers such as Swiss and British Airways permit their passengers to browse and order from their catalogue using smartphone and tablet. In addition, better In-Flight connectivity provides passengers with faster, simpler, and secure shopping experiences which were not possible earlier. Many of the airlines have already started partnering with the retailer, for instance, Air China has partnered with JD.com - one of the online retailer, in order to provide home delivery service and In-Flight shopping. Lufthansa in collaboration with supermarket REWE has announced a project, that permits passengers to order groceries using In-Flight Wi-Fi service which is then transported to the traveler’s home address at their chosen time. Thus, In-Flight Wi-Fi connectivity develop opportunities for retail partnerships and boost the growth of global In-Flight Wi-Fi market.
Based on type, the in-flight wi-fi market is segmented into hardware and service. The hardware market is further broken down as antenna, wireless LAN, access point device, and Hotspot Gateways. On the other hand, the services segment is categorized as integration & implementation service, network planning & design service, support service and other. Currently, the airlines operators are increasingly tending towards the deployment of Wi-Fi systems on their narrow body, wide body, and business jets. This is due to increasing demand for real time In-Flight entertainment, with higher bandwidth. On the other hand, the service market is also escalating at a fair rate over the years, pertaining to the demand for servicing and maintenance of the Wi-Fi systems mounted on the aircrafts, at a regular interval.
Based on aircraft type, the in-flight wi-fi market is segmented into narrow body aircraft, wide body aircraft, very large aircraft and business jet. Inflight Wi-Fi systems are installed on all three types of aircraft to enhance customer experience during their travel. Among the three types of aircrafts, narrow body aircrafts are mostly equipped with the Wi-Fi systems, since maximum airlines operating worldwide have huge numbers of narrow body aircrafts in their fleets. For instance, the top airlines which have enabled Wi-Fi systems on 100% of their fleets include Icelandair, SouthWest Airlines and Virgin Airlines. Southwest Airlines have 716 narrow body aircrafts, while Emirates have 256 wide body aircraft which are inflight Wi-Fi enabled. These statistics showcases the demand for Wi-Fi systems among onboard passengers across
Based on technology, the in-flight wi-fi market is bifurcated into air to ground technology and satellite technology. The air to ground inflight Wi-Fi technology is most widely used technology among the airlines. This is due to simple infrastructure and low cost. On the other hand, satellite technology offers better and high-speed internet, however, is expensive when compared to air to ground technology. This factor is limiting the airlines to opt for satellite based inflight Wi-Fi systems
The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.
2018:EchoStar’s Hughes announce enhancement in its JUPITER™ System, by adding rapid In-route Parsing and Prioritization Scheme for providing support for mariti me applications.
2018:Global Eagle Entertainment Inc. announced that All Nippon Airways Trading Co., Ltd. has awarded a three-year contract for in-flight entertainment and content services to Global Eagle.
2018:GOGO’s 2Ku in-flight connectivity solution was selected by Air Canada for its Bombardier CS300 aircraft. With the help of 2Ku in-flight connectivity the Air Canada will provide its customers the capability to work, communicate in-flight, and entertained
The regional trends and factors influencing the In-Flight Wi-Fi Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses In-Flight Wi-Fi Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2017 | US$ 2.13 Billion |
| Market Size by 2025 | US$ 7.3 Billion |
| Global CAGR (2017 - 2025) | 16.9% |
| Historical Data | 2015-2016 |
| Forecast period | 2018-2025 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The In-Flight Wi-Fi Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the In-Flight Wi-Fi Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Global In-Flight Wi-Fi Market has been Segmented as Follows:
The List of Companies
1. ECHOSTAR CORPORATION
2. GLOBAL EAGLE ENTERTAINMENT INC
3. GOGO LLC
4. HONEYWELL INTERNATIONAL INC
5. PANASONIC AVIONICS CORPORATION
6. VIASAT INC
7. SITAONAIR
8. THALES GROUP
9. THINKOM SOLUTIONS INC
10. KYMETA CORPORATION
- Highlights key business priorities in order to assist companies to realign their business strategies.
- The key findings and recommendations highlight crucial progressive industry trends in the In-Flight Wi-Fi market, thereby allowing players to develop effective long term strategies.
- Develop/modify business expansion plans by using substantial growth offering in developed and emerging markets.
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to products, segmentation and industry verticals.