Europe Inflight Entertainment and Connectivity Market: With Top Countries Data, Industry Analysis by Regions, Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast: 2022-2031

Japan, Japan, Thu, 31 Mar 2022 22:13:11 / Comserve Inc. / -- The European inflight entertainment and connectivity market is projected to register a CAGR of more than 10% during the forecast period.

The European inflight entertainment and connectivity market is projected to register a CAGR of more than 10% during the forecast period.

- Increasing passenger traffic in the region is demanding the procurement of new-generation aircraft, which, in turn, is generating demand for inflight entertainment and connectivity systems.
- Installation of new and high-speed connectivity solutions, along with the increasing digitization on board (e-magazines, online streaming of movies and TV shows, etc.), and the use of personal electronic gadgets for streaming (Bring Your Own Device concept) are expected to act as the major drivers for the growth of the market during the forecast period.

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Key Market Trends

The Connectivity Segment is Expected to Experience the Highest Growth During the Forecast Period

The connectivity segment of the market is expected to register the highest CAGR during the forecast period. The demand for connectivity has grown steadily and the consumers are prioritizing it over most of the other amenities. To cater to this demand, the airlines of the region are collaborating with the inflight connectivity providers, like Gogo LLC, Inmarsat, and Global Eagle, to integrate their existing systems with LTE technology and satellite communication technology. One such collaboration is the EAN, a hybrid-network built by Deutsche Telekom and Inmarsat in cooperation with their technological partner Nokia. EAN offers high-speed internet with low latency, with significantly less downtime and reduced operating costs. This is propelling the growing adoption of EAN, with airlines like British Airways, Aer Lingus (IAG), Iberia, Vueling, and Lufthansa adopting the solution. Additionally, the partnership and collaborations between the major players to provide uninterrupted services at higher speeds are propelling the growth of this segment. For instance, in March 2020, IMMFLY, a global inflight connected digital services and entertainment company, secured a long-term partnership with International Airlines Group for inflight connectivity.

According to Immfly, the company's specialist onboard software services may support the development and maintenance of IAG's universal platform (.air). The contract follows a long standing pioneering wireless IFE collaboration of more than five years between Immfly and IAG's airline Iberia Express. In addition, the need for faster connectivity is driving the investments into the market. In December 2019, Panasonic Avionics Corporation (Panasonic Corporation) signed a multi-year agreement for Ku-band capacity on two multi-beam payloads on the EUTELSAT 10B satellite, due to be launched in 2022. This contract with Eutelsat Communications may enable Panasonic to provide multiple gigahertz of new extreme throughput (XTS) Ku-band connectivity to airline passengers flying over Europe, Africa, and the Middle East. Such developments are expected to further propel the segment's growth during the forecast period.

Rest of Europe Currently Holds the Highest Market Share

Rest of Europe currently has the highest market share in the European inflight entertainment and connectivity market. This is majorly due to the fleet modernization of airlines in the region, with the latest entertainment and connectivity solutions. Most airline operators in rest of Europe are keenly investing resources toward integrating IFEC systems into their aircraft fleet. Hence, the market propositions in the region include sizeable demand for both line-fit and retrofit installations of IFEC systems. Moreover, the growth in the aviation industry and the adoption of IFEC by the LCCs in countries, like Russia, Spain, Switzerland, and Greece, have bolstered the revenues of the segment. For instance, in October 2019, the Spanish carrier Vueling Airlines, SA, became the first low-cost carrier to provide its passengers with EAN services. The airline announced that further EAN installations on its fleet of more than 110 Airbus A319, A320, and A321 aircraft are planned to be completed by 2020. Such developments are expected to further help the market growth in rest of Europe in the coming years.

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Competitive Landscape

Some of the few prominent players in the European inflight entertainment and connectivity market are Inmarsat PLC, Global Eagle Entertainment Inc., Thales SA, Panasonic Corporation, and Viasat Inc. Companies are collaborating to offer better entertainment and connectivity options to the airlines in the region. For instance, Deutsche Telekom and Inmarsat, together with their technology partner Nokia, developed European Aviation Network (EAN), which provides high-capacity satellite coverage with a complementary 4G LTE ground network to provide high-speed network coverage in about 30 states in Europe. Such collaborations are increasing the concentration in the market, thereby, increasing the competition among players. Companies are also working toward the developments of advanced IFE hardware that helps enhance the passenger experience. For instance, in September 2019, Burrana, a provider of inflight entertainment and cabin technology, announced the development of its next-generation ultra-high-definition 4K overhead solution. According to the company, each display may feature the latest in high brightness and high dynamic range LCD technology, which may enable the passenger to enjoy wide viewing angles and a crisp picture, regardless of where they are sitting in the cabin. Additionally, the display may feature an anti-glare coating, which may help minimize reflections and the impact of sunlight. Such innovations may boost the revenues of the players by attracting more customers.

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