Inflight entertainment (IFE) is becoming a must-have for airlines wishing to stay on top of customer service standards. Movies, television shows and music are a few of the options offered. What’s more, these days as more and more people travel with their laptop, tablet or smartphone, the demand for Wi-Fi on planes has exploded.
Developing ways for people to stay connected to what’s happening on the ground is playing a huge factor in the IFE Market’s anticipated CAGR of 6.65 percent for the 2012-2016 period. However, IFE manufacturers are encountering roadblocks which are preventing them from making any substantial developments to their current systems.
Regulatory bodies like the Federal Aviation Administration and the European Aviation Safety Agency have very lengthy and complicated approval processes for implementing new IFE technology. This is mainly because of concern for passenger safety as there are a few threats associated with IFE communication, like tangled communication signals between passenger devices and those used by pilots and air traffic controllers. This is why Wi-Fi capabilities in aircrafts aren’t nearly as advanced as they could be.
Regulatory organizations, being as stringent as they are, have forced IFE vendors to pursue other options, which has sparked a few trends expected to fuel market growth for the forecast period.
- New Aerospace Technology
The Aerospace industry has recently improved their satellite systems which will enhance communication capabilities between air and ground. Airlines have already begun to use K-band frequencies which have improved capabilities compared to traditional satellites, allowing for stronger signals and better connectivity for passengers.
- Retrofitting Existing Aircrafts with IFE
Recent technological advancements have enabled IFE manufacturers to install their products in existing aircrafts without tearing the plane apart. This has caused more airlines to install IFE systems in their current fleet which will help ensure that their aircrafts have the latest IFE content.
- Inflight Shopping
If an aircraft is equipped with IFE connectivity, the airline can generate additional revenue by providing shopping facilities and displaying advertisements. This reciprocal relationship stands to benefit both the airlines and IFE vendors.
All three of these trends have already generated a profit for IFE manufacturers. Furthermore, as airlines expand, each new plane will require an IFE system and increasing passenger demand will keep airlines on vendor doorsteps. Ultimately, as inflight entertainment continues to shift from a privilege to a necessity for airline passengers, you can almost guarantee that the IFE Market won’t be coming in for a landing anytime soon.
For more information, view our 2012-2016 Global Inflight Entertainment Market report.
