Skip to main content

In-flight Entertainment Revenue will Reach $8.4 Billion

In-flight Entertainment has been the norm on long-haul flights for several decades. In an age where permanent Internet connectivity is commonplace, in-flight Wi-Fi and cellular connectivity is now becoming a standard as well.

Developing communications technology, the changing nature of the airline industry and the increasing desire for passengers to stay connected at all times are driving the deployment of new services.

Broadband connectivity is drastically changing the consumer passenger experience, the business passenger experience and the operational challenges aircraft operators face.

In-flight Entertainment Market Development

According to the latest worldwide market study by Juniper Research, increasing adoption of in-flight entertainment and connectivity systems by airlines and private aircraft operators will drive annual service revenues from an estimated $3.7 billion in 2018 to reach over $8.4 billion by 2023.

The research found that systems installation by Low Cost Carriers is a driving force behind this growth. In an extremely competitive environment, commercial airlines such as easyJet are utilizing these systems to differentiate the airline passenger experience.

Juniper analysts found that airlines are increasingly adopting wireless streaming to passenger devices, with penetration in commercial aircraft in West Europe reaching 31 percent by 2023 -- that's up from 23 percent in 2018.

Juniper foresees that the greater cost efficiency of these systems, compared with seatback systems, will enable the increased Low Cost Carrier deployment. Offering entertainment services in the budget segment removes a crucial differentiator for more traditional airlines. That said, Juniper recommended that one area in which legacy airlines can innovate is to offer free, high-quality passenger Wi-Fi.

With connectivity becoming a standard aircraft feature, Juniper predicted that the number of connected aircraft will grow by 118 percent between 2018 and 2023, with over 34,000 commercial and business aircraft outfitted by 2023.

Outlook for Airline Communication Innovation

Improved aircraft connectivity will be leveraged to gain service efficiency owing to predictive, more efficient maintenance, with Internet of Things (IoT) sensors utilized to reduce manual maintenance tasks and improve aircraft safety; allowing improved profit margins for airlines.

"Operational use cases and the significance of the IoT is driving innovation in the satellite sector. Increased demand can be used by satellite operators to justify high capital expenditure required to build new systems, such as HTS (High Throughput Satellites) and S band services," said Nick Maynard, research analyst at Juniper Research.

Popular posts from this blog

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe