Asia-Pacific Inflight Entertainment And Connectivity Market - Growth, Trends, And Forecasts (2020 - 2025)

The Asia-Pacific Inflight Entertainment and Connectivity Market is projected to grow with a CAGR of more than 9% during the forecast period.

- Increasing passenger traffic in the region is generating demand for new generation aircraft, which in turn, is generating demand for inflight entertainment and connectivity systems.
- The increasing adoption of low-cost carrier business models by the airlines in the Asia-Pacific region and integration of IFEC solutions by the LCCs, to enhance their passenger experience are propelling the growth of the Asia-Pacific Inflight Entertainment and Connectivity market.
- Introduction of new cabin entertainment systems like VR, high-speed internet and provision of portable electronic devices (PEDs) for the passengers to enhance their experience in the aircraft cabins is anticipated to accelerate the demand for inflight entertainment and connectivity systems in the Asia-Pacific region.

Key Market Trends

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

The first-class segment of the Asia-Pacific inflight entertainment and connectivity market is expected to register the highest CAGR during the forecast period. This is because the airlines of the region are providing passengers of the first class with the best entertainment and connectivity options available, with many sophistications and customizations being provided, corresponding to the price of the ticket they pay. For instance, Garuda Indonesia provides its first-class passengers with the latest on-demand inflight entertainment and live streams of choice TV shows on the innovative AVOD system, through the personal 23.5 inch LCD screen, controlled conveniently by touchscreen and premium handset. Telkom Indonesia, along with Panasonic's Global Communication System, offers inflight connectivity services for the airlineÕs first-class passengers. Also, Cathay Pacific started to provide free WiFi to first-class passengers travelling on Boeing 777-300ER aircraft from December 2019. The airline is currently installing Gogo 2Ku technology throughout its fleet. As of December 2019, there were 20 out of 31 aircraft were fitted with the technology. Provision of such advance IFEC solutions by the airlines of this region for improving the passenger experience is expected to generate demand for the market during the forecast period.

China Holds the Highest Market Share

China currently has the highest market share in the Asia-Pacific inflight entertainment and connectivity market. This is majorly due to the fleet modernization of airlines with the procurement of new aircraft as well as installation of the latest entertainment and connectivity solutions. Chinese commercial airlines are installing IFE systems for bringing better flight experience to their passengers through access to high-speed internet. For instance, FTS Technologies Inc. signed an agreement with Donghai Airlines to equip the airlinesÕ fleet with the XStream-SAT Next Generation Inflight Broadband system. Similarly, Thales Group signed an agreement with China HNA Group to provide AVANT, an android-based inflight entertainment solution for 42 wide-body A330 and 17 A350 XWB aircraft. Also, the introduction of new IFEC product lines for Chinese airlines is anticipated to further support the growth of the IFEC market in the country. For instance, in February 2020, Honeywell announced the completion of ground testing and flight testing of the JetWave connectivity systems in China. The JetWave is designed for ChinaÕs Ka-band satellite network and high-speed cabin connectivity of speed up to 180 Mbps. Later, in March 2020, Honeywell signed a three-year agreement with Air Esurfing (ARE) to provide JetWave satellite communications systems to Chinese airlines. Development and integration of such advanced IFEC solutions by the airlines of China are anticipated to accelerate the growth of the market in the country during forecast period.

Competitive Landscape

Some of the prominent players in the Asia-Pacific inflight entertainment market are Envee Inflight Entertainment Co. Ltd, Global Eagle Entertainment Inc., Thales Group, Panasonic Corporation, and Vaisat Inc. Currently, Envee Entertainment has officially partnered with more than 80% of the airlines based in China including, Air China, China Southern Airlines, Shenzhen Airlines, Sichuan Airlines, and Tibet Air. Additionally, the airlines are partnering with local content and entertainment providers to provide better services in line with the passengersÕ preference, with access to content in different languages. Also, the companies are providing region-specific IFEC solutions to the airlines. For instance, in February 2020, Panasonic Avionics Corporation announced an agreement with Nelco Limited, under which Panasonic will provide inflight connectivity (IFC) solutions under NelcoÕs Department of Telecommunications license for In-Flight and Maritime Connectivity (IFMC). Such partnerships of international companies with the local companies will help the companies further enhance their presence in the region.

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