Inflight WI-FI Equipment Market Size, Share, Growth, And Industry Analysis by Type (ATG, Ka Band Satellite, Ku Band Satellite) by Application (Private Aircraft, Commercial Aircraft) Regional Forecast By 2031

Updated On: 08 April 2024

Inflight WI-FI Equipment Market Report Overview

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The global inflight WI-FI equipment market size was USD 0.86555 billion in 2021.  As per our research, the market is expected to reach USD 4.91 billion by 2031, exhibiting a CAGR of 16.7 % during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with inflight WI-FI equipment market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Airlines employ in-flight WI-FI equipment as a sort of technology to provide passengers access to the internet while in the air. Passengers may frequently use it to access the internet, watch movies, listen to streaming music, and play online games while flying. These days, many airlines provide this service as a perk, however others may charge customers. The equipment used for in-flight WI-FI typically comprises of many receivers and transmitters located within the cabin in addition to an antenna or satellite dish installed on the exterior of the aircraft. The ground station receives the signal after the antenna interacts with a satellite in geosynchronous orbit. Passengers may use the internet since the ground station is connected to it. The equipment needs to be setup and maintained correctly in order to guarantee that the inflight WI-FI signal is strong and dependable. The wires and connections must be frequently inspected, and the antenna and receivers must be installed in the proper location. To provide a strong and dependable signal, the ground station must also be correctly adjusted. As more airlines start providing their customers with in-flight WI-FI, this service is growing in popularity.

The aviation industry is going through a significant technological shift thus market participants must adopt new products and services. The in-flight entertainment and connectivity (IFEC) systems replace the conventional seatback screens and present a constrained entertainment range with a moderately personalized model catering to individual passenger needs, playing a significant role in providing customers with updated onboard wireless connectivity solutions and services. Modern airplanes now offer more adaptable and durable in-flight entertainment and communication systems because to the successful fusion of several networking technologies. These systems have seen major technological developments during the past several years. The inflight WI-FI equipment market size is anticipated to grow over the forecasted period as a result of an increase in demand from industry participants to enhance the passenger experience. It is anticipated that a growing number of industry participants participating in the needs for inflight WI-FI equipment and commodity hardware would see considerable growth as a result of the increase in the usage of intelligent devices and the migration of consumer electronics into the onboard ecosystem.

COVID-19 Impact: Outbreak Has Significantly Affected In-Flight Wi-Fi Services And Technology Due To Travel Restrictions

In-flight Wi-Fi technology and services have been significantly impacted by the Covid-19 Pandemic. Since demand for air travel is at an all-time low, several airlines have curtailed or discontinued their Wi-Fi offerings as a cost-cutting measure. Further cuts have been made as a result of the airlines' struggles to make money from in-flight Wi-Fi services due to the low passenger load. The technology utilised to deliver the service has also been impacted by the decline in demand for in-flight Wi-Fi. The need for new in-flight Wi-Fi technology has drastically decreased as a result of fewer passengers and flights. Equipment producers are thus dealing with fewer orders and lower profitability. The industry as a whole has suffered from the decline in demand for in-flight Wi-Fi. Less people have been able to use the Internet while in the air due to fewer flights, which has led to a decline in the use of in-flight Wi-Fi services. As a result, there are now fewer manufacturers and sellers of in-flight Wi-Fi technology. 

Latest Trends

"A Notable Development Is The Introduction Of Air-To-Ground Technology, And The Usage Of Streaming Video Services Is Expanding Market Growth"

Particularly in developing countries like Asia Pacific and Latin America, air-to-ground is quickly rising in popularity. This is due to the technology's inexpensive cost and superior reach over satellite technology. Major industry participants also concentrated on introducing cutting-edge air-to-ground technologies to target domestic planes operating within developed areas. For instance, in order to provide speedier connection services for planes operating inside the area, Alcatel-Lucent teamed up with Deutsche Telekom, a German business, to install an LTE-based ground network across Europe in September 2015. 

Particularly from travellers taking long-haul flights, the demand for video streaming or in-flight entertainment services is steadily rising. In order to get a competitive edge in the industry, airlines are concentrating on releasing mobile apps that allow customers to access on-demand video services via mobile devices such as computers, smartphones, and tablets. For instance, in August 2014, the Canadian airline Air Transat unveiled CinePlus, a mobile application that enables customers to access on-demand in-flight entertainment options.

Inflight WI-FI Equipment Market Segmentation

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• By type

Depending on inflight WI-FI equipment given are types: ATG, Ka Band Satellite, Ku Band Satellite. The ATG type will capture the maximum market share through 2031.

• By Application

The market is divided in Private Aircraft, Commercial Aircraft based on application. The global inflight WI-FI equipment market  players in cover segment like Private Aircraft will dominate the market share during 2021-2031.

Driving Factors

"Technological Advancements Are Anticipated To Fuel Market Expansion For In-Flight Wi-Fi."

Key players are introducing fresh technologies and devices that can be used on flights thanks to technological advancements in networking technology. This is done to increase bandwidth capacity and connection speed even on mid-haul and short-haul routes. For instance, Gogo developed 2Ku technology in 2014 to improve its product offerings for airlines in the commercial aviation sector. 2Ku is a satellite-based connection technology. The high bandwidth speed of 2Ku technology is 70 Mbps. Therefore, it is anticipated that these factors will soon fuel the expansion of the worldwide inflight WI-FI equipment market growth.

"The Focus Of Airlines On Improving The Passenger Experience Is Anticipated To Drive Market Expansion"

Major airlines all around the world are fitting their planes with high-speed Wi-Fi systems that are affordable. These systems, which are built on cutting-edge technology, provide passengers with continuous internet access, enhancing their happiness and experience. Moreover, in order to acquire a competitive edge in the market, leading airlines are emphasising the deployment of cutting-edge connection technology on flights. Thus, during the course of the forecast period, these factors are anticipated to fuel the expansion of the worldwide inflight WI-FI equipment market growth. For example, United Airlines chose Gogo Inc. in October 2014 to offer in-flight Wi-Fi services on United's two-cabin regional aircraft fleet, enabling customers to stream television shows and movies at blazing-fast Internet speeds.

Restraining Factors

"Threats To Security And Issues With Data Privacy Are Anticipated To Limit Industry Expansion"

With recent technical breakthroughs in the communication technology ecosystem, vulnerabilities to data security and system security have dramatically escalated. Customers' e-payment transactions, movements, and whereabouts are some of the sensitive data that some in-flight Wi-Fi apps carry. These software programmes are susceptible to hacking. Third party services are used to troubleshoot and restore data in cases of connection problems or system breakdown. The security and privacy of data may be at risk as a result of this. Therefore, it is anticipated that these factors would in the near future constrain the inflight WI-FI equipment market growth.

Inflight WI-FI Equipment Market Regional Insights

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"North America To Dominate The Market Owing To Increasing Demand For Long Range Business Jets"

With a highest inflight WI-FI equipment market share in 2021, North America led the global in-flight entertainment & connectivity industry. Regional airlines in affluent nations are anticipated to use these technologies more frequently, which is anticipated to keep the regional business growing. Some of the most well-known airlines in the area, such United Airlines, Inc. and Delta Air Lines, Inc., are always attempting to provide customers with medicines or compensatory content over Wi-Fi. Additionally, as BYOD becomes popularity, airlines may no longer be required to nest back-seat displays, which will reduce overall aircraft weight. 

Asia Pacific region accounted for second highest inflight WI-FI equipment market share. During the projection period, a CAGR of 12% is anticipated for the area. The industry is developing as a result of the rising passenger volume, which has increased demand for aircraft outfitted with cutting-edge communication and entertainment systems. For its first-class passengers, some of the most well-known airlines in the area provide cutting-edge in-flight entertainment and connectivity options. Garuda Indonesia, the national carrier of Indonesia, provides premium travellers with a range of onboard entertainment choices, including live TV streaming, in-flight shopping, and gaming.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Honeywell (U.S)
• Gogo (U.S)
• ViaSat (U.S)
• Rockwell Collins (U.S)
• KID-Systeme (Germany)
• Feitian-tech (China)
• Panasonic (Japan)
• Donica (U.S)
• Thales (France)
• Shareco (Ireland)
• GEE (India)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.