Overview

Wi-Fi is a wireless communication technology that provides high-speed wireless connectivity using radio waves. Wi-Fi technology is being increasingly deployed in enterprises, transportation sector, etc. and replacing wired LAN at a rapid pace. In-flight Wi-Fi refers to onboard internet service for business and commercial aircraft passengers, accessed via personal electronic devices such as smartphones, tablets, and laptops. Furthermore, Wi-Fi has been incorporated in aviation to provide in-flight entertainment to aircraft passengers during a flight. The global in-flight Wi-Fi market focuses on five regions namely North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The global in-flight Wi-Fi market is estimated to account for US$ 14,314.1 Mn in terms of value by the end of 2027 and is expected to grow at a CAGR of 17.15 during the forecasted period 2020-27.Market Driver

Encouraging regulations to use mobile devices on-flight are expected to boost the global in-flight Wi-Fi market growth over the forecast period

Introduction of favorable regulations that allow the use of personal electronic devices such as tablets and smartphones during all phases of flight to watch video, read e-books, and play games is a major factor accelerating growth of the market. For instance, in 2013, the Federal Communication Commission and Federal Aviation Administration passed a regulation for airlines, permitting the use of personal electronics devices onboard by passengers. Hence, these factors are expected to drive growth of the global in-flight Wi-Fi market during the forecast period.

Market Opportunity

Rising demand for in-flight connectivity and entertainment services can provide significant growth opportunities

The demand for in0-flight connectivity and entertainment services has increased significantly in the recent past, especially in developed countries such as Western Europe and North America. This is owing to increasing number of passengers traveling on trans-oceanic or international flights since these flights are long-duration. Moreover, passengers are increasingly preferring towards using Wi-Fi services on United’s two-cabin regional jet fleet, allowing the passenger to watch television shows and movies at high Internet speed. Hence, key players in the market can capitalize on market opportunities and gain a competitive edge.

Market Restraint

High initial cost is expected to hamper the global in-flight Wi-Fi market growth over the forecast period

High initial cost-associated with deployment of connectivity equipment and devices is the major factor restricting adoption of in-flight Wi-Fi services by airlines up to certain extent. Furthermore, in-flight Wi-Fi connectivity services such as implementation & integration and network planning & designing are currently premium-priced. Therefore, these factors are expected to hinder the global in-flight Wi-Fi market growth in the near future.

Market Trends

North America Trends
Airlines in the U.S. and Canada are increasingly preferring deployment of satellite-based connectivity technologies, in order to gain competitive edge in the market. Furthermore, deployment of hybrid antennas combining both Ka and Ku band technologies is becoming a major trend among airlines in North America. For instance, in July 2015, Virgin America, a U.S.-based company, deployed ViaSat’s hybrid Ka/Ku band antenna in its 10 aircraft in order to enhance in-flight internet speed.

Europe Trends
Majority of airlines provide in-flight Wi-Fi services mainly long-haul flights. However, increasing demand for in-flight entertainment and connectivity services from passengers traveling on domestic flights has encouraged airlines to introduce in-flight connectivity services on short-haul flights as well. For instance, in 2013, Norwegian Air Shuttle introduced in-flight entertainment and connectivity services for its passengers traveling on short-duration flights. Moreover, strategic collaboration and partnership activities, among market players are expected to drive regional market growth. For instance, in September 2015, Inmarsat, a U.K.-based satellite connectivity service provider, partnered with Deutsche Telekom, a Germany-based company, to develop hybrid connectivity technology combining both air-to-ground and satellite technology.

Latin America Trends
Key companies in the market are focused on deploying hybrid connectivity technologies, in order to offer high bandwidth capacity and with internet speeds to passengers traveling on both short- and long-haul flights. For instance, in June 2015, GOL, a Brazil-based airline company, entered into a contract with Gogo Inc. to deploy the latter’s 2Ku technology and in-flight entertainment system on its aircraft to provide broadband access and live television content to its passengers on Wi-Fi-enabled mobile devices.

Regulations

Latin America

The aviation industry in Mexico is governed by the same Aviation Authority as that in the U.S. Regulations passed by Federal Aviation Administration and Federal Communication Commission in 2013, to permit the use of personal electronic devices by passengers onboard is also applicable for airlines operating in Mexico.
In October 2014, Brazilian National Civil Aviation Agency permitted use of portable electronic devices on commercial flights
Competitive Section

Key players operating in the global in-flight Wi-Fi market are Gogo Inc., EchoStar Corporation, Global Eagle Entertainment Inc., Kymeta Corporation, ViaSat Inc., Thinkom Solutions Inc., Thales Group, Honeywell International Inc., SITA, and Panasonic Corporation.

Key Developments

Major companies in the market are focused on product launches, in order to enhance the product portfolio. For instance, in April 2018, Global Eagle Entertainment Inc. launched Airconnect Go, a low-cost wireless IFE option for airplanes.
Key players in the market are involved in partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in February 2020, ViaSat Inc. partnered with fuboTV to offer video streaming of sports, news, and other programs to commercial airline passengers.
Segmentation

Market Taxonomy:

By Region
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
By Type
Hardware
Antenna
Wireless LAN Controller
Wireless Access Point
Wireless Hotspot Gateway
Other Hardware
Service
Implementation & Integration Service
Network Planning & Designing Service
Support Service
Video Streaming Service (IFE)
Other Services
By Technology
Air-to-Ground
Satellite Technology
Ka-Band
Ku-Band
SBB