In-Flight Wi-Fi Market to Reach US$ 7.30 Bn at CAGR of 16.9% by 2025

In-Flight Wi-Fi Market to 2025 - Global Analysis and Forecasts by Type (Hardware and Service); Aircraft Type (Narrow Body Aircraft, Wide Body Aircraft, Very Large Aircraft and Business Jet); and Technology (Air to Ground Technology and Satellite Technology)

Publication Month : Jun 2018

  • Report Code : TIPTE100000922
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 163
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The in-flight wi-fi market was valued at US$ 2.13 billion in 2017 and is projected to reach US$ 7.30 billion by 2025; it is expected to grow at a CAGR of 16.9% during 2018–2025.

In todays “always on” culture, particularly the business traveler’s anticipation for the airline companies to embed digital technologies including In-Flight connectivity options amid aircrafts is burgeoning. The epical growth in usage of electronic devices from passengers has also evidently raised the demand for on board connectivity, especially for long haul flights. Furthermore, as the airline companies themselves are under a pressure to derive additional revenue streams expected to significantly, the In-Flight connectivity (Wi-Fi) is considered to be a win-win strategy as majority passengers globally are willing to pay for the high-speed internet connection while travelling by air.

Smaller airlines have also started offering Wi-Fi services in order to attract more customers and compete with large global airlines. In coming years, In-Flight Wi-Fi is expected to deliver higher speed. For instance, a company such as Inmarsat in collaboration with other companies is working on a high-capacity satellite Wi-Fi network supported by ground towers. It is expected to provide a consistent high bandwidth broadband service in the air. Gogo Inc., one of the major players in In-Flight Wi-Fi market has assured to reach the speed up to 70 Mbps using dual Ku-band antennas that connect to the satellite. Moreover, the satellite In-Flight Wi-Fi technology is expected to deliver up to 70 Mbps speed with upgraded antennas. While air to ground technology, providers is expected to meet In-Flight Wi-Fi speed up to 100 Mbit/s. With the technological improvement in the air to ground and satellite connectivity, In-Flight Wi-Fi is projected to offer better speed, improved experience, with optimal cost. The market for In-Flight Wi-Fi market is expected to flourish in coming years owing to the higher connection speed and increase in the number of routes covered.

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Market Insights–In-Flight Wi-Fi Market

In-Flight retail partnerships

Currently, among the overall travel spending, In-Flight retail accounts for merely around 5%. Owing to better connectivity airlines are now providing their customers with In-Flight retail shopping. For instance, carriers such as Swiss and British Airways permit their passengers to browse and order from their catalogue using smartphone and tablet. In addition, better In-Flight connectivity provides passengers with faster, simpler, and secure shopping experiences which were not possible earlier. Many of the airlines have already started partnering with the retailer, for instance, Air China has partnered with JD.com - one of the online retailer, in order to provide home delivery service and In-Flight shopping. Lufthansa in collaboration with supermarket REWE has announced a project, that permits passengers to order groceries using In-Flight Wi-Fi service which is then transported to the traveler’s home address at their chosen time. Thus, In-Flight Wi-Fi connectivity develop opportunities for retail partnerships and boost the growth of global In-Flight Wi-Fi market.

Type Segment Insights

Based on type, the in-flight wi-fi market is segmented into hardware and service. The hardware market is further broken down as antenna, wireless LAN, access point device, and Hotspot Gateways. On the other hand, the services segment is categorized as integration & implementation service, network planning & design service, support service and other. Currently, the airlines operators are increasingly tending towards the deployment of Wi-Fi systems on their narrow body, wide body, and business jets. This is due to increasing demand for real time In-Flight entertainment, with higher bandwidth. On the other hand, the service market is also escalating at a fair rate over the years, pertaining to the demand for servicing and maintenance of the Wi-Fi systems mounted on the aircrafts, at a regular interval.


Aircraft Type Segment Insights

Based on aircraft type, the in-flight wi-fi market is segmented into narrow body aircraft, wide body aircraft, very large aircraft and business jet. Inflight Wi-Fi systems are installed on all three types of aircraft to enhance customer experience during their travel. Among the three types of aircrafts, narrow body aircrafts are mostly equipped with the Wi-Fi systems, since maximum airlines operating worldwide have huge numbers of narrow body aircrafts in their fleets. For instance, the top airlines which have enabled Wi-Fi systems on 100% of their fleets include Icelandair, SouthWest Airlines and Virgin Airlines. Southwest Airlines have 716 narrow body aircrafts, while Emirates have 256 wide body aircraft which are inflight Wi-Fi enabled. These statistics showcases the demand for Wi-Fi systems among onboard passengers across

Technology Segment Insights

Based on technology, the in-flight wi-fi market is bifurcated into air to ground technology and satellite technology. The air to ground inflight Wi-Fi technology is most widely used technology among the airlines. This is due to simple infrastructure and low cost. On the other hand, satellite technology offers better and high-speed internet, however, is expensive when compared to air to ground technology. This factor is limiting the airlines to opt for satellite based inflight Wi-Fi systems

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In-Flight Wi-Fi Market: Strategic Insights

in-flight-wifi-market
Market Size Value inUS$ 2.13 Billion in 2017
Market Size Value byUS$ 7.30 Billion by 2025
Growth rateCAGR of 16.9% from 2018-2025
Forecast Period2018-2025
Base Year2018
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The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.

2018:EchoStar’s Hughes announce enhancement in its JUPITER™ System, by adding rapid In-route Parsing and Prioritization Scheme for providing support for mariti me applications.
2018:Global Eagle Entertainment Inc. announced that All Nippon Airways Trading Co., Ltd. has awarded a three-year contract for in-flight entertainment and content services to Global Eagle.
2018:GOGO’s 2Ku in-flight connectivity solution was selected by Air Canada for its Bombardier CS300 aircraft. With the help of 2Ku in-flight connectivity the Air Canada will provide its customers the capability to work, communicate in-flight, and entertained

The Global In-Flight Wi-Fi Market has been Segmented as Follows:

In-Flight Wi-Fi Market – By Type

  • Hardware
  • Service

In-Flight Wi-Fi Market – By Aircraft Type

  • Narrow Body
  • Wide Body Aircraft
  • Business Jet

In-Flight Wi-Fi Market – By Technology

  • Air to Ground
  • Satellite

In-Flight Wi-Fi Market – by Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)

    • China
    • India
    • South Korea
    • Japan
    • Rest of APAC
  • Middle East & Africa (MEA)

    • South Africa
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM  

In-Flight Wi-Fi Market – Companies Profiles

  •  Echostar Corporation
  •  Global Eagle Entertainment Inc
  •  Gogo LLC
  •  Honeywell International Inc
  •  Panasonic Avionics Corporation
  •  Viasat Inc
  •  Sitaonair
  •  Thales Group
  •  Thinkom Solutions Inc
  •  Kymeta Corporation
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type ; Aircraft Type ; and Technology

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies

1. ECHOSTAR CORPORATION
2. GLOBAL EAGLE ENTERTAINMENT INC
3. GOGO LLC
4. HONEYWELL INTERNATIONAL INC
5. PANASONIC AVIONICS CORPORATION
6. VIASAT INC
7. SITAONAIR
8. THALES GROUP
9. THINKOM SOLUTIONS INC
10. KYMETA CORPORATION

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

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Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

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  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

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