Euroconsult says IFC revenues could reach $6.5bn by 2026


Passengers watching live TV via Panasonic Avionics.Passengers watching live TV via Panasonic Avionics.Passengers watching live TV via Panasonic Avionics.

Passengers watching live TV via Panasonic Avionics.

Euroconsult’s latest report on the inflight connectivity (IFC) market states that more than 17,000 commercial aircraft will offer connectivity to their passengers by 2021, up from 6,500 aircraft in 2016.

The report “Prospects for In-Flight Entertainment and Connectivity” says in January 2017, more than 80 airlines had either installed or committed to install in-flight connectivity (IFC) solutions. This is a dozen more than last year.

And while the recent U.S. and U.K. bans of personal electronic devices on certain flights might impact IFEC dynamics if extended, it believes that aero connectivity is poised for structural growth.

It says its research confirms that installations will accelerate, and innovation largely improve the in-flight experience.

New generation satellite systems (globally) and air-to-ground networks (in the U.S. and Europe) will dramatically increase available bandwidth.

Industry leaders such as Inmarsat, Gogo, Intelsat, SES, ViaSat and new entrants such as SmartSky Networks invest in or have started to deploy networks offering up to hundreds of Gbps.

IFC hardware, from receiving antennas to modems and in-cabin solutions, is also evolving rapidly. Honeywell, ThinKom, Gilat and Zodiac Data Systems for example introduced new antenna solutions in recent months.

In the current take-up phase, Euroconsult observes a diversity in pricing models applied by airlines to passengers, from free access to a premium, applied by the hour, by flight or on a monthly basis.

For airline connectivity suppliers, it estimates that revenues from IFC topped $1 billion in 2016 and should reach $6.5 billion by 2026.

The $4,000 report includes an analysis of the various stakeholders of the connectivity ecosystem as well as Euroconsult’s 10-year forecast for cabin connectivity.

It also assesses trends for both content and equipment provision; market forecasts for revenue, installation, and bandwidth by region, by segment and by network technology are provided.

 

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Euroconsult says IFC revenues could reach $6.5bn by 2026 was last modified: May 5th, 2017 by Steve Nichols
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