A new report from Persistence Market Research says the global inflight Wi-Fi market was valued at US$3,103.2m in 2016 and is expected to register a CAGR of 13.5% from 2017 to 2025.
The report, entitled “In-Flight Wi-Fi Market: Global Industry Analysis (2012-2016) & Forecast (2017-2025)”, says the increasing demand for inflight connectivity and entertainment services and a growing focus of airlines to enhance the overall passenger experience are main factors driving revenue growth.
However, data privacy, security threats and lack of awareness in developing and underdeveloped regions are restraining the revenue growth of the global inflight Wi-Fi market.
The report says the market is segmented into hardware and services. The services segment is anticipated to register a CAGR of 14.2% during the forecast period.
The revenue contribution from the air-to-ground technology segment is anticipated to expand at a CAGR of 14.0% during the forecast period. In 2016, the air-to-ground technology segment was valued at US$2,098m and is expected to witness steady growth in terms of revenue throughout the forecast period.
Among the regions, North America is projected to exhibit relatively high growth in the global market, registering a CAGR of 14.0% over the forecast period.
Revenue from the inflight Wi-Fi market in North America is estimated to account for about 45% of the global market revenue in 2017.
In terms of value, the North America inflight Wi-Fi market is anticipated to increase 2.8x between 2017 and 2025 while the market in Europe is anticipated to increase 2.5x between 2017 and 2025.
The market in Asia Pacific is expected to increase 3.0x between 2017 and 2025.
However, the market in Asia Pacific is expected to register high year-on-year growth rates throughout the forecast period. In terms of value, the Asia Pacific inflight Wi-Fi market is expected to expand at a CAGR of 15.1% during the forecast period.