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Home > Press > The Emerging In-flight Entertainment and Connectivity Market Appears Set for Growth

Abstract:
The world in-flight entertainment and connectivity (IFE&C) market continues to grow as airlines install new equipment or upgrade their systems. Current fleet upgrades and increasing orders for commercial aircraft and business jets indicate a strong market potential for IFE&C systems. For instance, the commercial aircraft orders of Airbus and Boeing reached an all time high of 2,754 in 2007, with the Asia Pacific and Middle East regions generating the majority of new orders.

The Emerging In-flight Entertainment and Connectivity Market Appears Set for Growth

PALO ALTO, CA | Posted on June 11th, 2008

New analysis from Frost & Sullivan (www.financialservices.frost.com), World In-flight Entertainment and Connectivity Market - Investment Analysis, reveals that this market earned revenues (top 20 participants) of $1.68 billion in 2007 and estimates this to reach $2.72 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the investment analysis and growth opportunities in the world in-flight entertainment and connectivity market, then send an e-mail to Sara Villarruel, Corporate Communications, at with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

"An increasing number of airlines are now looking at IFE&C as a source of non-seat revenue," says Frost & Sullivan Industry Analyst Rani Cleetez. "Numerous pilot programs are underway, with JetBlue Airways testing free e-mail and instant messaging services on one of its planes which started in December 2007. Once successful, JetBlue is likely to charge a fee for the utilization of its Internet services."

Additionally, American Airlines, Virgin America, and Alaska Airlines plan to offer broader Web access in 2008. Besides sharing the revenues from these fees, airlines could potentially earn money from advertising or use the cabin's Wi-Fi network to enhance their operations.

The easing of regulatory restrictions on voice and data solutions for aircraft will drive the IFE&C market. In 2007, the European Aviation Safety Association (EASA), the European equivalent of the Federal Communications Commission (FCC), ruled that mobile phone technology had no discernable impact on commercial jet navigation and communications equipment. In early 2008, EASA and the UAE-based General Civil Aviation Authority (GCAA) granted full approval for voice connectivity aboard the AeroMobile, which enabled the company's systems to be installed successfully on Emirates.

"However, rising fuel prices and the U.S. economic slowdown are overshadowing the global aerospace markets and could hamper the growth of the IFE&C markets worldwide," says Cleetez. "High operational costs and the financial crisis among the U.S. airlines are major restraints when it comes to the growth of the IFE&C market in the United States."

Economic or social changes outside of India and China's region will not greatly affect their booming economies, thereby minimizing the risk level related to investing in these markets. After the impending bankruptcy filings and consolidation of U.S. airlines, the market situation is likely to change and the IFE&C market will grow steadily over the next five years. The economic downturn in the U.S. has been taken into consideration while preparing revenue forecasts for this research.

World In-flight Entertainment and Connectivity Market - Investment Analysis is part of the Financial Benchmarking in the Aerospace Industry subscription, which also includes research services in the following markets: Asia Pacific Air Traffic Control Equipment Market, World Business Jets Market, European Airport Security Equipment Industry, Asia Pacific Airport Financing Market, European Aircraft MRO Market, Asia Pacific Aircraft MRO Market, North American Aircraft MRO Market, Asia Pacific Airport Security Equipment Industry, North American Airport Security Equipment, World Aircraft Leasing Industry, U.S. Nanotechnology Industry and World Fractional Ownership Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan's Business and Financial Services group serves clients around the world in all aspects of financial analysis, market research and monitoring, due diligence, idea generation, opportunity analysis, investment valuation, and other proprietary research.

####

About Frost & Sullivan
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