Market Trends of North America Inflight Entertainment and Connectivity Industry
This section covers the major market trends shaping the North America Inflight Entertainment & Connectivity Market according to our research experts:
The Connectivity Segment Dominates the Market
Currently, the connectivity segment holds the largest share of the market. The segment is also expected to dominate the market during the forecast period. There is an increasing demand for high-speed connectivity, propelling airlines to cater to the demand by awarding several procurement contracts to inflight connectivity providers. In North America, FSCs are constantly upgrading their existing connectivity hardware to provide faster and more reliable connectivity. Correspondingly, players in the market are launching new products to attract regional airlines. For instance, in December 2021, Canada Jetlines Operations Ltd. ('Canada Jetlines') elected Moment, a technology company that developed a wide range of infotainment solutions dedicated to the transportation and hospitality industry, to equip its growing fleet of Airbus 320 with a state-of-the-art digitization suite and in-flight entertainment portal once operations in early 2022. Such developments may bolster the market prospects for the connectivity segment of the market during the forecast period.
The United States Accounted for the Largest Share in the Market
The United States had the largest market share and is expected to witness a high demand for the IFEC systems during the forecast period. The high demand can be attributed to the country's domestic and international air passenger traffic increase. The United States is the largest aviation market in the world currently, and the demand for air travel is expected to grow further during the forecast period. To cater to the growing demand for air travel, airlines in the United States are placing orders for newer aircraft. Partnerships and collaborations between the local players in the United States are expected to help the growth of the market. For instance, in October 2019, Gogo Inc. announced its partnership with the US-based companies - Cisco, Airspan Networks, and FIRST RF - for the development and deployment of the new 5G network and onboard systems in US-based airlines. The advent of newer systems could eventually force airlines to eliminate incompatible and traditional inflight entertainment systems, generating a demand for new hardware. Most airlines carrying many passengers are based out of the United States. They are connecting many regions within North America, leading to higher demand from the country. On account of such factors, the United States is projected to dominate the market during the forecast period.
