Market Trends of Latin America Inflight Entertainment And Connectivity Industry
The Connectivity Segment to Register Highest CAGR During the Forecast Period
Advanced technologies have heightened passenger expectations, with travelers now demanding high-speed and reliable connectivity from airlines. Latin American carriers are notably upping their expenditure to bolster passenger experiences, with a keen eye on adopting cutting-edge inflight entertainment solutions. A prime example is the collaboration between Intelsat, a leading inflight connectivity (IFC) service provider, and LATAM Airlines Group. In February 2022, with Intelsat's connectivity services, the companies unveiled plans to equip LATAM's Airbus narrow-body fleet, comprising A320neo and A320ceo variants in Ecuador, Chile, Colombia, and Peru. The project, spanning up to 160 aircraft, is slated for completion over three years. Such strategic moves are set further to catalyze the segment's growth in the coming years.
Brazil is Expected to Dominate the Market During the Forecast Period
An increase in air passenger traffic, fuelled by the country's burgeoning tourism industry, drove the market growth across Brazil. Due to its strategic location, Brazil is a pivotal air route hub connecting various regions. Notably, the nation's airports are pivotal in facilitating international air travel. In 2022, Brazil welcomed 88.54 million passengers, with its aviation market led by domestic giants Azul Linhas Aéreas, LATAM Brasil, and GOL Linhas Aéreas. LATAM Brasil, in particular, stood out, ferrying 28.26 million passengers. Brazil has already reclaimed 82% of its pre-pandemic passenger traffic levels. Anticipating the rising passenger numbers, regional airlines are bolstering their aircraft fleets.
Factors like airlines' returning profitability, reduced aircraft storage, heightened aircraft utilization, and a surge in aircraft orders are poised to further bolster Brazil's commercial aviation landscape. With a mounting demand for air travel, airlines are increasingly investing in newer, advanced commercial aircraft. This trend, coupled with the expanding airline fleet and routes, is fuelling a parallel demand for enhanced inflight entertainment and connectivity solutions across Brazil. Notably, Azul is at the forefront, offering complimentary Live TV on most of its first-gen Embraer 195s, and plans to extend this, alongside Viasat Ka-band in-flight connectivity, to its 75 ordered E195-E2s, with nine already in service.
