In-Flight Entertainment & Connectivity

In-Flight Connectivity (IFC) has been a key driver for the entire ecosystem and constituted a $1.4 billion market in 2019. Current restrictions on travel and health concerns, however, are expected to decrease service revenues by 20-30 percent in 2020.

Roughly 9,200 aircraft were equipped to provide in-flight connectivity worldwide at the end of 2019. Despite the COVID-19 crisis, that number is projected to increase to between 15,000 and 18,000 aircraft by 2029. The largest IFC market remains North America, followed by Europe which is gaining maturity in terms of penetration. India could be a growth market for IFC as its regulatory environment changes following the recent grant of licenses authorizing IFC.

Competition among IFC service providers was already intensifying even before the COVID-19 crisis, but it is likely to accelerate the reshaping of the industry. Airlines were already looking for alternative business models to lessen the financial burden of connectivity while providing a full broadband experience to its passengers. At the same time, the market for satellite operators is also becoming more competitive with evolving technologies and a massive increase and change of nature of the capacity supply.

As a result, Euroconsult predicts that the average cost of satellite capacity will decrease dramatically, and the IFC consumer experience will improve in the coming years. These dynamics will benefit service providers.

Sector dynamics, analysis & forecasts addressing the IFEC market

A Sample of Our Consulting Expertise

  • Market assessment for Asia, the Middle East and Africa
  • • External due diligence of a regional operator over Europe and Africa
  • • Independent assessment of a satellite project in Latin America
  • Commercial due diligence of a teleport operator in the Middle East
  • • Due diligence of a satellite service provider in Asia Pacific
  • Independent valuation of a transponder agreement
  • • Commercial due diligence for a global MSS operator
  • • Commercial due diligence of a regional MSS satellite system in EMEA/Asia
  • • Commercial due diligence of a global MSS satellite system
  • • Assessment for demand in emerging regional markets