In-flight connectivity has enabled passengers to remain connected even during air travel. In-flight Wi-Fi allows passengers to browse the internet, check emails, stream movies and music, participate in video calls and use various applications while flying. This has become an essential service for frequent flyers and business travelers who want to maximize their productivity even during travel hours. The demand for in-flight connectivity is driven by the increased internet usage through various smart devices. Passengers these days rely heavily on internet for their daily activities and wish to continue access essential services and entertainment even while 35,000 feet above the ground.
The global In-Flight Wi-Fi Market is estimated to be valued at US$ 8.4 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the in-flight Wi-Fi market is the launch of high-speed connectivity services by airlines. With modern aircraft getting equipped with advanced satellite connectivity technologies, airlines are able to offer internet speeds similar to ground cellular networks. This has encouraged the adoption of in-flight Wi-Fi as passengers can now stream high-definition videos, participate in video conferences, and access data-heavy applications with minimal lags or buffering issues. Furthermore, the availability of affordable in-flight connectivity plans is also fueling the demand. Several airlines now offer usage-based hourly, daily or full flight pass options which have made in-flight internet affordable for a majority of passengers. The flexible pricing schemes along with high-speed services are some of the key growth drivers for the global in-flight Wi-Fi market during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the In-Flight Wi-Fi market is moderate as the market requires large investments and technological expertise.
Bargaining power of buyers: The bargaining power of buyers in the In-Flight Wi-Fi market is high due to the presence of numerous service providers. Buyers can easily switch to alternative service providers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as components required for in-flight Wi-Fi systems are available from multiple suppliers globally.
Threat of new substitutes: The threat of new substitutes for in-flight Wi-Fi services is low as no alternative offers seamless connectivity in air.
Competitive rivalry: The competitive rivalry in the In-Flight Wi-Fi market is high due to the presence of numerous service providers offering advanced technologies.
Key Takeaways
The Global In-Flight Wi-Fi Market Size is expected to witness high growth. Technological advancements to enhance customer experience onboard are driving market growth. The global In-Flight Wi-Fi Market is estimated to be valued at US$ 8.4 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
North America currently dominates the market attributed to heavy investments by airlines in connectivity solutions. Major airlines in the region have installed advanced Wi-Fi systems onboard. The Asia Pacific market is also growing significantly supported by initiatives of regional airlines to provide connectivity. China and India offer lucrative opportunities.
Key players operating in the In-Flight Wi-Fi market are IBM Corporation, Intel Corporation, NVIDIA Corporation, Samsung Electronics Co., Ltd., Qualcomm Incorporated, Advanced Micro Devices, Inc. Key players are focusing on developing innovations like AI and 5G integrated solutions to enhance customer experience. Collaboration with airlines is another strategy being adopted.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it