In-flight Entertainment Market

Growing the number of passengers flying through the air is driving the market growth

Market CAGR for in-flight entertainment is driven by the significant increase in people choosing to take flights domestically and internationally. More and more airlines and service providers are working together to provide passengers with a high-quality, affordable experience as automation and online in-flight buying gain popularity. Aside from this, various public and private entities are boosting their commitments to the aviation industry.

Additionally, in-flight entertainment and internet services have flourished in recent years due to passengers increasing demand for them. The airline industry will benefit from these changes. The in-flight retail industry is expanding because of the rising popularity of high-tech planes and the proliferation of online distribution channels. Also, the in-flight entertainment system come a long way from its original purpose as a screen to play a movie to the present day, when it can now provide real-time images of the flight's path.

Demand for in-flight entertainment services is predicted to rise as business and leisure travelers increasingly rely on their electronic devices when flying commercial and private planes. To better serve their customers, airlines are putting a strong emphasis on introducing cutting-edge amenities.

For instance, Panasonic Avionics Corporation (Panasonic Avionics) and Recaro Aircraft Seating collaborated to introduce a new in-flight entertainment seat-end solution for the CL3810 economy class seat. As a result, it is anticipated the demand for in-flight entertainment will increase throughout the projection period due to the rising facilities. Thus, the driving factor is in-flight entertainment market revenue.

The Global In-Flight Entertainment Market Industry is projected to experience substantial growth over the coming years. With a market value estimated at 3.15 USD Billion in 2024, the industry is expected to expand significantly, reaching approximately 7.87 USD Billion by 2035. This growth is underpinned by a compound annual growth rate (CAGR) of 8.7% from 2025 to 2035. Factors such as technological advancements, rising passenger expectations, and increased competition among airlines are driving this upward trend. As the market evolves, stakeholders must remain vigilant to capitalize on emerging opportunities and address the challenges that may arise.

The Global In-Flight Entertainment Market Industry is experiencing a surge in technological advancements, which enhances passenger experience and operational efficiency. Innovations such as high-speed internet connectivity, interactive touchscreens, and virtual reality options are becoming increasingly prevalent. Airlines are investing in these technologies to differentiate their services and attract more customers. For instance, the integration of 5G technology is expected to revolutionize in-flight connectivity, allowing for seamless streaming and real-time communication. This trend is likely to contribute significantly to the market's growth, with projections indicating a market value of 3.15 USD Billion in 2024.

As global travel continues to expand, passenger expectations for in-flight entertainment are evolving. The Global In-Flight Entertainment Market Industry must adapt to these changing demands by offering diverse content options, including movies, TV shows, and games. Airlines are increasingly recognizing the importance of providing high-quality entertainment to enhance customer satisfaction and loyalty. For example, many carriers now offer personalized content recommendations based on passenger preferences. This shift in focus is likely to drive growth in the market, as airlines strive to meet the expectations of tech-savvy travelers who seek engaging and enjoyable in-flight experiences.

The rise of low-cost carriers is reshaping the Global In-Flight Entertainment Market Industry. These airlines are increasingly incorporating in-flight entertainment options to enhance the travel experience and compete with traditional carriers. While low-cost airlines traditionally focused on cost-cutting measures, many are now recognizing the value of entertainment in attracting and retaining customers. This trend is evident in the growing number of low-cost carriers offering streaming services and onboard entertainment systems. As this segment continues to expand, it is likely to contribute to the overall growth of the market, aligning with the projected CAGR of 8.7% for 2025-2035.

The Global In-Flight Entertainment Market Industry is witnessing intensified competition among airlines, prompting them to enhance their in-flight offerings. As carriers strive to differentiate themselves, many are investing in advanced entertainment systems and exclusive content partnerships. This competitive landscape encourages innovation and improvement in service quality, ultimately benefiting passengers. Airlines that successfully implement superior in-flight entertainment options may gain a competitive edge, attracting more customers. The market is projected to grow significantly, with estimates suggesting it could reach 7.87 USD Billion by 2035, driven by this competitive dynamic.

Regulatory bodies are increasingly supporting the implementation of in-flight connectivity solutions, which is positively impacting the Global In-Flight Entertainment Market Industry. Governments are recognizing the importance of enabling passengers to stay connected during flights, leading to the establishment of favorable regulations. This support facilitates the deployment of technologies that enhance in-flight entertainment experiences, such as Wi-Fi and mobile connectivity. As more airlines adopt these solutions, the market is expected to benefit from increased passenger engagement and satisfaction. This trend aligns with the overall growth trajectory of the industry, as it adapts to evolving consumer preferences.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American in-flight entertainment market will dominate because the high volume of air passengers and rising interest in electric airplanes and long-range corporate jets in the United States. In addition, this is mostly attributable to airlines' increasing reliance on in-flight entertainment systems.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: IN-FLIGHT ENTERTAINMENT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe’s in-flight entertainment market accounts for the second-largest market share because more and more airlines are starting to use 5G networks. It will make it easier for the IFEC system to be adopted and upgraded, improving connectivity while in the air. Further, the German in-flight entertainment market held the largest market share, and the UK in-flight entertainment market was the fastest-growing market in the European region.

The Asia-Pacific in-flight entertainment market is expected to grow at the fastest CAGR from 2023 to 2032. Due to digitalization improving the aircraft industry's technical outlook and population growth, budget airlines are increasingly investing in in-flight entertainment and connection to provide a better experience for their customers. Moreover, China’s in-flight entertainment market held the largest market share, and the Indian in-flight entertainment market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the in-flight entertainment market grow even more. Market participants are undertaking various strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the in-flight entertainment industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the  in-flight entertainment industry to benefit clients and increase the market sector. In recent years, the in-flight entertainment industry has offered some of the most significant technological advancements.

Major players in the in-flight entertainment market, including FDS Avionics Corp (US),  Eagle Entertainment Inc. (US), Gogo Inc. (US), Honeywell International Inc. (US), Inmarsat PLC (UK), Lufthansa Systems (Germany), Panasonic Avionics Corporation (US), Collins Aerospace (US), SITAONAIR (Switzerland), Thales Group (France), Viasat Inc. (US), Zodiac Aerospace (France), and others, are attempting to increase market demand by investing in research and development operations.

Inmarsat delivers world-leading, innovative, advanced, and exceptionally reliable  mobile communications worldwide – in the air, at sea, and on land - enabling a new generation of government, commercial, and mission-critical services. Additionally, Inmarsat is enabling the rapid expansion of the Internet of things and the next wave of game-changing technologies that will support the connected society and contribute to the establishment the more sustainable future. And now Inmarsat is constructing the first-of-its-kind, multi-dimensional communications network of the future, ORCHESTRA.

In April 2023, The UK's Competition & Markets Authority (CMA), which confirmed its preliminary findings that the transaction does not raise competition concerns and permitted Viasat's proposed acquisition of Inmarsat to proceed without remedies, has announced the conclusion of its Phase II review. This news has relieved both Inmarsat and Viasat, a leading provider of  mobile satellite communications services.

Panasonic Avionics Corporation is the industry standard when it comes to in-flight electronics. Ever since its inception in 1979, the company has been a forerunner in the industry, introducing groundbreaking technologies that boost airline customers' loyalty (as measured by Net Promoter Score), additional income (via new services), and operational efficiency. More than 15,000 commercial aircraft equipped with Panasonic Avionics IFE systems and more than 3,400 aircraft equipped with satellite Wi-Fi connectivity are flown by the world's leading airlines.

The largest  support and services team employing OEM insights powers roughly 70% of the world's IFE-equipped fleet and is supported by Panasonic Avionics. Over 3,500 people work at Panasonic Avionics Corporation, which has 50 offices in 20 countries and a headquarters in California. In April 2023, Due to a collaboration between Panasonic Avionics Corporation (Panasonic Avionics), the world's leading provider of in-flight entertainment and connectivity systems (IFEC), and HEAR360 Inc., the pioneer in advanced audio solutions, Spatial Audio, a 3D theatrical surround sound experience, will soon be accessible to airline passengers.