Smartphones have popularized the concept of on-the-go entertainment with users now spending over five hours per day on their mobile device. This steady demand is great for businesses as long as this usage has reliable 3G or 4G broadband, or WiFi access. Data efficiency decreases the farther one travels from metropolitan areas, whether that be by plane or automobile, whereas the demand for entertainment is constant.
In-flight entertainment systems and broadband are popular with 70 percent of survey respondents citing they would be willing to pay 7 USD for connectivity. Total revenue from these passenger connectivity services will reach $5.4 billion by 2025 growing at a rate of 23 percent CAGR.
Wireless in-flight entertainment is expected to reach 9000 aircrafts by 2021 with connected commercial aircrafts reaching 23,100 by 2025. Market size is expected to reach 9.82 billion by 2024 with in-flight broadband growing at a CAGR of almost 11% .
While these estimates seem in-line, the IFE connectivity may achieve an even higher trajectory due to High Throughput Satellites (HTS). Connectivity will increase 3x reaching 1,500 Gbps by 2017 while increasing 5x to 285 Gbps in 2018. These increased data speeds will also lower costs contributing to more widespread adoption for IFE services.
Cars are also pushing forward on-the-go entertainment with the global in-car market expected to reach $33.8 billion by 2022 up from 14.4 billion in 2016. The automotive landscape is undergoing a drastic change with only 2% of cars online in 2012 compared to an estimated 90% to be connected to the IoT by 2020. .