Market Trends of Latin America Inflight Entertainment and Connectivity Industry
This section covers the major market trends shaping the South America In Flight Entertainment & Connectivity Market according to our research experts:
The Connectivity Segment to Experience Highest CAGR During the Forecast Period
The connectivity segment is estimated to record the highest CAGR during the forecast period. The advancements in new technologies have made the passengers expect airlines to provide them with high-speed, reliable connectivity. LATAM Brazil, one of the major airlines in Brazil, installed Gogo inflight internet on over 90 aircraft by October 2019 (contract began in October 2018) to keep its passengers connected all the time. Also, developments, like BYOD (Bring Your Own Device), in this region are propelling the increasing demand for connectivity onboard. For instance, in January 2019, Norwegian Air introduced free onboard Wi-Fi and new flights in Mexico and South America. The new Wi-Fi will be available on the airline's Boeing 787-9 Dreamliner and 737 MAX aircraft. It also includes a premium option with speed connectivity enough for music and video streaming. The new service will use the inflight connectivity platform from Cabin Connect by Collins Aerospace to provide internet access, as well as in-flight map and voice and messaging services. Such developments are expected to further propel the segment's growth during the forecast period.
Brazil is Expected to Dominate the Market During the Forecast Period
Brazil is dominating the market, and it is expected to continue its dominance during the forecast period. This can be attributed to the increasing number of air passenger traffic from this region due to the growth of tourism in the country. The country witnessed international passenger traffic of approximately 24 million and moderate growth in domestic passenger traffic. The airlines in the region are expanding their fleet of aircraft to cater to the growing passenger traffic. Azul, GOL, and LATAM Brazil are some of the major airlines in Brazil that serve domestic and international passengers. Azul, under its E2 strategy, plans to replace its complete fleet of E195-E1 aircraft with E195-E2 by 2023. The airline also received its first A330neo (one out of 13 on order) in May 2019, with the new-generation inflight entertainment systems and connectivity solutions. Similarly, with the increasing passenger traffic, airlines are increasing their route networks. For instance, in 2019, GOL airlines introduced six new domestic routes. With the growing fleet and increasing network of airlines, there is a subsequent demand for new inflight entertainment and connectivity solutions.
