In 2012, North America led all regions with 32 percent of the market share for IFE content in aircraft, followed by 26 percent in Asia-Pacific and 17 percent in Western Europe, according to the report.

 

     In Asia however, "there are a number of premium and other large full-service airlines operating in a very competitive but high-growth region," Yin said, noting that growth in the emerging markets is largely driven by both increasing demand for aircraft as well as increasing penetration of IFE as the market becomes more competitive.

 

     The top emerging markets for IFE are Latin America and Asia, which are forecasted to have a five-year compound annual growth rate (CAGR) of 7 to 9 percent, a figure nearly double of the growth expected in North America and Western Europe.

 

     Overall, analysts anticipate that, as airlines include wireless content streaming and portable solutions on board in response to consumer demand, commercial airlines will spend $900 million on IFE content by 2018, up from $660 million in 2012. The research also suggests said that more than 10,500 aircraft, or 57.5 percent of all planes in airline fleets, are currently equipped with at least one form of the IFE system.

 

     Yin said that based on the key primary research and an additional IMS airline survey of IFE representatives from 25 airlines around the world, she expects that number to exceed 15,000 within the next four years.

 

     Yin also noted the report had a number of surprising findings, including how much money many of the airlines were already spending on content. This figure was much higher than many industry players had previously expected, she said. Although Yin declined to quantify the amount airlines were already spending annually on IFE, she confirmed that the figure ranged from tens of thousands to even millions of U.S. dollars, depending on the type of IFE system in use, the number of flights per year, licensing structure and type of content offered.

 

     But perhaps the most significant finding is that the average cost of IFE installation is expected to slowly decrease over time, "which could fuel even further growth as IFE becomes even more affordable for smaller and low-cost airlines," Yin said.

 

    Not only is this good news for satellite providers and airlines, but also for benefits end-users (airline customers). "Major airlines will continue to strive to remain competitive in any way possible, and this usually includes [providing] a good level of IFE services on board," she said.

 

     As the role of satellite technology increases, passengers will likely be able to experience more in-flight connectivity. In the U.S., Delta Airlines has already implemented Wi-Fi capability on 100 percent of its jets, recently adding connectivity to many of its regional Delta Connection aircraft, according to Paul Skrbec, Delta Airlines spokesperson.

 

    "Delta has more than 560 domestic mainline aircraft and more than 250 Delta Connection 2-class regional jets equipped with Wi-Fi. More than 400,000 Delta customers on more than 3,400 flights daily experience in-flight connectivity," Skrbec said.

 

    The airline plans to have service on its international fleet by 2015, he added, noting that when installation is complete, more than 950 aircraft will offer in-flight connectivity for passengers.

 

     Delta and American Airlines have both partnered with in-flight connectivity provider Gogo for satellite connectivity. Gogo recently made headlines when the U.S. Federal Communications Commission (FCC) granted them a blanket license to operate up to 1,000 Ku-band satellite aircraft for international and domestic service. The license was granted based on Gogo’s agreements with SES and Intelsat and will provide the company with extensive global Ku-band satellite coverage. Gogo also provides air-to-ground connectivity or several other airlines.

 

    One of Gogo’s competitors, Row 44, now a subsidiary of Global Eagle Entertainment, works with Southwest Airlines, Icelandair, Norwegian Air Shuttle, Mango (owned by South African Airways), and Russia-based UTair and Transaero.

 

    As of Dec. 31, 2012, Southwest Airlines and AirTran Airways (now part of Southwest) operated 694 Boeing planes and “all of our Southwest Airlines 737 -700 and -800 aircraft are WiFi equipped,” said Michelle Agnew, a communication specialist with Southwest.

 

     In 2009 Southwest first began to offer in-flight WiFi and in 2012 started offering passengers the opportunity to stream live television directly to personal devices, Agnew said.

     JetBlue also offers live television programing on its fleet and partnered with Live TV and ViaSat last October to lease capacity from ViaSat’s new Ka-band satellite to provide better IFE services.

 

    "It is the latest generation, with capacity equal to 100 last-generation Ku-band satellites. It’s smarter, newer, cheaper and better than anything on the market today for commercial aviation," a JetBlue blog states.

 

    British Airways said they were the first to offer in-flight WiFi across the Atlantic Ocean.

 

    “In 2009 British Airways was the first airline to enable customers to send emails, texts and use the Internet across the Atlantic, on its Club World London City service to New York, thanks to OnAir connectivity,” said Michele Kropf a manager of corporate communications with British Airways.

 

    As airline demand continues to increase, providers are responding. ViaSat announced May 16 that Boeing will build ViaSat-2, a landmark deal for ViaSat that has been eagerly anticipated after years of delay.  

    Mark Dankberg, ViaSat’s chairman and CEO, said during a conference call May 16 that partnering with Boeing opens the doors to a number of practical applications, which includes commercial aviation.

  

    "Our contract with Boeing is a big step in creating and capturing more opportunities,” Dankberg said.