The inflight retail and advertising market is forecasted to reach $5.1 billion by 2029, with North America posting the highest expected compound annual growth rate globally.

A MarketsandMarkets study estimated a 7.8 per cent compound annual growth rate for the sector over the next five years from $3.5 billion this year, benefiting from growing passenger volumes and the surge in e-commerce.

Based on the end-user, MarketsandMarkets anticipates the business aviation segment to lead the inflight retail and advertising market from this year to 2029 with the highest CAGR.

This is attributed to the demand for personalized luxury services among high-net-worth individuals and corporate clients.

The study also noted that economic recovery and increased wealth creation boosted business aviation and expanded opportunities for targeted luxury advertising.

Based on mode, the retail segment is estimated to have the highest CAGR due to enhanced passenger experiences such as the integration of mobile technology and onboard Wi-Fi.

The report added that airlines use data analytics to personalize shopping experiences, contributing to higher sales for the segment.

In terms of seat class, the economy class is expected to have the highest growth as it targets the largest audience base and increases exposure to retail and advertising.

Panasonic Avionic, Thales, Viasat, Anuvu, and IMM International are the key players that dominate the inflight retail and advertising industry, according to the report.