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Need for Onboard Wi-Fi to Accelerate Rail Infotainment Market Says Frost & Sullivan - Bandwidth to emerge as a key issue for train operators - Automotive.Frost.com
Need for Onboard Wi-Fi to Accelerate Rail Infotainment Market Says Frost & Sullivan

 

NewswireToday - /newswire/ - London, United Kingdom, 2013/06/04 - Bandwidth to emerge as a key issue for train operators - Automotive.Frost.com.

   
 
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Growing competition among train operators to increase passenger numbers and improve operational efficiency has highlighted the need for infotainment. Onboard Wi-Fi makes passengers' journey productive and entertaining by enabling them to work on the move.

It also enables train operators to gain a competitive edge, while encouraging a shift to rail from other modes of transport. Current trends indicate that business travellers are likely to favour trains over planes, if Wi-Fi connectivity is provided onboard.

New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of the European and North American Rail Infotainment Market, finds that penetration percent of rolling stocks with Wi-Fi in Europe is 3.9% and 8.4% in North America for 2011 and the onboard Wi-Fi penetration in Europe is expected grow at a compound annual growth rate (CAGR) of 20.9 per cent between 2011 and 2021 and at 22 per cent in North America over the same time period. The United Kingdom and the United States have the highest number of rolling stocks deployed with Wi-Fi services in Europe and North America, respectively.

Even as onboard Wi-Fi dominates, the seat-back display segment is expected to witness very low or no further growth primarily due to its high installation cost, limited life span, and the domination of the ‘Bring Your Own Device (BYOD)' model for accessing onboard Internet.

"Nearly 75 per cent of rail operators in Europe and over 90 per cent in North America currently offer free Wi-Fi services," notes Frost & Sullivan's Automotive & Transportation Senior Research Analyst Jagadeesh Chandran. "This trend is expected to gather further momentum as train operators look to improve customer service levels and increase operational efficiency."

A key concern at the moment, however, is limited bandwidth. Train operators offer Internet onboard by connecting to mobile services through a cellular tower. Such a setup is suitable for delivering moderate data connectivity rates for a minimum number of users.

This makes accessing high-speed Internet on personal multimedia devices in the rail environment a challenging task. It restricts passengers to using Wi-Fi for low-bandwidth activities like reading emails, chatting and social networking.

"Train operators are likely to start using IP architecture for onboard Internet access and for operational and safety services," states Chandran. "IP architecture encourages the adoption of a new generation of multimedia applications that are developed in IP environments."

If you are interested in more information on Frost & Sullivan's research Strategic Analysis of the European and North American Rail Infotainment Market (M663-18), please send an email to Katja Feick, Corporate Communications, at katja.feick[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of the European and North American Rail Infotainment Market (M663-18) is part of Automotive & Transportation Growth Partnership Service programme. Frost & Sullivan's related research services include: European Customer Desirability and Willingness to Pay for Infotainment, HMI and Telematics Features and Services, Competitive Benchmarking and Comparative Analysis of the Mobility Strategies of Key Global OEMs, 2013 Outlook of the Global Automotive Industry, Strategic Analysis of the Medium- to Heavy-duty Natural Gas Commercial Vehicle Market in Europe, Urban Mobility 3.0, OEM's New Mobility Offerings and New Business Models Linking Web 2.0, Western European Semi-Trailer Chassis and Connectivity Technologies Market, and Future of Mobility New Business Models, Opportunities, and Market Entrants in Mobility Integration. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Join us at our upcoming event Urban Mobility 3.0
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About Frost & Sullivan
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Need for Onboard Wi-Fi to Accelerate Rail Infotainment Market Says Frost & Sullivan

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Frost & Sullivan |
Publisher Contact: Katja Feick - Frost.com 
+49(0)69 7703343 katja.feick[.]frost.com
 
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