Need for Onboard Wi-Fi to Accelerate Rail Infotainment Market, says Frost & Sullivan

LONDON, June 5, 2013 /PRNewswire/ -- 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 (http://www.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 [email protected], 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
Frost & Sullivan will be hosting its two-day interactive workshop Urban Mobility 3.0: New Urban Mobility Business Models on 19-20 June 2013 at the House of Lords and the Siemens Crystal Building in London. Day 1 will feature a high-level debate on the "Death of the conventional car and rise of new urban mobility business models". Day 2 will consist of 5 different panels, focussing on mega trends and their impact on mobility, new business models, such as mobility integration, car sharing, and new fleet/leasing models, urban logistics and online retailing, as well as autonomous driving. A limited number of media passes are available.

For more information, visit: www.urbanmobility.gilcommunity.com.
The brochure for the event can also be found on Slideshare:
http://www.slideshare.net/FrostandSullivan/frost-sullivan-urban-mobility-30

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

• The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
• The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion
Join Us:           Join our community
Subscribe:       Newsletter on "the next big thing"
Register:         Gain access to visionary innovation

Contact:
Katja Feick
Corporate Communications – Europe
P: +49 (0) 69 7703343
E: [email protected]
http://www.frost.com
Twitter: @Frost_Sullivan or @FS_Automotive
Facebook: FrostandSullivan
Join our Forum on LinkedIn: Future of Mobility

SOURCE Frost & Sullivan