In-Flight Wi-Fi Revenues to Surpass $1.5 Billion in 2015, Says In-Stat

While airlines initially viewed in-flight broadband as a competitive differentiator, it is now simply viewed in the US market as a competitive requirement," says Amy Cravens, Senior Analyst. "The future of in-flight Wi-Fi will be less about convincing…

Scottsdale, Ariz. (PRWEB) September 29, 2011

Over the past year there has been significant growth in both the usage rates of in-flight broadband and number of planes deployed. With new providers now entering the market, growth is sure to continue in the coming year. Additionally, what has been a US-centric market began to see an expansion of borders with deployments in Europe growing over the past year and new activity in the Middle East. New In-Stat (http://www.in-stat.com) research forecasts that in-flight Wi-Fi revenues will surpass the $1.5 billion mark in 2015.

“While airlines initially viewed in-flight broadband as a competitive differentiator, it is now simply viewed in the US market as a competitive requirement,” says Amy Cravens, Senior Analyst. “The future of in-flight Wi-Fi will be less about convincing airlines of the merit and more about leveraging the network to provide a broader breadth of services. As in the hotspot market, Wi-Fi access is likely to become a commodity in the in-flight market, with the revenue opportunity resting on the services and features, not the connection.”

Some of the research findings include:

•     Take rates have increased significantly, moving from an average of 4% in 2010 up to 7% in 2011.
•     While in international markets in-flight broadband is just entering the competitive differentiator stage, In-Stat believes it will rapidly transition to a competitive requirement in these markets as it did in the US.
•     Combined, smartphones and tablets are now the predominant devices, in terms of percent of connects.
•     In-flight broadband providers are beginning to introduce new revenue opportunities, including additional passenger services (video and voice) and operational services.

Recent In-Stat research, From Pipe to Platform: Worldwide In-Flight Broadband Providers Redefine Strategy (#IN1105003WS), examines the market for next-generation in-flight entertainment (IFE), with a focus on in-flight broadband services. For the purpose of this report, next-generation IFE services are segmented by access technology (GSM, satellite, air-to-ground) as well as application (voice, video, and data). This report is global in scope and emphasizes:

•     Market potential usage
•     Examination of different service provider business models
•     Competitive analysis for the in-flight broadband market
•     Profiles of In-Flight broadband providers including: Aircell’s Gogo, OnAir, Panasonic, and Row 44

About In-Stat
In-Stat’s market intelligence combines technical, market, and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com and http://www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.

Contact:

Amy Cravens, Senior Analyst
Email: acravens(at)in-stat(dot)com; Phone: (480) 483-4451

Rick Vogelei, Marketing Manager
Email: rvogelei(at)in-stat(dot)com; Phone: (480) 483-4476

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