Inflight broadband in 800 planes by end 09: US$1 billion market by 2012

Details: Category: Consumer Ecosystems; 09 June 2009; 7948 views

Aircraft featuring broadband for passengers will total nearly 800 by the end of 2009, according to analyst In-Stat. Reflecting apparently insatiable demand from passengers for broadband, revenues from this stream will exceed US$1 billion in three years...

The number of broadband-enabled airplanes will increase from 25 in 2008 to 800 in 2009, according to research by In-Stat. As a result, broadband hungry airline passengers will generate over $49 million worldwide in 2009. The in-flight broadband market is still emerging and will grow well beyond $1 billion annually by 2012.

"The market is clearly gaining momentum, with deployments escalating in number," says Daryl Schoolar, In-Stat analyst. "However, in-flight broadband faces challenges, however, by the struggling economy and competing non-traditional IFE solutions."

The report, Delayed departure: will in-flight broadband take off?, covers the market for next-generation In-Flight Entertainment (IFE), with a focus on in-flight broadband services. Live broadcast video is also poised for significant growth in 2009. While this service is more established than in-flight broadband, usage revenues are still anticipated to nearly double in 2009 and continue to grow strongly through 2013.

In-Stat's research found the following:

in-flight broadband equipment revenue will nearly double between 2009 and 2013;
competing providers include Aircell, Panasonic and Row44;
In-Stat forecasts over 200 million annual in-flight broadband connects by 2013, with long-haul connects dominating over short-haul connects;
connections from handheld devices will account for about 1/3 of connects, with notebook computers accounting for 2/3.

The In-Stat report also includes:

forecasts of in-flight broadband and DBS video, including installments, equipment revenues, usage, and usage revenues, with segmentation regarding the length of the flights;
expectations of in-flight IPTV introduction and ensuing revenue;
detailed comparisons of principal competitors and customers, in terms of technologies, business models, and market share; and
correlations with the hotspot market and strategies learned from terrestrial Wi-Fi services that can be applied to the in-flight market.

This research is part of In-Stat's Wireless LAN service, which examines new applications for WLAN chips and devices in the business, home, and public sectors. The service covers emerging technology trends, as well as extension technologies like wireless mesh networking and wireless security. The price is US$2,995.

More info: