Skip to main content

In-flight Wi-Fi Service Revenue to Surpass $1.5 Billion

During the past year there has been significant growth in both the usage rates of in-flight broadband internet access and number of planes deployed with the capability. As new providers enter the emerging global market, growth is sure to continue in the coming year.

Additionally, what has to date been predominantly a U.S.-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.

According to the latest market study by In-Stat, they now forecast 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 U.S. market as a competitive requirement,” says Amy Cravens, Senior Analyst at In-Stat.

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 terrestrial hotspot market, Wi-Fi access is likely to become a commodity within the in-flight market, with the revenue opportunity resting on the services and value-added features, not the basic connectivity.

Findings from the latest In-stat's market study include:
  • Take rates have increased significantly, moving from an average of 4 percent in 2010 up to 7 percent 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 U.S. market.
  • 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.

Popular posts from this blog

Ultra-Wideband in Billions of New Devices

 Ultra-Wideband (UWB) is quietly becoming one of the most strategic short-range wireless technologies in the market, moving from niche deployments into the mainstream of smartphones, cars, and smart spaces. As the ecosystem matures and next-generation implementations arrive, UWB is shifting from nice-to-have to a foundational capability for secure access, sensing, and high-performance device-to-device connectivity. UWB Technology Market Development Unlike Wi-Fi, Bluetooth, NFC, or legacy IEEE 802.15.4 implementations, UWB combines three powerful attributes in a single radio: secure ranging, radar-like sensing, and low-latency, high-throughput short-range data. This allows networking and IT vendors to architect experiences that blend precise location, context awareness, and rich interaction in ways traditional connectivity stacks cannot easily match. According to the latest worldwide market study by ABI Research, UWB is expected to be one of the fastest-growing wireless connectivity...