In-Stat's (News - Alert) market intelligence, which combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems, has researched the In-flight Broadband market, examining the potential for next-gen in-flight entertainment.

The primary factors on which the research pivoted were the market potential, usage, business models, and competitive analysis for the in-flight broadband market. Next generation IFE services are segmented by access technology.

Global in scope, the In-Stat report included hardware installation and usage and revenue forecasts, hardware forecasts, which provided aggregate and annual deployment numbers.

Considering the low acceptance of in-flight broadband, the commitment of the airlines has been rather positive. In-Stat predicts that by 2013, total in-flight broadband equipment investment should approach at least half a billion dollars.

In-Stat states that In-flight Wi-Fi deployments have moved past the trial stage and were approaching critical mass with 2,000 airplanes to be deployed by the end of 2010.

"In-flight broadband service roll-outs by airlines is not without issues though,"Frank Dickson, said, adding that with current paid take rates for in-flight Wi-Fi service below 2 percent, providers would have to do a lot of work to entice passengers to use the service.

Dickson further added that significant investment had been made in on-board and on-ground infrastructure, and now the market would be tested as it tried to get more passengers to use the service.

Recent research by In-Stat indicated that it is anticipating service revenues to the tune of $95 million in 2010, and airlines that have reported offering or testing in-flight broadband or live TV included major airlines.

In-Stat's 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 its core markets.