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The air traffic control equipment market is estimated to grow at a CAGR of 6.54% between 2022 and 2027. The size of the market is forecast to increase by USD 2,258.3 million. The market's growth depends on several factors, including the growing air traffic, the increasing demand for commercial aircraft, and the rise in the construction and upgradation of airports.
This report extensively covers market segmentation by type (communication equipment, navigation equipment, and others), application (commercial, military, and defense), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global air traffic control equipment market as a part of the global aerospace and defense market within the global capital goods market. The parent, global aerospace and defense market covers products and companies engaged in the production of aerial platforms used under commercial and general aviation; defense platforms used under naval, land, and air domains; arms and ammunition; defense electronics; defense logistics equipment; and space platforms, equipment, and launch vehicles. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing demand for commercial aircraft is notably driving the market growth, although factors such as cost pressure on ATC equipment manufacturers may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Air Traffic Control Equipment Market Driver
The increasing demand for commercial aircraft is notably driving market growth. The demand for air traffic control equipment is expected to grow with the corresponding growth in the new generation of aircraft. Commercial aircraft OEMs are actively developing a new generation of aircraft with lower fuel consumption, noise, and carbon dioxide emissions. The year-on-year (YOY) growth in air traffic has also made it important to introduce new aircraft to facilitate the growing demand. Aircraft manufacturers are also increasing their production capacity to ensure the timely delivery of new aircraft.
As demand for aircraft increases, aircraft OEMs are investing in capacity expansion, especially in the APAC region. Both Boeing Co. and Airbus SE have expanded their manufacturing and assembly operations in China to increase their domestic and regional customer base. In addition, innovative disruptions in the Chinese commercial aircraft engine segment are expected to bring significant changes to the aviation industry with the launch of a new commercial aircraft, the narrow-body COMAC C919. Growing demand for commercial aircraft is expected to augment the demand for air traffic equipment for proper navigation, communication, and control, which will fuel the growth of the global air traffic equipment market during the forecast period.
Significant Air Traffic Control Equipment Market Trend
The implementation of artificial intelligence (AI) and blockchain is a major trend in the market. ATC management has increasingly used advanced technologies such as artificial intelligence and blockchain. Artificial intelligence is a key factor in revolutionary air traffic control systems. To avoid dangerous situations, AI systems evaluate important information such as airspace traffic, local conditions, ground risks, flight restrictions, and weather forecasts.
Flight monitoring with artificial intelligence ensures safe operation and makes optimal routes possible. AI-powered air traffic control enables intelligent flight conflict resolution based on real-world variables, detecting and avoiding other aircraft and objects. Blockchain technology reduces the possibility of human error in aviation. Blockchain, enhanced with smart contracts, is the key to ensuring that unmanned flights comply with the laws and regulations governing the use of airspace. Thus, the increasing adoption of technologies such as artificial intelligence and blockchain in ATC equipment will boost the growth of the global ATC equipment market during the forecast period.
Major Air Traffic Control Equipment Market Challenge
Cost pressure on ATC equipment manufacturers is a major challenge impeding market growth. Currently, the challenge for airport components is to produce high-quality components at a low price. Therefore, ATC equipment manufacturers must create growth strategies to be profitable in this challenging but attractive market. Tough competition between manufacturers and growing consumer demand restrict cost parameters and profitability from OEMs. In addition, since the supply base is small due to concentration, suppliers diversify the different components in the product. This diversification is capital-intensive and entails new services such as the design and development of new parts. This makes it difficult for suppliers to keep costs down.
ATC equipment manufacturers must also limit production costs to meet demand requirements and deliver quality products, as they are responsible for product defects that can affect the bottom line. One such possibility is the outsourcing of production to low-cost countries. However, keeping production costs low becomes a challenge as labor costs increase in these countries. Therefore, such factors hinder the production of air traffic equipment, which is likely to restrain the growth of the global air traffic equipment market during the forecast period.
Key Air Traffic Control Equipment Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Air Traffic Control Equipment Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Indra Sistemas SA - The company operates under two segments including information technologies, and transport and defense with a high focus on information technologies.? The company under this segment?includes the energy and industry market, the financial services market, the telecommunications and media market, and the public administration and healthcare market. The company's key offerings include air traffic control equipment.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the communication equipment segment will be significant during the forecast period. The major reason is high investments in advanced technology communication equipment at airports. The other significant reason is the growing air traffic, which leads to the high priority for safe and reliable operations.
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The communication equipment segment was valued at USD 1,821.26 million in 2017 and continued to grow until 2021. Communication equipment is used for ground and air-to-ground communication, and the equipment provides avionics data to interoperate. Globally, the standard interface services and protocols are derived based on international standards. Modernized communication systems provide mobile services between aeronautical stations and aircraft stations. Communication systems are used effectively during emergency positions. The radio beacon stations also provide service during emergencies. Therefore, these factors will augment the growth of the global ATC equipment market during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is the largest geographical segment in the global market in 2022 and will remain the largest segment during the forecast period due to the growing air traffic in the region. The region is home to technologically advanced aerospace companies that largely meet the regional demand for aircraft parts, systems, and components and have a solid foundation for the development of advanced air traffic control equipment. The rapid increase in global demand for new aircraft has also led to investment in the aircraft manufacturing sector, channeling significant resources into the development of air traffic control equipment and related technologies in North America. Therefore, such investments contribute to the growth of the market, especially in North America.
In addition, many regional and international airlines in North America seek to upgrade their current fleet to provide an efficient travel experience to their passengers due to the increase in the number of air travel, integrating them with technologically advanced and complex systems and equipment that require appropriate support. and safety mechanism for landing, take-off and taxiing at airports.
The North American airline industry has experienced a sharp decline in passenger numbers following the outbreak of the COVID-19 pandemic. However, in 2021, various development and recreational activities resumed in North America due to large-scale vaccination campaigns. It also allowed aircraft manufacturers to continue production. The recovery of air traffic and the resurgence of tourism in the region has boosted the demand for air traffic control equipment. Thus, all the factors will positively influence the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Communication equipment, Navigation equipment, and Others), Application (Commercial, Military, and defense), and Geography (North America, APAC, Europe, Middle East and Africa, and South America).
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Air Traffic Control Equipment Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.54% |
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Market growth 2023-2027 |
USD 2,258.3 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.38 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 42% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adacel Technologies Ltd., Advanced Navigation and Positioning Corp., Aeronav Inc., Aquila Air Traffic Management Services Ltd., BAE Systems Plc, Becker Avionics Inc., Frequentis AG, Indra Sistemas SA, Intelcan Technosystems Inc., Kongsberg Geospatial Ltd., L3Harris Technologies Inc., Leonardo Spa, Lockheed Martin Corp., Northrop Grumman Corp., Raytheon Technologies Corp., Saab AB, Searidge Technologies Inc., Sierra Nevada Corp., Telephonics Corp., and Thales Group |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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