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The air traffic control equipment market size is estimated to grow by USD 2.44 billion at a CAGR of 6.65% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. Firstly, the increasing air traffic worldwide is necessitating the need for advanced ATC systems to manage and optimize air traffic flow. Secondly, the growing preference for smart airports is leading to the adoption of modern ATC technologies to enhance airport efficiency and reduce delays. However, the market is also facing challenges such as the technical shortcomings of airborne radars, which limit their ability to provide accurate and reliable data in certain weather conditions. The market is crucial for managing the safe and efficient movement of cargo and commercial aircraft, ensuring precise navigation and communication in increasingly busy airspace. To address these challenges, market participants are focusing on developing advanced technologies such as Automatic Dependent Surveillance-Broadcast (ADS-B) and Multi-lateration systems to improve air traffic surveillance and control. Overall, the market is expected to grow at a robust pace in the coming years, driven by these key trends and challenges.
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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 1.91 billion in 2018. 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.
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 market is undergoing significant changes due to the need to replace obsolete air traffic control systems. This includes the modernization of Terminal Radar Approach Control (TRACON) and Airport Traffic Control Tower (ATCT) facilities. Aerospace & Defense Research is focusing on enhancing communication and navigation technologies to meet evolving safety requirements. The market growth is a gradual process driven by advancements in Airport Technologies Research and Airport Equipment Research. Technological advancements are also key drivers, with a focus on improving air traffic management equipment for both commercial and ground-based air traffic controllers. The market is influenced by factors such as increasing passenger & freight traffic, new airport constructions, and overhauling existing airports to accommodate international routes. The demand for air traffic control (ATC) equipment is expected to grow as travel restrictions ease and the number of people, passengers, and aircraft increases. The market is driven by advancements across multiple segments. In the commercial aircraft segment, innovations focus on thicker airfoils for improved efficiency. The private aircraft segment is also growing, with demand for advanced communication equipment rising. Our researchers analyzed the data with 2023 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.
The increasing demand for commercial aircraft is notably driving market growth. The demand for air traffic control equipment is poised to surge alongside the growth in the new generation of aircraft. Commercial aircraft OEMs are actively developing aircraft with lower fuel consumption, noise, and carbon dioxide emissions. The year-on-year (YOY) growth in air traffic has made it imperative to introduce new aircraft to meet the escalating demand. Aircraft manufacturers are scaling up their production capacity to ensure the timely delivery of new aircraft. This trend is influenced by factors such as airport equipment research and technological advancements. Additionally, considerations such as travel restrictions, the number of people, passengers, aircraft, new airports, and international routes play a crucial role in shaping the aircraft manufacturing landscape.
As demand for aircraft rises, aircraft OEMs are expanding their capacities, particularly in the APAC region. Boeing Co. and Airbus SE have expanded their manufacturing and assembly operations in China to cater to their domestic and regional customer base. Moreover, innovative disruptions in the Chinese commercial aircraft engine segment are anticipated to bring substantial changes to the aviation industry, marked by the launch of the narrow-body COMAC C919. The increasing demand for commercial aircraft is expected to drive the demand for air traffic equipment, such as obsolete air traffic control systems, TRACON, ATCT, and other related technologies, to ensure proper navigation, communication, and control, consequently fueling the growth of the global market.
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 market during the forecast period.
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 market during the forecast period.
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 Market Customer Landscape
Companies 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'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 players, 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The aerospace and aviation sector is evolving rapidly with advancements in microelectronics development and automation technologies. Commercial aircraft and private aircraft segments are seeing increased integration of sophisticated surveillance equipment, including holographic radar systems, high-definition cameras, unmanned aerial systems, and remote sensing technologies. Navigation tools and voice communication switching system are critical for managing passenger and freight traffic and aircraft movement. Surveillance equipment remains crucial in both military aircraft and naval forces operations. With ATC officers needing cutting-edge tools, the market sees increased investment in both greenfield and brownfield projects. The surveillance equipment segment and communications equipment segment are particularly dynamic, responding to evolving requirements. As aviation technology advances, these segments work together to ensure safer and more efficient air traffic management.
Furthermore, civil Aviation Authorities are working to enhance aviation infrastructure by implementing automation and digital technologies in Air Traffic Control (ATC) Centers, ATC Towers, and Rescue Coordination Centers. These updates include automatic surveillance broadcast technology and synchronous digital hierarchy rings to bolster global networking and connectivity. Surveillance solutions and communication networks are fortified against cyber and physical attacks, ensuring secure and efficient operations. The focus on advanced material selection and modern aircraft features, like low drag and low lift airfoils, enhances performance and safety in the defense sector and military aircraft segment.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.65% |
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Market growth 2024-2028 |
USD 2.44 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.46 |
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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, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, 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., RTX Corp., Saab AB, Searidge Technologies, Sierra Nevada Corp., Telephonics Corp., and Thales Group |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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