Air Traffic Control Equipment Market by Type, Application and Geography - Forecast and Analysis 2023-2027

Air Traffic Control Equipment Market Forecast 2023-2027

The air traffic control equipment market is estimated to grow by USD 2.25 billion at a CAGR of 6.54% between 2022 and 2027. Growing air traffic, fueled by increasing travel demand and economic growth, drives the need for more aircraft to meet passenger and cargo demands. This, in turn, leads to increased demand for commercial aircraft from airlines and leasing companies. The rise in construction and upgrading of airports is also crucial, as it expands infrastructure capacity to accommodate the growing number of flights and passengers, improving efficiency and customer experience.

What will be the size of the Air Traffic Control Equipment Market During the Forecast Period?

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Market Segmentation

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.

By Type

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 1.82 billion 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.

By Regions

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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.

Market Dynamics and Customer Landscape

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. 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 Market Driver

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.

Significant 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 market during the forecast period.

Major 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 market during the forecast period.

Key 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 Market Customer Landscape

Who are the Major Air Traffic Control Equipment Market Companies?

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 vendors, including:

• Adacel Technologies Ltd.
• Advanced Navigation and Positioning Corp.
• Aeronav Inc.
• Aquila Air Traffic Management Services Ltd.
• BAE Systems Plc
• Becker Avionics Inc.
• Frequentis AG
• Intelcan Technosystems Inc.
• Kongsberg Geospatial Ltd.
• L3Harris Technologies Inc.
• Leonardo Spa
• Lockheed Martin Corp.
• Northrop Grumman Corp.
• Raytheon Technologies Corp.
• Saab AB

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.

Segment Overview

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).

• Type Outlook 
  • Communication equipment
  • Navigation equipment
  • Others

• Application Outlook 
  • Commercial
  • Military
  • Defense

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is evolving with advancements in microelectronics and automation. Joint ventures are common, especially in developing economies, with companies like Skye Air leading the way. The market is segmented based on airport size, with large airports requiring more sophisticated equipment. Efficient airspace management is crucial, driven by the rise in air passenger traffic and the need for better airspace management systems. The market faces challenges such as the high cost of equipment and the potential risk of cyber threats. Satellite-based air-traffic control systems and advanced communication equipment are key trends, while aviation safety regulations and airport infrastructure developments shape the market's future.

The market is driven by the need for efficient operations in both the commercial and military & defense sectors. Procurement and maintenance costs influence market dynamics, with hardware and software & solutions playing crucial roles. Microelectronics development has led to advanced data-processing capabilities. The market faces challenges such as the lack of expertise and the high cost of ATC systems, especially in medium and small airports. Satellite-based air-traffic control systems are gaining traction, aiding in the management of aircraft movement in controlled and non-controlled airspace. Emerging economies are key growth areas, driving the adoption of new air traffic control technologies and voice communication systems.

The market is also driven by the need for efficient operations in the commercial aircrafts segment and medium airports due to the rise in the number of airports and increase in number of passengers. Satellite based air-traffic control systems are being adopted to improve surveillance and air traffic management. The market is influenced by International Civil Aviation Organization (ICAO) regulations and Porter’s five forces analysis. New airports are being constructed, creating opportunities for market growth. Reduction in airfares due to free and fair trade agreements is also impacting the market. Airport construction projects are focused on enhancing runway efficiency and safety.

Air Traffic Control Equipment Market Scope
Report Coverage	Details
Page number	171
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.54%
Market growth 2023-2027	USD 2.25 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	6.38
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 42%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market analysis, Market Forecasting, 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
Customization purview	If our market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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