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The air traffic management and control market is estimated to grow at a CAGR of 5.78% between 2022 and 2027. The size of the market is forecast to increase by USD 3,765.83 million. The growth of the market depends on several factors, including increasing air traffic, the need for protection from harsh weather conditions, and the increasing importance of defense aircraft.
This report extensively covers market segmentation by application (communication, navigation, surveillance, and automation), end-user (commercial and military), 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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The reports categorize the global air traffic management and control market as a part of the global aerospace & defense market within the global capital goods market. The parent, global aerospace & 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 air traffic is notably driving the market growth, although factors such as high costs associated with networking technologies and connectivity hardware 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 Management And Control Market Driver
The increasing air traffic is notably driving the market growth. Commercial aircraft OEM invests in a new generation of aircraft characterized by optimal fuel consumption and lower carbon dioxide emissions and noise. The increased demand for air travel further boosted the demand for such aircraft. Demand for air travel is expected to double over the next 20 years. Increased demand and acquisition of new-generation aircraft will increase the demand for air traffic management and control systems during the forecast period.
Annual growth in air traffic has led to the introduction of a new generation of aircraft. The demand for air traffic management and air traffic control is expected to increase with the number of new-generation aircraft and the growing air traffic. In March 2022, Thales announced the delivery of the most technologically advanced air traffic control system, TopSky - ATC, to Dubai International Airport, the world's busiest airport. Therefore, the growth of the focus market during the forecast period will be driven by the increasing procurement of air traffic services from various airports.
Significant Air Traffic Management And Control Market Trend
The increasing need for effective modernization of air traffic management and control systems is the key trend in the market. Currently, air traffic control systems face a number of new vulnerabilities and challenges, including exposure to private and public actors and cyber security issues. International airspace is becoming more complex as the growth of global air passengers, advanced network systems and high cyber security risks have made air traffic management reform even more critical.
Effective modernization, including technological innovation, public-private partnerships and shared safety priorities, must be implemented to improve the efficiency of air traffic management and control systems. Only a balance of innovation and safety can safely deliver air traffic control and management systems that ensure better safety and more efficient travel. Thus, new and effective air traffic and control system modernization plans and initiatives will be the focus of market growth during the forecast period.
Major Air Traffic Management And Control Market Challenge
High costs associated with networking technologies and connectivity hardware is the major challenge impeding market growth. Huge investments in air traffic management and control technology, strict regulatory frameworks from agencies such as the US Federal Aviation Administration (FAA), and high installation costs may hinder the growth of the global air traffic management and control market. Additionally, demand for enhanced digital content and high maintenance costs associated with the installation may challenge the market. The customer value proposition is also a challenge as content needs to be updated at regular intervals.
Upgrading existing air traffic control and management systems requires high operating costs, significant installation time, and certification requirements, as the market is very dynamic. In addition, the need to update and maintain consistency across the entire fleet adds to the technological complexity. Embedded systems must therefore ensure a high return on investment in air traffic control and management systems. Therefore, high costs associated with air traffic management and control will adversely affect the focus market and slow down its growth during the forecast period.
Key Air Traffic Management And Control 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 Management and Control 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.
SITA - The company offers air traffic management and control through various applications such as ATIS or Automatic Terminal Information Service, VOLMET or weather information during flight, DCL or Departure Clearance, and CPDLC or Controller Pilot Datalink Communication. The company offers security solutions for air navigation providers, airlines, airports, and governments.
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 of the communication segment will be significant during the forecast period. Air traffic management and control include air traffic control in and around airports, airport terminals, and airspace. A big part of air traffic control is communication and the underlying technology. The task of air traffic control towers is to ensure a safe distance between all aircraft both in the air and on the ground to prevent accidents. Voice Control System controls and connects various voice communication systems used in air traffic control such as very high frequency (VHF) Tx/RX, telephone, and other air traffic control communications. This will facilitate market growth during the forecast period.
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The communication segment was valued at USD 3,024.51 million in 2017 and continued to grow until 2021. Air traffic management requires advanced communication services that enable efficient ground and air traffic control and continuous communication between airports, national air traffic control centers, and aircraft. In air traffic management and air traffic control, communication must always ensure reliable and safe operation. Therefore, due to the increasing need for advanced communication systems for air traffic management and air traffic control, the segment is projected to grow 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 growth of the North American market is mainly supported by the solid aviation infrastructure of the region. The region is home to technically highly advanced aerospace companies that largely meet regional demand for aircraft parts, systems and components, and has a solid foundation for the development of advanced air traffic control and management systems. The rapid growth in global demand for new aircraft, especially for commercial airlines, has also triggered investment in the aircraft manufacturing sector, which has channeled significant resources into the development of air traffic control and management systems and related technologies in the region.
The aviation industry witnessed a drastic decline in passenger numbers since the outbreak of COVID-19 in the region and, therefore, witnessed a major decline in revenue. However, in 2021, lockdown restrictions were lifted in many countries of the region due to extensive vaccinations against COVID-19 carried out in the region, allowing the resumption of various development and recreational activities in North America. The lifting of lockdown restrictions has increased air traffic in 2021. Due to these factors, the demand for air traffic control and management systems is increasing, which will significantly boost the growth of the focus area 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 Application (Communication, Navigation, Surveillance, and Automation), End-user (Commercial and Military), and Geography (North America, APAC, Europe, Middle East and Africa, and South America).
Air Traffic Management And Control Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.78% |
Market growth 2023-2027 |
USD 3,765.83 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.15 |
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., Aquila Air Traffic Management Services Ltd., BAE Systems Plc, Frequentis AG, Honeywell International Inc., Indra Sistemas SA, Intelcan Technosystems Inc., L3Harris Technologies Inc., Leidos Holdings Inc., Leonardo Spa, NEC Corp., Northrop Grumman Corp., QinetiQ Ltd., Raytheon Technologies Corp., Saab AB, SITA, SkySoftATM, Telephonics Corp., and Thales Group |
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, and Market condition analysis for the forecast period. |
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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