Air Traffic Control Market Size, Share and Industry Analysis, by Point of Sale (Hardware, Software, and Services), By Airspace (Air Route Traffic Control Centers (ARTCC), Terminal Radar Approach Control (TRACON), Air Traffic Control Tower (ATCT), and Remote Tower (RT)), By Application (Communication, Navigation, Surveillance, and Automation), By Airport Size (Small, Medium, and Large),and Regional Forecast, 2024-2032

The global air traffic control market size was valued USD 8.90 billion in 2019 and is projected to reach USD 23.63 billion by 2032, exhibiting a CAGR of 7.80% during the forecast period (2020–2032). North America dominated the air traffic control market with a market share of 35.39% in 2019.

Air traffic control (ATC) major purpose is to maintain sufficient separation between aircraft and between aircraft and ground obstructions to avoid accidents. However, this safety objective must not impede the flow of air traffic, ensure smooth operations, and meet the increasing demand for global air travel.

The major challenge for the growth of the ATC market is to lack of skilled personnel, rise in cyber threats in air traffic management. Moreover, upgrading existing aircraft fleets is unable to utilize the advancements in air traffic management technology. The latest technological trends in the market are Ground-based augmentation system (GBAS), voice over internet protocol (VOIP) systems. The integration of unmanned traffic management into ATC systems, ADS-B technology for ATM, internet of things (IoT), artificial intelligence (AI), time-based separation, and light data processing system (FDBS) are some major technologies driving the market.

LATEST TRENDS

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Combination of AI in ATC Systems will Augment Growth

Nowadays, AI is widely used in optimizing air traffic control processes. ATC equipment and systems providers are focusing on AI-based solutions for airports. The European Organisation for the Safety of Air Navigation, known as EUROCONTROL, is an international organization focusing on safe and seamless air traffic management in European countries. AI has become an integral part of EUROCONTROL. The organization plays a central role at a technical level within the Commission’s strategic initiative. AI is used in navigating aircraft, predicting air traffic and simplifying the ground-level process. It is estimated that the use of AI in ATC improves operational efficiency by 30%. Thus, in the next few years, the implementation of AI in ATC will be a preferred option at airports for operations optimization.

DRIVING FACTORS

Rising Air Passenger Traffic to Propel the Market

The growing commercial aviation domain and the rising preference of people towards air travel across the globe are factors expected to boost the growth for the market during the forecast period. According to the International Air Transport Association, an additional 44% of air passenger traffic is expected to come from China and India in the next ten years. Moreover, Asia Pacific is expected to be the fastest-growing region for air passenger travel in the next ten years. Airport authorities are upgrading its conventional ATC equipment systems to an automatic system to improve the overall efficiency of flight travels and minimize ground-based accidents. Thus, this will propel the growth of the market.

Rapid Advancements in ACT systems to Drive Market

With the rise in the adoption of machine learning and the internet of things (IoT), technologies at airports are supporting market growth. Several airport authorities have implemented these technologies in the ATC unit. The rise in the number of smart airports will also create demand.

for the technologically advanced air traffic control units. Airport authorities in countries such as the U.S., Singapore, the UAE, and China are focusing on developing smart airports with innovative technologies. Moreover, the Civil Aviation Administration of China is focusing on implementing unmanned aerial vehicles for surveillance purposes at airports. These factors will propel the growth of the ATC market during the forecast period.

RESTRAINING FACTORS

High Airport Surveillance Costs to Hinder Market Growth

Advanced and automated surveillance systems simplify the process of boarding at airports. However, huge costs are involved in the design, development, and implementation of these systems at airports in different countries. They require a combination of various subsystems and electronic components to provide real-time data to the airport authority. The development, implementation, and maintenance of these systems are costly. Therefore, both the cost and time required for the development and deployment of ATC systems prove to be a hindrance to the growth of the market across the globe.

Rising Cyber-Security Attacks at Airports Hinder the Growth of the Market

Cyber-security is one of the major concerns for the aviation industry, including airports. Over the years, airports across the globe have become highly dependent on critical information and communications and navigation systems to run operations, deliver passenger services, and maintain communications with respective services. On the other hand, this heavy reliance on technology has also increased the airport’s exposure to various forms of threats such as cyber-attacks. The rising number and level of sophistication of cyber-attacks against airport securities globally has prompted several numbers of airports to invest more on cyber-security to safeguard operations and protect the passengers. Thus, this factor hinders the growth of the ATC market.

SEGMENTATION

By Point of Sale Analysis

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High Demand for Real-Time Information System Propel the Growth of Point of Sale Segment

Based on the point of sale, the market is classified into hardware, software, and services. The software segment is anticipated to grow at the fastest CAGR during the forecast period. Increasing demand for artificial intelligence-based software and real-time gathering of fleets information are the major factors behind the growth of this segment. Whereas, the hardware segment was the largest in 2019, owing to the huge investment in radar, antennas, and display system providers in countries such as the U.S., China, and India.

By Application Analysis

Increase in Demand for Integrated Digital Ecosystem Boost the Growth of the Autonomous Segment

Based on the application, the market is segmented into communication, navigation, surveillance, and automation. Among these, the automation segment is expected to be the fastest-growing segment in the market during the forecast period. Automation focuses on connectivity and real-time information by connecting all stakeholders in an integrated digital ecosystem. This growth is attributed to the increasing demand for smart and green airports across the globe and high demand for Internet of Things (IoT)-based systems, whereas the communication segment held the largest share in 2019.

By Airport Size Analysis

Installation of Advanced Security Systems in Airport ATC Equipment to Boost the Market

Based on airport size, the market is divided into small, medium, and large. Among these, the large segment is expected to be the fastest-growing segment of the market during the forecast period. This growth is accredited to the increasing demand for the installation of advanced security systems in the airports and demand for customization of the systems across the globe. In contrast, the medium segment was the largest in 2019.

By Airspace Analysis

Increase in Demand for Ground Support Services at Airports to propel the ATCT Segment

Based on airspace management, the market is divided into Air Route Traffic Control Centers (ARTCC), Terminal Radar Approach Control (TRACON), Air Traffic Control Tower (ATCT), and Remote Tower(RT).

Among these, the air traffic control tower (ATCT) segment is expected to be the fastest-growing segment of the market during the forecast period. This growth is accredited to the increasing fleets at airports and ground support systems at airports, whereas the ARTCC segment was the largest in 2019.                                                                                      

REGIONAL INSIGHTS

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As per our research, North America is estimated to hold the largest share of USD 3.15 billion in 2019 and is also expected to be the fastest-growing region during the forecast period. The region is expected to witness strong growth in the market during the forecast period due to the presence of major companies such as Raytheon Technologies, Honeywell International Inc., Northrop Grumman Corporation, and among others. In April 2020, the merger between Raytheon Company and United Technologies Corporation plays a crucial role in providing better technologies to the airports and defense authorities. Thus, the region is anticipated to witness long-term growth in this market.

Europe held the second-largest market share in 2019 owing to the high investment in the up-gradation of conventional systems. The increasing technological advancements in information systems and rising demand for smart and green airports will boost the market in Europe during the forecast period.

In Asia Pacific, China has significantly increased spending on modernizing its airport infrastructure in recent years. Moreover, the growing passenger traffic at domestic airports and international airports. The fastest-growing airports in China are Quanzhou Jinjiang International. Its year-on-year growth was 31.9% in 2019 to of passenger traffic 8.1 million passengers, driven by the expansion of Shenzhen Airlines and Xiamen Airlines.

Furthermore, the market in the Middle East and Africa is anticipated to increase at a significant CAGR, owing to the significant number of suppliers and distributors of ATC equipment systems in this region. Similarly, increasing investment in the domestic airports in the UAE and Saudi Arabia in the region is expected to drive the growth of the market in the Middle East and Africa.

KEY INDUSTRY PLAYERS

Technologically Advanced By Indra Sistemas, S.A. in the ATC Systems to Propel the Market

The competition landscape of the market depicts the domination of selected players such as Indra Sistemas, S.A. This company focuses on designing and developing advanced autonomous ATC technologies and solutions. Moreover, the company is expanding its geographic reach in Asian and Middle East countries in the near future.

LIST OF KEY COMPANIES PROFILED:

• BAE Systems (The U.S.)


• Cyrrus Limited (The U.K)


• Indra Sistemas, S.A. (Japan)


• Honeywell International Inc. (The U.S.)


• L3Harris Technologies Inc. (The U.S.)


• Raytheon Technologies (The U.S.)


• Saab AB (Sweden)


• Leonardo S.p.A (Italy)


• Thales Group (France)


• Westminister Group Plc. (The U.K)


• Harris Corporation


• Northrop Grumman Corporation

KEY INDUSTRY DEVELOPMENTS:

• December 2019 – Serco Group plc had a partnership with the Ministry of Transport for the extension of its Air Traffic Control Services, to continue providing support for the General Company for Air Navigation Services (GCANS) at Baghdad Airport.


• December 2018 – Saab Digital Air Traffic Solutions (SDATS) signed a 20-year framework agreement with ATC, the Netherlands, for remote tower systems. This long term agreement for modernization of ATC units.

REPORT COVERAGE

The air traffic control market report offers qualitative and quantitative insights on the market and detailed analysis of market size & growth rate for the segments in the market.

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Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption of advanced technology, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key market players, Porter’s five forces analysis, business strategies of leading market players, and macro and micro-economic indicators.

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