Voice Communication Control System Market Size, Share & COVID-19 Impact Analysis, By Solution (Hardware, Software, and Services), By Platform (Air, Ground, and Maritime), By Application (Air Traffic Control, Vessel Traffic Control, Strategic Emergency Services, and Others), By End User (Commercial, and Defense), and Regional Forecast, 2022-2029

The global voice communication control system market size was valued at USD 3.06 billion in 2021. The market is projected to grow from USD 3.20 billion in 2022 to USD 4.95 billion in 2029, exhibiting a CAGR of 6.46% during the forecast period. Europe dominated the voice communication control system market with a market share of 31.05% in 2021. Moreover, the voice communication control system market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 1,238.9 million by 2027, driven by growing need for interoperable voice communication is anticipated to drive market size & growth.

The global COVID-19 pandemic has been unprecedented and staggering, with voice communication control system experiencing lower-than-anticipated demand across all the regions compared to pre-pandemic levels. Based on our analysis, the global system market exhibited a low growth of 2.3% in 2021 as compared to 2019.

A Voice Communication Control System (VCCS) is an electronic system that allows and controls voice communication between air traffic control operators on the ground and the pilot. A computer controls this system and delivers effective communication that improves air traffic management operations. The VCCS is also known as a Voice Communication System (VCS) or Voice Communication Switching System (VCSS). This system consists of operation controller units and radio and telephone switching units.

The voice communication control system is also equipped with a user-friendly human-machine interface, allowing phone calls and radio recordings. This innovative system plays a crucial role in the air traffic management (ATM) operation. Besides, it is also used in several other applications such as vessel traffic control, coast guard, strategic emergency services, bridges and locks, offshore/wind farms, and airport ground services.

COVID-19 IMPACT

Decreased Air Traffic and Disruption in Supply Chain to Hinder Short Term Growth amid COVID-19 Pandemic

The coronavirus outbreak has introduced unprecedented changes to the commercial aviation industry. Temporary termination in commercial aviation operations has resulted in a reduction in air traffic levels. Airline operators are under high pressure as the commercial airport revenue generation is directly related to air traffic levels. Thus, airline operators have stopped the training of air traffic controllers. This has decreased the demand for voice communication control system. This impact is limited to the commercial VCCS market and expects to be overcome soon as the demand for strategic emergency services increases.

• According to IATA World Air Transport Statistics (WATS) publication, the worldwide passenger air traffic was 1.8 billion in 2020, a decrease of 60.2% compared to the 4.5 billion who flew in 2019.


• The COVID-19 pandemic led to decline of industry-wide air travel demand (measured in revenue passenger-kilometers, or RPKs) by 65.9% year-on-year with net losses of net losses were USD 126.4 billion in total.

Military operations are expected to support the market growth. Moreover, to overcome the impact of COVID-19, airline operators are focusing on integrating an advanced net-centric voice communication system to reduce dependency on traditional point-to-point communication and also help to reduce the overall operation cost. 

LATEST TRENDS

Transition from Analog to Digital VoIP to Boost Market Growth

Advanced digital voice communication technologies are replacing the conventional analog voice communication control system. The VoIP-based VCS has enabled secure voice and data transmission over IP (Internet Protocol) networks. The VoIP VCCS can handle the ground to ground and ground to air communications of the controllers in ATM operation. This system is designed by considering the international system design standards, for example, ED-137B. The VoIP ED-137B compliant digital VCCS enables interoperable communication between the air traffic control operator and the pilot.

Moreover, the growing adoption of digital radios and mobile phones to transmit voice in the form of data packets has improved voice communication capabilities and allowed storing voice data on the processing system. Furthermore, digital voice technology offers several advantages over analog voice technology such as a wide distance calling range, low-cost calling, improved voice quality, and voice data sharing and storing. These factors are increasing the usage of digital voice communication control system technology.

DRIVING FACTORS

Growing Need for Interoperable Voice Communication is Anticipated to Drive Market Growth

Growing technological innovation led to increased adoption of next-generation voice communication control systems. The implementation of VoIP in Air Traffic Management (ATM) operation requires standard certification such as ED-136, ED-137, ED-138, and ED-137B. ATM communication components based on VoIP technology are designed following these standards. The minimum requirements of the VoIP technology-based system are defined by the European Organization for Civil Aviation Equipment (EUROCAE). This group comprises multiple recognized bodies positioned across the world. The ED-137B standard enables interoperable voice communication.

Continuous voice communication is crucial in commercial and military ATM operations as it acts as the lifeline between pilots and air traffic controllers. Thus, the adoption of VoIP VCCS is rising to enable interoperable air traffic management communication. Moreover, the large air traffic needed more efficient ATM operation. Therefore, investments are increased in ATM infrastructure modernization programs. Rising investments are boosting the development of ED-137B certified VCCS systems to fulfill the demand from air navigation service providers and ATC service providers. 

Rising Number of New Airport Projects in Developing Nations to Boost Market Growth

A growing number of air passengers worldwide has escalated the demand for commercial aircraft deliveries and the construction of new airports. Owing to high population, India and China have observed high growth in air traffic compared to other countries. For instance, in 2020, the Indian government announced increasing the number of airports in the region to expand global and regional connectivity. They proposed to construct 100 new airports in-country by 2024. This factor has led to an increase in the development of advanced ATM infrastructure. Upgraded ATM infrastructures will provide efficient and seamless air traffic control operations.

Moreover, the growing modernization of domestic and international airports and air traffic control towers across the world has increased the demand for next-generation voice communication tools. These factors are driving the voice communication control system market growth during the forecast period.

RESTRAINING FACTORS

Stringent Airport System Design Standards and Safety Norms to Impede Market Growth

The stringent VoIP voice communication system design standards and airport & aircraft safety regulations are expected to hamper the market growth during the forecast period. Design standards to develop the VoIP VCS solution used in ATM applications are defined by the European organization for civil aviation equipment (EUROCAE) Working Group 67. This group has involved several other organizations such as the U.S. FAA (Federal Aviation Administration), European ANSPs (Air Navigation Service Providers), ATM communication equipment suppliers, and EUROCONTROL. For instance, in 2009, EUROCAE WG-67 released three new specifications, including ED-136 to ED-138. In 2012, the group released the ED-137B standard. This standard is referred to as an international standard by the international civil aviation organization (ICAO).

Therefore, these product design requirements are known as global standards for ATMs' voice-over-internet protocol protocol-based systems. Only the ED standard certified VoIP VCS products are used to achieve interoperable air traffic control communication. Stringent airport regulations for ATC towers are expected to hinder the market growth.

SEGMENTATION

By Solution Analysis

Hardware Solution Segment Held Dominant Share in Market in 2021

Based on solution, the market is segmented into hardware, software, and services.

The hardware segment is expected to witness the highest market share in the base year. The substantial rise in demand for advanced hardware components such as antennas, digital switches, consoles, and connectors is the major factor responsible for segment growth during the forecast period. In addition, increasing development of multi remote air traffic control towers is driving the segment growth. The ATC remote tower needed advanced voice communication technology, types of equipment, and highly skilled controllers to perform better operations.

Therefore, the growing development of the ATC tower is expected to surge the demand for hardware voice communication systems. For instance, in 2019, Frequentis AG collaborated with Deutsche Flugsicherung (DFS) for the new remote tower project. In May 2020, Frequentis AG signed a contract with ENAIRE, a Spanish air navigation service provider, to deliver VCS for nine different ATC towers.

On the other hand, the services segment is anticipated to grow at the highest CAGR during the forecast period. This growth is attributable to the growing demand for voice communication services in developing economies. The key players in this market offer Voice Communication Services (VCS) that help with traffic optimization and guide customers through a constantly evolving industry landscape.

By Platform Analysis

Growing Usage of VCCS in Air Traffic Control Application is Propelling Market Growth

Based on platform, the market is divided into air, ground, and maritime.

The air segment registered the highest market share in the base year owing to the growing usage of voice communication control system in air traffic control applications. Moreover, the increased passenger air traffic and increased demand for air traffic management services are major factors responsible for the segment growth during the forecast period. The high air traffic is mainly controlled through the system or tool integrated into the control towers. The digital VCCS is among those systems largely used to generate efficient voice communication between air traffic control operation operators and the pilot. This voice communication technology enables the constant transmission of real-time aircraft data and associated information with the pilots. This information will support enhancing the safety and security of aircraft.

By Application Analysis

Rising Aircraft Deliveries and Increasing Adoption of UAVs are Expected to Drive Market Growth

Based on application, the market is bifurcated into air traffic control, vessel traffic control, strategic emergency services, and others.

In this market, the others segment includes several applications such as offshore/wind farms, airport ground services, bridges, and locks, among others. The air traffic control application is anticipated to witness the highest share of the market in the base year. There is an increase in demand for air traffic management services and solutions to boost the segment growth during the forecast period. For instance,

• In December 2021, Thales and Aeronav announced that they would provide new CNS/ATM (Communication, Navigation Surveillance/Air Traffic Management) systems to the civil aviation authority of Haiti.

Economic developments in the high-growth regions have led to increased spending on air traveling. The rising number of air passengers will eventually increase the demand for aircraft. For instance, 1,452 aircraft units were delivered across the world in 2019. Moreover, the demand for Unmanned Aerial Vehicles (UAVs) increases for commercial and defense applications. Therefore, airport authorities and aviation organizations have increased the adoption of next-generation VoIP voice communication control system for air traffic control applications.

By End User Analysis

Rising Demand for Voice Communication System by Commercial Airline Operators is Fueling Market Growth

Based on end user, the global market is classified into two segments, commercial and defense.

The demand for commercial aircraft increases in India and China due to high air traffic. The growing deliveries of commercial aircraft in high-growth regions have required advanced voice communication technology that enhances the performance of air traffic management operations. Furthermore, the growing commercial airport modernization program has led to the increasing integration of the VoIP voice communication system in the air traffic control tower to improve aircraft safety and security. Therefore, the commercial end user segment will witness the highest market share in 2021.

REGIONAL INSIGHTS

The global voice communication control system market has been analyzed across North America, Europe, Asia Pacific, the Middle East, and the rest of the world.

Europe is expected to witness significant market share due to the presence of key OEM manufacturers in the region such as S.I.T.I. S.p.A., Rohde & Schwarz, and NATS Limited. These companies hold some prominent customers across the globe. Moreover, growing aviation industries in Europe is one of the main reasons for market growth in the projection year.

The findings based on our research methodology indicate that Asia Pacific is witnessing the highest growth in the market during the forecast period. The growth is attributed to the increasing defense expenditure in China and India. Moreover, new airport projects and the growing airline fleet in India are some of the major factors responsible for market growth in this region. For example, in 2020, the Indian government allocated USD 23.7 billion to develop the country’s transport infrastructure.

After this allocation, the government has planned to increase the number of regional airports to expand global connectivity. Moreover, the Civil Aviation Administration of China stated that it had the second-largest aviation market in the world in 2019. According to Boeing's research analysis, China will be the topmost in the domestic aviation market in the world by 2028. These factors facilitate market growth during the estimated timeframe.

North America held a significant share in 2021. The growth is attributed to the military modernization programs in the U.S. and the rise in defense budgets to boost the market growth in the region. Moreover, North America consists of many busy airports in the U.S. and Canada. Thus, higher growth numbers are expected during the forecast period.

During the forecast period, the Middle East will register significant growth in the market. This growth is attributed to the increasing investment in efficient ATC operations. The rest of the world would display remarkable growth during 2022-2029. This growth is attributed to the increasing developments in aviation infrastructure.

KEY INDUSTRY PLAYERS

Entering into Long-Term Contract and Technological Innovation Strategies to Achieve Sustainable Market Growth

The competition landscape of the voice communication control system market depicts the domination of selected players such as Indra Sistemas, S.A., L3Harris Technologies, Inc., S.I.T.T.I. S.p.A., and Frequentis AG. OEM manufacturers adopt the design and development of VoIP technology-based communication products strategy to offer a wide range of product portfolios. Moreover, the prominent players are focusing on entering into a long-term contract with the air traffic management service providers and airport authorities to achieve sustainable market growth

Also, the key players are focusing on providing cost-efficient voice communication solutions to the commercial and defense end users. For instance, in March 2018, Frequentis AG signed a five-year agreement with Deutsche Flugsicherung (DFS), an air navigation service provider. Under this agreement, Frequentis AG agreed to modernize nine DFS towers with the company’s VoIP technology-based VCS system.

LIST OF KEY COMPANIES PROFILED:

• ASELSAN A.S. (Turkey)


• Copper chase (U.K.)


• Frequentis AG (Austria)


• Indra Sistemas, S.A. (Spain)


• L3Harris Technologies, Inc. (U.S.)


• MEP (Netherlands)


• NATS Limited (U.K.)


• Northrop Grumman Corporation (U.S.)


• Rohde & Schwarz (Germany)


• S.I.T.T.I. S.p.A. (Italy)


• Saab AB (Sweden)


• Thales Group (France)

KEY INDUSTRY DEVELOPMENTS:

• November 2021 – Aselsan announced that it signed an export deal worth USD 75 million with an international client. The contract is for the supply of radar, border security, and communication systems.


• November 2020 – Indra won a contract worth USD 36.81 million for the European SESAR project to increase safety and cut the costs of air navigation services. The company incorporated technological advances achieved in SESAR in the solutions it supplies to navigation service providers in 160 countries.

REPORT COVERAGE

The research report offers qualitative and quantitative insights on VCCS and a detailed analysis of market size & growth rate for the segments in the market. 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 players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD billion)
Segmentation	By Solution, Platform, Application, End User, and Geography
By Solution Hardware Software Services
By Platform Air Ground Maritime
By Application Air Traffic Control Vessel Traffic Control Strategic Emergency Services Others
	By End User Commercial Defense
By Geography	North America (By Solution, Platform, Application, End User, and Country) U.S. (By Application) Canada (By Application) Europe (By Solution, Platform, Application, End User, and Country) U.K. (By Application) Germany (By Application) France (By Application) Russia (By Application) Rest of Europe (By Application) Asia Pacific (By Solution, Platform, Application, End User, and Country) Japan (By Application) China (By Application) India (By Application) Singapore (By Application) Rest of Asia Pacific (By Application) Middle East (By Solution, Platform, Application, End User, and Country) UAE (By Application) Saudi Arabia (By Application) Rest of Middle East (By Application) Rest of the World (By Solution, Platform, Application, End User, and Country) Latin America (By Application) Africa (By Application)