|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Air Traffic Management Market is expected to register a CAGR of more than 6% during the forecast period (2022 – 2027).
The COVID-19 pandemic has affected the aviation industry unfavorably due to the air travel restrictions on international as well as domestic flights throughout countries, causing an unexpected decline in air traffic. The decrease in air passenger traffic led to a reduction in investments towards the procurement of ATM systems as well as a reduction in ATM services in 2020. However, as the market began to recover in 2021, the airport authorities and civil aviation authorities resumed their investments in the modernization of air traffic control equipment.
The growth in passenger traffic over the past few years has led the governments and airport authorities to invest in the expansion of their existing airport infrastructure and the construction of new airports to increase their passenger handling capacities. This is expected to drive the growth of the market during the forecast period.
In addition to this, the airlines and airport operators also investments towards the modernization of air traffic management infrastructure as well as automation of existing ATM equipment, which will accelerate the growth of the market in the coming years.
Scope of the Report
Air traffic management (ATM) comprises all the systems that assist the aircraft from its departure from an airport to its landing at a destination airport, including the transit phase. Military air traffic management is included in the study, while unmanned traffic management (UTM) is excluded from the study. The air traffic management market is segmented based on Domain, Component, and Geography. By Domain, the market is segmented into Air Traffic Control, Air Traffic Flow Management, and Aeronautical Information Management. By Component, the market is segmented into Hardware and Software. The report also covers the market sizes and forecasts for the market in major countries across different regions. For each segment, the market sizing and forecasts have been represented based on value (USD million).
|Air Traffic Control|
|Air Traffic Flow Management|
|Aeronautical Information Management|
Key Market Trends
Hardware Segment Registered the Largest Market Share in 2021
The hardware segment accounted for the largest share in the market in 2021. The construction of new airports and the expansion of existing airports have generated the demand for air traffic management hardware, all around the world. Several airports are also replacing aging hardware equipment with new advanced equipment to enhance the efficiency of air traffic management operations. For instance, in October 2021, Thales announced that the company installed ATM systems at Abeid Amani Karume International Airport, Arusha Airport, Julius Nyerere International Airport, Kilimanjaro International Airport, Mwanza International Airport, and Songwe Airport. The modernization is a part of the contract between Thales and the Tanzania Civil Aviation Authority (TCAA) in August 2017 to enhance the country’s air traffic safety and efficiency. As a part of modernization, the company installed surveillance radars and TopSky – ATC. Similarly, in April 2022, the Federal Aviation Administration announced an investment of more than USD 1 billion under the President’s Bipartisan Infrastructure Law for air traffic control tower replacement, modernization of navigation, weather and tracking equipment, upgrades to power systems, infrastructure upgrades at the air route traffic control centers, towers, and TRACONs, among others at the airport. Such developments are anticipated to drive the demand for hardware segment rapidly during the forecast period.
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Asia-Pacific to Dominate the Market during the Forecast Period
The Asia-Pacific region currently dominates the market and is expected to continue its dominance in the market during the forecast period. The growth in the market is propelled by the robust investments towards the construction of new airports as well as the expansion of existing airports in China and India. In January 2022, the Civil Aviation Administration of China (CAAC) announced its plan to increase the civil transport airports in the country to more than 270 by 2025. The construction of new airports will allow the country to handle 17 million aircraft movements annually as well as increase the passenger handling and cargo handling capacities to 930 million passengers and 9.5 million tonnes, respectively by 2025. Such developments would bolster the adoption of sophisticated air traffic management systems to ensure high levels of safety and operational efficiency in the country. In addition to this, a similar increase in passenger volume and adjoining demand from airline customers, as well as new air traffic management requirements and environmental regulations are forcing the Indian airports to continuously adapt and improve their infrastructure and operations. Digital transformation is reshaping the Indian airport industry, through the integration of Internet of Things (IoT)-enabled technologies to help airports to optimize their operations and enable safe and timely passenger travel. In March 2022, to support the Make in India Initiative, Bharat Electronics Limited (BEL) entered into partnership with Airports Authority of India (AAI) for research and development of systems for air traffic management and surface movement of aircraft at airports. Such investments into development and introduction of new ATM systems is expected to drive the growth prospects of the air traffic management market in the Asia-Pacific region during the forecast period.
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The market of air traffic management is highly fragmented, with many local as well as international players providing various ATM hardware, software as well as services. SITA, Honeywell International, L3Harris Technologies Inc., Thales Group, and Northrop Grumman Corporation are some of the prominent players in the air traffic management market. Players are concentrating on the launch of secure products that have the capability to learn and improve themselves through built-in AI technology. Most software producers are using AI to improve the efficiency and speed to access important data on the database. For instance, Honeywell launched a new generation NAVITAS software suite platform in November 2021 to support the operations of airport operators and air navigation service providers. The software is integrated with artificial intelligence (AI), big data, cybersecurity, machine learning, and human-centered designs that will support and enable automation and digitization of air traffic services for efficient ground movement, enhanced situational awareness, control and monitoring of airside and ATM equipment, information management, and integration. The international players are expected to benefit from the partnership with local producers of ATM systems, parts, and components, as well as third-party software manufacturers of ATM systems. Such initiatives of the companies are expected to help them in increasing their geographic presence in the years to come.
In June 2022, Advanced ATC Inc., an air traffic control academy based in Georgia, United States announced an investment of USD 4.7 million at Craig Airfield to establish the first remote air traffic control center that can handle traffic for multiple airports. The remote tower performs the operations of a traditional control tower using cameras, real-time video, and other technologies to remotely accomplish the duties.
In May 2022, Saudi Arabia announced its plan to invest about SAR 356 billion (USD 100 billion) into its aviation sector by 2030 under the Vision 2030 initiative to strengthen to make the country as a global aviation hub. The country plans to increase passenger handling capacity to 330 million passengers and air cargo capacity to 4.5 million tons. Through the investment, the country plans to introduce another airline as well as upgrade airport facilities including air traffic management infrastructure.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD million, 2018 - 2027)
5.1.1 Air Traffic Control
5.1.2 Air Traffic Flow Management
5.1.3 Aeronautical Information Management
5.3.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.3.4 Latin America
18.104.22.168 Rest of Latin America
5.3.5 Middle-East and Africa
22.214.171.124 United Arab Emirates
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Adacel Technologies Limited
6.2.2 Advanced Navigation and Positioning Corporation
6.2.3 Airbus SE
6.2.4 Leidos Holdings Inc
6.2.5 Honeywell International Inc.
6.2.6 L3Harris Technologies, Inc
6.2.7 Indra Sistemas SA
6.2.8 Raytheon Company
6.2.9 Saab AB
6.2.10 Thales Group
6.2.11 Northrop Grumman Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Air Traffic Management Market market is studied from 2018 - 2027.
What is the growth rate of Air Traffic Management Market?
The Air Traffic Management Market is growing at a CAGR of >6% over the next 5 years.
Which region has highest growth rate in Air Traffic Management Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Air Traffic Management Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Air Traffic Management Market?
SITA, Northrop Grumman Corporation, Honeywell International Inc., Thales Group, L3 Harris Technologies, Inc. are the major companies operating in Air Traffic Management Market.