Market Trends of Asia-Pacific Air Traffic Management Industry
Hardware Segment Held the Largest Market in the Market
- The hardware segment is estimated to show significant growth during the forecast period. The ongoing large-scale airport construction and expansion activities, especially in countries like China, India, Singapore, and Vietnam, have generated the demand for new air traffic management hardware.
- Asia-Pacific is expected to witness the largest airport construction and expansion activities during the forecast period. In addition, several airports are replacing the aging hardware equipment with new advanced equipment to enhance the efficiency of air traffic management operations. The construction of new ATC towers during the forecast period may generate demand for ATC equipment.
- Increasing expenditure on the aviation sector and growing airport construction projects across China and India will drive market growth in the coming years. For instance, the Indian government plans to operationalize 100 airports across the country by 2024 to boost regional connectivity.
- In the Indian Union Budget 2023, the government of India allocated a budget of Rs. 3,113.36 crores (USD 377.19 million) to the Ministry of Civil Aviation. Thus, increasing spending on airport modernization and procurement of advanced air traffic management systems will boost segment growth across the region.
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China is Expected to Dominate the Market During the Forecast Period
- China held the highest shares in the market and continued its domination during the forecast period. The growth is attributed to the rising spending on the aviation sector, increasing demand for new aircraft, and growing airport construction projects across the country. Increasing air traffic and rising disposable income demand new aircraft, driving the market growth.
- China's major plane manufacturer Commercial Aircraft Corporation of China (COMAC), predicted that China's aircraft fleet size will reach 9,957 by 2040, accounting for around 22 percent of the global passenger aircraft fleet, making China the world's largest single aviation market. The report stated that the country would take delivery of 9,084 passenger planes at or above the 50-seat class in the next two decades, valued at approximately USD 1.4 trillion.
- Furthermore, the Civil Aviation Administration of China (CAAC) aims to add another 215 airports to reach a target of 450 by 2035. China envisions constructing an average of 14 airports annually until 2035 to help transform the country's aviation industry into a strategic asset of its economy.
- The construction of new airports would facilitate the creation of new routes and the induction of a new aircraft fleet to address the additional passenger traffic. Such developments would bolster the adoption of sophisticated air traffic management systems to ensure high levels of safety and operational efficiency in the country.
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