Market Trends of Middle-East And Africa Air Traffic Management Industry
Hardware Segment accounted for a Major Share of Revenue in 2023
The hardware segment is poised to secure the largest market share in the Middle East and African air traffic management market. This dominance is attributed to the region's concerted efforts in upgrading and modernizing its aviation infrastructure. As airports undergo extensive renovations and expansion projects, there is a substantial demand for advanced hardware components, including radar systems, communication equipment, and navigation devices. These hardware solutions are crucial for enhancing the overall efficiency and safety of air traffic management. The growing emphasis on security measures and the need for robust surveillance systems further drives the demand for sophisticated hardware components. As the aviation industry in the Middle East and Africa continues to experience rapid growth, the hardware segment is positioned as a critical player, ensuring the seamless functioning of air traffic management systems and contributing significantly to the region's aviation advancement. For instance, in November 2023, the UAE General Civil Aviation Authority (GCAA) awarded a contract to Rohde & Schwarz as part of a radio replacement project. The contract involves the installation of more than 200 new radios, which aims to modernize the radio communications system at the Sheikh Zayed Air Navigation Centre in Abu Dhabi. In addition to the new radio installation, the project will enhance the already installed voice communication system (VCS).
Saudi Arabia to Dominate the Market during the Forecast Period
Saudi Arabia witnessed a surge of 26% in air traffic and flight movements from airports in 2023, and the country witnessed 403,000 flights by June 2023. The country has been investing in promoting tourism and attracting visitors, including the "Vision 2030" plan. The tourism and aviation sector is expected to draw many benefits from the ongoing development plans and projects in the Kingdom. Hence, an efficient air traffic management system has been deployed in the country to streamline airline movement effectively. Incorporated in 2016, Saudi Air Navigation Services (SANS) covers services for the entire Saudi airspace and provides air traffic management and air navigation systems, including the procurement, operations, and maintenance of all air navigation systems. Indra has been working with SANS on the complete modernization of the country's air traffic management system since 2017, which consists of two end route control centers, four approach centers, and twenty towers.
In November 2022, the UK’s air traffic control body NATS and Saudi Air Navigation Services (SANS) signed a contract to conduct a study on enhancing capacity at the King Khalid International Airport in Saudi Arabia. The contract is a part of Saudi Arabia’s growth plans as it intends to secure the expansion of air traffic through the country through major investments in its aviation infrastructure. This collaboration will allow Saudi Arabia to leverage NATS expertise and digital solutions to open new possibilities in airspace management and provide a seamless flow of air traffic. The expansion of the King Khalid airport is one of the many projects underway in Saudi Arabia that are seeking to expand. Such inductions are expected to drive the market in Saudi Arabia during the forecast period.
