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Global Air Traffic Control Market Size, Share, Trends, Covid-19 Impact & Growth Forecast Report - Segmented By Airspace (ARTCC, TRACON, ATCT, RT), Application (Communication, Navigation, Surveillance, And Automation), Offerings (Hardware, Software & Solutions, And Services), Sector (Commercial, And Military & Defense), And Region (North America, Europe, APAC, Latin America, Middle East And Africa) – Industry Analysis From 2023 To 2028

Published: March, 2023
ID: 10548
Pages: 175
Formats: report pdf report excel report power bi report ppt

Global Air Traffic Control Market Size (2023 to 2028)

The global air traffic control market size is expected to be worth USD 11.58 billion in 2023. It is expected to grow at a CAGR of 4.9% during the forecast period and reach a value of USD 14.71 billion by 2028.

Air traffic control (ATC) is a service provided by air traffic controllers on the ground, which guides the pilot through ensuring the safety of the aircraft both in controlled airspace and on the ground. Additionally, ATC also provides advisory services for uncontrolled airspace. The main objective of ATC is to accelerate air traffic and avoid collisions between different aircraft.

MARKET DRIVERS:

The increasing number of airports in the world and the growing need to improve airspace management systems are driving the growth of the global air traffic control market. However, the high cost of installing ATC systems is expected to slow market growth. Additionally, the increasing adoption of ATC satellite systems is expected to create new growth opportunities for market players during the outlook period.

The surge in air passenger traffic and increased airport development projects in different regions are acting positively for the aviation industry. The Federal Aviation Administration (FAA) has implemented effective air traffic and airspace control measures. Some of the measures implemented for better use of airspace include the airspace control order, the airspace control plan, and the airspace coordination area. These measures allow the movement of people and air commerce at optimal levels of safety and efficiency and satisfy the country's national security needs. Over the next ten years, there will be a significant increase in air passenger traffic, which is expected to increase delays and congestion in the airspace. Air transport is considered the safest mode of transport compared to all other modes of transport. Also, the global population increase is expected to create a demand for additional airports to facilitate air travel in the east, which is driving the growth of the air traffic control market.

In addition, significant investments are expected to meet the needs of new airports, especially in developing countries. Many developing countries plan to open new airports to facilitate air travel in and out of the country. For example, as part of Prime Minister Narendra Modi's vision to make India a $ 5 trillion economy by the end of 2026, India plans to open an additional 100 airports by the end of 2024. This will directly create additional demand for air traffic control systems, which drive market growth.

MARKET RESTRAINTS:

The high cost of air traffic management equipment is one of the main obstacles to market growth. Most ATM equipment manufacturers focus on research and development with the aim of introducing new, technologically advanced ATM equipment to provide greater efficiency.

Impact of Covid-19 on the air traffic control market:

The COVID-19 outbreak has adversely affected the aviation industry due to air travel restrictions on domestic and international flights between countries, causing a sudden decrease in air traffic. This is expected to have a negative impact on the air traffic management market in the short term. A slow recovery is expected in the first quarter of 2021. It could take 2-3 years for the aviation industry to recover from the financial effects of coronavirus, causing air travel and passenger traffic to fall relative to previous estimates. The nationwide lockdowns following the COVID-19 pandemic have affected all regions considered in this study, and restrictions on air travel have a severe impact on air passenger traffic. The largest reductions in air passenger numbers are expected in Asia-Pacific, followed by Europe, with the latter reaching its peak summer season. Automation has been proposed by many stakeholders as a solution to capacity and backlog issues, but due to this global crisis, there will be delays even in implementing such solutions.

REPORT COVERAGE:      

REPORT METRIC

DETAILS

Market Size Available

2022 to 2028

Base Year

2022

Forecast Period

2023 to 2028

CAGR

4.90%

Segments Covered

By Airspace, sector, Offerings, Application, & Region

Various Analyses Covered

Global, Regional, and country-level analysis; Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

 

This research report on the global air traffic control market has been segmented and sub-segmented into the following categories.

Global Air Traffic Control – By Airspace:

  • ARTCC
  • TRACON
  • ATCT
  • RT

 The air traffic control tower (ATCT) segment is expected to dominate the air traffic control market in 2021. The increase in airspace congestion and the rising call for advanced equipment are the main factors supporting the expansion of the ATCT segment in the global air traffic control market.

Global Air Traffic Control – By Sector:

  • Commercial
  • Military & Defense

The commercial segment of the air traffic control market is foreseen to register substantial growth over the outlook period. Aircraft flying in commercial airspace rely on predetermined flight routes and a code of business conduct, which vary depending on the type of aircraft and air traffic. Latest technologies built on automated data links are being applied for communication, navigation, and surveillance, which allow aircraft to fly within a global framework of information systems, rather than depend on voice communications between pilots and air traffic controllers.

Global Air Traffic Control – By Application:

  •  Communication
  • Navigation
  • Surveillance
  • Automation

Global Air Traffic Control – By Offerings:

  •  Hardware
  •  Software & solutions
  •  Services

Global Air Traffic Control – By Region:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

The air traffic control market in the Middle East is expected to grow at the highest CAGR from 2021 to 2026. This growth is primarily attributed to the modernization of the airport's infrastructure, which in turn has resulted in an increase in acquisitions. Air traffic control equipment to streamline flight operations. Increasing passenger traffic in the Middle East region has contributed to the growth in demand for air traffic services. The United Arab Emirates is the main contributor to the growth of the Middle East market. Considering the number of airports and the increase in passenger traffic, the country leads the general market. Furthermore, the construction of a new airport in the countries considered for the study plays an important role because the new airports will require a control tower. These control towers will be equipped with the latest systems.

COMPETITIVE LANDSCAPE:

The Raytheon Company was a major US defense contractor and industrial company with major manufacturing concentrations in military and commercial weapons and electronics. It was previously involved in corporate and special mission aircraft.

KEY MARKET PLAYERS:

The major players in the global air traffic control market are Raytheon Company (US), BAE System (UK), Thales Group (France), Indra Sistemas (Spain), Frequentis AG (Australia), Harris Corporation (US), Adacel Technologies (Australia), Leonardo S.p.A (Italy), Honeywell Inc (US), Northrop Grumman Corporation (US), NATS Holding (UK), and Saab AB (Sweden). 

RECENT HAPPENINGS IN THE MARKET:

  • In March 2021, the United States Federal Aviation Administration awarded Leidos and Thales a contract to supply up to 143 secondary surveillance radars for the Replacement of the Mode S Beacon System.
  • In January 2021, Raytheon Technologies was selected by the United States Federal Aviation Administration to improve usability and reduce operating costs of the Standard Terminal Automation Replacement System (STARS). This technology is utilized by air traffic controllers in the United States to provide safe and effective separation and sequencing guidance for more than 40,000 aircraft departing and arriving at more than 600 civil and military airports.

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FAQ's

1. How does Air Traffic Control ensure safety in aviation?

ATC uses radar, communication systems, and advanced technologies to monitor and guide aircraft, preventing collisions and ensuring safe separation between flights.

2. What are the key responsibilities of Air Traffic Controllers?

Air Traffic Controllers manage aircraft takeoffs, landings, and en-route traffic. They provide instructions to pilots for altitude changes, route adjustments, and traffic sequencing.

3. What challenges does the Air Traffic Control market face?

Challenges include the need for infrastructure upgrades, integration of new technologies, airspace congestion, and addressing cybersecurity concerns.

 

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