AIR TRAFFIC CONTROL MARKET ANALYSIS

Air traffic control (ATC) is a service provided by ground-based air traffic controllers who direct aircraft on the ground and through controlled airspace. The primary objective of ATC is to prevent collisions, organize and expedite the flow of air traffic, and provide information and other support for pilots. Air traffic controller directs aircraft during takeoff and landings at airports in order to keep safe distance from each other at the ground and in the sky. Furthermore, the controller helps aircraft during bad weather in order to ensure minimal delays.

The global air traffic control market is estimated to be valued at US$ 4553.6 million in 2021 and is expected to exhibit a CAGR of 4.8 % over the forecast period (2021-2028).

Recent Developments:

1. In June 2019, BAE Systems plc announced to supply the Vehicle Management Control System and Identification Friend or Foe (IFF) System for Boeing’s new carrier-based unmanned air fueling platform.
2. In October 2019, Raytheon Company entered into agreement with WEY Technology to co-develop the next-generation air traffic controller workstation named Multi-platform ATC Re-hosting Solution, or MARS.
3. In August 2021, Saab Digital Air Traffic Solutions (SDATS) has been selected for a long-term framework agreement by skeyes, the Air Traffic Control organization of Belgium, for their Digital Tower programme.

Asia Pacific held dominant position in the global air traffic control market in 2020, accounting for 33.81% share in terms of volume, followed by Rest of World and Europe, respectively owing to the modernization of airport infrastructure has led to an increase in the procurement of air traffic control equipment to streamline aircraft operations.

Figure 1. Global Air Traffic Control Market Value (US$ 1468.0 Mn), by Region, 2020

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Global Air Traffic Control Market: Drivers

Increasing number of air passengers is expected to drive growth of the global air traffic control market during the forecast period

Growing urbanization and rising disposable have increased the number of passengers traveling via aircraft. According to the International Civil Aviation Organization (ICAO), in 2018, around 4.3 billion people traveled in aircraft, increasing from 2.9 billion in 2012. According to the same source, the air transport capacity offered by airlines grew by 4% in 2012 across the world. Such development is expected to contribute positively to air traffic control systems. Furthermore, according to Coherent Market Insights’ analysis, Asia Pacific reported a growth of 5.5% in international airlines and 8.8% in domestic airlines. Europe reported growth in air traffic by 5.6% in international airlines and declines to 0.7% in domestic airlines. Therefore, these factors are expected to drive growth of the global air traffic control market during the forecast period.

Growing airport infrastructure development is expected to propel the global air traffic control market growth over the forecast period

Since the number of passengers traveling by air is increasing, the authorities are required to expand the existing infrastructure of airport, in order to manage and handle passenger safety. Growing trade relations among countries and numerous student exchange programs conducted by universities across the world has significantly contributed to the rise in air travelers. According to the Canadian Bureau for International Education, the number of international student enrolment in Canada has increased from 136,000 in 2001 to more than 265,000 in 2012 registering an increase of 94%. Furthermore, passenger comfort and safety management have become a primary concern for airport authorities, which in turn, is increasing investment in air traffic control equipment. Hence, these factors are expected to propel the global air traffic control market in the near future.

Global Air Traffic Control Market: Opportunities

Advent of satellite-based navigation ATC can present lucrative growth opportunities

According to the Federal Aviation Administration (FAA), commercial airline passenger traffic would increase manifold by 2025. Sometimes due to uncertain position of airplanes, most of the airliners are forced to take stepped landing where airplane comes down to a given altitude and then comes down again when being instructed by tower. Moreover, such satellite-based air traffic control systems will help to cut down the emissions and cost of fuel due to continuous tracking.

Rising need for unmanned air traffic management (UTM)

There has been increased demand for unmanned air traffic management recently. UTM is an air traffic management ecosystem, which in underdevelopment, for autonomously controlled operations of unmanned aerial system. It is being developed by FAA, NASA, and other federal agencies. It is expected to reduce human errors and provide efficient instructions for pilots.

Market Trends:

Contracts and agreements among market players is a major trend

Major companies in the market are focused on contracts and agreements, in order to enhance the market presence. For instance, in January 2012, NavAero entered into agreement with Air France for supplying t BagC22 for airline fleets of A330, 320, 340, and 747 aircraft. In October 2011, Malaysia airlines signed agreement with NavAero for deployment of t Bag™C22 Class 2 EFB and display systems. Moreover, in April 2014, Indra received a contract to modernize five air traffic control centers of Chilean Civil Aviation Department.

Figure 2. Global Air Traffic Control Market Share, By Communication Equipment, 2020

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Key Takeaways of the Graph:

• Among Type, the Communication Equipment held dominant position in the market and accounted for 37.59% share in the global air traffic control market in 2020. The segment is expected to reach US$ 2466.0 million in 2028, owing to up gradation of communication equipment integrated with new advanced technologies.
• Among End user, the Commercial aircrafts held dominant position in the market and accounted for 39.35% share in the global air traffic control market in 2020. The segment is expected to reach US$ 2541.9 million in 2028 owing to technology and the future evolution of the air traffic control system, rising GDP, and consequently, disposable income and living standards.

Global Air Traffic Control Market: Restraints

High cost of air traffic control systems is expected to restrain growth of the global air traffic control market during the forecast period

Cost of air traffic control systems is significantly high. ATC systems are provided by Air Navigation Service Providers (ANSP) and are sometimes paid by air travelers as charges. Furthermore, up gradation of these technologies involves heavy charges, owing to incorporation of different technologies in ATC. Besides, it takes a significant amount of time to identify future requirements of ATC systems and installing facilities that fulfill those requirements. Hence, these factors are expected to restrain growth of the global air traffic control market during the forecast period.

Presence of stringent regulatory norms is expected to hinder the global air traffic control market growth over the forecast period

There are several strict regulatory norms that need to be complied with by ATC systems. Although there are standard norms across the globe, certain countries and their respective authorities may impose additional regulations, which makes it challenging. Thus, these factors are expected to hinder the market growth in the near future.

Global Air Traffic Control Market: Competitive Landscape

Key companies operating in the global air traffic control market are BAE Systems plc, Raytheon Company, Harris Corporation, Searidge Technologies Inc., Cobham Plc, Thales Group, NavAero Inc., Northrop Grumman Corp, Indra Sistemas S.A., and Lockheed Martin Corp.