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Air Traffic Control Market Size, By Component (Hardware [Communication, Surveillance, Navigation], Software, Services), By Centers (Air Route Traffic Control Center (ARTCC), Terminal Radar Approach Control (TRACON), Air Traffic Control Tower (ATCT), Flight Service Station (FSS)), By End-Use (Commercial, Defense), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI5060
  • Published Date: May 2021
  • Report Format: PDF

Industry Trends

Air Traffic Control (ATC) Market size was valued at over USD 7 billion in 2020 and is expected to grow at a CAGR of more than 5% between 2021 and 2027. The market growth is attributed to the rising number of air passengers globally.

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Air traffic control (ATC) is a type of service that is provided by the ground-based air traffic controller for providing vital information to aircraft. The main purpose of air traffic control systems is to avoid and prevent collisions while maintaining and organizing the flow of traffic by providing useful and supportive information to the pilots.

The rapid increase in tourism is leading to the growth in air traffic across the globe. The passengers are preferring airplanes to travel and reduce the travel time, creating a positive outlook for the market. According to the International Civil Aviation Organization, globally, over 400 departures of commercial aircraft take place per hour. This number is projected to increase over time with growing market trend of air travel. To reduce the collisions of planes and accidents, the demand for air traffic control systems is increasing, driving the market.

Various airports across the globe are investing to upgrade their systems and enhance the overall safety of the aircraft by providing proper communication. For instance, in October 2018, Malaysian ATC offered a contract to Thales Group to upgrade Kota Kinabalu’s Flight Information Region’s (FIR) air traffic control (ATC) system. The Thales Group will provide TopSky-ATC system to the airport. These systems are mounted with the latest technologies including ADS-B (Automatic Dependent Surveillance-Broadcast) ground stations, DVOR-DME, and radars, which is poised to increase the demand for the market.

There are various factors hampering the market expansion including cyber security issues, high initial cost, lack of skilled personnel, and lack of infrastructure across various regions. The advancement in technology and digitalization have increased the cyber threats for air traffic management, hampering the industry growth. The Air Navigation Service Providers (ANSP) plays a vital role in air traffic control by providing communication and information services to pilots and operators. These providers share data related to aircraft crossing, flight path, weather conditions and provide guidance associated with take-off and landing.

The rising demand for connected airports, airlines, and other connected systems of air traffic control and exchange of data are more vulnerable to potential cyberattack, which is a major factor hindering the market value. However, to overcome the challenges, the companies are introducing new and advanced systems to reduce the cyberattacks to a minimal range.

The ATC market was severely impacted during the first three quarters of 2020 due to the emergence of COVID-19 pandemic. To reduce the impact of the pandemic, several governments had taken measures including travel restrictions, mass quarantines, and restrictions toward production of the systems. These restrictions have shown a negative impact on the industry expansion of air traffic control systems on a large scale.

Increasing demand for communication systems will augment the hardware segment

The hardware segment dominated more than 70% of the market share in 2020. The high share can be credited to the rising demand for communication, surveillance, and navigation systems to reduce collision and maintain air traffic.

The upgrading of voice and data services along with improvements in transmission and communication systems is predicted to escalate the industry size of the communication hardware during the forecast period. The implementation of new and advanced hardware in the airport is propelling the market progression.

Modification in airports is impelling the air traffic control tower (ATCT) market demand

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The air traffic control tower (ATCT) segment accounted for USD 2.5 billion in in 2020 owing to increasing demand for a large number of ATCT towers in several countries. Airport traffic control towers offer orderly, safe, and expeditious flow of traffic in the premises of an airport. These towers are majorly implemented within the aeronautical facility for operation across airports in various regions including North America, Europe, and Asia Pacific.

The growing brownfield projects for modernization of the existing systems and equipment across old airports is also fueling the ATCT segment growth.

Rising investments in commercial airports will surge the industry progression

The commercial segment in the ATC market is anticipated to witness 5% growth rate through 2027 led by the growing investments by private and government agencies for improvising the airport facilities and air traffic management systems, showing a positive outlook on the market. For instance, in 2018, around USD 650 million was invested in the Birmingham International Airport in the UK for major terminal transformation and airfield reconfiguration by 2033. This investment is set to increase the demand for the market in near future. The growing investments and advancements in technology are driving the market across the globe.

Growing investments will spur the growth for North America region

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North America air traffic control market size was over USD 2.5 billion in 2020. The rising investments and deployment of new technologies, such as communication, surveillance systems, and navigation systems, are offering a robust growth opportunity for the industry. The increasing air traffic across various airports in the region is also playing a vital role in the industry revenue.

Technological innovations and new product launches will foster the market share

Market players are focused on the development of new products and solutions to increase their offerings and gain a competitive edge in the industry. For instance, in March 2021, Thales Group launched a surveillance radar, RSM NG, which will be used in air traffic management (ATM). The radar has the capability to track around 2,000 flights and broadcast 64 simultaneous data outputs to several air traffic control centers (ATCC), showing a positive impact on the market.

The prominent companies in this market include BAE Systems, Frequentis AG, Honeywell International Inc., Indra Sistemas, S.A, L3Harris Technologies, Inc., Leonardo S.P.A, Lockheed Martin Corporation, Adacel Technologies, Nats Holding, Nav Canada, Northrop Grumman Corporation, Raytheon Company, Saab Ab, Skysoft-Atm, and Thales Group.

The air traffic control (ATC) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027 for the following segments:

Market, By Component:

  • Hardware
    • Communication Systems
    • Navigation Systems
    • Surveillance Systems
  • Software
  • Services

Market, By Center:

  • Air Route Traffic Control Center (ARTCC)
  • Terminal Radar Approach Control (TRACON)
  • Air Traffic Control Tower (ATCT)
  • Flight Service Station (FSS)

Market, By End-Use:

  • Commercial
  • Defense

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The air traffic control (ATC) market value exceeded USD 7 billion in 2020 and will expand at a CAGR of 5% from 2021 to 2027.
Hardware component accounted for more than 70% of industry share in 2020 and will grow owing to the surging demand for surveillance, communication, and navigation systems for the reduction of collision and the maintenance of air traffic.
Air traffic control towers market held a valuation of USD 2.5 billion in 2020 and will grow with increasing demand for large number of ATC towers in numerous countries.
The overall market share from commercial segment will grow at 5% rate through 2027 with increasing investment by government and private agencies to improve air traffic management system and airport facilities.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 15
  • Tables & Figures: 220
  • Countries covered: 15
  • Pages: 180
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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