Air Traffic Management Market Size By Component (Hardware [Communication, Navigation, Surveillance], Software), By System (Air Traffic Control, Airspace Management, Air Traffic Flow Management, Aeronautical Information Management), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Air Traffic Management Market size valued at USD 8 billion in 2020 and is expected to grow at over 3% CAGR between 2021 and 2027. The growing trends of strategic partnerships & collaborations between industry players is enhancing the industry growth of air traffic management systems.
 

The proliferation of airport construction and renovation activities will drive the air traffic management industry globally. The market is also driven by rising investments by airport & government authorities for the construction and development of new airports. In August 2020, the Argentinean government announced its plan to invest USD 1.4 billion over the next four years to improve the operational efficiency of airports. The ongoing expansion of international airports with the integration of advanced air traffic management systems is creating new growth opportunities.
 

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Factors hampering the market include the risk of cybersecurity threats associated with data transmission through ATM systems. The use of Information and Communications Technology (ICT) in air traffic management systems has increased rapidly. ICT technology is used in in-flight aircraft control systems, ATM systems, and internal airport computer systems, augmenting market growth. Air traffic management systems and their components are connected to the Internet, which makes them susceptible to hacking. Such incidents may lead to severe collateral damages, posing challenges to the industry.
 

The air traffic management market witnessed a sluggish growth during the first two quarters of 2020 due to the escalating spread of the COVID-19 pandemic. Strict measures undertaken for the containment of the virus have impacted the industry statistics of ATM systems on a large-scale. Market factors including a shortage of labor and raw materials have resulted in several problems in the development and design of new air traffic management solutions. This has created a wide gap in supply and demand, impacting industry statistics. Restrictions imposed on domestic and international travel have also impacted the air traffic management industry during the first two quarters of 2020.
 

Increasing technological innovations and advancements will augment the software segment growth

The software segment is projected to witness high growth of around 3.5% CAGR through 2026 owing to rising technological innovation in air traffic management solutions. Technology providers are focusing on offering innovative solutions to enhance airport efficiency and allow smooth operations of the airlines, contributing to the growing market penetration.
 

In August 2019, Northrop Grumman received an assignment to deliver T6 radio to Airservices Australia. The radio is Internet Protocol (IP) capable Very High Frequency (VHF) ground to air equipment, which will be delivered to the region over the next five years. This assignment assisted the company to enhance its business operations.
 

Increasing demand for air traffic control will propel market demand

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The air traffic control system exceeded USD 5 billion revenue in 2020 impelled by its heavy adoption at airports. Air traffic control software plays a substantial role in reducing flight delays during irregular weather situations.
 

The introduction of advanced systems with increasing airspace congestion is supporting the air traffic control software market growth. For instance, in April 2019, Frequentis and Sunhillo jointly constructed a technologically advanced UAS-connector system for securely connecting the UAV pilot with air traffic control units. The introduction of these technologically upgraded systems will augment the companies to enhance their business reach.
 

Supportive regulations on air traffic management will fuel the North America market revenue

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The North America air traffic management market was around USD 2 billion in 2020 and is forecast to register high growth rate through 2027. Significant initiatives undertaken by the governments and airport authorities are supporting the regional market trends. The Federal Aviation Administration (FAA) with other regulatory bodies in the North American countries are responsible for supervising the operations of air traffic management across the region. These authorities focus on providing customers with improved facilities on account of increased air passenger demand.
 

The rapid increase in the frequency of flights offered by the airlines to cater to the rising demand for domestic and international passenger movement has increased the demand for air traffic management solutions at the airports. For instance, in 2018, FAA in the U.S. operated over 21 air route traffic centers and around 518 air traffic control towers, extending services to over 150 airliners. Air traffic administrations are investing in refining the infrastructure, proliferating the market representation in the country.
 

Players are focusing on partnerships and contracts to enhance the market share

Manufacturers are primarily focusing on entering into partnerships and contracts to enhance their presence and provide enhanced services to end-users in the market. For example, in December 2020, Leonardo S.p.A. received a USD 224.7 million financing from the European Investment Bank to fund investments in technological development. This assisted the company to enhance its technological competency, proliferating the market outlook in 2020. Similarly, in September 2020, BAE Systems signed a contract with Aerion Supersonic to offer the flight control system for the company’s new AS2 supersonic jet. BAE Systems will plan, develop, and integrate the fly-by-wire flight control system, accelerating the market revenues.
 

Prominent players in this air traffic management market include Lockheed Martin Corporation, Raytheon Company, BAE Systems, Thales Group, Northrop Grumman Corporation, Honeywell International, Inc., and Leonardo S.p.A.
 

This market research report on air traffic management includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027, for the following segments:

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Market, By Component:

• Hardware

• Communication
• Navigation
• Surveillance

• Software

Market, By System:

• Air Traffic Control
• Airspace Management
• Air Traffic Flow Management
• Aeronautical Information Management

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

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Poland
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Vietnam
  • Singapore
  • Australia
  • New Zealand
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
  • Colombia
• MEA
  • Saudi Arabia
  • Egypt
  • UAE
  • South Africa
  • Rwanda
  • Kuwait
  • Tanzania