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, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Sep 2019  |  Report ID: GMI3297  |  Authors: Ankita Bhutani, Preeti Wadhwani

Report Format: PDF   |   Pages: 260   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Air Traffic Management Market size valued at over USD 8 billion in 2018 and is estimated to exhibit around 3 % CAGR from 2019 to 2025.
 

U.S. Air Traffic Management Market Revenue, By System, 2018 & 2025

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The increasing consumer spending in conjunction with shifting preferences toward air travel will drive the air traffic management market size during the projected timeframe. The rising investments from Asia Pacific and the Middle East for the new airport’s development and upgrading of existing airports in North America and Europe are propelling the market. According to the International Air Transport Association (IATA), air passenger traffic is bound to cross 7 billion by 2035 with a yearly growth of over 3.5%. The airport authorities of developed regions are focusing on upgrading the existing airport infrastructure with new air traffic management systems to provide more efficient air traffic services. The Asia Pacific and the Middle East & Africa regions are investing in new airport developments and focusing on regional connectivity. The rise in passenger and cargo movement will increase the demand for new airports and their upgrading in this region. 
 

Increasing investments in airport upgrades in developed regions of North America and Europe have led to a high demand for traffic management solutions. Moreover, due to this, there is a demand for brownfield investments in the aerospace industry. For instance, in 2017, Seattle-Tacoma Airport in the U.S. started its expansion program by investing USD 1.6 billion. The upgrading plan included baggage handling systems, redevelopment of the center runway, new terminal, and expansion of the existing terminal building. Sudan in 2018 started the development of New Khartoum Airport and the project is estimated to cost over USD 1 billion and is expected to be completed by 2021.
 

The ongoing initiatives by tourist countries to develop airport infrastructure will help the air traffic management market grow. For instance, in 2018, Greece invested in the new airport named Kastelli International Airport. The projected is estimated to cost more than USD 500 million. In 2018, the Australian government started the project for a new airport in Western Sydney. The project is estimated to cost around USD 5 billion and will be completed in various phases.
 

Air Traffic Management Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 8 Billion (USD)
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Forecast Period 2019 to 2025 CAGR: 3 % 2025 Value Projection: 10 Billion (USD)
Pages: 260 Tables, Charts & Figures: 330
Geographies covered (28): U.S., Canada, Germany, UK, France, Italy, Spain, Poland, Russia, China, India, Japan, New Zealand, Singapore, Australia, Vietnam, Brazil, Mexico, Argentina, Chile, Costa Rica, Egypt, Rwanda, Kuwait, Tanzania, Saudi Arabia, UAE, South Africa
Segments covered: Component, System and Region
Companies covered (25): Raytheon Company, Indra Sistemas, Harris Corporation, Thales Group, Northrop Grumman Corporation, Honeywell International Inc., Saab AB, BAE Systems, Frequentis Group, Lockheed Martin Corporation, Saipher ATC, Advanced Navigation & Positioning Corporation, Intelcan Technosystems Inc., ALTYS Technology, Searidge Technologies, Leonardo S.p.A, Adacel Technologies Limited, ACAMS Airport Tower Solutions, ARTISYS, s.r.o, Sky Soft, Nav Canada, Avinor AS, Serco group PLC, Kongsberg, NATS Limited
Growth Drivers:
  • North America
  • Supportive regulations for air traffic management
  • Need for upgradation of air traffic management systems
  • Europe
  • Government initiatives- Single European sky air traffic management research
  • Technological advancements and implementation of latest systems
  • Asia Pacific
  • Increase in number of air passengers
  • Rise in investments and airspace coordination
  • Latin America and MEA
  • Development in aviation and aerospace infrastructure in Latin countries
  • Increasing investments in MEA for better air traffic control
Pitfalls & Challenges:
  • Radio frequency restrictions and issues for aviation industry

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Air Traffic Management Market, By Component

The hardware component will account for over 75% of the air traffic management market by 2025 with the introduction of new airports and rising digitalization in the existing airports. Most of the developed regions, such as North America and Europe, are focusing on the upgrading of existing air traffic management to provide better air traffic services to the airlines.
 

The air traffic management software market will witness significant growth with the upgrading of existing systems and upcoming new airports. With the increasing use of AI in air traffic systems, the demand for more advanced software is increasing. For instance, in 2019, the Irish Aviation Authority, (IAA) deployed Iridium NEXT satellite constellation that is hosting Aireon space-based Automatic Dependent Surveillance-Broadcast (ADS-B) payloads. The innovated air surveillance software provides real-time air traffic surveillance and tracking air navigation service providers.
 

U.S. Air Traffic Management Industry Share, By Component, 2025
U.S. Air Traffic Management Industry Share, By Component, 2025

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Air Traffic Management Market, By System

Air traffic control leads the air traffic management market share due to the rising passenger traffic and the introduction of new airlines. The demand for more advanced communication and navigation system is fueling the growth of ATC. For instance, in January 2019, NATS installed AI-powered digital control tower at the Heathrow Airport. The major focus of this control tower is to reduce flight delays.
 

The introduction of the remote and virtual tower is acting as one of the major drivers of the growth. Countries including India and China are focusing on regional connectivity and remote towers, providing cost-efficient solutions for ATM services. For instance. in June 2019, India got a new Centralized Air Traffic Flow Management (C-ATFM) system that will optimize the utilization of resources and cut down on flight delays by coordinating with the aircraft through real-time conditions  
 

Air Traffic Management Market, By Region

In 2018, North America accounted for over 29% share due to the presence of multiple air traffic management system providers. The increasing modernization programs for existing airports in the U.S. and Canada will support the market demand. For instance, in 2018, the U.S. will have over six airports that will complete their upgrading including Boston, Denver, Texas, Chicago, Louisiana, and Tennessee. Further, technological progression and rising automation will enhance the air traffic management market size by 2025.
 

Asia Pacific will witness strong growth with an increase in the passenger traffic. According to the Association of Asia Pacific Airlines (AAPA) in 2018, the passenger traffic grew by around 8% and air cargo grew by over 4.5% as compared to 2017. Further, the rising affordability and low flight fares will boost passenger traffic.
 

Asia Pacific Air Traffic Management Market Share, By Region, 2018
Asia Pacific Air Traffic Management Market Share, By Region, 2018

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Competitive Market Share

Major participants of the air traffic management market include Saab AB, Indra Sistemas, Raytheon, Thales Group, Harris Corporation, Honeywell International Inc., and Frequentis Group. Industry participants are involved in long-term agreements with airport authorities to boost their market share. For instance, in August 2017, Indra Sistemas signed a contract with AirNav Indonesia to modernize three-air control centers in Indonesia.
 

Major players in the market are focusing on strategic partnerships and mergers with other companies and government authorities to increase their market share. For instance, in June 2018, the Honeywell announced its collaboration with the Airport Authority of India (AAI) to voice recognition software for upgrading the air traffic management system across the region. The software will help pilots and air traffic controllers to eliminate the communication problem caused by varying accents. In 2019, the Lockheed Martin was selected by FAA to provide En Route Automation Modernization (ERAM) as a prime contractor and Raytheon as a subcontractor contributing to the design and development of the critical flight and surveillance data processing subsystems. The company will also join Raytheon’s Standard Terminal Automation Replacement System (STARS) to provide its technical expertise during the development phase
 

Industry Background

Air traffic management provides aircraft flow management, aeronautical information management services, communication services, weather forecast services, and other air traffic management services to airlines that are in or traveling to that airport. The system helps in managing the air traffic flow of an airport. The ATM system is one of the most crucial components of any airport system. With the introduction of electronic flight strips, virtual tower integrated with image enhancement, and night vision camera, the efficiency of airports has increased. 


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