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Air Traffic Management Market Share, Size, Trends, Industry Analysis Report, By Application (Communication, Navigation, Automation, and Surveillance); By Airspace; By End-Use; By Region; Segment Forecast, 2022 - 2030
The global air traffic management market was valued at USD 7.48 billion in 2021 and is expected to grow at a CAGR of 8.15% during the forecast period.
Changes in the aviation industry due to the development of innovative and advanced technologies, rising investments, and increased air passenger traffic are projected to drive the growth of the global market during the forecast period. Moreover, rapid growth in the need for safe, highly secure, efficient, and environmentally sustainable air navigation systems for maintaining the sustainability and efficiency of airports is also likely to foster the growth of the global market over the coming years.
Furthermore, rising focus on industrialization and construction of new airports, mainly in developing nations such as India, China, and Indonesia, to expand their air passenger handling capacities and cargo capacities are also expected to propel the demand and growth of the market throughout the forecast period.
According to our findings, India plans to construct 80 new airports in a few years. Currently, India's aviation industry growth rate is around 9%, which is expected to reach double digits in the coming years. In the last eight years, India has seen a growth of 74 to 141 airports, and it is expected to reach a value of around 220 in the coming years.
The COVID-19 pandemic has significantly impacted the aviation services market due to the various travel restrictions on international and domestic flight services in many countries around the globe, which is causing an unexpected decrease in global air traffic. The high decrease in air passenger traffic led to slowing down the investments towards procurements in air traffic management systems and services in 2020.
An exponential growth in air traffic around the globe and mainly in developing nations, including China and India, coupled with the rising consumer spending capacity, are major key factors projected to drive the growth of the global market over the forecast period. Furthermore, a rise in investment in airport infrastructure to provide more enhanced and improved air travel facilities to global consumers is also likely to boost the demand and growth of the market at a significant rate in the near future.
The market is primarily segmented based on application, airspace, end-use and region.
By Airspace
By End-Use
Air Traffic Services
Air Traffic Flow Management
Aeronautical Information Management
Automation segment is expected to witness fastest growth
The automation segment is likely to grow the fastest during the forecast period. High engagement in stimulations among airports and air traffic controllers, coupled with the rising use of remote towers across the globe are the key factors projected to drive the growth of the segment market over the coming years. Furthermore, a rapid increase in the number of flights offered by the various airlines for international and domestic passenger movement has also increased the demand for the segment market at a significant pace.
Moreover, a continuous rise in investments in the development sector is also likely to fuel the segment growth in the coming years. For instance, in April 2022, the Federal Aviation Federation announced its investment of around USD 1 billion under the President's Bipartisan Infrastructure Law for the modernization, tower replacement, infrastructure upgrades, and upgrade to power systems at air route traffic control centers, TRACON, and others.
Air traffic services segment accounted for the largest market share in 2021
High usage of air traffic services among various segments like air traffic controls, flight information services, and alerting services, along with the handling of most crucial tasks due to many flight operations that usually occur day in and day out, are the major factors driving the growth of the market at a strong rate.
Moreover, an extensive rise in global air traffic and congestion of airspace around the globe, coupled with the growing need for advanced capabilities of the current existing airspace, are also expected to fuel the growth and demand for the segment in the near future. According to our findings, global aircraft movements in the year 2021, close to 74 million, with a gain of nearly 18.7% from 2020. Of which, the top 20 airports, representing 12% of the global traffic, around 8.7 million movements, accounted for a gain of 15.7% from their 2020 results.
Commercial segment held a significant revenue share in 2021
The rising prevalence of air travel globally has resulted in increased air traffic, which is further likely to increase the demand for air traffic management solutions. This is expected to have a positive impact on the growth of the segment market at a significant growth rate over the coming years. Additionally, the growing requirement of maintenance and upgradation for extending the durability and performance of ATM systems across the globe is likely to be another key factor driving the growth of the segment market during the forecast period.
Furthermore, the military segment is anticipated to witness strong growth during the forecast period owing to rising adoption of various technologically advanced air fighters, high altitude long endurance UAVs, and medium altitude long endurance UAVs across several developing regions such as India, China, and Indonesia. Moreover, the rising procurement of various types of military aircraft is fueling the demand and growth of air traffic management and consulting solutions.
The North America region held the largest market share in 2021
Increasing adoption of next-generation technologies for the enhancement of airport and airport operation efficiency coupled with the large aviation industry in the region are major factors driving the growth of the market during the forecast period. In addition, the wide presence of large market players such as Northrop Grumman Corporation, Honeywell International Inc., Raytheon Technologies Corporation, and Lockheed Martin Corporation is anticipated to boost the demand and growth of air traffic management systems in the region.
Furthermore, Asia Pacific region is witnessing fastest CAGR over the forecast period. High industrialization, modernization of existing airports, and rising consumer disposable income are key factors projected to fuel the market growth in the region over the coming years.
Additionally, the increasing airport construction and rising focus on aircraft security are other key reasons propelling the demand for ATM systems in the Asia Pacific region. For instance, in January 2022, the Civil Aviation Administration of China announced its plan to increase the number of civil transport airports in the country to over 270 by 2025. The construction of these new airports will enable the country to handle 17 million aircraft movements and grow the passenger handling and cargo capacities to over 930 million passenger and 9.5 tonnes, respectively.
Some of the key market players operating globally are Northrop Grumman Corporation, Honeywell International Inc., Thales Group, L3 Harris Technologies Inc., Raytheon Company, Intelcan Technosystems Inc., Global Eagle Entertainment Inc., Becker Avionics Inc., BAE Systems Plc., Sierra Nevada Corporation, Thales Group, Kongsberg Geospatial, Frequentis AG, The Aeronav Group, Advanced Navigation & Positioning Corporation Inc., and Searidge Technologies Inc.
In June 2022, Advanced ATC Inc., a Georgia-based, United States-based air traffic control academy, announced their investment of USD 4.7 million at Craig Airfield for establishing the 1st air traffic control establishment to handle the traffic of several airports. The new remote tower performs operations with the help of cameras and other advanced technologies to handle operations remotely.
In May 2022, Saudi Arabia unveiled its plan to invest around USD 100 billion into its aviation sector by the end of 2030 under its "Vision 2030 initiative" to strengthen the country's position as a world-class aviation hub. The country plans to increase its passenger handling capacity to around 330 Mn and air cargo to around 4.5 Mn tons.
Air Traffic Management Market Report Scope
USD 15.01 billion
8.15% from 2022 – 2030
By Application, By Airspace, By End-Use, By Region
Northrop Grumman Corporation, Honeywell International Inc., Thales Group, L3 Harris Technologies Inc., Raytheon Company, Intelcan Technosystems Inc., Global Eagle Entertainment Inc., Becker Avionics Inc., BAE Systems Plc., Sierra Nevada Corporation, Thales Group, Kongsberg Geospatial, Frequentis AG, The Aeronav Group, Advanced Navigation & Positioning Corporation Inc., and Searidge Technologies Inc.
Global Air Traffic Management Market Size, Share & Growth Analysis Report, 2022-2030