Air Traffic Control Equipment Market - Growth, Trends, and Forecast (2020 - 2025)
The market for air traffic control equipment is projected to grow with a CAGR of over 10% during the forecast period.
- The growth in air traffic has been the main growth driver for the market. The increase is currently more in the Asia-Pacific region, where the number of passengers who travel by air is constantly increasing.
- Increase in the number of airports in emerging economies and the need for efficient airspace management has forced airports and airlines to invest in air traffic control technologies.
- As aircraft operators across the globe have realized the significance of improved Air Traffic Control (ATC) services, they are increasingly investing in the development of innovative air traffic control technologies.
Key Market Trends
Communication Equipment Segment will Continue to Hold a Major Market Share During the Forecast Period
In 2019, the communication equipment segment is estimated to account for the largest share of the market. A large share of the segment is primarily attributed to the fact that the communication between pilots and ground control operators is essential for an orderly flow of information regarding the aircraft information for air traffic management. Earlier, voice communication systems, which involved the transmission of information between air traffic controllers and pilots, were primarily used to manage air traffic. However, these conventional voice communication systems cannot function effectively in congested airspace. This has propelled the need to develop advanced communication equipment for air traffic control, which is attracting huge investments currently. Thus, this segment is projected to grow with the highest CAGR during the forecast period.
Asia-Pacific Market to Grow with the Highest CAGR During the Forecast Period
Currently, North America is the largest market for the air traffic control equipment, due to a large number of airports in the United States and Canada that are installing new ATC equipment for air traffic management. However, Asia-Pacific is projected to be the fastest growing market over the forecast period. Factors such as increasing air travel in the region due to reductions in airfares and the growth in the number of people who could afford air travel, focus on free and fair trade agreements, implementation of stringent aviation safety regulations, airport infrastructure developments, are currently driving the growth of the market in the region.
Thales Group, Harris Corporation, Indra Sistemas, S.A., Raytheon Company, and Collins Aerospace (United Technologies Corporation) are some of the prominent players in the market. New contracts from developing economies are expected to help the players to extend their market presence. For instance, in May 2018, Harris Corporation announced that it received a USD 141 million contract to develop the Airports Authority of India’s (AAI) Futuristic Telecommunications Infrastructure (FTI) initiative. Under the contract, Harris Corporation will upgrade network operations, boosting security and enhancing the performance and quality of India’s air traffic management (ATM) network, all while slashing telecommunications expenses. Such contracts are expected to help the players to further increase their dominance in the market.
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