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The air traffic management and control market is estimated to increase by USD 3.91 billion and grow at a CAGR of 5.72% between 2023 and 2028. Market expansion relies on several factors, including the uptick in air traffic, the demand for shielding against adverse weather, and the growing significance of defense aircraft. However, challenges impede this growth, such as the steep expenses linked with networking technologies and connectivity hardware, safety apprehensions, and the accurate identification of precipitation threats. Addressing these challenges is vital for sustaining market momentum. This entails exploring cost-effective solutions for networking technologies, prioritizing safety protocols, and enhancing precipitation hazard detection accuracy. Despite these obstacles, the market remains dynamic, driven by ongoing innovations aimed at enhancing aircraft safety, optimizing operational efficiency, and meeting the evolving needs of aviation and defense sectors. Collaboration and innovation will be key in overcoming these challenges and fostering continued growth in the aviation industry.
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The market encompasses various elements, including air traffic control services and air traffic solutions provided by ground-based controllers. These services, along with alerting services and flight information services, are vital for ensuring the safety of aircraft and managing flights effectively. To enhance air safety and mitigate risks such as collision prevention and cyber threats, there's a constant need for advanced air traffic management infrastructure and traffic management infrastructure. Emerging nations are increasingly investing in high-tech solutions, including high altitude long endurance UAVs and medium altitude long endurance UAVs, driven by growing consumer disposable income. Organizations like the Civil Aviation Administration of China are pivotal in setting standards for aircraft security across civil transport airports, ensuring optimal passenger handling capacities and efficient cargo capacities despite challenges like flight delays and bad weather conditions. Additionally, advancements in unmanned aerial vehicles (UAVs) are transforming airports with innovations like vertical take-off and hybrid aircraft. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing air traffic is notably driving the market growth. Commercial aircraft OEM invests in a new generation of aircraft characterized by optimal fuel consumption and lower carbon dioxide emissions and noise. The increased demand for air travel further boosted the demand for such aircraft. Demand for air travel is expected to double over the next 20 years. Increased demand and acquisition of new-generation aircraft will increase the demand during the forecast period.
Annual growth in air traffic has led to the introduction of a new generation of aircraft. The demand for air traffic management and air traffic control is expected to increase with the number of new-generation aircraft and the growing air traffic. In March 2022, Thales announced the delivery of the most technologically advanced air traffic control system, TopSky - ATC, to Dubai International Airport, the world's busiest airport. Therefore, the growth of the focus market during the forecast period will be driven by the increasing procurement of air traffic services from various airports.
The increasing need for effective modernization is the key trend in the market. Currently, air traffic control systems face a number of new vulnerabilities and challenges, including exposure to private and public actors and cyber security issues. International airspace is becoming more complex as the growth of global air passengers, advanced network systems and high cyber security risks have made air traffic management reform even more critical.
Effective modernization, including technological innovation, public-private partnerships, and shared safety priorities, must be implemented to improve efficiency. Only a balance of innovation and safety can safely deliver air traffic control and management systems that ensure better safety and more efficient travel. Thus, new and effective air traffic and control system modernization plans and initiatives will be the focus of market growth during the forecast period.
High costs associated with networking technologies and connectivity hardware is the major challenge impeding market growth. Huge investments in the technology, strict regulatory frameworks from agencies such as the US Federal Aviation Administration (FAA), and high installation costs may hinder the growth of the global market. Additionally, demand for enhanced digital content and high maintenance costs associated with the installation may challenge the market. The customer value proposition is also a challenge as content needs to be updated at regular intervals.
Upgrading existing air traffic control and management systems requires high operating costs, significant installation time, and certification requirements, as the market is very dynamic. In addition, the need to update and maintain consistency across the entire fleet adds to the technological complexity. Embedded systems must, therefore, ensure a high return on investment in air traffic control and management systems. Therefore, high costs will adversely affect the focus market and slow down its growth during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
SITA - The company offers air traffic management and control through various applications such as ATIS or Automatic Terminal Information Service, VOLMET or weather information during flight, DCL or Departure Clearance, and CPDLC or Controller Pilot Datalink Communication. They offer security solutions for air navigation providers, airlines, airports, and governments.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the communication segment will be significant during the forecast period. Air traffic management and control include air traffic control in and around airports, airport terminals, and airspace. A big part of air traffic control is communication and the underlying technology. The task of air traffic control towers is to ensure a safe distance between all aircraft, both in the air and on the ground, to prevent accidents. Voice Control System controls and connects various voice communication systems used in air traffic control such as very high frequency (VHF) Tx/RX, telephone, and other air traffic control communications. This will facilitate market growth during the forecast period.
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The communication segment was valued at USD 3.15 billion in 2018. Air traffic management requires advanced communication services that enable efficient ground and air traffic control and continuous communication between airports, national air traffic control centers, and aircraft. In air traffic management and air traffic control, communication must always ensure reliable and safe operation. Therefore, due to the increasing need for advanced communication systems for air traffic management and air traffic control, the segment is projected to grow during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth of the North American market is mainly supported by the solid aviation infrastructure of the region. The region is home to technically highly advanced aerospace companies that largely meet regional demand for aircraft parts, systems, and components and has a solid foundation for the development of advanced air traffic control and management systems. The rapid growth in global demand for new aircraft, especially for commercial airlines, has also triggered investment in the aircraft manufacturing sector, which has channeled significant resources into the development of air traffic control and management systems and related technologies in the region.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is evolving rapidly due to increased air passenger traffic and the need for sustainability and efficiency of airports. Companies like Raytheon Intelligence & Space and Kongsberg Defence & Aerospace are leading advancements in AI and Machine Learning, cloud computing, and blockchain to enhance air traffic controls. Innovations such as remote towers and infrastructure upgrades at facilities like the Concord-Padgett Regional Airport in the City of Concord improve air passenger handling capacities. The IATA (International Air Transport Association) emphasizes managing the congestion of airspace and global aircraft movements. Upgrades in power systems and air route traffic control centers are essential for handling global air traffic. Additionally, investments in technologically advanced air fighters, airport construction, and systems for landing aircraft enhance the integrated dynamic management of associated airspace.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.72% |
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Market Growth 2024-2028 |
USD 3.91 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.32 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 42% |
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Key countries |
US, China, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adacel Technologies Ltd., Advanced Navigation and Positioning Corp., Aquila Air Traffic Management Services Ltd., BAE Systems Plc, Frequentis AG, Honeywell International Inc., Indra Sistemas SA, Intelcan Technosystems Inc., L3Harris Technologies Inc., Leidos Holdings Inc., Leonardo Spa, NEC Corp., Northrop Grumman Corp., QinetiQ Ltd., RTX Corp., Saab AB, SITA, SkySoftATM, Telephonics Corp., and Thales Group |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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