The global air traffic control equipment market is set to gain momentum from the increasing investment by public & private companies in the aviation industry. This information is given by Fortune Business Insights™ in a recently published report, titled, “Air Traffic Management & Consulting Market Size, Share and Industry Analysis by System (Air Traffic Services, Airspace Management, Air traffic Flow Management, Aeronautical Information Management), By Component (Hardware, Software), By End Use (Commercial, Tactical), and Regional Forecast, 2020- 2027.” The report further states that the air traffic management & consulting market size was USD 13.30 billion in 2019 and is projected to reach USD 16.53 billion by 2027, thereby exhibiting a CAGR of 5.58% during the forecast period.
The emergence of COVID-19 has brought the world to a standstill. We understand that this health crisis has brought an unprecedented impact on businesses across industries. However, this too shall pass. Rising support from governments and several companies can help in the fight against this highly contagious disease. There are some industries that are struggling and some are thriving. Overall, almost every sector is anticipated to be impacted by the pandemic.
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This Report Answers the Following Questions:
- What are the significant market trends, challenges, opportunities, growth drivers, and barriers?
- Which region is anticipated to lead the market by generating the largest revenue?
- How will the key companies cope up with the outbreak of Covid-19 pandemic?
- Which segment is likely to hold the highest share in the near future?
Drivers & Restraints-
Rising Adoption of AI Technology to Drive Growth
The officials of a large number of prominent agencies, such as Council of International Civil Aviation Organization (ICAO) and Civil Air Navigation Services Organization (CANSO) are expressing their concerns regarding the high air traffic by air taxi services and unmanned aircraft. These regulatory bodies are apprehensive about the security and safety of air congestion that is occurring because of the rising usage of such services. Many of these agencies are gradually shifting towards artificial intelligence (AI) to improve the communication process. It would also help in enhancing the exchange of information between the air traffic control (ATC) authority and the aircraft in real-time. It is set to thereby boost the air traffic management & consulting market growth in the coming years.
How Will the Outbreak of Covid-19 Pandemic Affect the Market?
- The global economy is falling persistently because of the spread of the deadly coronavirus worldwide.
- The aviation industry is expected to suffer a heavy loss throughout the forthcoming years.
- The International Air Transport Association (IATA) mentioned that the global aviation industry is anticipated to experience a drop of USD 314 in 2020. It refers to a revenue loss of around -55%.
- Owing to the rapid spread of the virus, almost every country is under lockdown. It has thus, brought the industry to a standstill.
- Since the past three months, there has been a tremendous decline in the number of passengers. It is also set to severely affect the investments by the key companies in developing unique air traffic management & consulting systems.
Aeronautical Information Management Segment to Grow Rapidly Owing to Rising Operation of Flights
Based on system, the market is segregated into aeronautical information management, air traffic flow management, airspace management, and air traffic services. Amongst these, the air traffic flow management segment generated 21% air traffic control equipment market share in 2019. The aeronautical information management segment is expected to grow at a fast pace in the coming years backed by its ability to perform the most vital tasks efficiently. The increasing operation of numerous flights across the globe would also augment growth.
Rising Investment in Tourism Sector to Bolster Growth in the Middle East
In 2019, North America procured USD 4.30 billion in terms of revenue stoked by the increasing number of air traffic management & consulting system manufacturers in this region. Europe would lead the market owing to the presence of industry giants, such as Saab AB, Indra Sistemas, BAE System, and Thales Group. In Asia Pacific, the market would exhibit rapid growth fueled by the rising number of airports in various countries. Airport authorities are therefore planning to upgrade and modernize the existing air traffic management & consulting systems. In addition to this, developing countries, such as China and India possess several planned airport construction projects. In the Middle East, the presence of international airports would accelerate growth. The region is likely to exhibit high CAGR backed by the growing investment in the tourism sector.
Key Players Focus on Introducing Innovative Air Traffic Control Equipment
The market houses various companies that are mainly following the organic or inorganic strategies of signing long-term contracts with the airport authorities, launching state-of-the-art air traffic management & consulting systems, and acquiring other start-ups companies. Below are two of the latest industry developments:
- May 2018: Harris Corporation was awarded a contract by the Airport Authority of India (AAI). It is worth USD 141 million and will enable the company in creating Futuristic Telecommunication Infrastructure. It will not only help in enhancing the performance of India’s air traffic management, but also improve air safety and network operation.
- October 2018: Inverness Airport in Scotland recently operated with the help of InNOVA approach. It also included the Tower display surveillance data processing system. These were provided to the airport by Indra Navia.
Fortune Business Insights™ lists out the names of all the organizations providing air traffic management & consulting. They are as follows:
- Thales Group (France)
- Raytheon Company (The U.S)
- Indra Sistemas, S.A. (Spain)
- Harris Corporation (The U.S.)
- Northrop Grumman Corporation (The U.S.)
- Honeywell International, Inc. (The U.S.)
- BAE Systems PLC (The UK)
- Saab AB (Sweden)
- Lockheed Martin Corporation (The U.S.)