Air Traffic Management Market

Global Air Traffic Management Market Size

The global air traffic management market was valued at USD 9.11 billion in 2023 and is foreseen to reach USD 13.07 billion by 2032 from USD 9.48 billion in 2024, registering a CAGR of 4.1% from 2024 to 2032.

Air traffic management (ATM) is considered to cover all activities to ensure a safe and disciplined flow of air traffic without any errors. The most important objective of this management is to reduce the problem of congestion at airports. Air Traffic Control (ATC), Air Traffic Flow Management (AT n FM), and Airspace Management are among the crucial services of ATMs. This type of air traffic management is possible by combining essential services such as air traffic control and aeronautical information management. It is dynamic management that guarantees the safety of the airspace with adequate navigation services. Moreover, it regulates the flow of daily traffic. The main objective of air traffic control is to maintain a sufficient difference between aircraft to avoid collisions on the ground by suggesting the right direction during a flight. The management of air traffic flows and capacities mainly regulates the flow of aircraft in the most efficient way possible to avoid congestion.

Air traffic management (ATM) involves various systems that assist an aircraft from its departure to its landing at its destination, including the transit stage.

MARKET DRIVERS

The construction of new airports and the expansion of existing airports have generated demand for air traffic management equipment worldwide. Several airports are also replacing outdated IT equipment with new, state-of-the-art equipment to improve the efficiency of air traffic management operations. Over the years, hardware costs have decreased, and reliability has increased mainly due to technological advances. The construction of new ATC towers is supposed to increase the need for more ATC equipment in the coming years. For instance, the Serbian and Montenegrin Air Traffic Services published their initiative to construct a new air traffic control tower at Serbian Konstantin Veliki Airport in Nis in 2021. It is also expected that the construction of a new ATC tower at Kolkata airport, India, will be completed before 2020. However, the procurement and installation of communication, surveillance and navigation equipment are supposed to be completed in 2021. Such developments will drive growth in this industry during the forecast period.

Growth in passenger traffic attracts investment in the market as airports increase their capacity to serve passengers. Some of the essential factors affecting the development of the air traffic management market include the increase in the number of airports, the need for better airspace management systems, and the number of passengers. In addition, the potential risk of cyber threats, the high cost of ATC systems, and the adoption of satellite air traffic control systems are also having a significant impact on the market. Each of these factors is estimated to have a definite impact on the global air traffic management market during the forecast period. Airports Council International (ACI) works for various airport authorities worldwide due to the increasing demand for air travel and the importance of investments in airport infrastructure.

MARKET RESTRAINTS

The air traffic management and advisory system involve many material costs, such as screens, monitors, communication systems, radars, navigation, surveillance systems, etc. These systems often comprise advanced technology and complex engineering for implementing new developments. Various components and machines are used to establish a significant infrastructure for efficient systems. This factor makes the system a costly expense to develop the infrastructure for the airport facilities.

REPORT COVERAGE

REGIONAL ANALYSIS

North America accounted for a significant share of the global market in 2023 and the lead of North America is likely to continue during the forecast period due to the increasing military investments and the availability of market giants in this locale.

KEY PLAYERS IN THE GLOBAL AIR TRAFFIC MANAGEMENT MARKET

The competitive landscape of the air traffic management and consulting market illustrates the dominance of select players such as Thales Group, Harris, Northrop Grumman Corporation, and Honeywell International. ATC's diverse product portfolio and increased investment in R&D and strategic acquisitions are some of the main factors responsible for the dominance of these companies.

RECENT HAPPENINGS IN THE MARKET

• In January, The National Apprenticeship Training Scheme (NATS), the UK's air traffic management service provider, started testing an AI-powered digital tower at Heathrow to minimize flight delay issues. NATS has invested over £ 2.5million to understand how technology can support air traffic operations to gain a competitive advantage.
• In May, Harris Corporation, based in Florida, USA, won a $ 141 million contract with the Airports Authority of India (AAI) to develop a futuristic telecommunications infrastructure. This will improve network operation and aviation safety and improve air traffic management performance in India.

DETAILED SEGMENTATION OF THE GLOBAL AIR TRAFFIC MANAGEMENT MARKET INCLUDED IN THIS REPORT

This research report on the global air traffic management market has been segmented and sub-segmented into the following categories.

By Airspace

• ARTCC       
• TRACON   
• ATCT         
• Remote Tower       

By Application

• Communication     
• Navigation              
• Surveillance            
• Automation            

By Offering

• Hardware 
• Software & Solutions          
• Services    

By Airport Size

• Large         
• Medium    
• Small         

By Sectors

• Commercial            
• Military & Defense

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa