The global air traffic control market size is expected to be worth USD 12.15 billion in 2024. It is expected to grow at a CAGR of 4.9% during the forecast period and reach a value of USD 15.43 billion by 2029.
Air traffic control (ATC) is a service provided by air traffic controllers on the ground, which guides the pilot through ensuring the safety of the aircraft both in controlled airspace and on the ground. Additionally, ATC also provides advisory services for uncontrolled airspace. The main objective of ATC is to accelerate air traffic and avoid collisions between different aircraft.
However, the high cost of installing ATC systems is expected to slow market growth. Additionally, the increasing adoption of ATC satellite systems is expected to create new growth opportunities for market players during the outlook period.
The surge in air passenger traffic and increased airport development projects in different regions are acting positively for the aviation industry. The Federal Aviation Administration (FAA) has implemented effective air traffic and airspace control measures. Some of the measures implemented for better use of airspace include the airspace control order, the airspace control plan, and the airspace coordination area. These measures allow the movement of people and air commerce at optimal levels of safety and efficiency and satisfy the country's national security needs. Over the next ten years, there will be a significant increase in air passenger traffic, which is expected to increase delays and congestion in the airspace. Air transport is considered the safest mode of transport compared to all other modes of transport. Also, the global population increase is expected to create a demand for additional airports to facilitate air travel in the east, which is driving the growth of the air traffic control market.
In addition, significant investments are expected to meet the needs of new airports, especially in developing countries. Many developing countries plan to open new airports to facilitate air travel in and out of the country. For example, as part of Prime Minister Narendra Modi's vision to make India a $ 5 trillion economy by the end of 2026, India plans to open an additional 100 airports by the end of 2024. This will directly create additional demand for air traffic control systems, which drive market growth.
The high cost of air traffic management equipment is one of the main obstacles to market growth. Most ATM equipment manufacturers focus on research and development with the aim of introducing new, technologically advanced ATM equipment to provide greater efficiency.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
4.9% |
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Segments Covered |
By Airspace, sector, Offerings, Application, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Raytheon Company (US), BAE System (UK), Thales Group (France), Indra Sistemas (Spain), Frequentis AG (Australia), Harris Corporation (US), Adacel Technologies (Australia), Leonardo S.p.A (Italy), Honeywell Inc (US), Northrop Grumman Corporation (US), NATS Holding (UK), and Saab AB (Sweden). |
The air traffic control tower (ATCT) segment is expected to dominate the air traffic control market in 2021. The increase in airspace congestion and the rising call for advanced equipment are the main factors supporting the expansion of the ATCT segment in the global air traffic control market.
The commercial segment of the air traffic control market is foreseen to register substantial growth over the outlook period. Aircraft flying in commercial airspace rely on predetermined flight routes and a code of business conduct, which vary depending on the type of aircraft and air traffic. Latest technologies built on automated data links are being applied for communication, navigation, and surveillance, which allow aircraft to fly within a global framework of information systems, rather than depend on voice communications between pilots and air traffic controllers.
The air traffic control market in the Middle East is expected to grow at the highest CAGR from 2021 to 2026. This growth is primarily attributed to the modernization of the airport's infrastructure, which in turn has resulted in an increase in acquisitions. Air traffic control equipment to streamline flight operations. Increasing passenger traffic in the Middle East region has contributed to the growth in demand for air traffic services. The United Arab Emirates is the main contributor to the growth of the Middle East market. Considering the number of airports and the increase in passenger traffic, the country leads the general market. Furthermore, the construction of a new airport in the countries considered for the study plays an important role because the new airports will require a control tower. These control towers will be equipped with the latest systems.
The major players in the global air traffic control market are Raytheon Company (US), BAE System (UK), Thales Group (France), Indra Sistemas (Spain), Frequentis AG (Australia), Harris Corporation (US), Adacel Technologies (Australia), Leonardo S.p.A (Italy), Honeywell Inc (US), Northrop Grumman Corporation (US), NATS Holding (UK), and Saab AB (Sweden).
In March 2021, the United States Federal Aviation Administration awarded Leidos and Thales a contract to supply up to 143 secondary surveillance radars for the Replacement of the Mode S Beacon System.
In January 2021, Raytheon Technologies was selected by the United States Federal Aviation Administration to improve usability and reduce operating costs of the Standard Terminal Automation Replacement System (STARS). This technology is utilized by air traffic controllers in the United States to provide safe and effective separation and sequencing guidance for more than 40,000 aircraft departing and arriving at more than 600 civil and military airports.
By Airspace
By Sector
By Application
By Offerings
By Region
Frequently Asked Questions
Key drivers include the increasing number of air passengers, the expansion of airport infrastructure, advancements in technology such as satellite-based air traffic control, and rising demand for enhanced safety and efficiency in air travel.
Technologies such as Automatic Dependent Surveillance-Broadcast (ADS-B), remote and digital towers, artificial intelligence, and machine learning are revolutionizing air traffic management by enhancing safety, reducing congestion, and improving operational efficiency.
Advancements in ATC technologies contribute to more efficient flight paths, reducing fuel consumption and greenhouse gas emissions. This supports global efforts to reduce the aviation industry’s carbon footprint.
Future trends include the increasing use of AI and machine learning for predictive analytics, the growth of satellite-based ATC systems, the development of integrated and interoperable systems for global airspace management, and the expansion of ATC services to accommodate the growing commercial spaceflight industry.
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