Air Traffic Control (ATC) Market worth over $10bn by 2027

Air Traffic Control Market size is set to surpass USD 10 billion by 2027, according to a new research report by Global Market Insights Inc.
 

Rising advancement in technology and deployment of various AI-based solutions in air traffic control are driving the market growth. For instance, remote air traffic control management system, also known as digital air traffic control tower, was developed to allow operators to manage air traffic.
 

ATC systems can manage the traffic from a remote location, making the requirement of physical presence obsolete. Advancements in internet connectivity (5G Network) are providing effective ways of communication by bridging the gap of distances for operation.
 

The growing investments for improving the air traffic control systems across the globe is boosting the market expansion. In March 2019, Chicago Department of Aviation (CDA) invested over USD 1.2 billion in the development of O’Hare international airport terminal 5. Similarly, the rapid high safety demand and requirement for technological advanced technologies, such as machine learning (ML), artificial intelligence (AI), and IoT, are expected to foster the industry growth.  
 

One of the major factors hampering the air traffic control market value is the lack of skilled operators and high cost of the systems. The cost of communication systems, navigation systems, and surveillance systems is high, which impacting the industry expansion. Additionally, the rising services and regular maintenance of the systems also add the cost, affecting the market progression.
 

The COVID-19 has negatively influenced the air traffic control market. The implementation of lockdown in various countries led to the halt in development and construction of airports worldwide, resulting in reduced demand for ATC systems. In addition, the temporary suspension of manufacturing activities owing to disruption in the raw material supply chain is showing a negative market trend.
 

Demand for the software segment will proliferate during the forecast timeline

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The software segment in the air traffic control market is predicted to witness around 8% growth rate through 2027 due to the rising demand for advanced technology and software algorithm to reduce the errors while performing the operations. The software provides real-time data associated with the air traffic, weather conditions, speed, and other conditions of aircraft and the environment, reducing the risk of collisions and accidents. This leads to increase in the demand for air traffic control systems software.
 

Browse key industry insights spread across 180 pages with 200 market data tables & 21 figures & charts from the report, Air Traffic Control Market Size By (Hardware [Communication, Surveillance Navigation], Software, Services), By Centers (Air Route Traffic Control Center (ARTCC), Terminal Radar Approach Control (TRACON), Air Traffic Control Tower (ATCT), Flight Service Station (FSS)), By End-Use (Commercial, Defense), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/air-traffic-control-market
 

Rising development of air route traffic control center (ARTCC) is propelling the market revenue

The air route traffic control center (ARTCC) is projected to grow at a CAGR of 3.5% by 2027. The ARTCC offers services including assigns altitude, route assignment, and traffic separation. There are over 20 air route traffic control centers present in the U.S. and is poised to increase over the years to enhance the overall air traffic control services.
 

Proliferation of defense airbase will fuel the market demand

The defense segment accounted for 25% of the ATC market share in 2020 led by the rising partnerships and investments made to improve the overall operations and functionality of military systems. For instance, in April 2020, Norway signed a revised agreement supplementary defense cooperation agreement (SDCA) to allow the U.S. to develop facilities in the country’s airfields and a naval base to strengthen the cooperation between the two countries. This cooperation is showing a positive impact on the market.
 

Implementation of new technologies and systems in Europe will augment the adoption of air traffic control systems

The Europe air traffic control market size was over USD 2 billion in 2020. The presence of various companies in the region including BAE Systems, Indra Sistemas, S.A, Frequentis AG, Leonardo S.P.A, Nats HOLDING, and SAAB AB is also spurring the industry value as these companies launch new products and focus on strategic partnerships and acquisitions.
 

Several industry players and government authorities are actively forming partnerships and collaborations for the implementation of advanced systems. For instance, in December 2019, the members of the SESAR Deployment Alliance and the EUROCONTROL Network Manager proposed to form a new partnership to manage the modernization & digitalization of a sustainable European Air Traffic Management (ATM) system. The proposal submitted to the European Commission also includes a request for funds to carry out R&D operations to develop innovative technologies in the ATM sector, impelling the market growth.
 

The key companies operating in the air traffic control market include Thales Group, Skysoft-Atm, Saab Ab, Raytheon Company, Northrop Grumman Corporation, Nav Canada, Adacel Technologies, Nats Holding, Lockheed Martin Corporation, Leonardo S.P.A, L3Harris Technologies, Inc., Indra Sistemas, S.A, Honeywell International Inc., Frequentis AG, and BAE Systems. The participants are focusing on strategic acquisitions & partnerships and product launches to enhance their business operations and global presence.