Air Traffic Management Market size worth around $10 Bn by 2027

Air Traffic Management (ATM) Market size is set to be over USD 10 billion by 2027, according to a new research report by Global Market Insights Inc.
 

A rapid increase in the demand for airspace administration, modernization in the traffic management systems, and a rise in the number of passenger traffic are some of the key market factors anticipated to drive the industry growth. An increase in the number of air travelers is encouraging airport authorities to focus on enhancing passenger handling capacity.
 

The high-cost associated with air traffic management equipment is one of the major factors hampering the industry demand. Many equipment manufacturers are following a market trend of investing in R&D activities to introduce technologically-advanced equipment to offer efficiency. The newly designed systems require several government clearances and incur a heavy cost for testing, thus are the key industry challenges. These factors contribute to an increase in the overall cost of the air traffic management system, hindering the market representation.
 

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Analyst view: “Increasing demand for the travel & tourism sector in the Latin America region will accelerate the market. A rapid increase in investments related to airport development will further augment the air traffic management market share”
 

The demand for air travel has declined in the first half of 2020 owing to the rising spread of the COVID-19 pandemic in several countries across the globe. OEMs and component providers operating in the air traffic management sector have faced several challenges including a shortage of raw materials and suspension of manufacturing operations. Rising health concerns owing to the spread of the virus are challenging the market size of air traffic management in 2020. However, with the ease in the travel restriction during the second half of 2020, market statistics will propel and witness a medium-paced growth in 2021.
 

Browse key industry insights spread across 270 pages with 229 market data tables & 36 figures & charts from the report, “Air Traffic Management Market Size By Component (Hardware [Communication, Navigation, Surveillance], Software), By System (Air Traffic Control, Airspace Management, Air Traffic Flow Management, Aeronautical Information Management), Industry Analysis Report, 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-management-market
 

Increasing demand for navigation and communication will drive the hardware segment demand

The hardware segment is anticipated to reach USD 7.5 billion by 2027 drive by the increasing need for surveillance, navigation, and communication in the air traffic management market share. Hardware components are necessary for carrying out air traffic control tasks integrated with software solutions. Additionally, advancements in hardware technology to improve the user experience are propelling market demand.
 

The communication system in the aviation sector is mainly focused on increasing the level of safety and mitigating the risk of accidents. Airport authorities are majorly focusing on upgrading their hardware and communication technologies to enhance the efficiency of air traffic control & communication systems. For instance, in July 2019, Systems Interface commissioned and installed three Frequentis 3020X Voice Communication System (VCS) at different positions at the Land’s End Airport in UK. The installation of newly upgraded communication systems will drive the air traffic management market revenue.
 

A significant increase in air traffic will drive the demand for air traffic flow management

Air traffic flow management segment is predicted to witness significant growth at around 3% through 2027 propelled by increasing air traffic in domestic and international airports across the globe. The existing air traffic flow management systems require technological upgrades to enhance the capacity of handling traffic over the coming years, providing new opportunities for the market.
 

Airport authorities of several countries are focused on implementing new and optimized air traffic flow management systems to safeguard the use of the available capacity effectively. For instance, in February 2018, the Vietnam Air Traffic Management (VATM) Corporation and the MITRE Corporation entered into a contract to upgrade the Air Traffic Flow Management (ATFM) Master Plan of the country, thereby supporting the market over the forecast timeframe.
 

Increasing infrastructure development at airports to drive the Europe market

Europe air traffic management market is projected to grow at a CAGR of over 3% during 2021 to 2027 impelled by increasing infrastructure development at airports in the region. Airport authorities are also undertaking initiatives to enhance passenger handling capacity. Increasing investments by government authorities in the development and construction of new airports will augment market revenues.
 

In March 2019, the Milan Bergamo Airport in Italy invested USD 503.09 million as a part of its 2030 development plan. The investment encompasses airport expansion by extending the terminal size by 70,000 sqm. The project is expected to conclude in two years, thereby increasing operational capacity and enhancing market demand for air traffic management facilities.
 

Similarly, in June 2019, airport authorities at the Sheremetyevo Airport, Moscow, planned the expansion of simulation software for substantial improvements in punctuality, passenger turnover ratio, and fuel efficiency by introducing a new airspace structure. The development allowed the airport to increase its passenger turnover ratio from 65 to 110 takeoff per hour, simultaneously improving the punctuality from 40% to 90% with advanced air traffic management solutions.
 

Air traffic management market leaders are focusing on new partnerships & collaborations to maximize their share in the global market. For instance, in November 2020, Honeywell International, Inc. and Nozomi Networks announced a partnership that significantly strengthened the operational technology for cybersecurity. The partnership will offer comprehensive solutions to manage the cybersecurity compliance for air traffic management solutions and reduce the risk of downtime due to cyberattacks, boosting market demand.
 

The key players operating in the air traffic management market include BAE Systems, Leonardo S.p.A., Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Company, Thales Group, and Honeywell International, Inc.