Air Traffic Management Market Expected to Reach $17.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Air Traffic Management Market," The air traffic management market was valued at $8.8 billion in 2021, and is estimated to reach $17.7 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031.

Asia-Pacific dominated the global air traffic management market in 2021. In Asia-Pacific, several initiatives by the governments in several countries to develop air traffic management systems, fuels the growth of the market. For instance, in 2022, in India, Airport Authority of India (AAI) has entered into an agreement with Navratna Defence PSU Bharat Electronics Limited (BEL), under its R & D initiative, for the joint development of systems for air traffic management and surface movement of aircrafts at airports across India.

Key players in the market are receiving contracts to deploy navigation aid systems at airports across China to enhance safety at airports, fueling the growth of the air traffic management market in China. For instance, in 2021, Indra received new contracts to deploy up to 35 navigation aid systems in China, which will reinforce safety at airports. Indra will deliver DME and DVOR systems to enhance safety.

Rise in demand of for aircrafts by developing countries is expected to offer remunerative opportunities for air traffic management market expansion during the forecast period. Furthermore, in November 2021, Boeing and SNV Aviation brand Akasa Air announced that a new Indian airline has ordered a (72) 737 MAX aircraft to expand its fleet. The list price of this order is approximately $9 billion, an important test of the 737 family's ability to serve the fast-growing Indian market. Thus, the rising investment by emerging countries and increasing air passenger traffic is expected to open new avenues for business in the developing nations such as India, China, and Brazil.

Many developing countries have plans to open new airports to facilitate the air transportation within and across the country. For instance, as a part of PM Narendra Modi’s vision, to make India a $5 trillion economy by end of 2025, India is planning to open additional 100 airports by the end of 2024. This will directly create an additional demand for the air traffic management systems, which is expected to boost the growth of the air traffic management market.

The military sectors utilize air traffic management systems on a large scale primarily for communication, surveillance, and reconnaissance. Increase in security concern has led the military sector to become a prominent buyer for air traffic management solutions all across the globe. These solutions aids the military aircrafts to perform several important missions such as search & rescue, monitoring of border areas, and others, effectively and efficiently.

Military organizations in several countries across the globe are continuously upgrading their air combat capabilities through adoption of new air traffic management solutions, which in turn is fuelling the growth of the air traffic management market. For instance, in 2022, in France, the Ministry of Defense of France approached Indra to deliver air traffic management and radar systems to support air operations at three of its air bases with maximum safety and efficiency. The first of Indra’s systems was installed at Le Luc-en-Provence air base, which is home to French Army’s Light Aviation School.

COVID-19 Impact Analysis

The demand for air traffic management reduced during the pandemic from under capacity to an environment with insufficient number of flights to sustain the cost of the system. However, post-pandemic, several governments are focused on infrastructural development to enhance air traffic efficiency and modernize infrastructure.

KEY FINDINGS OF THE STUDY

• By system, the others segment is anticipated to exhibit significant growth in the near future.
• By application, the automation and simulation segment is anticipated to exhibit significant growth in the near future.
• By offering, the software and services segment is anticipated to exhibit significant growth in the near future.
• By end use, the commercial segment is anticipated to exhibit significant growth in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global air traffic management market include Thales Group, Raytheon Technologies Corporation, L3Harris Technologies Inc., Indra Sistemas S.A., Saab AB, Northrop Grumman Corporation, BAE Systems, Honeywell International Inc., Advanced Navigation and Positioning Corporation, and Lockheed Martin Corporation.