Air Traffic Control (ATC) Market Is Projected to Grow at a CAGR of 4.8% by 2025
Northbrook, IL -- (SBWire) -- 12/03/2021 --The air traffic control market is projected to grow from USD 9.3 billion in 2019 to USD 12.3 billion by 2025, at a CAGR of 4.8%. Huge investments in setting up new airports in Asia Pacific and the Middle East and increased need for better airspace management are expected to drive the air traffic control market growth.
By airspace, air traffic control tower (ATCT) segment is expected to be largest contributor to air traffic control market during forecast period
Based on airspace, the air traffic control market has been segmented into ARTCC, ATCT, TRACON, and Remote tower (RT). The ATCT segment is estimated to account for the largest share of the air traffic control market in 2019. The large number of ATCT towers present in all countries compared to other airspace segments has attributed to larger share of this segment. Additionally, ATCT houses major equipment, resulting in larger market share of this equipment. Regions such as North America and Europe are focusing largely on modernisation of equipment to improve the efficiency of air traffic, leading to increase in market size through brownfield projects.
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By airport size, medium segment is expected to be largest contributor to air traffic control market during forecast period.
Airports are experiencing high passenger traffic, which keeps on growing year-on-year. Thus, airports' revenue is directly proportional to the passengers they handle. Large and medium-sized airports handle more than 70% of the world's air passenger traffic. Thus, with increasing air traffic, airports need to upgrade ATC systems to facilitate effective airspace operations. Medium airports are leading the market as there are large numbers of medium-sized airports across the world. The immediate need for these airports is to effectively manage their airspace. Small airports experience seasonal air traffic. Thus they need an air traffic control option, which is scalable, the remote tower can greatly benefit these airports.
Middle East is projected to grow at the highest CAGR during forecast period.
The air traffic control market in Middle East is anticipated to grow at the highest CAGR from 2019 to 2025. This growth is mainly attributed to the modernization of airport infrastructure, which, in turn, has resulted in the increased procurement of air traffic control equipment to streamline flight operations. Increasing passenger traffic through Middle East region has added to growth of demand for air traffic services.
UAE is the major contributor for growth of Middle East market. Given the number of airports and increasing passenger footfall, the country is leading the overall market. Also, the construction of a new airport in the countries considered for the study plays an important role as new airports will require a control tower. These control towers will be equipped with all the latest systems.
Key Market Players
A few of the major players in the air traffic control market include 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), Saab AB (Sweden). These players provide air traffic control equipment and solutions to various airports.
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