Air Traffic Management Market Size Valued at USD 17.15 Billion, market Grow at a CAGR Of 5.15% by 2024-2032
The increased rate of air traffic is due to the wide preference for air traveling by the passengers. People mostly prefer a comfortable and short duration journey to reach their destination. Therefore, they prefer to travel by air, which boosts the aviation sector to provide more affordable and comfortable air travel services for the market, simultaneously increasing the Air Traffic Management Market. When the preference and demand get high for air travel, proper traffic management is even required to smoothly run the planes and flights, preventing the risk factors. Air Traffic Management Market assists the operations at airports and airspace. It controls the air traffic and helps it function smoothly, and it even directs aircraft and flights on the ground and through controlled airspace.
The air traffic system provides important information like flight delays and other necessary details during bad weather conditions. This system completely manages the air traffic by providing necessary information during requirements. The key players are focusing on improving the features of the air traffic system by installing advanced equipment to provide the best service. The higher demand for comforting traveling and reliable air traffic infrastructure and renovation of airports are boosting the Air Traffic Management Market Growth. The need for air traffic management is increasing in the number of unmanned aerial vehicles (UAVs), landing aircraft, vertical take-off, and hybrid aircraft. The increased rate of these vehicles for various commercial purposes demands air traffic management, enhancing the growth of the Air Traffic Management Market Size. The market faces different challenging factors that are looked at by the key players, and they target the challenges to overcome them and handle every issue smoothly.
Government is concerned about the Air Traffic Management Market; the aviation sector is increasing its investment rate to meet the market demand. The government officials related to aviation sectors pay attention to the air traffic management system. The Air Traffic Management Market Value is expected to witness a CAGR of 5.15% during the evaluation period.
COVID-19 Analysis
The coronavirus outbreak has shown a negative impact on different industrial sectors. The Air Traffic Management Market has even become prey to the ongoing pandemic. Due to the strict lockdown guidelines, the transportation services were halted, and the movement of people even stopped. This situation has hampered the growth rate of the Air Traffic Management Market Outlook. As the transportation activities stopped, the requirement for air traffic management didn’t need, so this factor has shown a bad impact on the Air Traffic Management Market Value. But as the lockdown period started to end, the Air Traffic Management Market started noticing a gradual growth. Therefore, the market will recover its growth rate in the post-pandemic period.
The key driving factors of the Air Traffic Management Market Outlook are the increased rate of airspace congestion. The advancement in data processing and communication technologies is driving the market and high demand for reliable air traffic infrastructure. The improvement for modernizing the airports boosts the Air Traffic Management Market.
Market Challenges
The Air Traffic Management Market faces challenges due to the financial loss during the pandemic. Another challenging factor of the Air Traffic Management Market is the high cost of installing advanced equipment.
Market Opportunities
The Air Traffic Management Market is getting good opportunities due to the valuable service for the aviation sectors. Public preference to travel through air vehicles is even setting open opportunities for the Air Traffic Management Market Growth.
Market Restraints
The Air Traffic Management Market is even facing restraining factors that hamper the market's growth. One of the major restraining factors of the market is the lack of a skilled workforce to operate the air traffic systems. The increased cyber threats are even hampering the Air Traffic Management Market growth rate.
Cumulative Evaluation Of The Market
The Air Traffic Management Market Trends evaluation shows that the market will show an improved growth rate during the forecast period. The drivers and the growth opportunities will boost the market to compete at the global level. The restraining and challenging factors hinder the growth, but the key players pay core attention to target these factors. Various growth factors drive the Air Traffic Management Market Trends to emerge worldwide. These will boost the Air Traffic Management Market to achieve the estimated CAGR in the review period.
The Air Traffic Management Market is divided into different segments based on type, component, airport type, and system.
The Air Traffic Management Market type segment comprises air traffic control, air traffic flow management, and aeronautical information management. Among these segments, air traffic control is accounted to witness the largest market share of the Air Traffic Management Market Share. Meanwhile, Air Traffic Management Market is estimated to register the highest CAGR during the review period. The air traffic control segment is driven due to the increased air traffic and airspace congestion.
The Air Traffic Management Market Size is subdivided into hardware and software segments in the component segment. The hardware segment is regarded as the largest segment because the complete air traffic management depends upon the hardware deployment for collecting data such as real-time information, transmitting data, and maintaining the orderly flow of air traffic.
Based on the terms segment, the Air Traffic Management Market is classified into communication, navigation, surveillance, and automation & simulation. Among the system segment, the communication segment is the largest market share of the Air Traffic Management Market. The communication segment has shown a vital role in directing flights.
Overall, geographical data of the Air Traffic Management Market Analysis shows the market's growth in different regions worldwide, such as North America, Europe, Asia Pacific, the Middle & Africa, and Latin America. Among all these above regions, North America is considered the largest market in recent years because of the stringent air safety regulations in prominent regions such as the US and Canada. Followed by North America, the Asia Pacific is expected as the fastest growing market due to the rise in demand for Air Traffic Management Market systems for the modernization of airports. The other regions are even going to show steady growth during the forecast period.
On Jul.27, 2023, Skykraft, an Australian space services company, announced that it is all set to deliver the first space-based VHF communication for air traffic management. Voice radio communications in the VHF band are used to improve communication between pilots and air traffic controllers. The first trial of space-based VHF voice communications has also been completed.
On Jul.25, 2023, The Civil Aviation Authority of Singapore (CAAS) and the Japan Civil Aviation Bureau (JCAB) announced their collaboration to implement green air traffic management (ATM). Deploying green ATMs will improve air connectivity to meet robust air travel demand and make flying greener between the two countries. The two authorities agreed to facilitate the resumption of flights and city links, implement green aviation initiatives, foster a strong & positive safety culture, and leverage technology to overcome manpower shortages & raise productivity.
On Jul.17, 2023, Honeywell announced that its Europe-based research and development arm will work to digitize air traffic management in Europe. SESAR 3 Joint Undertaking projects aim to modernize the European air traffic management system and advance the transition toward a climate-neutral and digital Europe.
The company will participate in new research and development projects under the SESAR 3 Joint Undertaking partnership and its Digital European Sky program. These projects will see the development of innovative solutions focused on advanced automation across airspaces to improve operational efficiency and sustainability through new or improved ways of working.
On Feb.07, 2023, Skye Air, a leading drone solutions provider, launched a traffic management system for drones in India. The Skye UTM solution will allow drone operators to plan routes, make flight plans, and assess risks before running drone-based operations in the country. The software imports data from the government's Digital Sky platform, created to help drone operators plan flights in Indian airspace. First launched in 2018, the platform offers operators essential information for running drone missions nationwide.
The key players of the Air Traffic Management Market play a crucial role in lifting the market from any circumstances. Their marketing strategies effectively help the market grow in the proper direction to achieve the estimated USD value. The list of key players of the Air Traffic Management Market are mentioned below:
Report Overview
The overall report of the Air Traffic Management Market Analysis shows the market's growth in recent years. The chief drivers are why the Air Traffic Management Market is enhancing across the globe. Despite facing a challenging situation during the pandemic, the market is trying to recover its growth rate—the Air Traffic Management Market segments to provide their best services per the market’s need. The regional analysis report of the market stated the market's progress in various regions. The Air Traffic Management Market Forecast shows a significant growth rate with a healthy CAGR in the upcoming years.
By Type
By Component
By System
| Report Attribute/Metric | Details |
| Market Size 2032 | USD 17.15 Billion |
| Compound Annual Growth Rate (CAGR) | 5.15% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Airport Type, System, Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | FrequentisComsoft GmbH (Germany), BAE Systems (UK), Saab AB (Sweden), Honeywell International Inc. (US), Northrop Grumman Corporation (US), Harris Corporation (US), Indra Sistemas, SA (Spain), Raytheon Company (US), Thales Group (France), ANPC (US) |
| Key Market Opportunities | The valuable service for the aviation sectors |
| Key Market Dynamics | The need for air traffic management is increasing in the number of unmanned aerial vehicles |
Air Traffic Management Market Highlights:
Frequently Asked Questions (FAQ) :
The Air Traffic Management Market Forecast to reach a CAGR of 5.15% during the forecast period.
The hardware segment of the component type is the largest segment of the Air Traffic Management Market.
The North American region holds the highest share of their Traffic Management Market Share.
The prominent players of the Air Traffic Management Market are Harris Corporation (US), Cobham plc (UK), Comrod Communications AS (Norway), Terma A/S (Denmark), MTI Wireless Edge (Israel), Eylex Pty Ltd. (Australia), Cojot Oy (Finland), Raytheon Company (US), Lockheed Martin Corporation (US), Rohde & Schwarz (Germany), Barker and Williamson (US), and RAMI (US).
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Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
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