Air Traffic Control Market (By Airspace: ARTCC, TRACON, ATCT, Remote Tower; By Application: Communication, Navigation, Surveillance, Automation; By Offering: Hardware, Software and solutions, Services; By Investment Type: Brownfield, Greenfield; By Sector: Commercial, Defense) - Global Industry Analysis, Market Size, Opportunities and Forecast 2021 - 2028

The global air traffic control market is expected to grow at a CAGR of around 5% from 2021 to 2028 and expected to reach the market value of around US$ 14.0 Bn by 2028.

Air traffic control (ATC) is necessary for a safe, efficient, and effective aviation system as it keeps planes effectively separated from one another to prevent collisions, but it also serves to organize the flow of air traffic. Surveillance (confirmation of where planes are), communications (passing data and instructions between pilots and controllers), and navigation are the three essential functions of air traffic control (assisting pilots to direct their plans along safe paths).

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Market Drivers

Big calls for "technology" for air traffic control will fuel the growth of overall market

Several challenges are putting pressure on the ecosystem, which includes a growing diversity of aerospace users and business models, innovative new technologies that necessitate innovative integrations, ageing and possibly cyber-insecure infrastructure, and so on. The National Aerospace System (NAS) predicts that the scope of air traffic control (ATC) will expand exponentially in the coming years, necessitating new training requirements and, possibly, a paradigm shift in mindset. With more automation and artificial intelligence (AI) tools, future NAS operations will provide safe and efficient access to a diverse set of users. There will also be a strong emphasis on airspace management or air traffic management (ATM), with operational approvals based on performance requirements and risk levels. Furthermore, in order to improve overall operational efficiency for users and air navigation service providers (ANSPs), the current ATM infrastructure should be upgraded to fully incorporate technological advances. Cutting-edge capabilities such as digitization, digital twins, data analytics, 5G, Wi-Fi, Internet of Things (IoT), machine learning, and precision tracking are driving market growth.

High government support propel the growth of global air traffic control market

According to the European Commission's report, the European Commission is proposing an upgrade to the Single European Sky regulatory framework that focuses on the European Green Deal. The primary goal is to modernize European airspace management in order to establish more sustainable and efficient flight paths. This reduces air transport emissions by 10% in the long run. The European Green Deal, combined with new technological advancements involving increased use of drones, has placed digitalization and decarbonization of transportation at the heart of EU aviation policy. As a result, the Single European Sky serves as a gateway to European airspace that is optimally used to fuel modern technologies. Such factors have had a positive impact on the global air traffic control market's growth.

Sustainability has enhanced growth of global air traffic control market

According to a report released by the United States Department of Transportation, there are efforts underway to make flights more efficient, including free flight, and are supported by commercial air carriers, for whom poor weather or crowded skies result in significant financial losses. Sustainability Master Plans fully integrate sustainability into the long-term planning of an airport. The primary goal of the Sustainability Master Plan is to identify sustainability objectives that will reduce environmental impact, realize economic benefits, and improve community relations. FAA program such as the Noise Compatibility Program and the Voluntary Airport Low Emissions (VALE) Program assist airports in meeting these objectives.

Market Segmentation

The global air traffic control market is segmented based on airspace, offering, application, investment, and sector. Based on airspace, the market is segmented as ARTCC, TRACON, ATCT, and Remote Tower. By application, the market is segmented as communication, navigation, surveillance, automation. By offering, the market is segmented as hardware, software and solutions, and services. By investment type, the market is bifurcated into Brownfield and Greenfield. Furthermore, sector is classified into commercial and defense.

Based on airspace, air traffic control tower (ATCT) segment is expected to record maximum share in the coming years responsible for the growth of overall market

Takeoffs and all movement within the airport terminal control area are managed and handled directly by the air traffic control tower. As a result, the workload of the terminal air traffic controllers at the destination airport is significantly reduced. The flow control system is retained as air traffic controller staffing levels gradually increase, owing to a reduction in air traffic controller stress and workload on the ground, rather than in the air. Such factors have a positive impact on segmental growth, which ultimately contributes to market growth.

Regional Landscape

Europe holds dominating share for air traffic control market; Asia Pacific to register all time high CAGR during the forecast period

Europe dominated the air traffic control market in 2020, and this trend is expected to continue throughout the forecast period. Technological advancement greatly aids Europe's airports in controlling air traffic and is regarded as one of the most important factors contributing to the growth of the regional market. For example, Performance-Based Navigation (PBN) technology allows aircraft to fly precise routes. Apart from that, the Civil Aviation Authority (CAA) is the national airspace regulator, with powers delegated by the government. It is in charge of terminal airspace management at the local level. Once outside of terminal airspace, planes are managed by NATS, the UK's air traffic control service provider. Furthermore, airspace is managed at both the national and international levels. The Single European Sky Project was established in the past to improve the efficiency of airspace use and management across Europe. Furthermore, the CAA contributed through the Future Airspace Strategy, which outlines the UK's current thinking on how to use airspace more efficiently.

Asia Pacific, on the other hand, will have the fastest growing CAGR in the air traffic control market during the forecast period. According to an IEEE report, demand for air transport in the Asia Pacific region will skyrocket in the twenty-first century. This is due to the addition of new airports and the expansion of existing ones in Singapore, Hong Kong, Shanghai, and Korea. North Pacific traffic volumes are expected to be 2.9 times higher than the previous year. In order to deal with such air traffic, the new Communication Navigation Surveillance Air Traffic Management (CNS/ATM) system via Multi-Function Transport Satellite (MTSAT) is required. Such factors have a positive impact on the growth of the APAC regional market, which in turn contributes to the overall growth of air traffic control.

Competitive Landscape

The prominent players of global air traffic control market involve The Raytheon Company, BAE Systems plc, Thales Group, Indra Sistemas, S.A., Frequentis,  Harris Corporation, Adacel, and among others

Market Segmentation

Market By Airspace

ARTCC
TRACON
ATCT
Remote Tower

Market By Application

Communication
Navigation
Surveillance
Automation

Market By Offering

Hardware
Software and solutions
Services

Market By Investment Type

Brownfield
Greenfield

Market By Sector

Commercial
Defense

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa