Air Traffic Control Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030
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The Global Air Traffic Control Market Size accounted for USD 9,967 Million in 2021 and is estimated to achieve a market size of USD 15,110 Million by 2030 growing at a CAGR of 4.9% from 2022 to 2030. Rising air passenger traffic will drive the air traffic control market growth. Furthermore, the increasing adoption of machine learning and IoT technologies at airports is boosting the air traffic control market value in the coming years.
Air Traffic Control Market Report Key Highlights
- Global air traffic control market revenue intended to gain USD 15,110 million by 2030 with a CAGR of 4.9% from 2022 to 2030
- Europe region led with more than 34% air traffic control market share in 2021
- Asia-Pacific regional market is expected to grow at a CAGR of more than 5% during the forecast period
- Among offering, software and solutions category engaged more than 54% of the total market share
- By airspace, ATCT segment generated about 45% market share in 2021
- Rise in the number of air tourism, drives the air traffic control market share
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).
Global Air Traffic Control Market Trends
Market Drivers
- The growing number of airports
- Need for better airspace management systems
- A rise in the number of air travelers
- Rapid advancement in the ACT framework
Market Restraints
- High airport surveillance expenses
- Growing cyber security threats at airports
Market Opportunities
- Increasing investment in ATC technology
- Advancement in aerospace and aviation infrastructure
Air Traffic Control Market Report Coverage
| Market | Air Traffic Control Market |
| Air Traffic Control Market Size 2021 | USD 9,967 Million |
| Air Traffic Control Market Forecast 2030 | USD 15,110 Million |
| Air Traffic Control Market CAGR During 2022 - 2030 | 4.9% |
| Air Traffic Control Market Analysis Period | 2018 - 2030 |
| Air Traffic Control Market Base Year | 2021 |
| Air Traffic Control Market Forecast Data | 2022 - 2030 |
| Segments Covered | By Airspace, By Revenue, By Offering, By Investment Type, By Sector, And By Geography |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Companies Profiled | The Raytheon Company, BAE Systems plc, Thales Group, Indra Sistemas, S.A., Frequentis, Harris Corporation, and Adacel. |
| Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis |
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, aging 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 the market growth.
High Government Support Propels The Growth Of Global Air Traffic Control Market Trend
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 the 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 programs such as the Noise Compatibility Program and the Voluntary Airport Low Emissions (VALE) Program assist airports in meeting these objectives.
Air Traffic Control Market Segmentation
The worldwide air traffic control market segmentation is based on the airspace, application, offering, investment type, sector, and geography.
Air Traffic Control Market By Airspace
- ARTCC
- ATCT
- TRACON
- Remote Tower
According to the air traffic control industry analysis, the air traffic control tower (ATCT) segment is expected to record the maximum share in the coming years responsible for the growth of the 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.
Air Traffic Control Market By Application
- Communication
- Surveillance
- Navigation
- Automation
In terms of application, the automation segment is predicted to rise significantly in the market over the next few years. This expansion can be ascribed to the growing global need for smart as well as green airports, as well as the rising demand for IoT-based solutions. Furthermore, the rising need for an interactive technology ecosystem fuels the expansion of the autonomous sector.
Air Traffic Control Market By Offering
- Hardware
- Software and solutions
- Services
According to the air traffic control market forecast, the software and solution category is expected to grow the most during the estimated period. This is owing to the processing of all data and information, as well as the automation of various ATM procedures.
Air Traffic Control Market By Investment Type
- Brownfield
- Greenfield
According to the investment type, the brownfield segment is predicted to increase significantly in the market over the next several years. A brownfield investment occurs when a firm or government organization purchases or rents old manufacturing facilities in order to begin a new manufacturing activity.
Air Traffic Control Market By Sector
- Commercial
- Defense
In terms of sector, the commercial segment is garnering substantial market attention in the coming years. Commercial aircraft is a subset of civil aviation that includes scheduled airline services that use aircraft to transport cargo and passengers. As international tourism develops and becomes increasingly accessible to the general public, airline companies will want to expand their fleets, propelling the worldwide commercial aircraft market to outstanding growth in the forecast period.
Air Traffic Control Market Regional Outlook
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Asia-Pacific
- India
- Japan
- China
- Australia
- South Korea
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
The Middle East & Africa
- South Africa
- GCC Countries
- Rest of the Middle East & Africa (ME&A)
Europe Holds Dominating Share Of Air Traffic Control Market; Asia-Pacific To Register All-Time High CAGR During The Forecast Period
Europe dominated the air traffic control market in 2021, 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.
The 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 Asia-Pacific regional market, which in turn contributes to the overall growth of air traffic control.
Air Traffic Control Market Players
Some of the top air traffic control companies offered in the professional report include The Raytheon Company, BAE Systems plc, Thales Group, Indra Sistemas, S.A., Frequentis, Harris Corporation, and Adacel.