Air Traffic Management Market Outlook 2031:
The global air traffic management market size was valued at USD 10.75 Billion in 2022 and is projected to reach USD 25.98 Billion by 2031, expanding at a CAGR of 10.3% during the forecast period 2023 - 2031. The growth of the market is attributed to the rapid growth of number of airports in emerging economic regions world-wide and increasing investments in airport infrastructure.
Air traffic management can be defined as an aviation term consisting of all the systems which assist aircrafts to safely depart from an aerodrome, transit airspace assistance, and landing at the destination airport.
It is an integrated management system which includes air traffic control (ATC), air traffic services (ATS), airspace management (ASM), and air traffic flow and capacity management (ATFCM).
Air traffic management is an essential aspect of air travel whose role is to ensure the safety, efficiency, and economic operational costs by providing facilities and seamless services in association with all parties involved in airborne and ground-based functions.
Air Traffic Management Market Trends, Drivers, Restraints, and Opportunities
- Rapid growth in construction of new airports and expansion of existing ones with new age modern technology to enhance operational efficiency of air traffic management are anticipated to drive the market growth in the coming years.
- Increasing demand for air travel and air cargo activities in the emerging economic regions globally are expected to propel the market expansion during the forecast period.
- Increasing cyber security concerns attributed with data transmission through air traffic management systems are anticipated to hinder the market growth during the forecast period.
- Onset of Covid-19 pandemic which has led to restrictions in travel and full capacity on boarding is projected to restrict the market growth in the coming years.
- Infrastructural investments, technological advancement, introduction of remote and digital towers, and adoption of satellite-based ATC are projected to create immense opportunities for the market players.
Scope of Air Traffic Management Market Report
The report on the global air traffic management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Air Traffic Management Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Airspace (Air Traffic Services, Flow Management, Airspace Management, and Aeronautical Information Management), Offerings (Hardware, Software & Solutions, and Services), Airport Size (Large, Medium, and Small), and Sectors (Commercial, and Military & Defense)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Lockheed Martin Corporation, Raytheon Company, BAE Systems, Thales Group, Northrop Grumman Corporation, and Honeywell International
Air Traffic Management Segment Insights
Aeronautical Information Management segment is projected to expand at a significant CAGR
Based on airspace, the air traffic management system is segmented into air traffic services, flow management, airspace management, and aeronautical information management. The aeronautical information management segment is estimated to expand at a considerable CAGR during the forecast period owing to it being one of the essential and crucial services in air traffic management as it provides reliable and high-quality electronic information, such as meteorological, airspace, aeronautical, and flow management parameters.
However, air traffic services segmented is expected to grow at a healthy CAGR during the forecast period due to increasing airspace congestion and dire need to reduce flight delays during an irregular weather situation.
Software & Solutions segment is anticipated to register substantial growth rate
In terms of offerings, the air traffic management market is segregated into hardware, software & solutions, and services. The software & solutions segment is anticipated to grow at a substantial CAGR during the forecast period.
The segment growth is attributed to technological advancements and increasing new innovations in air traffic management solutions. Market players are focusing on offering new innovative software & solutions to improve efficiency and allow smooth operations of the airlines.
On the other hand, the hardware segment is expected to expand at a healthy pace in the coming years owing to rapid growth in number of airports and increasing construction activities to build new facilities and expand existing ones. Several airports around the globe are replacing their age-old hardware with new state of the art equipment which is expected to propel the market growth during the forecast period.
Lage Airport segment estimated to represent key market share
On the basis of airport size, the air traffic management system is segmented into large, medium, and small airports. The large airport segment is estimated to account for key market share during the forecast period owing to increasing workloads and rising air travel as well as air cargo shipments over the past few years.
Large airports handle commercial, military, and cargo flights which puts the airport capacities at maximum. To tackle this, large airports need an efficient and optimum air traffic management system which would help run the facilities smoothly to avoid any delays.
Commercial segment is projected account for large market share
Based on sectors, the air traffic management system is divided commercial, and military & defense. The commercial segment is projected to account for large market share due increasing trade via air cargo and growing demand for air travel in various emerging economies world-wide.
- Air Traffic Services
- Flow Management
- Airspace Management
- Aeronautical Information Management
- Software & Solutions
- Military & Defense
Key players competing in the air traffic management market include Lockheed Martin Corporation, Raytheon Company, BAE Systems, Thales Group, Northrop Grumman Corporation, and Honeywell International.