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Air Traffic Control (ATC) Market Worth $13.5 billion by 2027 - Exclusive Report by MarketsandMarkets™

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MarketsandMarkets

25 Nov, 2022, 12:30 GMT

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CHICAGO, Nov. 25, 2022 /PRNewswire/ -- The Air traffic control (ATC) market is estimated to be USD 9.0 billion in 2022 and is projected to reach USD 13.5 billion by 2027, at a CAGR of 8.4% from 2022 to 2027, according to a new report by MarketsandMarkets™. Growth of this market can be attributed due to increase in air passenger traffic, as more aircraft use the same available airspace. The aviation industry is constantly changing due to the development of advanced technologies and increasing investments in airport infrastructure, which is expected to lead to an increase in demand for ATC.

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Browse in-depth TOC on "Air Traffic Control (ATC) Market" 

268 – Tables
59 – Figures
280 – Pages

Modernization of air traffic control infrastructure.

The demand for better airspace control is growing due to the increase in air passenger traffic and airport development projects in various regions. The Federal Aviation Administration (FAA) has implemented efficient airspace and air traffic control measures. Some of the measures implemented for the better utilization of airspace include airspace control order, airspace control plan, and airspace coordination area. These measures permit the movement of people and air commerce at optimum levels of safety and efficiency and meet the national security needs of the country.

In the upcoming 10 years (2020 – 2030), there will be a significant increase in air passenger traffic, which is expected to increase delays and congestion in the airspace. According to an article published by BBC in February 2022, official figures show that 11% of the UK flights were delayed in the second quarter of last year, while 16% of the US flights took off late in 2021. Other issues affecting the efficiency of ATC system operations include environmental and homeland security concerns.

NATO Air Base Geilenkirchen in Germany is home to the worlds first digital air traffic control tower. The base is outfitted with a cutting-edge Saab r-TWR system. The German Military Aviation Authority has certified Saabs r-TWR as the first fully operational military digital tower solution in NATO (LufABw).

In October 2021, At the World ATM Congress 2021, Adacel Technologies, Ltd. showcased its latest Aurora and MaxSim system developments. Aurora is the leading air traffic control solution offered by the company for managing procedural airspace in a surveillance environment used for oceanic, en-route, approach, and tower air space environments. MaxSim is the premier air traffic simulation and Training system. The company demonstrated MaxSim's new immersive virtual reality experience and presented its latest cloud-based solution. In addition, the company is excited to introduce AeroScene–the new state-of-the-art Image Generation (IG) solution that delivers unprecedented visual capabilities.

Based on application, automation sub segment is estimated to dominate the market during the forecast period.

Automation in air traffic management systems is essential to enhance aircraft safety, improve efficiency in terms of cost savings, and support air traffic controllers to facilitate smooth aircraft and ground operations. Recent years have seen a technological shift, suggesting that automation could disrupt business operations. Automation can cut costs and enhance safety. With the emergence of big data, AI, and IoT technologies, real-time information about aircraft is available, and with advanced analytics, air traffic controllers can operate systems remotely.

In May 2022, The Qatar Civil Aviation Authority (QCAA) selected Frequentis (Austria) to upgrade its existing voice communication system (VCS) and modernize its air traffic control (ATC) tower operation to meet air traffic demand resulting from the World Cup in the country in 2022. The ATM system provided by Frequentis has Electronic Flight Strips integrated with the ATM system, which marks the next generation of tower automation, allowing QCAA to handle the expected significant air traffic increase.

Based on investment type, greenfield segment is estimated to dominate the market during the forecast period.

In greenfield projects, all activities, from planning to commissioning, are carried out on an undeveloped site. Also, greenfield airports are planned in cities that are not connected by air services. A few greenfield airports are also constructed near the existing airports to effectively manage the growing air passenger traffic, as well as to address the growing requirement for increased capacity and efficiency.

For instance, in February 2018, the Prime Minister of India announced the construction of an airport at Navi Mumbai, which requires an investment of USD 2.58 billion. Also, the government plans to develop greenfield airports in 6 cities—Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem, and Kothagudem, which, in turn, would drive the deployment of new ATC systems at these airports. Similarly, other countries such as China, Indonesia, as well as the Middle Eastern countries, are also investing in greenfield airports, which has led to an increase in greenfield towers.

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Air traffic control  (ATC)  market in Asia-Pacific region to grow at the highest CAGR during the forecast period.

The Asia-Pacific region is estimated to account to rise at highest CAGR in forecast period from 2022 to 2027, owing to the expansion of various large airports along with the implementation of next-generation air traffic control (ATC) systems.  

For instance, according to the ACI World report, Global Outlook of Airport Capital Expenditure 2021, Asia Pacific comprises about USD 1.3 trillion of needed 2021 to 2040 CAPEX, more than 50% of the global CAPEX required. This reflects the swift passenger growth in the region and subsequent demand to develop new greenfield airports and modernize and expand existing airport infrastructure. New greenfield airport construction (44% of the total CAPEX required in the region) will be needed to support the capacity needs of passenger growth across the region. This is expected to drive the demand for new installations of ATC solutions.

The Middle Easts aviation industry has benefited greatly from the regions strategic location at the crossroads of major economies in Asia, Africa, and Europe. Due to its geographical location, Middle Eastern carriers can easily connect to any continent in the world: aircraft can reach almost all of Asia, Africa, and Europe within an eight-hour flying range from the well-established international hubs of Doha, Dubai, and Abu Dhabi.

Key Players of Air Traffic Control (ATC) Market:

Major players in the Air traffic control  (ATC)  market are Thales Group (France), Raytheon Technologies Corporation (US), L3Harris Technologies, Inc. (US), Indra Sistemas, S.A. (Spain), and Saab AB (Sweden). The report covers various industry trends and new technological innovations in the Air traffic control  (ATC)  market for the period, 2018-2027.

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Browse Adjacent Market: Aerospace and Defence Market Research Reports &Consulting

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About MarketsandMarkets™

MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.

The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines - TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the 'GIVE Growth' principle, we work with several Forbes Global 2000 B2B companies - helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.

To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.

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