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Investments in Predictive Technologies and Remote Towers will Boost Global Commercial Air Traffic Management Market by 2027


News provided by

Frost & Sullivan

02 Mar, 2021, 12:42 GMT

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Communication systems will lead the overall ATM industry and are expected to reach global revenues of $1.82 billion in 2027, finds Frost & Sullivan

SANTA CLARA, Calif., March 2, 2021 /PRNewswire/ -- Frost & Sullivan's recent analysis, Disruptive Technologies Drive the Growth of the Global Commercial Air Traffic Management (ATM) Market, 2020, finds that the growing pressure to manage heavy air traffic worldwide is driving air navigation service provider (ANSP) spending on the overall modernization of air traffic management (ATM) infrastructure. Despite the downturn caused by the pandemic, the global commercial ATM market is expected to flourish due to the rising adoption of automation and digital technologies, including remote towers, predictive technologies, and artificial intelligence (AI). The market is expected to reach $4.89 billion by 2027 from $3.64 billion in 2020, at a compound annual growth rate (CAGR) of 4.0%. This research encompasses communication, navigation, surveillance, automation, and simulation systems.

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For further information on this analysis, please visit: http://frost.ly/59u

"The future of ATM, which includes unmanned aircraft system traffic management (UTM), will bring about new competition and potential partners. Interoperability and resilience will be key to air traffic management of the future," said Timothy Kuder, Aerospace & Defense Senior Industry Analyst, Frost & Sullivan. "New airports in North America and Europe are expected to move straight to digital air traffic control (ATC) in the medium term while existing highly congested airports are likely to replace traditional towers even before they reach the end of their economic life."

Kuder added: "Of all ATM market segments, communication systems will lead the overall industry due to high demand for voice communication on IP networks. The segment is forecast to reach $1.82 billion in 2027, and collective revenue is anticipated to total $12.4 billion over the next eight years. Although the uptake of system-wide information management (SWIM) services is currently slow due to security and liability concerns, major technology advancements (5G, blockchain) are expected to increase momentum in line with adjacent communications markets in the long term."

ATM market participants should explore the following strategic recommendations:

  • Cybersecurity is expected to become a new revenue stream for ATM providers and play a major role in ATM operations.
  • Digital air traffic solutions will be a breakthrough in the ATM space as 90% of the industry is in the early stage of digital transformation. 
  • ATM solution suppliers from emerging markets, including China and Russia, are expected to evolve and become key cogs in the global ATM supply chain.
  • Joint ventures between private companies and governments are poised to be the next type of business development model in ATM, especially with automated approach control.
  • Becoming supplemental data service providers (SDSPs) is another option for companies to offer essential or enhanced services.

Disruptive Technologies Drive the Growth of the Global Commercial Air Traffic Management (ATM) Market, 2020 is part of Frost & Sullivan's Global Aerospace & Defense Growth Partnership Service program.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion

Disruptive Technologies Drive the Growth of the Global Commercial Air Traffic Management (ATM) Market, 2020

K4B8-22

Contact:
Srihari Daivanayagam, Corporate Communications
M: +91 9742676194; P: +91 44 6681 4412
E: srihari.daivanayagam@frost.com
http://ww2.frost.com

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