Major Trends Expanding Air Traffic Management Market Over 2021-2027?
Global air traffic management market is growing at a steady rate lately, thanks to a high number of technologies being introduced by many reputed companies.
Important milestones are being achieved in terms of creating new processes to improve air traffic management in the coming years.
People across the world are experiencing a tremendous rise in their overall disposable income and standard of living, which has led to a swift rise in the number of people travelling via airplanes.
This has again resulted in the construction of new airports to accommodate the increasing number of passengers at arrival and departure terminals.
Trends that will drive global air traffic management (ATM) market in the coming years are discussed below.
Favorable government initiatives will boost Asia Pacific ATM market:
Asia Pacific air traffic management market size will surpass valuation of $2 billion by 2027. One of the major reasons for this is the support received from various governing authorities via their initiatives.
In fact, according to the International Air Transport Association (IATA), India and China, in course of the next 20 years, will account for nearly 45% of the total air passengers in the region.
There are various other measures taken by the governments to cater to the growing air traffic in APAC region. One example of this is a digital tower prototype developed in 2019 by NATS for the Civil Aviation Authority of Singapore (CAAS) which was used at Changi airport.
The tower has an overall movement capacity of 58 million passengers.
Air traffic control software upgrades across the APAC region:
Development of high-tech software to manage air traffic will gain momentum in Asia Pacific. The hardware used to manage air traffic is witnessing transformation with innovative devices taking centerstage.
It has simultaneously prompted the development of advanced software that will help tackle various air traffic issues and will manage the same efficiently.
The operating systems are undergoing an upgrade as well with the introduction of user-friendly interfaces. These solutions are helping improve the overall functionality of air traffic management systems.
For example, the air traffic control systems became centralized in India to manage space needs at airport terminals and help reduce flight delays.
Strategic partnerships boost Middle East air traffic management landscape:
The Middle East region has become one of the most sought-after tourist destinations in the world. This has positively affected the average air traffic inflow the region witnesses every year.
In April this year, the International Air Transport Association (IATA) reported that air traffic in Middle Eastern countries grew by 215.3% in February 2022 as compared to the same month in 2021, while 145% increase was recorded in January 2022 over the previous year.
The report further revealed that domestic travel in the region was also up by 60.7% in February 2022 when compared with the statistics recorded in the same month last year.
This represents the augmented demand for robust air traffic management (ATM) systems to keep a close track of the growing volume of domestic and international flight.
Reputed companies across the Middle East region are signing partnership deals with other firms to introduce technologically advanced air traffic control solutions.
For instance, in June 2022, Indra, one of the world’s top technological engineering organizations in the aerospace, mobility, and defense sectors, and Saudi Air Navigation Services (SANS), signed a Memorandum of Agreement (MoA).
The aim of the MoA is to create and operate the Middle East’s first virtual air traffic control tower at the Al Ula International Airport.
The move will benefit several medium-sized airports across the region as they will be able to reduce their operating costs and boost the frequency of flights by managing the air traffic from a single virtual tower.
Air traffic management has gained a lot of importance in recent years as aviation authorities have realized that efficient management of flights can significantly reduce aircraft-related mishaps.
Companies like BAE Systems, Northrop Grumman Corporation, Raytheon Company and Leonardo S.p.A are planning on various products and services to help improve air traffic management infrastructure and overall customer experience as well.
North American regulatory authorities support air traffic management:
North America air traffic management market is expected to become worth more than $2.5 billion in valuation by 2027. Regulatory authorities like the Federal Aviation Administration (FAA) and other governing bodies look after air traffic operations in the region.
They always make sure to provide the best facilities for air traffic management. In 2018 alone, the Air Traffic Organization (ATO) by the FAA was responsible for providing its air traffic services to nearly 44,000 flights in a day and even handled more than 2.7 million passengers per day.
COVID-19 impact on air traffic services in North America:
The COVID-19 pandemic caused severe impact on air traffic services and its revenues in North America. Domestic and international travels came to a standstill because of the movement restrictions and lockdowns imposed by the governments across the region.
The U.S. and Canada faced the worst effect of the pandemic because of an alarming rise in COVID death rate and facing an economic recession.
However, restrictions are being eased because of the drop in COVID positive cases and more and more citizens are getting vaccinated across North America. This will surely help regional air traffic management market pick up pace in the near future.
Use of advanced air traffic control systems:
High-end air traffic control systems are seeing higher demand among end-users because of the increase in air traffic congestion that makes it difficult to manage the influx of flights. It has played a vital role in expanding air traffic management market share in North America.
Sunhillo and Frequentis, in April 2019, announced their collaboration to create a UAS-connector system that would help UAV pilots get in touch with their air traffic control units.
Advent of innovative devices and tremendous technological progress made in microelectronics for effective management of air traffic will be responsible for regional market expansion.
Innovation in air traffic services will propel Europe industry:
Europe air traffic management market share will exceed a valuation of $2 billion in the coming years. The region is home to some of the most reputed organizations that provide cutting-edge products to air traffic control units to help them serve their consumers in a better manner.
In March 2019, Raytheon Company, along with HENSOLDT announced to deliver integrated air surveillance solutions to end-users like Royal Netherlands Air Force and Deutsche Flugsicherung GmbH.
These advanced devices were used to replace the old and aging radars and played an important role in improving the regional air traffic management potential.
New product developments to manage European air traffic better:
Air traffic management is undergoing transformation, thanks to the continuous deployment of creative strategies to develop new products and technologies.
The Aviation Institute for Navigation Instrumentation and Digital Radio Systems of Russia (CRTS) put together a vast network of both airborne and ground-based systems to help monitor and manage air traffic in an efficient manner.
This network has navigation & landing systems and small-scale air surveillance devices which will prove vital in developing sound aeronautical infrastructure.