(MENAFN- Bangladesh Monitor) Allied Market Research published a report, titled, 'Air Traffic Management Market by System (Air Traffic Services, Air Traffic Flow Management, Others), by Application (Communication, Navigation, Surveillance, Automation and Simulation), by Offering (Hardware, Software and Services), by End Use (Commercial, Military, Others): Global Opportunity Analysis and Industry Forecast, 2021- 2031'.
According to the report, the global air traffic management industry generated $8.8b in 2021, and is anticipated to generate $17.7b by 2031, witnessing a CAGR of 7.5pc from 2022 to 2031.
Prime determinants of growth
Increase in air traffic across the world, modernization of air traffic management infrastructure, and greater need for improved air safety drive the growth of the global air traffic management market.
However, potential risks associated with cyber threats and high cost of traffic management infrastructure restrict the market growth. Moreover, technological advancements and greater demand for air traffic solutions from emerging nations present new opportunities in the coming years.
Covid-19 Scenario
The outbreak of the Covid-19 pandemic had a negative impact on the global air traffic management market, owing to implementation of the global lockdown.
With relaxation of restrictions and reduction in cases in the post-pandemic, there has been increased focus in modern digital ATM solutions to improve efficiency and environmental sustainability in aviation.
In June 2022, the Canadian government announced contribution of up to $39.2m to enhance safety, & performance of Canada's air transportation system. Canadian government will contribute up to $34.5m to implement technology to enhance air traffic management. In addition, the Canadian government will also contribute up to $31.2m to enhance infrastructure & technology at four airports such as Montreal-Trudeau International Airport, Toronto Pearson International Airport, Calgary International Airport, and Vancouver International Airport.
The air traffic services segment to maintain its leadership status throughout the forecast period
Based on system, the air traffic services segment held the highest market share in 2021, accounting for more than two-thirds of the global air traffic management market, and is estimated to maintain its leadership status throughout the forecast period. Air traffic services are utilized to efficiently regulate the flow of aircrafts in real-time to ensure their safe operations, which drives the segment. The report also discusses segments including air traffic flow management, and others.
The communication segment to maintain its leadership status throughout the forecast period
Based on application, the communication segment held the highest market share in 2021, accounting for around two-fifths of the global air traffic management market, and is estimated to maintain its leadership status throughout the forecast period.
Numerous countries across the globe are focusing on improving communication systems of the airports in their region to enhance airport operations, which fuels the growth of the segment. However, the automation and simulation segment is projected to manifest the highest CAGR of 9.5pc from 2022 to 2031. It is because several companies provide numerous types of air traffic control (ATC) simulation and training systems for training purposes.
The hardware segment to maintain its lead position during the forecast period
Based on distribution channel, the hardware segment accounted for the largest share in 2021, contributing to more than two-thirds of the global air traffic management market, and is projected to maintain its lead position during the forecast period. This is owing to wide usage of hardware components such as secondary surveillance radar (SSR), display systems, primary surveillance radar (PSR), control tower simulator (CTS), radio modems & transceivers, meteorological sensors, flight data information display equipment, holographic radar, surface movement radar, and others.
However, the software & services segment is expected to portray the largest CAGR of 10.8pc from 2022 to 2031. Numerous companies operating in air traffic management market are receiving contracts to develop software which can implement air traffic management system concepts. This factor boosts the growth of this segment.
Asia-Pacific to maintain its dominance by 2031
Based on region, Asia-Pacific held the highest market share in terms of revenue in 2021, accounting for around one-third of the global air traffic management market, and is likely to dominate the market during the forecast period. In addition, the same region is expected to witness the fastest CAGR of 8.5% from 2022 to 2031, owing to factors such as rise in passenger traffic, and construction of new airports. Other regions discussed in the report include North America, Europe, and LAMEA.
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