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Visiongain Publishes Air Traffic Management Market Report 2022-2032

03 October 2022

Visiongain has published a new report entitled Air Traffic Management Market Report 2022-2032: Forecasts by Component (Communication, Navigation, Surveillance, Others), by System (Airspace Management, ATC, ATFM, AIM), by Airport Size (Large, Medium, Small), by End-use (Tactical, Commercial) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.

The air traffic management market was valued at US$9.68 billion in 2021 and is projected to grow at a CAGR of 11.02% during the forecast period 2022-2032.

Airline Business Is Undergoing Significant Disruption
The airline business is undergoing significant disruption. Carriers are no longer restricted to particular areas, and it is becoming more dynamic and market-driven. They will reallocate resources in response to demand. Infrastructure needs to be more adaptable as carriers form alliances, combine, and consolidate. Although it is anticipated that the infrastructure would generally be adequate, there will still be some severe capacity restrictions, frequently in the most significant air transportation markets.

The use of pricing as a method of resource allocation and producing the finances required to expand infrastructure will consequently become more significant, especially in these significant markets. In the field of airport landside access, new pricing models are already being used successfully. However, much can be accomplished in the context of current organisations through improved management techniques. In some circumstances, it may be necessary for new organisational forms for infrastructure supply to drive such changes.

How has COVID-19 had a Significant Impact on the Air Traffic Management Market?
With the start of a global pandemic stopping several important social activities, including flying, this market plummeted in 2020. One of the toughest periods for the commercial aviation sector has emerged as a result of Russian aggression in Ukraine. The key component in the recovery process will be domestic demand, which is the growth engine for passenger demand. According to Airports Council International (ACI), domestic demand made up over 59% of all air travel in 2019. This category was given great focus, as seen by the increase in this share to 76% in 2021. Global carriers' 2022 has not gotten off to a good start. Airlines are geared up for any such occurrences after enduring many waves of the COVID-19 pandemic.

Complexity and operating costs will continue to rise as a result of the Russian-Ukrainian situation and related sanctions. The rising cost of jet fuel is another threat that airlines must contend with. Oil prices in 2021 were driven by a combination of uncertain oil demand, erratic oil production rates, and uncertain global economic conditions. The fuel prices account for the largest portion of an airline's operational expenses (around 30% of operating expenses), and according to the Energy Information Administration, they have climbed by about 89% over the last three and a half years. Pre-pandemic, Russian airlines transported more than 125 million passengers, with 57% of them being domestic passengers, according to the Russian state aviation agency Rosaviatsiya.

The two major Russian airlines, Aeroflot (state-owned) and S7 Airlines, carry about 40% of all passengers. Pobeda, a low-cost division of Aeroflot, saw growth of more than 40% in 2019, indicating strong demand for low-cost services. However, the LCC only has Boeing aircraft in its fleet, which will have an effect on its operations and growth going forward in the face of harsh sanctions from numerous western countries. Due to the pandemic, Russian airlines carried 46% fewer passengers overall in 2020. Due to geopolitical tensions, the Russian aviation industry already faced a number of difficulties before the pandemic. Other difficulties include increased operational costs brought on by rising fuel and airport handling expenses.

How will this Report Benefit you?
Visiongain’s 333-page report provides 120 tables and 161 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the air traffic management market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Air Traffic Management. Get financial analysis of the overall market and different segments including component, system, airport size, end-use and capture higher market share. We believe that there are strong opportunities in this fast-growing air traffic management market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Partnership Between Public and Private Sectors to Fuel Market Growth
SESAR 1, the first Joint Undertaking (JU) programme for Single European Sky ATM Research (SESAR), operated from 2008 to 2016. In order to guarantee that the program's outcomes would satisfy the operational requirements of ATM providers that must execute their ATM goods, services, and solutions, SESAR members oversaw 400 projects, 350 validations, 30,000 flight trials, and 20 million hours of work. Development is known to be the stage of SESAR 1. The verified ATM solutions must be manufactured and widely used throughout the deployment phase. A formalized European cooperation between the public and private sectors, SESAR 3 was created to hasten the implementation of the digital European sky programme through research and innovation. SESAR is utilizing, creating, and speeding up the adoption of the most cutting-edge technology solutions to control conventional aircraft, drones, air taxis, and vehicles flying at greater altitudes in order to put this into practice.

Improvements in Aviation Infrastructure to Fuel Market Growth
Improvements in aviation infrastructure's cost and productivity will be driven by the financial health of the carriers. In order to show the possible advantages of change, data on the cost and productivity trends in delivering air traffic control and airport services are required. The cost of resolving current issues and, in some regions, even the ability to run aviation infrastructure at its current levels of capacity are anticipated to be the biggest environmental restrictions and uncertainties facing future activity expansion. The actual cost of air travel may increase in the future if productivity improvements in air transportation are not made. The industry may become more dependent on leisure travel that is particularly price-sensitive, which could slow the expansion of aviation activities.

Where are the Market Opportunities?

Remote Virtual Towers to Offer Lucrative Growth Prospects
The air traffic management industry has adopted the novel idea of the remote virtual tower. Controllers may carry out all of the activities of a control tower from anywhere owing to the remote virtual towers. Compared to airports without towers, these towers guarantee streamlined access, lowered delays, and enhanced safety margins. Airports & air navigation service providers (ANSPs) are thinking about how the International Civil Aviation Organization (ICAO) Procedures for Air Navigation Services (PANS) ATM modifications can lead to improvements in visual observation. According to these modifications, visual observation must be accomplished either directly out the window or indirectly by using a visual surveillance equipment that has been specially approved for the purpose by the relevant ATS authority. Undoubtedly, this would inspire numerous nations to deploy remote and digital towers. In comparison to a traditional control tower, these towers have a smaller footprint, are less expensive, more technically proficient, and are frequently more durable and secure. Additionally, where dedicated local air traffic services are not deemed viable or cost-effective, they can offer aerodrome control services for many aerodromes.

Competitive Landscape
The major players operating in the air traffic management market are Advanced Navigation and Positioning Corporation, BAE Systems, Frequentis, Honeywell International Inc., INDRA SISTEMAS, S.A., Intelcan Technosystems Inc., L3Harris Technologies, Inc., Leidos, Leonardo S.p.A., Northrop Grumman, Raytheon Technologies Corporation, Saab AB, Searidge Technologies, SITA, and Thales. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.

Recent Developments
• The fourth phase of the functional prototype project for Airservices' Flight Information Management System (FIMS), a critical component of the Uncrewed Traffic Management (UTM) ecosystem in Australia, was started in September 2022. The solution is governed by UTM services provider OneSky and includes partners AAM, Airbus, ResilienX, and TruWeather Solutions under a contract granted in 2021.
• In July 2022, Airservices Australia contracted Frequentis for a Bypass Voice Communication System (BVCS) to be used in the new civil military air traffic management system.
• In June 2022, CAELUM Co., Ltd, signed a MoU with Frequentis Singapore Pte Ltd., to work in collaboration on Urban Air Mobility (UAM) & Unmanned Traffic Management (UTM) solutions across South Korea.
• In June 2022, Avinor ANS, Norwegian Air Navigation Services, awarded Frequentis a contract to upgrade its current unmanned traffic management (UTM) system in order to provide UTM services around offshore rigs in the Norwegian North Sea in a secure and effective manner. The deal, which is part of a framework agreement between Frequentis and Avinor, will allow a third party authorised to provide UTM services to monitor and sustainably manage drone traffic around those companies' most important infrastructure assets.
• A Memorandum of Understanding (MoU) was signed in June 2022 by Frequentis and Metron Aviation, two aviation industry pioneers with a focus on air traffic management (ATM) solutions, to collaborate on projects of shared interest in the areas of air traffic flow management (ATFM), arrival management (AMAN), and departure management (DMAN) solutions.
• In March 2022, Boeing declared the historic project it had been working on to develop a comprehensive plan for CNS/ATM modernization for the Airports Authority of India (AAI) had been completed. The U.S. Trade and Development Agency provided funding for this research in the form of a grant.

Notes for Editors
If you are interested in a more detailed overview of this report, please send an e-mail to contactus@visiongain.com or call +44 (0) 207 336 6100.

About Visiongain
Visiongain is one of the fastest-growing and most innovative independent media companies in Europe. Based in London, UK, Visiongain produces a host of business-to-business reports focusing on the automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors.

Visiongain publishes reports produced by analysts who are qualified experts in their field. Visiongain has firmly established itself as the first port of call for the business professional who needs independent, high-quality, original material to rely and depend on.

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