(I-BusinessNews.Com, January 23, 2021 ) According to the latest market research report the Air Traffic Management Market is projected to grow from an estimated USD 9.7 billion in 2020 to USD 17.6 billion by 2025, at a CAGR of 12.6% during the forecast period. The recommencement of global economic growth, an increase in number of passenger traffic, need of airspace management and modernization of air traffic management infrastructure are expected to drive the growth of the market.
COVID-19 impact on the Air Traffic Management Market
The COVID-19 outbreak has impacted the aviation industry adversely due to air travel restrictions on domestic as well as international flights across countries, resulting in the sudden decrease in the air traffic. This is expected to negatively impact the air traffic management market in the short term; slow recovery is expected in Q1 of 2021. The aviation industry could take 2-3 years to recover from the financial effects of COVID-19, leading to lower air travels and passenger traffic compared to previous estimates.
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Nationwide lockdowns as a result of the COVID-19 pandemic have impacted all regions considered under this study, with restrictions on air travel impacting air passenger traffic severely. The most substantial reductions in air passenger numbers are expected in Asia Pacific, followed by Europe, the latter of which is hitting its summer travel peak season. The detailed impact of COVID-19 on various countries in terms of air travel restrictions, new norms, and regulations in the aviation industry is outlined in the regional split below. Due to the global pandemic, the air traffic is down by 90% as compared to the same period in 2019. There is a surplus of air traffic controllers but very limited air traffic, and the training of new air traffic controllers has already stopped in Europe. Most major organizations are reducing their staffing due to the reduction of air operations during COVID-19.
The Air Traffic Services (ATS) is projected to grow at the highest CAGR during the forecast period
Based on airspace, the Air Traffic Services (ATS) segment is estimated to dominate the air traffic management market in 2020 with a share of 55.6%. This segment is estimated at USD 5.4 billion in 2020 and is expected to reach USD 9.6 billion by 2025, at a CAGR of 12.3% during the forecast period. Increasing air traffic and airspace congestion and the need for advanced capabilities of the existing airspace are major factors that are expected to contribute to the growth of the ATS segment of the market during the forecast period.
The software and solutions is projected to grow at the highest CAGR during the forecast period
Based on the offering, the market has been segmented into hardware and software and solutions. Hardware is also used to provide positioning of aircraft, send alerts & weather data, communicate via voice & text, and facilitate safe landing & take-off, among others. Software is an essential component of ATM as it is responsible for processing all the data and information collected and exchanged between various hardware described above. It also helps in automating some of the ATM procedures.
The automation segment accounts for the largest market size during the forecast period.
Based on the application, the market has been segmented into communication, navigation, surveillance and automation. The automation segment accounts for the largest market size during the forecast period. The OEM segment is the fastest-growing market during the forecast period. The automation segment is growing substantially as airports and air traffic controllers are investing in simulators, and increased adoption of remote towers is fuelling the market.
Asia Pacific is expected to account for the largest share in 2020
The air traffic management market has been studied for North America, Europe, Asia Pacific, Middle East, Latin America, and Africa. Asia pacific is estimated to account for the largest share of the global market in 2020. The market is growing at a significant pace in the Asia Pacific region, majorly driven by the increasing air passenger traffic. The market in Asia Pacific is projected to grow significantly owing to high investments in the modernization of airport and construction of new regional airports.
Key Market Players
Major players operating in the air traffic management market include Thales Group (France), Raytheon Technologies (US), Indra Sistemas S.A. (Spain), and L3Harris Technologies, Inc (US) are some of the key manufacturers and suppliers of the ATM market.
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