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Global Air Traffic Control (ATC) Equipment Industry

Global Air Traffic Control (ATC) Equipment Industry

  • September 2020
  • 500 pages
  • ID: 98260
  • Format: PDF
  • Global Industry Analysts

Summary

Table of Contents

MARKET IMPACT SURVEY - COVID-19 & LOOMING RECESSION

Timely market intelligence is paramount in these uncertain times!

We launched an impact survey to update this project with timely insights during 2020. Update frequency will depend upon evolving market conditions and executive opinions. Our participants are executives driving strategy, marketing, sales and product management at competitive companies worldwide. All updates during the rest of the year are complimentary to clients!

The global market for Air Traffic Control (ATC) Equipment is projected to reach US$60. 2 billion by 2025, driven by the stable outlook for the commercial aviation industry as measured in terms of increased spending on air travel and rise in passenger traffic; increase in flight frequencies; growth and expansion of airline companies supported by deregulation initiatives worldwide; opening up of additional airspace for commercial flights; and airport operator focus on cost reduction and operational efficiencies. As part of the robust increase in aviation infrastructure investments are aircraft fleet and airport hub expansions, leading to crowded skies and air traffic congestion. Drawbacks of air traffic congestion include flight delays; stranded passengers, lower customer satisfaction and aviation experience; increase in average wastage of fuel per flight operation; and reduced airspace safety and higher risk of air traffic accidents such as mid-air collision as a result of increasing number of aircraft flying in the same airspace. Inefficient air traffic control and management systems and technologies can compound and magnify these drawbacks thus fueling the need for new generation ATC systems capable of processing more traffic per hour, easing ground delays and increasing safety. Policy led commitment to upgrade aging aviation infrastructure in developed countries like the U. S also spells attractive opportunities for growth. The Federal Aviation Administration (FAA) in the U. S. is busy in the midst of a planned over US$35 billion upgrade of the country`s air-traffic control system. This initiative which boosts the FAA`s contract spending ability bodes well for ATC equipment market in the country.

Air cargo will continue to remain vital to the global economic system. While current challenges weaken the short-to-medium term prospects for new freighter procurement, the long-term expectations of a strong recovery will boost production and demand for standard-body freighters in turn opening up attractive opportunities for airline operations and subsequently for air traffic control equipment suppliers. Passenger airplanes and dedicated freighters both carry air cargo. While passenger airlines offer some capacity for transporting air cargo in the lower-hold of the aircraft hull, pure-play air-freighters ship air cargo provide superior reliability, punctuality, predictability and network routes. Lower-hold cargo capacity on passenger flights has been expanding as airlines deploy new jetliners with excellent cargo capability, such as the 777-300ER. Air cargo traffic on the Asia-North America and Europe corridor is likely to grow at the fastest rate, with China generating the maximum average annual growth. Asia-Pacific including China ranks as a major market led by factors such as healthy economic growth, stable GDP gains, increase in air travel in parallel with the rising affluence of the growing base of middle class population, focus on free and fair trade agreements and the ensuing increase in air freight among emerging economies, government policy led increase in airport infrastructure development and implementation of stringent aviation safety regulations. Few of the factors influencing passenger traffic growth in the region include lower fuel prices, reductions in air fares, and increase in business and recreational travel as a result of improving economic conditions.

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