Technological advancements in air traffic control systems such as advanced surface movement ground control systems, performance-based navigation, advanced integrated automation systems, and standard instrument departures are expected to accelerate industry growth in developing countries during the forecast period. Moreover, growing deployment of satellite-based air traffic control systems is likely to provide profitable prospects for worldwide market players in the market.

Simulator Devices segment of the Air Traffic Control Equipment Market generated a revenue of $123.33 million in 2021 and is projected to reach a revenue of $240 million by 2027, growing at a CAGR of 11.8% during 2022-2027. Air traffic control services employ simulators extensively to ensure efficient and smooth operations. Because of the highly concentrated flight traffic in major worldwide airports, even tiny errors by air traffic controllers might result in enormous disasters. Trainee air traffic controllers use simulator equipment to acquaint themselves with their profession and obtain realistic experience managing a variety of critical responsibilities. Furthermore, the gadgets can be designed to replicate emergency scenarios in order to train and test air traffic controllers' crisis management skills. Such realistic and innovative training techniques improve the efficiency and safety of air traffic control.

During the forecast period 2022-2027, APAC is expected to grow at the fastest CAGR of 10.6%. The remarkable rise of the commercial aviation industry, particularly in the APAC region, has resulted in increased aircraft production. In addition, the region is expected to produce roughly 40% of future aircraft. This trend is expected to continue in the coming years, propelling the market for air traffic control equipment. A study by PWC showed that the growth in Asia Pacific’s aviation sector will continue well beyond 2020 at approximately 5% per annum over the next two decades. These factors can be considered crucial in driving the market growth across APAC region overtime.

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Air Traffic Control Equipment Growth Drivers:

Growth of Civil Aviation Sector is expected to boost the market of Air Traffic Control Equipment growth:

With the growth and innovation in civil and military aviation, widespread usage of air traffic control systems has become more important. This is in response to huge increases in air travel in recent years, particularly in Asia, the Middle East, and Latin America. As a result, the global market for air traffic control equipment is predicted to increase significantly throughout the forecast period. For instance, The Civil Aviation Administration of China recently announced a five-year strategy to steer the industry's development, with the objective of establishing 270 civil aviation facilities and processing 930 million passenger visits by 2025. It would also enhance digitalization by promoting scientific and technological innovation, as well as the development of new infrastructure, while also making intelligent application and integration easier for the sector. Vietnam is investing heavily in airport construction and upgrades, air traffic service improvements, aircraft maintenance, overhaul capacity, and service growth, all of which create potential for American businesses.  According to the 2021 Commercial Aviation Fleet & MRO forecast, Vietnam's fleet would grow to 521 aircraft by 2030. These factors are set to assist the market growth in the coming years.

Advancements towards Satellite- Based Air Traffic Control is set to further assist the market growth:

Air traffic controllers can be more efficient with satellite-based control systems. NextGen, a satellite-based air traffic management system that will be phased in until 2025, is currently being developed in the United States. GPS technology will be used to increase accuracy and shorten travel. NextGen is expected to save time and fuel, reduce air traffic delays, increase flight capacity, and provide improved safety margins for air traffic controllers when monitoring flights. Satellites have been used to track aircraft over oceans and in remote locations for decades. The technology has been improved and is ready to be deployed to service continental airspace in Europe, with plans to expand globally. Satellite communication systems like Iris are critical enablers for next-generation air traffic management in Europe, as part of the European Commission-led Single European Sky Air Traffic Management Research (SESAR) program.  According to a press release Isavia ANS, in October 2021, Iceland’s Air Navigation Service Provider (ANSP), made a deal with Aireon LLC (Aireon) to expand usage for its space-based ADS-B data. This technological advancement will allow for a more dynamic, safer, and efficient use of airspace in northern sectors, as well as improved traffic awareness and Search and Rescue (SAR) capabilities in isolated areas. It is  expected that by the coming years, satellite-based air traffic control will create profitable chances for the business. 

R&D Investment:

In October 2021, BAE Systems through its subsidiary BAE Systems, Inc. entered into an agreement with the U.S Navy under the Air Traffic Control and Landing Systems (ATC&LS) contract. Under this agreement, BAE Systems will develop, equip, as well as maintain N/SPN-46(V) Automatic Carrier Landing System under the $68.5 million arrangement.

In February 2021, BAE Systems and the U.S. Navy entered into an agreement worth $65.7 million, under which the company will be developing as well as maintaining operational software and supporting testbeds, field change programs, alongside supplies for air traffic control systems.

The Major Players in this Market Include

The major companies in the Air Traffic Control Equipment market include Advanced Navigation & Positioning Corp., BAE Systems plc, Raytheon Technologies Corporation, Cobham Limited, L3 Harris Technologies, Northrop Grumman, Indra Sistemas SA, Intelcan Technosystems, Lockheed Martin, Saab Ab, COMSOFT Gmbh, Fintraffic ANS.

In September 2020, Raytheon announced the launch of a mobile air traffic control solution, Deployable Air Traffic Control Automation and Comms System (DAACS), which can be used on times civil and air traffic control services are temporarily unavailable. The system is capable of integrating with multiple sensor feeds alongside connectivity to communication infrastructures.

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