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Taking Flight Global Tourism Surge Drives Growth In The Air Traffic Control Market: A Leading Driver Behind Air Traffic Control Market Expansion in 2025
Air Traffic Control Market Size
What Will the Air Traffic Control Industry Market Size Be by 2025?
The size of the air traffic control market has experienced significant growth in recent times. The market is set to expand from a valuation of $9.09 billion in 2024 to reach a value of $9.55 billion in 2025, indicating a 5.0% compound annual growth rate (CAGR). The past growth trend in this market can be linked to factors such as modernizing efforts, a surge in air traveler figures, advancements in navigation systems, improvement in safety measures, and enhanced cost efficiency and optimization.
What's the Long-Term Growth Forecast for the Air Traffic Control Market Size Through 2029?
Expectations are high for a robust expansion in the air traffic control market over the coming years. In terms of value, it is projected to increase to a staggering $12.37 billion by 2029, progressing at a compound annual growth rate (CAGR) of 6.7%. Factors driving this anticipated growth during the forecast period include heightened efficiency, cost reductions, amplified air traffic, modernization undertakings, expansions in remote tower operations, and a stronger focus on cybersecurity. Key trends during this forecasted period encompass initiatives for modernization, the integration of automation and AI, safety improvements, NextGen ATC schemes, remote tower operations, and steps towards enhanced cybersecurity.
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What Are the Key Growth Drivers Fueling the Air Traffic Control Market Expansion?
The surge in worldwide tourism is projected to fuel the growth of the air traffic control market. Tourism, which involves venturing out of one's usual surroundings for leisure, pleasure, and recreation, frequently relies on air transport due to its efficiency and convenience. This preference boosts aviation traffic and accentuates the requirement for effective air traffic management within the aerospace sphere. For example, the United Nations specialized agency, World Tourism Organization, documented in 2022 that international tourist arrivals escalated by 172% from January to July in contrast to the corresponding duration in 2021. Tourism approximately regained about 60% of the strength it had before the pandemic. Roughly 474 million tourists journeyed across nations from January 2022 to July 2022, in stark comparison to 175 million during the equivalent period in 2021. Therefore, the acceleration in tourism is anticipated to encourage the expansion of the air traffic control market.
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What Are the Key Trends Driving Air Traffic Control Market Growth?
The air traffic control market is increasingly dominated by technological innovation and the implementation of advanced systems. Prominent companies are tapping into new technologies for data transfer automation with aircraft, enhancing traffic management accuracy. In June 2022, a noteworthy move was made by Eurocontrol MUAC, a Netherlands-based organization managing the upper air space traffic of Belgium, the Netherlands, Luxembourg, and Northwestern Germany. In collaboration with Indra, a Spanish tech consulting firm, they launched the ATN Automatic Dependent Surveillance Contract system (ADS-C). This system automates the data interaction with aircraft, simplifying the air traffic management operation. Data is shared through the Aeronautical Telecommunications Network (ATN), an advanced global information conduit beneficial for terrestrial and aerial communications. The system facilitates electronic contract creation with planes and collects data on vital aspects like route and altitude. Indra's ADS-C system further advances interoperability with other control stations by contributing to new algorithms for the Arrival Management System (XMAN), which will have a direct impact on traffic dynamics and on-time performance of aircraft across Europe.
How Is the Air Traffic Control Market Segmented?
The air traffic control market covered in this report is segmented -
1) By Point Of Sale: Hardware, Software, Services
2) By Airport Size: Small, Medium, Large
3) By Airspace: Air Route Traffic Control Centers (ARTCC), Terminal Radar Approach Control (TRACON), Air Traffic Control Tower (ATCT), Remote Tower (RT)
4) By Application: Communication, Navigation, Surveillance, Automation
Subsegments:
1) By Hardware: Radar Systems, Communication Equipment, Surveillance Systems, Navigation Aids
2) By Software: Air Traffic Management Software, Flight Data Processing Software, Simulation Software, Decision Support Tools
3) By Services: Installation And Integration Services, Maintenance And Support Services, Training And Consultancy Services
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Which Companies Are Leading the Charge in Air Traffic Control Market Innovation?
Major companies operating in the air traffic control market are Raytheon Technologies Corporation, BAE Systems PLC, Thales Group, Indra Sistemas S.A., Frequentis AG, Harris Corporation, Adacel Technologies Ltd., Leonardo S.p.A, Honeywell International Inc., Northrop Grumman Corporation, Saab AB, SkySoft-ATM, NAV Canada, Searidge Technologies Inc., NATS Holdings Limited, Telephonics Corp., The Aeronav Group, Becker Avionics Inc, L3Harris Technologies Inc., Atech Negocios em Tecnologias S/A, COMSOFT Solutions GmbH, Intelcan Technosystems Inc., Lockheed Martin Corporation, Serco Group PLC, Slovenia Control, Finavia Corporation, Airservices Australia, Irish Aviation Authority, Swiss International Air Lines Ltd.
Which Regions Are Leading the Global Air Traffic Control Market in Revenue?
North America was the largest region in the air traffic control market in 2024. The regions covered in the air traffic control market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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