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What Is The Leading Driver Behind Taking Flight Global Tourism Surge Drives Growth In The Air Traffic Control Market Market Expansion in 2025
Air Traffic Control
What Will the Air Traffic Control Industry Market Size Be by 2025?
Over the years, the air traffic control market size has experienced consistent growth. The industry, which had a value of $9.09 billion in 2024, is predicted to expand to $9.46 billion in 2025, reflecting a compound annual growth rate (CAGR) of 4.1%. This upward trend during the historical period can be accredited to various factors such as modernization efforts, an increase in air passengers, advancements in safety measures, the evolution of navigation systems, as well as cost efficiency and optimization.
What's the Long-Term Growth Forecast for the Air Traffic Control Market Size Through 2029?
In the coming years, the air traffic control market size is anticipated to experience robust growth, ascending to a value of $12.09 billion by 2029, with a compound annual growth rate (CAGR) of 6.3%. Factors such as efficiency improvements and cost savings, a surge in air traffic volume, modernization schemes, expansion in remote tower operations, and a focus on cybersecurity contribute to this forecasted growth. Key developments to watch for include modernization efforts, the incorporation of automation and AI, safety improvements, NextGen ATC programs, remote tower operations, and steps towards stronger cybersecurity.
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What Are the Key Growth Drivers Fueling the Air Traffic Control Market Expansion?
The proliferation of global tourism is projected to stimulate the air traffic control market. Tourism, which encompasses leaving one's home for leisure, relaxation, and pleasure, often relies on air travel due to its convenience and time-saving attributes. This preference escalates air traffic and subsequently necessitates improved management in the aerospace industry. For instance, in 2022, the World Tourism Organization, a United Nations special agency, reported a 172% surge in international tourist arrivals from January to July compared to the corresponding period in 2021. The tourism industry rebounded to around 60% of the level seen before the pandemic. Around 474 million tourists embarked on international journeys from January 2022 to July 2022, a significant increase from the 175 million recorded over the same period in 2021. Hence, the expansion of tourism is expected to foster growth in the air traffic control market.
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What Are the Key Trends Driving Air Traffic Control Market Growth?
The rising prominence of innovative technology and the utilization of advanced systems is a notable trend unfolding in the air traffic control market. Major industry players are adopting new technological solutions for effective data transfer automation with aircraft, which leads to enhanced precision in traffic management. For example, in June 2022, Netherlands-based air traffic controller Eurocontrol MUAC, in conjunction with Spanish tech and consulting firm Indra, initiated the ATN Automatic Dependent Surveillance Contract system (ADS-C). This system was designed to streamline data commutation with aircraft and simplify air traffic management processes. It operates through the Aeronautical Telecommunications Network (ATN), a complex global data superhighway, beneficial for ground-to-ground and aerial-ground communications. This method enables controllers to create electronic contracts with aircraft, obtaining pertinent data on aspects like route and altitude, among others. Furthermore, Indra's ADS-C system will boost interoperability with additional control centers, by introducing new algorithms for the Arrival Management System (XMAN). This could have a direct impact on traffic flow and the timeliness of aircraft movements throughout Europe.
How Is the Air Traffic Control Market Segmented?
The air traffic controlmarket 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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