Market Trends of Airspace And Procedure Design Industry
Hardware Segment to Dominate Market Share During the Forecast Period
The construction of new airports and expanding existing airports are anticipated to generate the demand for air traffic management hardware worldwide. Several airports are replacing aging hardware equipment with new advanced equipment to enhance the efficiency of air traffic management operations. Recently, THALES announced that the company installed ATM systems at Abeid Amani Karume International Airport, Arusha Airport, Julius Nyerere International Airport, Kilimanjaro International Airport, Mwanza International Airport, and Songwe Airport. The modernization is a part of the contract between THALES and the Tanzania Civil Aviation Authority (TCAA) to enhance the country’s air traffic safety and efficiency. The company installed surveillance radars and TopSky – ATC as a part of modernization.
Similarly, in April 2022, the Federal Aviation Administration announced an investment of more than USD 1 billion under the President’s Bipartisan Infrastructure Law for air traffic control tower replacement, modernization of navigation, weather and tracking equipment, upgrades to power systems, infrastructure upgrades at the air route traffic control centers, towers, and TRACONs, among others at the airport. Such developments are anticipated to drive the demand for the hardware segment rapidly during the forecast period.
Asia-Pacific To Witness Highest Growth During the Forecast Period
The Asia-Pacific region is expected to lead the market with the highest CAGR during the forecast period. The growth in the market is propelled by robust investments toward constructing new airports and expanding existing airports in China and India. In January 2022, the Civil Aviation Administration of China (CAAC) announced its plan to increase the number of civil transport airports to more than 270 by 2025. The construction of new airports will allow the government to handle 17 million aircraft movements annually and increase passenger handling and cargo handling capacities to 930 million passengers and 9.5 million tonnes by 2025. Such developments would bolster the adoption of sophisticated air traffic management systems to ensure high levels of safety and operational efficiency in the country.
In addition, a similar increase in passenger volume, adjoining demand from airline customers, new air traffic management requirements, and environmental regulations are forcing Indian airports to continuously adapt and improve their infrastructure and operations. Digital transformation is reshaping the Indian airport industry through integrating the Internet of Things (IoT)- )-enabled technologies to help airports optimize their operations and allow safe and timely passenger travel. In March 2022, to support the Make in India Initiative, Bharat Electronics Limited (BEL) partnered with the Airports Authority of India (AAI) to research and develop systems for air traffic management and surface movement of aircraft at airports.
Such investments into the development and introduction of new ATM systems are expected to drive the growth prospects of the air traffic management market in the Asia-Pacific region during the forecast period.
