Market Trends of America Air Traffic Management Industry
Air Traffic Control Segment to Dominate Market Share during the Forecast Period
With the rapid growth in air travel, there is a significant need for new airports and terminals to support airlines' fleet expansion plans and upgrade the existing air traffic control system market in the Americas. In July 2022, the Federal Aviation Administration announced its plans to administer USD 1 billion in funds as part of the Infrastructure Law passed by the current US government. An additional USD 5 billion is scheduled to be allocated over the next few years, bringing the total allocation on civil aviation infrastructure to USD 20 billion to upgrade 85 major airports.
Several airports are replacing aging equipment with new advanced equipment to enhance the efficiency of air traffic management operations. For instance, in April 2022, Kongsberg, a leading provider of advanced and mission-critical systems, and Concord, NC, finalized their partnership agreement to modernize the air traffic control system at Concord’s regional airport. The agreement is a public-private partnership (PPP). The agreement will allow the installation and potential certification of Kongsberg’s remote tower system at the airport. These developments are expected to aid the segment’s growth.
North America to Dominate Market Share during the Forecast Period
North America currently dominates the market, and it is expected to continue its domination during the forecast period. This is mainly due to robust investments in the expansion and modernization of airports and air traffic management solutions in the airports of the United States and Canada. Factors such as a growing economy, increased affordability of air travel, and a rising middle class have contributed to a significant uptick in air passenger traffic. Air passenger traffic in the United States reached 1.04 billion in 2022. During the same period, the US airlines carried 853 million passengers, and Canada-based airlines served 107 million.
The US Federal Aviation Administration (FAA) maintains and modernizes these facilities to ensure that they are consistent with evolving air traffic operational needs and airport expansions in the United States. It mandates dual redundancy of the system, signifying the existence of a fully operational duplicate system that kicks into operation in case of a failure in the primary system. The air traffic management providers in the region are introducing new technologies to enhance the efficiency of their operations. The modernization of airports with old and aging ATM solutions in the region is anticipated to bolster the market's growth.
