Automatic Dependent Surveillance-Broadcast Market Size, Trends and Growth Analysis by 2027

The automatic dependent surveillance-broadcast (ADS-B) market was valued at approximately US$ 815.92 million in 2019 and is anticipated to grow to US$ 3020.20 million by 2027, reflecting a compound annual growth rate (CAGR) of 18.3% from 2020 to 2027.

Several factors are contributing to the expansion of this market, including an increase in aircraft orders and significant investments in the development of commercial airports. Additionally, the implementation of ADS-B for military applications and the establishment of regulations for its integration are expected to further enhance market growth during the forecast period. However, the slow adoption of ADS-B technology in developing nations poses a challenge to market expansion. Currently, Europe, North America, and Asia are the leading regions in the adoption of this technology. As the infrastructure of commercial airports improves or existing airports undergo renovations, particularly in these regions, the demand for ground equipment such as air traffic control (ATC) terminals is also on the rise.

For instance, the Chongqing Jiangbei International Airport (CQIA) in China is currently ranked as the 10th largest airport globally and is undergoing substantial expansion. With ongoing investments, it is projected to achieve international air hub status and become the largest hub in western China by 2035. Another significant project is the Beijing Daxing International Airport, which has attracted considerable investment. In July 2019, Emaar, a UAE-based real estate developer, entered into an agreement to invest US$ 11 billion (equivalent to AED 40.5 billion) in the development of this airport. Similarly, SE Lithuanian Airports secured an US$ 81 million (70 million) loan from the Nordic Investment Bank to modernize Lithuania's three main airports: Vilnius, Kaunas, and Palanga. Such modernization initiatives are expected to drive the adoption of advanced technologies, including ADS-B.

The ADS-B market is categorized based on type, application, and component. In terms of type, it is divided into on-board systems and ground stations, with the on-board segment projected to dominate the market share during the forecast period. Regarding application, the market is segmented into terminal maneuvering airspace (TMA) surveillance and airborne surveillance, with the airborne surveillance segment holding a significant market share in 2019. Furthermore, the market is classified by components, which include antennas, receivers, transponders, and ADS-B ground receivers, with transponders accounting for a notable share in 2019.

The COVID-19 pandemic had a profound impact on the commercial aviation sector, leading to a near-complete halt in operations and a scarcity of resources. Government measures and airline shutdowns severely disrupted the aviation aftermarket, negatively affecting the procurement of new ADS-B components and diminishing demand for these technologies. According to a survey by the Aircraft Electronics Association (AEA), avionics work backlogs ranged from 1 to 6 months. In 2020, the number of new aircraft deliveries declined, while the retrofit market began to account for over half of total aircraft sales. The Federal Aviation Administration (FAA) had set a deadline of January 1, 2020, for equipping all aircraft operating in designated airspace with ADS-B technology. However, due to the pandemic, many aircraft could not meet this deadline, with approximately 21,175 aircraft equipped with ADS-B since the mandate took effect. Installation numbers in early 2020 were recorded as follows: March saw 3,600 installations, April had 3,000, and May recorded 3,100 installations.

The overall size of the ADS-B market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of the ADS-B market across various segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants typically included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the ADS-B market.

Key players in the global ADS-B market include Avidyne Corporation, Aspen Avionics, Inc., Collins Aerospace (a Raytheon Technologies company), FreeFlight Systems, Garmin Ltd., Honeywell International Inc., Indra Sistemas, S.A., L3Harris Technologies, Inc., Trig Avionics Limited, and Thales Group.