Commercial Air Traffic Management Market Size, Share, Growth by 2030

The commercial air traffic management sector is projected to achieve a value of US$ 10,279.46 million by 2028, with an anticipated compound annual growth rate (CAGR) of 7.8% from 2022 to 2030.

The surge in global air passenger traffic is driving the demand for commercial aircraft fleets. To accommodate the increasing number of passengers and the expanding aircraft fleet, numerous countries with significant air travel volumes, including China, India, Japan, Australia, the United States, Mexico, the United Kingdom, and Germany, are planning to develop new airports in their regions. For instance, in 2021, renovation efforts began at Melbourne International Airport, and construction of the Western Sydney Airport commenced in November of the same year. According to the Los Angeles Times, in March 2022, the Mexican government announced the inauguration of the Felipe Angeles International Airport, which initially planned to handle only 16 flights per day. Reports indicate that seven of the ten most expensive airport projects that entered the execution phase in 2021 were located in Asia. These developments are expected to significantly influence the commercial air traffic management market growth throughout the forecast period.

In line with the plans released by the Civil Aviation Administration of China (CAAC) in 2021, the country aims to construct 150 civil airports by 2035. This initiative is likely to accelerate the deployment of air traffic management systems. Similarly, the Civil Aviation Ministry of India announced in 2022 its intention to initiate 220 new airport projects by 2025. Consequently, the establishment of new airports and the enhancement of existing ones are expected to create fresh opportunities for vendors in the air traffic management market. Furthermore, the launch of the Digital European Sky innovation program is facilitating the digital transformation of air traffic infrastructure, which includes the implementation of digital, automated, and interconnected air traffic management systems. This initiative was jointly launched by SESAR Joint Undertaking (Single European Sky Air Traffic Management Research), a European public-private partnership aimed at enhancing the future growth and safety of air traffic management across Europe.

Impact of the COVID-19 Pandemic on the Commercial Air Traffic Management Market

The COVID-19 pandemic prompted unprecedented policy responses across European nations, adversely affecting the region's economic growth between the second and third quarters of 2020. Lockdowns imposed by European Union (EU) member states to mitigate the outbreak disrupted multiple supply chains within the aviation sector, leading to revenue losses for companies supplying hardware for air traffic operations. The concentration of aerospace contractors in Europe exacerbated the situation, as many countries experienced a continuous rise in COVID-19 cases, resulting in workforce shortages at manufacturing facilities. Additionally, restrictions on the production volume of various components limited the demand for advanced technologies and components, negatively impacting the growth of the commercial air traffic management market in Europe. However, in 2021, several new airport expansion initiatives were undertaken in the region. For example, a new terminal complex was inaugurated at Kemerovo Airport in Russia in May 2021. The post-pandemic increase in airport expansion efforts aimed at upgrading air traffic management systems for better air traffic flow management is expected to enhance market growth during the forecast period.

The presence of key commercial air traffic management players in Europe, such as BAE Systems Plc, Indra Sistemas, Saab AB, Leonardo SpA, and HENSOLDT AG, is propelling the commercial air traffic management market in the region. Additionally, the rising number of commercial aircraft deliveries in Europe is another significant factor anticipated to create new opportunities for market players in the commercial air traffic management sector during the forecast period. According to Boeing's Commercial Forecasts for 2022, over 8,500 commercial aircraft are expected to be delivered in the region by 2041, which is likely to stimulate the expansion of existing airports and the construction of new ones across European nations. Moreover, airport redevelopment projects, including those at Innsbruck Airport (Austria), Jersey Airport, Cork Airport, and Pevek Airport, are driving the adoption of air traffic management technologies.

Airports in Germany are collaborating with various ATM technology firms to develop high-quality traffic management systems across the nation?s airports. Furthermore, the modernization of existing air navigation systems at German airports is another crucial factor contributing to the growth of the commercial air traffic management market. Vendors in this sector are also partnering with airport authorities to digitize the air navigation network throughout European countries. For instance, in September 2021, Indra Sistemas secured a contract worth US$ 171 million from EUROCONTROL, Europe?s leading air navigation organization, to develop digital solutions that will enhance air traffic flight and traffic flow management across Germany and other European airports. Such developments are driving the commercial air traffic management market in Germany.

Prominent global players in the commercial air traffic management market include Thales Group, Indra Sistemas, L3 Harris Technologies, Inc., Leonardo S.p.A, and Honeywell International Inc.

The overall size of the commercial air traffic management market has been determined using both 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 commercial air traffic management market. This approach also aimed to provide an overview and forecast of the market size across all segments. Additionally, numerous primary interviews were conducted with industry participants to validate the data and gain further analytical insights. Participants typically included VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the commercial air traffic management market.