Digital Transformation Is Re-Shaping The Global Air Traffic Management Market

There are new entrants in the air traffic management (ATM) market providing cost-effective, innovative, and efficient technologies to control and manage the air traffic with gradually making airspace boundaries less dependent on national boundaries.

The construction of new ATC (Air Traffic Control) towers generate demand for ATC equipment. For instance, in November 2019, Serbia and Montenegro Air Traffic Services announced its plan to start the construction of a new air traffic control tower at Serbia’s Konstantin Veliki Airport in Nis in 2021. Likewise, the construction of a new ATC tower in Kolkata airport, India, is expected to be completed before the end of 2020. However, the procurement and installation of communication, surveillance, and navigation equipment will be completed by 2021. ​ Such developments are anticipated to drive the growth of this segment during the forecast period. ​ However, the Software segment is projected to grow with the highest CAGR during the forecast period.

Despite being equipped with some of the world’s largest airports, the Civil Aviation Administration of China (CAAC) aims to add another 215 to reach a target of 450 by 2035. China envisions to construct an average of 14 airports annually until 2035 to help in transforming the country’s aviation industry into a strategic asset of its economy.

Further, Digital transformation is reshaping the Indian airport industry, through the integration of the Internet of Things (IoT) enabled technologies to help airports to optimize their operations and enable safe and timely passenger travel. In February 2020, the Indian Government launched the Regional Air Connectivity Scheme, which aims to facilitate regional connectivity through financial support and infrastructure development. ​In addition, the government plans to establish around 100 airports by 2035, with a potential investment of INR 4 trillion. Among them, 70 airports will be at new locations while the rest will be second airports or expansion of existing airfields to handle commercial flights.

With the shift in demographics of emerging markets of the world, air services are expected to grow as a commercial service and ensure global interoperability and harmonious operations.

How could the Global Air Traffic Management Market address the COVID-19 concern?

Global Air Traffic Management is one of the most affected sectors by global COVID-19 outbreak as global aviation is one of the reasons for spreading the outbreak across various countries in many regions. As it is a proven fact that this COVID-19 disease can be spread by human to human touch, traveling of affected people is one of the reasons for the spread of the disease. Therefore, the global aviation sector was immediately affected by the novel coronavirus pandemic.

Owing to the severity of travel restrictions and the expected global recession, IATA estimates that industry passenger revenues could plummet USD 252 billion or 44% below 2019’s figure. This is in a scenario in which severe travel restrictions last for up to three months, followed by a gradual economic recovery later this year. Earlier IATA analyzed up to a USD 113 billion revenue loss on 5 March 2020, before the countries around the world introduced sweeping travel restrictions that largely eliminated the international air travel market.

Impact of Global Air Traffic Management on COVID-19 Outbreak

Many airline companies are taking various steps to prevent the passengers from this coronavirus disease. The no. of flights is decreased or even flights are banned in some regions, which majorly affect the Global Air Traffic Management. Further, various airline and airport executives said temperature screening, regular sanitization, and fumigation of terminals and disinfection of airplanes have been implemented to prevent the passengers from the spread of the disease. Separate counters have been provided for flyers from affected countries, along with the mandatory use of gloves and masks by the crew. It is important that enhanced precautions be done not just for international flights but also for domestic flights, now that the virus is present in various regions across the world.

“The airline industry faces its gravest crisis. Within a matter of a few weeks, our previous worst-case scenario is looking better than our latest estimates. But without immediate government relief measures, there will not be an industry left standing. Airlines need USD 200 billion in liquidity support simply to make it through. Some governments have already stepped forward, but many more need to follow suit,” said IATA’s Director General and CEO, Alexandre de Juniac.

Global Air Traffic Management Market Landscape

Goldstein Market Intelligence analyst forecasts the air traffic management market size is registering a CAGR of 10.6% through the forecast period (2017-2030).

On the basis of the domain, air traffic controllers (ATC) have the highest share in the air traffic management systems due to a gradual increase in air traffic and the addition of bulk of travelers from across the globe. Air traffic with respect to the year 2015 has increased with 6.8% in 2016.

Based on geography, North America dominated the air traffic management market owing to the maximum number of air travelers which are 822,949 passengers alone from the US, it requires a larger number of aircraft to fly and to manage them through air traffic management systems.

Whereas, Asia-Pacific is an emerging market for the air traffic management system, due to the technological development and increased government spending on aviation sector which has resulted in USD 7.3 billion in profits in 2016 from APAC.