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- Global Air Traffic Control (ATC) Equipment Market to Reach US$3.9 Billion by 2017
Global Air Traffic Control (ATC) Equipment Market to Reach US$3.9 Billion by 2017
- By Electronics.ca Research Network
- Published January 11, 2012
- Other Research
Passenger safety and comfort have been the primary motivating factors for adoption of ATC equipment worldwide. With increase in frequency of air traffic movements across the globe, efficient management of air traffic communication, navigation and surveillance represent key performance deliverables for the aviation industry, thereby driving demand for sophisticated ATC equipment such as ATC communications equipment, ATC navigation equipment, and ATC surveillance equipment.
The business case for ATC Equipment goes beyond temporary weaknesses witnessed in the economic climate as is illustrated by the 2007-2009 recession. Although the recent recession took a huge bite out of the global airline traffic volumes, the focus on airport infrastructure investment remained largely unchanged, given that investments in ATC equipments are closely tied to airspace safety, efficiency in direct routing, improved system capacity, and lesser air flight delays. Also, ATC, which forms a vital part of airport development projects have a long gestation period, and prolonged cutbacks in ATC investments in the aerospace industry, in addition, runs the risk of compounding cost pressure problems arising out of increased congestion in the post recession period. The negative influence of congestion induced higher costs for the air transport industry thus induces a concerted focus on aviation infrastructure planning and investment. Growth patterns in the market recorded over the recession period indicate that fears over neglect of infrastructure as a result of the financial pressure exerted by the recession are unfounded especially against a backdrop where international air transport is considered a world system and an indispensable component of world business globalization. Also, recovery in business, tourism and trade partially depends upon the robustness of air infrastructure and maintenance of air links. Interestingly, equipment failures in ATC can actually exacerbate the blow on airlines, which are already boxed in with economic issues.
The industry, however, has not been completely recession-proof with growth ebbed by over 1.2% in the year 2009, largely as a result of budgetary constraints for new projects resulting in postponement and/or cancellation of new airport constructions or airport renovations, and aircraft purchases. Environmental concerns and unstable fuel prices, which even earlier raised questions about the environmental and economic viability of airline operations, additionally weighed down upon the market during the year. However, government investments in regional aviation infrastructure projects such as new terminal facilities, airports, and installation of new aircraft communications, navigation, surveillance and air traffic management (CNS/ATM) systems, are lesser sensitive to the recession. Also, resurgence in passenger and cargo traffic and congestion woes helped the year 2010 to make a smart recovery.
As the global skies become increasingly overcrowded, ATC equipment in most countries will require significant upgradation and improvement to prevent disastrous disruption in air traffic, thus presenting sanguine business prospects in the upcoming years. Continued increase in passenger traffic, improvement in credit market, better financing options, and increased budgetary allocations for infrastructure developments will surely reshape business practices in the aviation industry, thereby driving substantial opportunities for ATC equipment market.
As stated by the market research report, Europe and United States account for a major share of the global Air Traffic Control (ATC) Equipment market. Although developed markets such as Europe and North America have been the traditional revenue contributors in the market, developing markets such as Asia-Pacific and Latin America and Middle East are expected to turbo-charge future growth in the upcoming years. By segment, ATC Communication Systems is the largest contributor to revenues. ATC Communication Systems is also forecast to be the fastest growing segment within the global Air Traffic Control (ATC) Equipment market. US market revenues for Navigation Equipment are expected to surge at a CAGR of 4.3% over the analysis period.
Major players in the global marketplace include Advanced Navigation & Positioning Corporation Inc, The Aeronav Group, BAE Systems Plc, Becker Avionics Inc., C.N.S. Systems AB, Frequentis AG, Gallium Visual Systems Inc., Harris Corporation, Indra Sistemas S.A, Lockheed Martin Corporation, Northrop Grumman Corp., Raytheon Company, Siqura, Sierra Nevada Corporation, Telephonics Corp, and Thales Group.
This report provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (US$ Million) for major geographic markets including the United States, Canada, Japan, Europe, Asia-Pacific, and Rest of World. Product segments analyzed include ATC Communications Equipment (ATC Communication Systems, ATC Radio & Recording Equipment, and ATC Switching Equipment), ATC Navigation Equipment (ATC En Route Navigation Aids, and ATC Landing Aids), and ATC Surveillance Equipment (ATC Radar Based Equipment, and Automatic Dependence Surveillance Systems).
Details of the report, table of contents and ordering information can be found on Electronics.ca Publications' web site. View the report: Air Traffic Control (ATC) Equipment - A Global Strategic Business Report
