Global Air Traffic Management Surveillance Devices Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Air Traffic Management Surveillance Devices Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Air traffic management is primarily concerned with the control of traffic at and around airports, airport terminals. Surveillance equipment uses a network of different surveillance systems to detect and track aircraft, calculate their position, obtain data such as identification, location, etc., and then present it to the controller on a status display for easy management by air traffic controllers. Air traffic management surveillance equipment can provide smooth and safe air traffic flow. Downstream applications include air navigation service providers, civil aviation regulators, military air traffic control authorities, etc.

Market Overview:

The latest research study on the global Air Traffic Management Surveillance Devices market finds that the global Air Traffic Management Surveillance Devices market reached a value of USD 1542.76 million in 2022. It’s expected that the market will achieve USD 2680.42 million by 2028, exhibiting a CAGR of 9.64% during the forecast period.

Impact of Russia and Ukraine War

The Russia-Ukrainian war has disrupted global agricultural and energy supply chains, with major repercussions for the global economy. The war led to sharp rises in food, fertilizer, and energy prices, exacerbating inflationary pressures, widening the gap between rich and poor, and triggering a food crisis. The Ukrainian region also absorbs international humanitarian aid and development funding that would otherwise be used to resolve conflicts and crises in other parts of the world. The turmoil in the political environment exacerbates the instability in the economic environment. According to McKinsey's September 2022 Global Economic Conditions Survey, European respondents mainly cited rising energy and material costs due to poor operating performance. Rising wages were the top concern in India and North America. But as Russia threatens European security, the West has strengthened its cohesion by jointly imposing sweeping economic sanctions on Russia.
The war has fueled global economic turmoil and rising interest rates, and the business environment in Russia has been challenging, with sanctions limiting payment options and increasing inflation further compressing consumers' disposable income. The United States, Canada, the European Union, the United Kingdom, and various other countries have banned Russian aircraft from their airspace since the war began. Russia has also banned 36 countries from flying in its airspace. Reciprocal sanctions and aviation restrictions have created challenges for the aviation industry, leading to flight cancellations or diversions, higher ticket prices, higher fuel costs, and problems with titanium procurement, among others. Many non-Russian airlines had to divert to avoid flying over Russian airspace, and some European companies even canceled flights to Asia entirely. Closed airspace means longer flight times, more fuel, more flight time, higher costs, and, with it, higher fares. Rising fuel costs will affect the profitability of airlines, which are still recovering from a drop in demand due to the pandemic. Titanium is a key metal used in the manufacture of aircraft. Ukraine and Russia are among the major producers of titanium, and the ongoing conflict could affect supply in the short term. The negative impact of the Russia-Ukraine war on the aviation industry may lead to a reduction in the demand for surveillance equipment in the commercial market. But simultaneously, the United States and European countries have also stepped up security assistance to Ukraine. The Ukrainian Defense Liaison Group, launched by the U.S. and Europe, has jointly pledged $50 billion in security assistance, including near tanks, armored vehicles, artillery systems, and air defense systems. The Ukrainian Air Force fighter force needs modern Western fighters and missiles for sustained confrontation. This may increase the demand for air traffic management equipment. Overall, the Russo-Ukraine war has disrupted supply chains and realigned global trade arrangements. Air traffic management surveillance equipment companies need to establish good relationships with suppliers and partners to ensure supply chain security and cost control.

Air passenger traffic rises

The growing commercial aviation segment and rising preference for air travel across the globe are expected to drive the air traffic management surveillance equipment market growth. Air transport is considered the safest mode of transport compared to all other modes of transportation. With the growth of the global population, the increase in people's disposable income, and the introduction of low-cost flights, air passenger traffic has increased in recent years, and airspace resources in busy areas are becoming increasingly tight. This requires greater efficiency and air transport safety. The aviation industry is increasingly investing in advanced solutions to safely operate air traffic management systems. According to Boeing forecasts, the global fleet will increase by 80% by 2041 compared to pre-pandemic levels in 2019. The Asian market accounts for about 40 percent of the world's long-term demand for new aircraft. Europe and North America each accounted for more than 20% of demand. About half of all passenger aircraft deliveries will replace today's models, improving the fuel efficiency and sustainability of the global fleet. Rapidly growing air passenger traffic requires the development of new airports to serve new routes, improve comfort and service on domestic and international flights, and modernize existing airports to facilitate the seamless movement of aircraft. Airports are upgrading their traditional systems of managing equipment to automated systems to improve the overall efficiency of air travel and minimize incidents on the ground. Hence, the number of airports in emerging economies and the need for efficient airspace management has led to increased investments in air traffic management monitoring equipment by airports and airlines.

Greater need to improve aviation safety

The air transport industry plays an important role in global economic activity and development. One of the key elements to keep civil aviation alive is to ensure safe, reliable, efficient, and environmentally sustainable operations at the global regional, and national levels. Cybersecurity is one of the top concerns of the aviation industry, including airports. For years, airports around the world have relied heavily on critical information, communication, and navigation systems to operate, provide passenger services, and communicate with related services. This heavy reliance on technology also increases the risk of airports facing various forms of threats, including cyber-attacks. The increasing number and sophistication of cyber-attacks on airport security worldwide has prompted many airports to invest more in cybersecurity to safeguard operations and protect passengers. The International Civil Aviation Organization (ICAO) has issued Standards and Recommended Practices (SARPs) to promote harmonized regulations for global aviation safety, security, efficiency, and environmental protection. The aviation policies of various countries further put forward requirements for information infrastructure construction, digitization, and networking, guiding for building a sound advanced, reliable, and economical safety and security and technical support service system. Therefore, as society pays more and more attention to cyber security, the air traffic management monitoring equipment market is also developing rapidly.

Equipment procurement and maintenance costs are high

An advanced automated monitoring system simplifies the airport boarding process. However, surveillance systems require a combination of various subsystems and electronic components to provide real-time data to airport authorities. The design, development, and implementation of these systems involve enormous costs at airports in different countries. The air traffic management system industry is capital-intensive and complex in construction. Most of the end users are air traffic control departments, which generally have high requirements for the financial strength and reliability of market participants. Market participants generally maintain a high level of investment in the research and development of cutting-edge technologies in the field of air traffic control, to ensure the advancement of product technology, and there is a continuous demand for funds. Since the air traffic management system accounts for 20% to 50% of the overall operating cost of the airport, governments of all countries need to invest huge sums of money to install advanced air traffic management solutions. It also means less investment in aviation infrastructure and air traffic control equipment when the pandemic and the Russo-Ukraine war lead to a recession. In addition, in emerging regions such as Asia Pacific, Latin America, and Africa, countries mainly have low-cost airlines. These airlines tend to lease aircraft from other large airlines with strong fleet strength. This trend helps low-cost airlines reduce investment and operating costs. Most leased aircraft are very old and therefore not equipped with technologically advanced systems. Difficulty integrating new air traffic monitoring equipment with existing systems and infrastructure will challenge many airlines in emerging countries. Hence, the high cost of air traffic management surveillance systems may hamper the growth of the industry.

Region Overview:

In 2022, the share of the Air Traffic Management Surveillance Devices market in United States stood at 35.38%.

Company Overview:

The major players operating in the Air Traffic Management Surveillance Devices market include Thales Group, Raytheon Company, L3Harris Technologies, Garmin Ltd., Indra Sistemas SA, etc. Among which, Thales Group ranked top in terms of sales and revenue in 2023.

Thales Group

As a global high-tech leader, Thales Group is committed to investing in digitalization and deep technology innovation - interconnection, big data, artificial intelligence, cyber security, and quantum technology.

Raytheon Company

Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military, and government customers worldwide. It includes four industry-leading businesses—Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense.

Segmentation Overview:

By type, ADS-B segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Commercial segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Air Traffic Management Surveillance Devices market covered in Chapter 3:

L3Harris Technologies
Thales Group
Easat Radar Systems Limited
Indra Sistemas SA
Frequentis AG
Raytheon Company
Leonardo SpA
Garmin Ltd.

In Chapter 4 and Chapter 14.2, on the basis of types, the Air Traffic Management Surveillance Devices market from 2018 to 2029 is primarily split into:

PSR
SSR
ADS-B
MLAT & WAM
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Air Traffic Management Surveillance Devices market from 2018 to 2029 covers:

Commercial
Military
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)