Air Traffic Management and Consulting Market Forecasts to 2030 – Global Analysis by Service Type (ATM Core Services, Supporting Services and Consulting Services), Component (Hardware, Software Solutions and Professional Services), Deployment Mode, Airport

Air Traffic Management and Consulting Market Forecasts to 2030 – Global Analysis by Service Type (ATM Core Services, Supporting Services and Consulting Services), Component (Hardware, Software Solutions and Professional Services), Deployment Mode, Airport Type, Airport Size, End User and By Geography

According to Stratistics MRC, the Global Air Traffic Management and Consulting Market is accounted for $14.7 billion in 2024 and is expected to reach $18.9 billion by 2030, growing at a CAGR of 4.2% during the forecast period. In order to maintain smooth traffic flow, avoid collisions, and optimize air routes, air traffic management (ATM) entails the effective and secure coordination of aircraft movements in the airspace and at airports. Advisory services offered to enhance ATM operations, infrastructure, and systems are referred to as consulting in the ATM industry. For the civil and military aviation sectors, this entails planning airspace, putting technologies into place, improving air traffic control operations, making sure regulations are followed, and boosting productivity with creative solutions.

According to data from the U.S. Office of Technology Assessment (OTA), the National Airspace System handled approximately 180,000 operations per day at airports with FAA control towers, which amounts to roughly 66 million operations per year.

Market Dynamics:

Driver:

Increasing air traffic

The rising global air passenger traffic is a significant driver for the air traffic management and consulting market. With more aircraft in the skies, there is an increasing need for efficient airspace management to ensure safety and reduce delays. This surge in air traffic is pushing governments and private operators to invest in advanced air traffic control systems, including automation and artificial intelligence. These technologies help optimize flight paths, enhance communication, and improve overall operational efficiency, contributing to the sustained growth of the market.

Restraint:

High initial costs

The implementation of advanced air traffic management systems involves significant capital expenditure, which can act as a restraint on market growth. The costs associated with upgrading infrastructure, procuring new hardware like radars and communication systems, and integrating advanced software solutions are substantial. Additionally, ongoing maintenance and training costs further add to the financial burden. These high initial investments may deter smaller airports or developing nations from adopting next-generation systems, limiting the overall expansion of the market in certain regions.

Opportunity:

Collaboration with private sector

The growing collaboration between governments and private sector companies presents a key opportunity for the air traffic management market. Public-private partnerships (PPPs) allow for shared investment in infrastructure upgrades and technological advancements, reducing the financial burden on governments. Private companies bring innovation, efficiency, and expertise in implementing state-of-the-art solutions like AI-driven air traffic control systems. These collaborations are expected to accelerate modernization efforts, improve service delivery, and open new revenue streams for both public and private stakeholders in the aviation industry.

Threat:

Cybersecurity concerns

As air traffic management systems become increasingly digitalized and interconnected, they are more vulnerable to cyberattacks. A successful cyberattack on an air traffic control system could disrupt flight operations, compromise passenger safety, and lead to significant financial losses. The complexity of these systems makes them attractive targets for hackers. Governments and aviation authorities must invest heavily in cybersecurity measures to protect critical infrastructure from such threats. Failure to address these concerns could undermine confidence in air traffic management systems and hinder market growth.

Covid-19 Impact:

The COVID-19 pandemic had a profound impact on the air traffic management market as global travel restrictions led to a sharp decline in passenger numbers. Many airports experienced reduced operations or temporary closures. However, the pandemic also highlighted the importance of efficient airspace management as cargo flights became essential for delivering medical supplies. Post-pandemic recovery is expected to drive investments in modernizing outdated infrastructure to handle future crises better while ensuring operational resilience.

The ATM core services segment is expected to be the largest during the forecast period

Over the forecasted timeframe, the ATM core services segment is anticipated to dominate the market share due to its critical role in managing increasing air traffic volumes globally. Core services such as air traffic control (ATC), airspace management (ASM), and aeronautical information management (AIM) are essential for ensuring safe and efficient flight operations. With rising demand for improved safety standards and optimized flight routes, governments are investing heavily in upgrading these core services, making this segment a key contributor to overall market growth.

The software solutions segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the software solutions segment is predicted to witness the highest growth rate due to advancements in artificial intelligence (AI), machine learning (ML), and cloud-based technologies. These innovations enable real-time data analysis, predictive maintenance, and automation of routine tasks within air traffic control systems. As airports look to modernize their infrastructure, software solutions that enhance operational efficiency and reduce human error are becoming increasingly important. This segment's rapid adoption is expected to drive significant growth across global markets.

Region with largest share:

During the estimation period, the North America region is anticipated to dominate the market share due to its well-established aviation infrastructure and significant investments in modernization projects like NextGen in the U.S. The region's focus on enhancing airspace efficiency through advanced technologies such as satellite-based navigation systems further strengthens its leadership position. Additionally, North America's strong presence of key players like Raytheon Technologies Corporation and L3Harris Technologies contributes significantly to its dominance in the global air traffic management market.

Region with highest CAGR:

During the forecast period, the Asia Pacific region is anticipated to register the highest CAGR due to rapid growth in passenger traffic across countries like China and India. These emerging economies are investing heavily in expanding their airport infrastructure and upgrading their air traffic control systems to meet rising demand. The region's focus on modernizing outdated systems with advanced technologies such as AI-powered solutions and satellite-based communications will drive substantial growth in this market over the coming years.

Key players in the market

Some of the key players in Air Traffic Management and Consulting Market include Thales Group, Raytheon Technologies, Honeywell International, Indra Sistemas, L3Harris Technologies, Leonardo S.p.A., Frequentis, Northrop Grumman, Saab AB, BAE Systems, Lockheed Martin, NATS Holdings, Airbus, ALTYS Technologies, SkySoft-ATM, Aireon, and Wisesoft Co.

Key Developments:

In November 2024, Collins Aerospace, an RTX business, has received a $19 million contract from the Department of Defense to equip a fleet of new H-47 Chinooks for the UK Royal Air Force with its Common Avionics Architecture System (CAAS) avionics management suite. This cockpit upgrade will make UK Chinooks interoperable with the U.S. Chinooks, using the same avionics system, advance digital cockpit displays and applications.

In November 2024, BAE Systems has signed a contract with the Dutch Materiel and IT Command (COMMIT) for eight Bofors 40Mk4 naval gun systems for the Royal Netherlands and Belgian Navies. The contract is part of the anti-submarine warfare frigates program - a joint venture between the Netherlands and Belgian Navies - and provides both countries with two frigates each and two naval gun systems per frigate.

Service Types Covered:
• ATM Core Services
• Supporting Services
• Consulting Services

Components Covered:
• Hardware
• Software Solutions
• Professional Services

Deployment Modes Covered:
• On-premises
• Cloud-based
• Hybrid

Airport Types Covered:
• International
• Domestic/Regional

Airport Sizes Covered:
• Large
• Medium
• Small

End Users Covered:
• Civil Aviation
• Military Aviation

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances