APAC Air Traffic Management Market

APAC Air Traffic Management Market Analysis

The Asia-Pacific Air Traffic Management Market is expected to register a CAGR of greater than 10% during the forecast period.

• The aviation sector across the Asia Pacific was severely impacted due to the COVID-19 pandemic. The government imposed strict regulations to control the spread of coronavirus, leading to supply chain disruptions, the shutdown of manufacturing plants, labor shortages, etc. The aviation sector in the Asia-Pacific faced challenges due to reduced air traffic and the shutdown of airport operations. The market showcased a strong recovery from the second half of 2020 due to increased air passengers and reduced government restrictions.
• The growth in the Chinese and Indian markets is projected to be the most significant driver for the Asia-Pacific air traffic management market. The rapid growth in passenger traffic in Asia-Pacific is attracting investments toward the market as airports increase their passenger and flight handling capacities in tandem with the increasing passenger influx.
• With the positive outlook of the aviation industry in Asia-Pacific in the next 10 years, airlines are increasing their fleet size to offer their services to more passengers by procuring more aircraft and adding more routes. This is increasing the number of flights to be handled by airports. As airspaces become busier, the necessity for better airspace management is increasing. In addition, the increasing emphasis on the modernization of the old ATM infrastructure is also driving the growth of the market in Asia-Pacific.

APAC Air Traffic Management Market Trends

Hardware Segment Held the Largest Market in the Market

• The hardware segment is estimated to show significant growth during the forecast period. The ongoing large-scale airport construction and expansion activities, especially in countries like China, India, Singapore, and Vietnam, have generated the demand for new air traffic management hardware.
• Asia-Pacific is expected to witness the largest airport construction and expansion activities during the forecast period. In addition, several airports are replacing the aging hardware equipment with new advanced equipment to enhance the efficiency of air traffic management operations. The construction of new ATC towers during the forecast period may generate demand for ATC equipment.
• Increasing expenditure on the aviation sector and growing airport construction projects across China and India will drive market growth in the coming years. For instance, the Indian government plans to operationalize 100 airports across the country by 2024 to boost regional connectivity.
• In the Indian Union Budget 2023, the government of India allocated a budget of Rs. 3,113.36 crores (USD 377.19 million) to the Ministry of Civil Aviation. Thus, increasing spending on airport modernization and procurement of advanced air traffic management systems will boost segment growth across the region.

China is Expected to Dominate the Market During the Forecast Period

• China held the highest shares in the market and continued its domination during the forecast period. The growth is attributed to the rising spending on the aviation sector, increasing demand for new aircraft, and growing airport construction projects across the country. Increasing air traffic and rising disposable income demand new aircraft, driving the market growth.
• China's major plane manufacturer Commercial Aircraft Corporation of China (COMAC), predicted that China's aircraft fleet size will reach 9,957 by 2040, accounting for around 22 percent of the global passenger aircraft fleet, making China the world's largest single aviation market. The report stated that the country would take delivery of 9,084 passenger planes at or above the 50-seat class in the next two decades, valued at approximately USD 1.4 trillion.
• Furthermore, the Civil Aviation Administration of China (CAAC) aims to add another 215 airports to reach a target of 450 by 2035. China envisions constructing an average of 14 airports annually until 2035 to help transform the country's aviation industry into a strategic asset of its economy.
• The construction of new airports would facilitate the creation of new routes and the induction of a new aircraft fleet to address the additional passenger traffic. Such developments would bolster the adoption of sophisticated air traffic management systems to ensure high levels of safety and operational efficiency in the country.

APAC Air Traffic Management Industry Overview

The air traffic management market is fragmented, with several local and international players providing various ATM hardware, software, and services. Adacel Technologies Limited, L3Harris Technologies Inc., SITA, Indra Sistemas SA, and Leidos Inc. are some of the prominent players in the market studied.

Players providing air traffic management solutions to Asia-Pacific countries may benefit from countries like India, focusing on integrating civil and military air traffic services to ensure uniformity in air-traffic control services at both the civilian and defense airports. This will provide them with new opportunities for business expansion. Innovation in the sector is growing, with artificial intelligence (AI) in airport operations and the development of smart digital towers for air traffic control.

Implementing such innovative products and services may further help the growth of the players in the market. For instance, In December 2022, Bharat Electronics Limited (BEL) installed an in-house developed air traffic management automation system at the Bhubaneshwar new airport building. Thus, the newer technologies are expected to provide growth opportunities for the players in the region in the years to come.

APAC Air Traffic Management Market Leaders

APAC Air Traffic Management Market News

• March 2022: As a part of the Indian Government's "Make in India" initiative, the Airports Authority of India (AAI) partnered with Navratna Defence PSU Bharat Electronics Limited (BEL) to jointly develop systems for air traffic management and surface movement of aircraft at airports across the country. The partnership is expected to bring cutting-edge technology solutions and expertise to India's aviation industry.
• March 2022: The Boeing Company developed a 10-year roadmap for the Airports Authority of India (AAI) to modernize its air traffic management systems. The roadmap aims to drive operational excellence and offer improved air traffic capacity for the flying public. The plan includes enhancements in navigation, communication, and surveillance for end-users, providing increased safety and efficiency in the Indian aviation sector.