Airspace And Procedure Design Market

Airspace And Procedure Design Market Analysis

The Airspace And Procedure Design Market size is estimated at USD 10.75 billion in 2025, and is expected to reach USD 13.89 billion by 2030, at a CAGR of 5.27% during the forecast period (2025-2030).

• According to the latest updates from the International Air Transport Association (IATA), global air passenger traffic during 2023 was at 94.1% of pre-pandemic levels in 2019. while international traffic witnessed a YoY growth of 41.6% during 2023, domestic traffic grew by 30.4% during the same timeframe.
• The growth in passenger traffic over the past few years has led governments and airport authorities to invest in expanding their existing airport infrastructure and constructing new airports to increase their passenger handling capacities. This is expected to drive the market's growth during the forecast period.
• In addition, the airlines and airport operators also invest in the modernization of air traffic management infrastructure and automation of existing equipment, which will accelerate the market growth in the coming years.
• However, the risk of cyber attacks is a significant threat to the growth of the airspace and procedure design market.

Airspace And Procedure Design Market Trends

Hardware Segment to Dominate Market Share During the Forecast Period

The construction of new airports and expanding existing airports are anticipated to generate the demand for air traffic management hardware worldwide. ​Several airports are replacing aging hardware equipment with new advanced equipment to enhance the efficiency of air traffic management operations. Recently, THALES announced that the company installed ATM systems at Abeid Amani Karume International Airport, Arusha Airport, Julius Nyerere International Airport, Kilimanjaro International Airport, Mwanza International Airport, and Songwe Airport. The modernization is a part of the contract between THALES and the Tanzania Civil Aviation Authority (TCAA) to enhance the country’s air traffic safety and efficiency. The company installed surveillance radars and TopSky – ATC as a part of modernization.

Similarly, in April 2022, the Federal Aviation Administration announced an investment of more than USD 1 billion under the President’s Bipartisan Infrastructure Law for air traffic control tower replacement, modernization of navigation, weather and tracking equipment, upgrades to power systems, infrastructure upgrades at the air route traffic control centers, towers, and TRACONs, among others at the airport. ​Such developments are anticipated to drive the demand for the hardware segment rapidly during the forecast period.​

Asia-Pacific To Witness Highest Growth During the Forecast Period

The Asia-Pacific region is expected to lead the market with the highest CAGR during the forecast period. The growth in the market is propelled by robust investments toward constructing new airports and expanding existing airports in China and India. In January 2022, the Civil Aviation Administration of China (CAAC) announced its plan to increase the number of civil transport airports to more than 270 by 2025. ​The construction of new airports will allow the government to handle 17 million aircraft movements annually and increase passenger handling and cargo handling capacities to 930 million passengers and 9.5 million tonnes by 2025. Such developments would bolster the adoption of sophisticated air traffic management systems to ensure high levels of safety and operational efficiency in the country.

In addition, a similar increase in passenger volume, adjoining demand from airline customers, new air traffic management requirements, and environmental regulations are forcing Indian airports to continuously adapt and improve their infrastructure and operations. Digital transformation is reshaping the Indian airport industry through integrating the Internet of Things (IoT)- )-enabled technologies to help airports optimize their operations and allow safe and timely passenger travel. In March 2022, to support the Make in India Initiative, Bharat Electronics Limited (BEL) partnered with the Airports Authority of India (AAI) to research and develop systems for air traffic management and surface movement of aircraft at airports.

Such investments into the development and introduction of new ATM systems are expected to drive the growth prospects of the air traffic management market in the Asia-Pacific region during the forecast period. ​

Airspace And Procedure Design Industry Overview

The airspace and procedure design market is semi-consolidated, with many local and international players providing various hardware, software, and services.​ Adacel Technologies Limited, Honeywell International Inc., Indra Sistemas S.A., THALES, and Northrop Grumman Corporation are prominent airspace and procedure design market players. ​

Players are concentrating on the launch of secure products that can learn and improve themselves through built-in AI technology. Most software producers are using AI to improve the efficiency and speed of accessing essential data on the database. For instance, Honeywell launched a new generation NAVITAS software suite platform to support the operations of airport operators and air navigation service providers. The software is integrated with artificial intelligence (AI), big data, cybersecurity, machine learning, and human-centered designs to support and enable automation and digitization of air traffic services for efficient ground movement, enhanced situational awareness, control and monitoring of airside, information management, and integration.

International players are expected to benefit from the partnership with local producers of airspace and procedure design systems, parts, components, and third-party software manufacturers of systems.​ Such initiatives are expected to help the companies increase their geographic presence in the future.

Airspace And Procedure Design Market Leaders

Airspace And Procedure Design Market News

• In June 2022, Advanced ATC Inc., an air traffic control academy based in Georgia, United States, announced an investment of USD 4.7 million at Craig Airfield to establish the first remote air traffic control center to handle traffic for multiple airports. The remote tower performs the operations of a traditional control tower using cameras, real-time video, and other technologies to accomplish the duties remotely.
• In May 2022, Saudi Arabia announced its plan to invest about SAR 356 billion (USD 100 billion) into its aviation sector by 2030 under the Vision 2030 initiative to strengthen the country as a global aviation hub. The government plans to increase passenger handling capacity to 330 million passengers and air cargo capacity to 4.5 million tons. The country plans to introduce another airline and upgrade airport facilities through investment, including air traffic management infrastructure.