America Air Traffic Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The America Air Traffic Management Market size is estimated at USD 3.62 billion in 2024, and is expected to reach USD 5.43 billion by 2029, growing at a CAGR of 8.41% during the forecast period (2024-2029).

Key Highlights

• The growth in demand for air travel and aerial connectivity in North America and Latin America has pushed airlines to introduce new routes and increase flight movements to cater to the growing demand. This is anticipated to generate demand for new ATC solutions in the region.
• The construction of new airports and expansion and modernization plans of the existing airports in the region are anticipated to propel the demand for new air traffic management (ATM) infrastructure during the forecast period.
• However, the market is highly capital-intensive and needs proper planning to scale operations at a later stage. This renders the market vulnerable to macroeconomic factors and cyclic fluctuations in the regional economy.
• Introducing new air traffic management solutions like Remote and Virtual Towers (RVTs) and automation and blockchain technologies are expected to simplify the operations of air traffic and navigation service providers, thereby creating new market opportunities for the air traffic management market in the region. Higher deployment costs can act as a restraint for the market.

America Air Traffic Management Market Trends

Air Traffic Control Segment to Dominate Market Share during the Forecast Period

With the rapid growth in air travel, there is a significant need for new airports and terminals to support airlines' fleet expansion plans and upgrade the existing air traffic control system market in the Americas. In July 2022, the Federal Aviation Administration announced its plans to administer USD 1 billion in funds as part of the Infrastructure Law passed by the current US government. An additional USD 5 billion is scheduled to be allocated over the next few years, bringing the total allocation on civil aviation infrastructure to USD 20 billion to upgrade 85 major airports.

Several airports are replacing aging equipment with new advanced equipment to enhance the efficiency of air traffic management operations. For instance, in April 2022, Kongsberg, a leading provider of advanced and mission-critical systems, and Concord, NC, finalized their partnership agreement to modernize the air traffic control system at Concord's regional airport. The agreement is a public-private partnership (PPP). The agreement will allow the installation and potential certification of Kongsberg's remote tower system at the airport. These developments are expected to aid the segment's growth.

North America to Dominate Market Share during the Forecast Period

North America currently dominates the market, and it is expected to continue its domination during the forecast period. This is mainly due to robust investments in the expansion and modernization of airports and air traffic management solutions in the airports of the United States and Canada. Factors such as a growing economy, increased affordability of air travel, and a rising middle class have contributed to a significant uptick in air passenger traffic. Air passenger traffic in the United States reached 1.04 billion in 2022. During the same period, the US airlines carried 853 million passengers, and Canada-based airlines served 107 million.

The US Federal Aviation Administration (FAA) maintains and modernizes these facilities to ensure that they are consistent with evolving air traffic operational needs and airport expansions in the United States. It mandates dual redundancy of the system, signifying the existence of a fully operational duplicate system that kicks into operation in case of a failure in the primary system. The air traffic management providers in the region are introducing new technologies to enhance the efficiency of their operations. The modernization of airports with old and aging ATM solutions in the region is anticipated to bolster the market's growth.

America Air Traffic Management Industry Overview

The American air traffic management market is semi-consolidated, with local and international players providing various air traffic management (ATM) hardware, software, and services.

Some of the prominent players in the American air traffic management market are Indra Sistemas SA, Thales, SITA, L3Harris Technologies Inc., and RTX Corporation.

Thales and Indra Sistemas SA are major ATM manufacturers in Latin America. Thales has installed more than 170 radars and 25 air traffic control centers in Latin American countries like Argentina, Brazil, Mexico, and Colombia. The companies in the region are partnering with other companies to introduce new product solutions and increase their share. Introducing new and advanced solutions for air traffic management is anticipated to help the companies increase their presence in North America and Latin America.

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