Airport Infrastructure Development & Airspace Management Drives the Air Traffic Control (ATC) Equipment Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on the Air Traffic Control (ATC) Equipment markets. Global market for Air Traffic Control (ATC) Equipment is projected to reach US$5.4 billion by the year 2018, primarily driven by new airport infrastructure establishment as well as modernization initiatives taken by Governments worldwide.

Air Traffic Control (ATC) Equipment: A Global Strategic Business Report

Follow us on LinkedIn – The ATC equipment market over the years has evolved into a core component of the global aviation industry. The mandatory need to effectively manage and handle the rising passenger and freight traffic and the necessity to streamline operations and increase revenues for airlines is creating robust demand for ATC equipment worldwide. Rapid rise in the number of air travelers, strong trade relations between countries and consequent growth in air freight represent key growth drivers that have necessitated the establishment of new airport infrastructure and operation of higher number of aircrafts. This thereby has been fostering growth across all market verticals of the ATC equipment market including ATC communications equipment, ATC navigation equipment and ATC surveillance equipment.

With demand for ATC equipment intricately linked to the health of the general aviation industry, the ongoing debt crisis in Europe continues to take its toll on the market. While, on an average, passenger traffic at airports grew sluggishly during the period 2011 and 2012, freight traffic declined as a result of poor trade patterns in the EU. Aircraft movements, a key barometer of airline capacity also remained fairly volatile all through the period. Greece for instance witnessed double digit declines in passenger traffic, while other EU countries also witnessed declines although less steeper. Increased airfare rates as a result of punitive increases in national aviation taxes, is also taking its toll on air traffic. This financial grab made by governments is largely the result of the region’s continuing debt crisis. Debt laden governments in Europe and North America are increasingly focusing on the aviation industry to improve tax revenues. With the financial condition in Europe and the United States now worsening, new taxes can be in the offing in the year 2013.

In the United States, the still hanging threat of sequestration cuts poses a real risk to the domestic Air Traffic Control (ATC) equipment market, since ATC systems and services are provided, owned and operated and funded by the Federal Aviation Administration (FAA). The implications of across the board budget cuts will be an immediate 9.4% cut in defense spending and an 8.2% cut in non-defense spending. Such a scenario will critically cripple the ability of Federal Aviation Administration to effectively manage air traffic by chopping off over US$1.2 billion in Federal Aviation budget. The proposed cuts in Federal Aviation budget will necessitate the FAA to reduce funding for modernization programs, which presents an important revenue generating source in the ATC equipment market. However, in the medium to long term, modernization, upgradation and restructuring needs in developed economies will generate growth driving opportunities in the market. The need to modernize is now more pronounced in these countries. The inability to expand, modernize and upgrade the ATC systems in the United States are expected to result in losses of over US$48 billion per year by 2025. In Europe, the economic losses caused due to the lack of efficient traffic management system will average to over 7 to 8 billion Euros per annum.

Developed markets such as Europe and North America were traditional revenue contributors in the global ATC equipment market, followed by developing countries mostly BRICs, which dominated market opportunities with their strong economic might for over a decade. In the upcoming years, however, as BRICs slowdown highlighting the popping of the BRIC bubble, emerging over the horizon is a new group of countries dubbed the CIVETS, comprising Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. These countries armed with strong economic growth (GDP), sophisticated financial systems and unencumbered by fiscal deficits, sovereign debt risks, and high inflationary pressures, are emerging at the forefront of new airport investments worldwide. A key reason for the aggressive focus on airport infrastructure development is the fact that airports are gateways to trade and business.

As stated by the new market research report, the United States accounts for a major share of the global Air Traffic Control (ATC) Equipment market. Asia-Pacific represents the fastest growing regional market with revenues projected to wax at a CAGR of 6.7% over the analysis period. By segment, ATC Communication Systems is the largest product segment accounting for a lion’s share of the total revenues.

Major players in the global marketplace include Advanced Navigation & Positioning Corporation Inc., BAE Systems Plc, Becker Avionics Inc., Cobham Plc, C4i, Inc., CNS Systems AB, Frequentis AG, Kongsberg Gallium Ltd., Harris Corporation, Indra Sistemas S.A, Intelcan Technosystems Inc., Lockheed Martin Corporation, NavAero, Inc., Northrop Grumman Corp., Raytheon Company, Searidge Technologies, Inc., Siqura, Sierra Nevada Corporation, The Aeronav Group, Telephonics Corp., and Thales Group, among others.

The research report titled “Air Traffic Control (ATC) Equipment: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ for major geographic markets including the United States, Canada, Japan, Europe, Asia-Pacific, and Rest of World. Product segments analyzed include ATC Communications Equipment, ATC Navigation Equipment, and ATC Surveillance Equipment.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
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