Air traffic control equipment sector dominated by the United States

Press release   •   Apr 05, 2013 10:16 BST

The air traffic control equipment market has been forecast to reach a market value of US$5.4 billion by the year 2018, primarily driven by new airport infrastructure establishment as well as modernisation initiatives taken by Governments worldwide.

Air traffic control (ATC) is a service provided by ground-based controllers who direct aircraft on the ground and through controlled airspace. The primary purpose of ATC systems worldwide is to prevent collisions, organise and expedite the flow of traffic, and provide information and other support for pilots when able. In some countries, ATC plays a security or defensive role, or is operated by the military.

To prevent collisions, ATC enforces traffic separation rules, which ensure each aircraft maintains a minimum amount of empty space around it at all times. Many aircraft also have collision avoidance systems, which provide additional safety by warning pilots when other planes get too close.

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.

Less air traffic eliminated the need to update or replace existing ATC equipment, and many ATC service companies deferred replacement.

Aircraft movements, a key barometer of airline capacity also remained fairly volatile all through the past five years. Greece for instance witnessed double digit declines in passenger traffic, while other EU countries also witnessed declines although less steeper

The United States accounts for a major share of the air traffic control equipment market and is expected to grow at an annualised rate of 4.2% to $1.6 billion.

Industry firms will be gearing up for the FAA's Next Generation Air Transportation System (NextGen), a proposed overhaul of the entire US air traffic control system that will take place gradually through 2025. NextGen is designed to increase flight efficiency and make the airways safer as commercial, freight and military air traffic increases.

For more information on the air traffic control equipment market, see the latest research: Air Traffic Control Equipment Market

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