Market Trends of Air Traffic Control Equipment Industry
Communication Equipment Segment will Showcase Significant Growth During the Forecast Period
The communication equipment segment accounted for the largest share of the market. A large percentage of the segment has been primarily attributed to the fact that communication between pilots and ground control operators is essential for an orderly flow of information regarding aircraft for air traffic management. Earlier, voice communication systems, which involved the transmission of information between air traffic controllers and pilots, were primarily used to manage air traffic. However, these conventional voice communication systems cannot function effectively in congested airspace, which has propelled the need to develop advanced communication equipment for air traffic control, attracting huge investments.
Furthermore, increasing expenditure on airport construction and modernization, rising spending on the aviation sector, and the adoption of advanced communication equipment for air traffic control all propel market growth. Thus, this segment is projected to register the highest CAGR during the forecast period.
Asia-Pacific Market to Grow with the Highest CAGR During the Forecast Period
The Asia-Pacific region is projected to be the fastest-growing market over the forecast period. Factors such as increased air travel in the area due to a reduction in airfares are also increasing the affordability of air travel in the region. A keen focus on free and fair trade agreements, the implementation of stringent aviation safety regulations, and airport infrastructure developments have been driving the growth of the market in the region.
Over the next few years, there will likely be more airport construction projects, which will help the air traffic management market. For example, China had a new round of airport building and expansion projects in January 2022. The fourth phase of growing the Shanghai Pudong International Airport has already been initiated and is expected to increase its annual passenger handling capacity to 130 million passengers by 2030. In East China's Fujian Province, Xiamen has started new airport construction in Xiang'an. As of now, eight construction projects are underway in Xiangan, with a total investment of USD 9.76 billion.
By the end of 2022, the Delhi airport was to get a major makeover that was likely to cost more than USD 1.3 billion. Expansions included an upgrade of the existing Terminal 1, building a fourth runway, and other development work, aiming to double the airport's capacity to 40 million passengers a year from the current 20 million currently.With the completion of this project, Delhi airport will likely become the first in the country to have four runways. Such airport expansion and new construction projects are projected to drive the market's growth during the forecast period.
