Market Trends of Air Traffic Management Industry
Air Traffic Flow Management Segment To Showcase Remarkable Growth During the Forecast Period
- The global aviation industry in recent years has witnessed noteworthy growth in terms of aviation operations as well as an increase in the number of air passenger traffic. Furthermore, the growth in aviation operations has led to an increase in various airline companies catering to newer routes and destinations, which in turn will eventually lead to growth in the number of commercial aviation acquisitions by major airline companies in the coming years. For instance, in September 2023, Cathay Pacific announced signing an agreement with Airbus to acquire 32 A320neo aircraft. Such acquisition will help the carrier to extend its flight operations across various Asian countries.
- Furthermore, the growing air traffic at various airports worldwide in recent years has led to the creation of bottlenecks, which has stimulated growth in airport expansion/construction projects. For instance, in October 2023, airport officials at the Hector International Airport in the United States announced their plans to extend the existing terminal building under a project which is valued at USD 125 million. Furthermore, the construction is scheduled to commence in March 2024 and is expected to be completed within the next four years.
- Thus, the growth in air travel demand within the region, coupled with the growing number of airport expansion projects to handle the increasing air traffic flow, will generate noteworthy market growth during the forecast period.
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Asia-Pacific To Dominate the Market During the Forecast Period
- The growth in the aviation industry within the region has led to the creation of immense stress on existing airports, which are now reaching saturation. This has led to growth in the number of airport constructions/ expansion projects within the region. For instance, in November 2023, airport officials at the Calicut International Airport announced that the airport would undergo a large-scale expansion valued at USD 8 billion to expand the existing runway and construct an additional length of the runway safety area at both ends of the runway.
- Several companies that have already established their presence within the region are now investing substantially in the development of new air traffic management solutions. For instance, in March 2023, Indra Sistemas S.A. announced that they would be providing a pioneering system to India that will help to centralize all the phases of air traffic surveillance and control in India, thereby helping to improve flight safety, increase management capacity, and efficiency and reduce delays, emissions, and noise pollution.
- Furthermore, the Airport Authority of India (AAI) announced awarding a USD 59 million contract to Indra Sistemas S.A. to deploy their system at five main traffic control centers and airports, which are located at Mumbai, Hyderabad, Bangalore, Navi Mumbai, and Mopa. Thus, the growth in aviation operations coupled with an increase in airport construction projects coupled with growth in the development of new air traffic management technologies will lead to the market witnessing significant growth within the Asia-Pacific region during the forecast period.
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