Market Trends of Europe Air Traffic Management Industry
Air Traffic Flow Management Segment Will Showcase Remarkable Growth During the Forecast Period
The air traffic flow management segment is anticipated to show significant growth in the European air traffic management market. Increasing demand for air travel coupled with the growing number of commercial aviation operations are the major factors driving the need for more advanced air traffic management services during the forecast period.
In recent years, the aviation industry in Europe 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 the rise of various airline companies within the region, adding newer destinations to its operating routes and eventually leading to an increase in commercial aviation acquisitions in the coming years. For instance, in September 2023, British Airways announced that they had finalized a deal to acquire six new Boeing 787-10. Moreover, the company converted the optional 10 Airbus A320neo orders into firm orders at the beginning of 2023.
Furthermore, the growing air traffic at various airports in recent years has created bottlenecks, stimulating growth in airport expansion/construction projects. For instance, in June 2023, Kaunas Airport in Lithuania announced international bids for two major expansion projects: the passenger terminal and the northern apron of the airport. Moreover, the expansion project will include dismantling the eastern and western facades of the airport and adding two extensions. The extensions will be made in the baggage reclaim areas accompanied by technical modernization. Thus, the growth in air travel demand within the region, coupled with the growing number of airport expansion projects to handle the traffic flow, will generate noteworthy market growth during the forecast period.
The United Kingdom Dominates the Market During the Forecast Period
The UK held the highest market shares and is expected to continue its domination during the forecast period. Growing demand for air travel and several airport construction projects to meet future air traffic management demands will bolster the market's growth during the forecast period. The UK has witnessed notable growth in its aviation industry in recent years. This growth has increased the demand for effective air traffic management at various airports within the country. As of the current scenario, airports such as London Heathrow Airport, Gatwick Airport, Stansted Airport, Luton Airport, and Southend Airport are considered the significant airports handling more passengers within the country.
The substantial recovery in the aviation industry in the UK has also led to various airports increasing their expansion/construction projects to provide smoother air traffic management in the near future. For instance, in June 2023, Heathrow Airport, which is situated in London, announced that it plans to construct a third runway following the rebound of international air traffic. In addition, the project and its associated new west terminal will help to facilitate an additional 260,000 flights annually from the airport.
Thus, the growth in the number of airport expansion/construction projects and the substantial recovery of the aviation industry within the country will generate a positive market outlook and also lead to significant market growth during the forecast period.
