North America Air Traffic Management Market size exceeded USD 2 billion in 2020 and is poised to expand at over 3.5% CAGR from 2021 to 2027.
The market growth in North America is driven by the presence of several air traffic control regulatory bodies such as the Federal Aviation Administration (FAA), Canadian Aviation Regulations, Transportation Security Administration, and Transport Canada Civil Aviation. These bodies have established several stringent regulations regarding enhanced flight vision system, collision avoidance, and automatic dependent surveillance broadcast operations.
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Exponential rise in the air traffic across North American countries has led to a growing demand for robust air traffic management systems. Upgrading the existing ATM systems has become extremely vital to cater to the growing number of passenger and cargo flights to & from several international destinations. According to a 2019 report by the U.S. Bureau of Transportation Statistics, U.S. airlines and foreign airlines serving the U.S. reported that they carried over 1.1 billion domestic and international passengers in 2019.
The North America air traffic management market saw a sluggish growth in 2020 due to the spread of the COVID-19 pandemic. The decline in market revenues can be attributed to the large-scale impact of the virus on the U.S. and Canada. Ban on international travel and restrictions on movement due to lockdown restrictions caused a halt in commercial aviation operations. Airport authorities postponed their purchase decisions of investing in technologically advanced air traffic management systems, hampering the industry size.
Increasing investments in construction and redevelopment of technologically advanced airports are supporting the marketing expansion. To cater to the rising demand of customers, continuous investments are made across North America to enhance passenger handling capacities. For instance, a total of USD 79.53 billion brown field investments were made across the region since 2000 to improve the operational efficiencies.
North America Market, By Component
The hardware segment will grow significantly during the forecast period on account of the increasing requirements for surveillance, navigation, and communication in the air traffic management market. Hardware components are necessary for carrying out the air traffic control tasks integrated with software solutions.
The communication segment is set to dominate market share through 2027 owing to the direction of the flights based on height, distance, and the time of approach. The communication system in the aviation sector is primarily focused on reducing the chances of accidents and increasing the level of safety. The upgrade of voice and data services along with the improvements in transmission and communications systems will escalate the market size.
Competitive Industry Landscape
Key players in the North America air traffic management market include Thales Group, Leonardo S.p.A, Honeywell International Inc., Raytheon Company, BAE Systems, and L3Harris Technologies Inc.
These companies are focusing on offering advanced voice communication systems to enhance their market share and geographic reach. For instance, in June 2018, Honeywell International Inc. announced its partnership with the Airport Authority of India (AAI) to upgrade the air traffic management system with voice recognition systems across the country. This aided the company to enhance its services in the India market.