Demand from Armed Forces Drives Global Air Traffic Control Equipment Market

Air traffic control (ATC) equipment is an integral part of expanding, building, or renewing infrastructure for air travel. From a logistical point of view, development of air travel is imperative for every nation as it is the backbone of import and export activities and transportation. Technological developments in air traffic control equipment have revolutionized the ways in which air traffic is controlled. The modernization of air traffic control equipment has resulted in an increased adoption of ATC equipment. For instance, this equipment will be in demand for establishing new air travel infrastructure in several developing countries, along with a rise in the demand for upgrading or expanding existing ATC systems in developed countries. Furthermore, demand from the armed forces to modernize communication solutions and ensure safety while flying is also augmenting the global air traffic control equipment market.

Demand from Armed Forces to Augment Overall Air Traffic Control Equipment Market

Harris Corp., a leading player in the global air traffic control equipment market, was recently awarded radio orders of US$20 mn. The order comes from the U.S. Army Communications-Electronics Command in a bid to modernize the defense force communications for several North African and Middle Eastern nations. According to the order, Harris Corp. will provide single-channel airborne and ground radio system vehicular radios. These systems will provide control of armored assets and real-time mobile command through secure voice and data communication links.

Initiatives to Improve Air Traffic Control in Europe Keep Region in the Lead

The global air traffic control equipment market is segmented on the basis of type, end user, and geography. The types of equipment in this market are communication equipment, surveillance equipment, and navigation equipment. The end users of air traffic control equipment are private aircraft, commercial aircraft, and military aircraft. Geographically, this market is segmented into Asia Pacific, Europe, North America, and Rest of the World. According to a research report published by Transparency Market Research, the commercial aircraft segment held the largest share in the overall market in 2012 due to the remarkable rise in commercial air travel activities.  Of all the regions, Europe held the leading position with a 32.1% share in the overall market in 2012. The increasing government initiatives to invest in ATC security and efficiency are driving the air traffic control equipment market in European countries.

Investment in Air Travel Infrastructure in Asia Pacific Set to Rise

However, analysts predict that the air traffic control equipment market will witness a robust growth rate in Asia Pacific as governments plan to spend heavily on building and expanding air travel infrastructure. Though the global air traffic control equipment market is poised to rise at a CAGR of 4.8% between 2013 and 2019, the market does face a few challenges. The capital-intensive nature of the market is expected to hamper its growth in the coming years. However, according to analysts, the need to develop reliable air travel infrastructure in developing countries will help market players overcome this restraint.

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