Mordor Intelligence has published a new report on air traffic management market offering a comprehensive analysis of trends, growth drivers, and future projections.
-- Introduction
The air traffic management market size is estimated at USD 11.55 billion in 2025, and is projected to reach USD 16.22 billion by 2030, translating into a steady 7.03% CAGR over the forecast period. signifying a steady growth rate over the period. (The market growth reflects increasing air traffic volumes, regulatory mandates for modernised surveillance and communications, and a broad move toward more agile and software-centric air traffic systems. The air traffic management market analysis confirms that the need to replace ageing infrastructure, incorporate satellite-based and unmanned traffic monitoring, and expand service provider capacity are among the key growth factors. As aviation markets continue their recovery and expansion, investment in air traffic management market growth is expected to continue across geographies and segments.
Key Market Trends
Expansion of Airport Infrastructure: The air traffic management market is being shaped by large-scale airport expansions, particularly across Asia-Pacific and the Middle East & Africa. These regions are investing heavily in interoperable surveillance, communications, and navigation systems to handle growing passenger and cargo traffic. National programs aimed at updating legacy radar and radio systems are also driving new investments in both hardware and software, contributing to overall market growth and modernization.
Regulatory Mandates and Modernization Initiatives: A major factor driving the air traffic management market growth is the enforcement of regulatory mandates such as Automatic Dependent Surveillance-Broadcast (ADS-B) rollout and Performance-Based Navigation (PBN) requirements. These regulations compel aviation authorities and airports to upgrade existing systems to meet international safety and efficiency standards. The compliance-driven modernization of air traffic control (ATC) infrastructure has significantly boosted hardware and software demand, further expanding the air traffic management market share.
Rise of Unmanned Aircraft and Urban Air Mobility: The growing use of drones and the emerging urban air mobility sector are adding new dimensions to the air traffic management market trends. As operations involving unmanned aircraft and beyond visual line of sight (BVLOS) flights become regulated, the need for Unmanned Traffic Management (UTM) systems has intensified. These platforms ensure safe airspace integration for drones and air taxis, paving the way for a hybrid ecosystem where manned and unmanned aircraft coexist.
Shift Toward Software and Service-Based Models: While hardware components continue to dominate spending, the market is witnessing a gradual shift toward software and services. The air traffic management market analysis indicates that solutions integrating decision-support tools, automation software, cloud-based platforms, and AI-driven operations are gaining traction. These systems enhance situational awareness, improve predictive maintenance, and enable faster decision-making across control centers. Service providers offering managed and data-centric solutions are also expanding their portfolios to support long-term operational efficiency.
Regional Growth Patterns and Strategic Outlook: Regional dynamics play a significant role in shaping the air traffic management market size. North America continues to maintain a large market share due to strong regulatory frameworks and mature aviation infrastructure. However, Asia-Pacific stands out as the fastest-growing region, supported by massive airport development programs, rising domestic air traffic, and digital transformation initiatives across civil aviation authorities. This shift underscores the need for vendors and service providers to adapt localized strategies that cater to diverse airspace modernization requirements.
Market Segmentation
By Domain
- Air Traffic Control (ATC)
- Air Traffic Flow and Capacity Management (ATFCM)
- Aeronautical Information Management (AIM)
- Unmanned Traffic Management (UTM)
By Component
- Hardware
- Software
- Services
By Application
- Communication
- Navigation
- Surveillance
- Automation and Decision-Support
By End-use
- Commercial Aviation
- Military and Government
- Urban Air Mobility/Drone Operations
By Geography
- North America
- Europe
- South America
- Middle east&Africa
- Asia pacific
Major Players
- Thales Group
- RTX Corporation
- L3Harris Technologies, Inc.
- Honeywell International Inc.
- Indra Sistemas, S.A.
Conclusion
The air traffic management market is positioned for continued growth as aviation stakeholders worldwide invest to enhance capacity, safety, efficiency and flexibility across the network. With rising traffic volumes, regulatory mandates, and new forms of air mobility entering the ecosystem, vendors and service providers with strong hardware-software-service capabilities stand to benefit. The air traffic management market growth is further supported by strong demand in emerging regions (especially Asia-Pacific), which offers meaningful expansion potential beyond the traditional North American and European markets. As the air traffic management market size expands, purchasers will place greater emphasis on cloud-enabled, automation-rich, and scalable solutions that can accommodate both manned and unmanned traffic flows. Overall, the air traffic management market analysis points to a sustained opportunity for stakeholders across the value chain.
Industry Related Reports
Europe Air Traffic Management Market: The Europe Air Traffic Management Market is categorized by Domain (Air Traffic Control, Air Traffic Flow Management, and Aeronautical Information Management), Component (Hardware and Software), and Geography (United Kingdom, Germany, France, Italy, Spain, and Rest of Europe). The report provides market size and forecast data for each of these segments in terms of value (USD).
Middle-East and Africa Air Traffic Management Market: The MEA Air Traffic Management Market includes coverage of leading regional companies and is segmented by Domain (Air Traffic Control, Air Traffic Flow Management, and Aeronautical Information Management), Component (Hardware and Software), and Geography.
Get More information: https://www.mordorintelligence.com/industry-reports/middle-east-and-africa-air-traffic-management-market?utm_source=marketersmedia
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