Air Traffic Control Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Communication Equipment, Navigation Equipment, Surveillance Equipment), By End-User (Commercial, Military), By Airport Type (Brownfield, Greenfield), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 10.13 Billion
CAGR (2026-2031)	8.68%
Fastest Growing Segment	Commercial
Largest Market	North America
Market Size (2031)	USD 16.69 Billion

Market Overview

The Global Air Traffic Control Equipment Market will grow from USD 10.13 Billion in 2025 to USD 16.69 Billion by 2031 at a 8.68% CAGR. Air traffic control equipment comprises the communication, navigation, and surveillance systems essential for managing aircraft movements to ensure safety and efficiency within airspace and at airports. The market is primarily supported by the escalation in global air travel demand, which necessitates substantial infrastructure upgrades to handle increased flight frequencies. Furthermore, the imperative to replace legacy analog systems with digital automation acts as a core driver for investment, ensuring that aviation hubs can maintain the operational capacity required by modern logistics and passenger volumes.

According to the International Air Transport Association, in September 2024, global air travel demand measured in revenue passenger kilometers rose by 7.1% compared to the same period in the previous year. While this upward trajectory highlights the necessity for expanded management capacity, the high capital expenditure required for installing and maintaining these complex technologies remains a significant barrier that could impede market expansion, particularly in regions with limited aviation budgets.

Key Market Drivers

Escalating global air passenger traffic and flight frequency act as the primary catalyst for the Global Air Traffic Control Equipment Market. As airlines increase fleet sizes to meet surging travel demand, the density of aircraft within controlled airspace intensifies, necessitating advanced surveillance and communication systems to maintain separation standards and minimize delays. This resurgence in activity forces airport authorities and air navigation service providers to procure higher-capacity equipment capable of processing complex flight data in real-time to prevent bottlenecks. According to Airports Council International (ACI) World, February 2024, in the 'ACI World forecasts 2024 global passenger traffic' press release, global passenger volume is projected to reach 9.7 billion by the end of the year, surpassing pre-pandemic levels. This volume creates immediate pressure on existing control towers, driving the operational necessity for automated tracking solutions.

Government investments in next-generation air transportation programs further propel market growth by funding the modernization of aging air traffic management infrastructure. Nations are actively replacing legacy terrestrial-based radar systems with satellite-based navigation and digital tower technologies to enhance airspace safety and operational efficiency. These state-sponsored initiatives reduce the financial burden on operators while accelerating the deployment of interoperable systems required for cross-border trajectory management. According to the United States Congress, May 2024, in the 'FAA Reauthorization Act of 2024', the legislation authorizes $17.8 billion specifically for FAA facilities and equipment through fiscal year 2028 to upgrade critical systems. Additionally, reflecting the broader push for infrastructure readiness in key growth regions, according to the Civil Aviation Administration of China, in 2024, the administration set a target to handle 690 million passenger trips, signaling substantial demand for supporting aviation utilities.

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Key Market Challenges

High capital expenditure constitutes a substantial impediment to the growth of the global air traffic control equipment market. The transition from legacy analog infrastructure to digital automation requires immense financial resources, covering not only the procurement of hardware but also the extensive costs associated with installation, integration, and long-term maintenance. This financial burden is particularly acute for developing regions and smaller aviation hubs where budget allocations are insufficient to support such comprehensive modernization. Consequently, these financial constraints delay the retirement of outdated systems, thereby slowing the replacement cycle that drives market revenue.

The magnitude of this investment barrier is evidenced by industry data regarding infrastructure spending. According to the Civil Air Navigation Services Organisation, in 2024, responding air navigation service providers reported a collective capital expenditure of $4.7 billion for the preceding year to maintain and upgrade their systems. This significant financial outlay illustrates the high cost of operation within the sector. When aviation authorities face such steep funding requirements, procurement programs are often postponed or scaled back, directly reducing the immediate demand for new air traffic management technologies and limiting overall market expansion.

Key Market Trends

The development of Unmanned Traffic Management (UTM) ecosystems represents a critical structural evolution as airspace authorities integrate drones and low-altitude aircraft with conventional traffic. Unlike traditional air traffic management which relies heavily on human controller intervention, UTM utilizes automated, software-defined architectures to manage flight authorizations, conflict detection, and identification for unmanned aerial systems (UAS). This distinct operational layer is becoming essential to handle the density of new entrants without overwhelming existing human-centric infrastructure. According to Unmanned Airspace, May 2024, in the 'Contrasting fortunes for drone and AAM sectors in new FAA traffic forecast' article, the Federal Aviation Administration projects that the commercial drone fleet in the United States will exceed the million aircraft mark, reaching approximately 1.12 million units by 2028, underscoring the scale of demand for these automated management solutions.

Simultaneously, the migration to Voice over Internet Protocol (VoIP) communication systems is reshaping the connectivity backbone of air traffic control networks by replacing obsolete analog circuits with flexible, IP-based digital architecture. This transition enhances operational resilience by allowing voice data to be routed dynamically across different facilities, thereby supporting virtual center concepts and ensuring continuity during physical infrastructure failures or outages. Aviation authorities are actively capitalizing on this technology to secure the interoperability and long-term supportability of critical ground-to-air radio components. According to Indra Sistemas, November 2024, in the 'Indra wins a major contract in the United States to renew the air-ground communications system' press release, the company secured a contract valued at $244.3 million to replace the Federal Aviation Administration's analog radio systems with digital equipment capable of VoIP operations.

Segmental Insights

The Commercial segment represents the fastest-growing area in the Global Air Traffic Control Equipment Market, driven by the substantial increase in global air travel and the urgent need for infrastructure modernization. Airport authorities are actively investing in advanced communication and surveillance systems to manage higher flight densities and reduce congestion effectively. Furthermore, compliance with rigorous safety standards established by the International Civil Aviation Organization necessitates the adoption of reliable traffic management technologies. This continuous expansion of airport facilities and the requirement for seamless operations ensure the commercial sector maintains its accelerated growth trajectory.

Regional Insights

North America maintains a leading position in the Global Air Traffic Control Equipment Market, driven by established aviation infrastructure and significant investments in airspace modernization. The dominance of this region is primarily supported by initiatives from the Federal Aviation Administration (FAA), such as the Next Generation Air Transportation System program. This initiative accelerates the demand for upgraded communication and surveillance technologies to manage high traffic volumes efficiently. Additionally, the presence of key equipment manufacturers within the region facilitates the rapid integration of new systems, further securing North America’s status as the primary market for air traffic management solutions.

Recent Developments

• In December 2025, Thales secured a strategic contract to modernize the Air Traffic Control Centre for the Civil Aviation Authority of Panama. The project entailed implementing a comprehensive suite of advanced air traffic management solutions, including the TopSky-ATC system, aeronautical message handling systems, and voice recording capabilities. This initiative was undertaken to effectively manage a significant increase in aircraft movements and support future growth projected to exceed 20 million passengers annually. Thales collaborated with a local partner to deliver these upgrades, aiming to establish a safer and more sustainable civil aviation system that strengthens the country's position as a regional air connection hub.
• In December 2024, the Civil Aviation Authority of Malaysia commissioned Rohde & Schwarz to overhaul the air traffic control communications infrastructure at Kuala Lumpur International Airport. The company provided its Series5200 radios as part of the CERTIUM communications suite to establish a secure, IP-based communication channel between air traffic controllers and pilots. This modernization project, executed in partnership with a local aviation company, aimed to deliver a robust and future-proof platform for the authority's operations. The upgrade included a remote monitoring and management system to ensure the highest levels of security, reliability, and simplified maintenance for the airport's critical traffic management systems.
• In November 2024, the Federal Aviation Administration awarded Indra a significant contract with a potential value of $244.3 million to renew the ground-air communications system across the United States. The company was selected to replace legacy analog radio systems with digital equipment capable of both analog and Voice over Internet Protocol operations. This agreement involved the production, testing, and qualification of approximately 46,000 new radio devices at the company's facility in Kansas. The technology was designed to reinforce the safety and resiliency of the nation's air traffic management network while securing the company's position as a leader in radio communications.
• In May 2024, Saab collaborated with the Belgian air traffic service provider Skeyes to unveil a new Digital Tower Test Centre in Steenokkerzeel, Belgium. The facility was equipped with the company's remote tower solution, featuring advanced camera technologies and simulators to train controllers in managing air traffic remotely for airports located approximately 100 kilometers apart. This launch served as a prototype for a future digital control center scheduled to become operational in 2026. The system integrated airport surveillance and advanced surface movement guidance functionality to enable accurate aircraft tracking in adverse weather conditions, thereby enhancing overall operational reliability and safety.

Key Market Players

• Raytheon Technologies Corporation
• L3Harris Technologies, Inc.
• Siemens AG
• Leonardo S.p.A.
• BAE Systems plc
• Lockheed Martin Corporation
• Honeywell International Inc.
• BAE Systems plc
• Aireon LLC
• Cobham Limited

By Type	By End-User	By Airport Type	By Region
Communication Equipment Navigation Equipment Surveillance Equipment	Commercial Military	Brownfield Greenfield	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Air Traffic Control Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Air Traffic Control Equipment Market , By Type:

• Communication Equipment
• Navigation Equipment
• Surveillance Equipment

• Air Traffic Control Equipment Market , By End-User:

• Commercial
• Military

• Air Traffic Control Equipment Market , By Airport Type:

• Brownfield
• Greenfield

• Air Traffic Control Equipment Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE