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Secular Growth in Air Traffic & Airport Modernization/ Upgrade Programs Set to Ensure Double Digit Growth Rates for Asia Pacific ATC Equipment Market - The Asia Pacific air traffic control (ATC) equipment market is witnessing robust growth, thanks largely to booming air traffic and infrastructure expansion programs across the region
Secular Growth in Air Traffic & Airport Modernization/ Upgrade Programs Set to Ensure Double Digit Growth Rates for Asia Pacific ATC Equipment Market

 

PRZOOM - /newswire/ - Singapore, Singapore, 2008/02/19 - The Asia Pacific air traffic control (ATC) equipment market is witnessing robust growth, thanks largely to booming air traffic and infrastructure expansion programs across the region.

   
 
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The cyclical downturn in 2001, due to the September 2001 terrorist attacks, has faded and the Asia Pacific market is set to outperform the global market.

New analysis from Frost & Sullivan (financialservices.frost.com), Asia Pacific Air Traffic Control Equipment Market: Investment Analysis, reveals that this market earned revenues (top 20 participants) of $1. 93 billion in 2006 and estimates this to reach $2.91 billion in 2010.

"The Asia Pacific airlines industry is booming, and is currently in a phase of growth and restructuring," notes Frost & Sullivan Senior Research Analyst Rani Cleetez. "China and India are driving much of the boom, largely supported by Australia, Indonesia, and Singapore. Going forward, the Asia Pacific regions share of air traffic is estimated to increase between 18 and 20 percent over the next 20 years."

The aviation industry was astounded at the Paris Air Show in June 2005, when three privately owned Indian carriers announced orders for over 150 new aircraft from Airbus and Boeing, costing more than $13 billion. Legacy carriers followed suit with Indian Airlines purchasing aircraft worth $2.2 billion from Airbus, and Air India entering into a deal with Boeing for $7.1 billion in new orders. Indian carriers have a stupendous 480 aircraft on order for delivery through to around 2012, against a fleet size of 310 aircraft at present. The recent increase in the number of orders reflects the future potential for airborne traffic equipment in the country, in turn increasing the growth potential of the Asia Pacific ATC equipment market.

However, the Asia Pacific ATC equipment market is not without its share of challenges. These include inadequate infrastructure, constant terrorist threats, and continued fears over outbreak of SARS or Avian Flu and lack of quality employees and each of them can have a huge impact on the profitability of the ATC equipment market.

"While the ATC equipment market holds much potential, the lack of qualified employees, especially air traffic controllers, may pose a challenge," says Cleetez. "In addition, although the degree of control retained by the governments has also reduced, it still remains a restraining factor since some foreign investors are likely to prefer to have authoritative access in addition to the controlling stake given to them."

Going forward, air traffic in the Asia Pacific region is likely to grow unabated due to the high growth rates among the low fare carriers (LFCs). Most of the airlines in China, India, and Australia are filling in orders for commercial aircraft and business jets and this is directly expected to increase the demand for airborne traffic equipment. Further, the booming economies of India and China are likely to be unaffected by any external economic or social changes, thereby reducing the risk level related to investing in both these markets.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the investment analysis and growth opportunities in the Asia Pacific Air Traffic Control Equipment Market, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

Asia Pacific Air Traffic Control Equipment Market: Investment Analysis is part of the Financial Benchmarking in the Aviation Industry subscription, which also includes research services in the following markets: airport security, business jets, aircraft MRO, in-flight entertainment, fractional ownership and airport financing markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan's Business and Financial Services group serves clients around the world in all aspects of financial analysis, market research and monitoring, due diligence, idea generation, opportunity analysis, investment valuation, and other proprietary research.

About Frost & Sullivan
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting, and Career Best Practices empower clients to create a growth focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 30 offices on six continents.

 
 
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Secular Growth in Air Traffic & Airport Modernization/ Upgrade Programs Set to Ensure Double Digit Growth Rates for Asia Pacific ATC Equipment Market

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