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Boom in Infrastructure Development Triggers Growth in the Asia Pacific ATC Equipment Market Reports Frost & Sullivan - Between 18 and 20 percent growth envisaged over the next 20 years - Aerospace.Frost.com
Boom in Infrastructure Development Triggers Growth in the Asia Pacific ATC Equipment Market Reports Frost & Sullivan

 

PRZOOM - /newswire/ - Kuala Lumpur, Malaysia, 2011/07/27 - Between 18 and 20 percent growth envisaged over the next 20 years - Aerospace.Frost.com.

   
 
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The Asia Pacific air traffic control (ATC) equipment market is experiencing fast-paced growth, driven by booming air traffic and infrastructure expansion programmes. With most countries in the region witnessing burgeoning passenger and cargo traffic, the markets in the region are in the phase of growth and massive restructuring. The consistent growth in air traffic, along with the success of low-fare carriers (LFCs), has necessitated ramping up of infrastructure to meet the rising demand.

With large-scale infrastructure development underway in many airports, there is a demand upswing for ATC equipment to ensure safety and comfort for users. Governments in the region are striving to build excellent airports and upgrading the existing ones to be on par with international standards.

New analysis from Frost & Sullivan (aerospace.frost.com), Asia Pacific Air Traffic Control Equipment Market, finds that the market earned revenues of US$2.35 billion in 2010 and estimates this to reach US$4.14 billion in 2016.

"Growth in the aeronautical information system (AIS) segment is expected to outpace that in the air traffic management (ATM) and ATC segments," says Frost & Sullivan Senior Consultant Kunal Sinha. "The AIS segment is expected to double its growth from US$336 million to US$723 million, growing at 14.6 percent between 2010 and 2016."

Satellite-based navigation systems complemented with flight management systems are in the implementation process throughout Asia Pacific. The upcoming technologies in surveillance automatic dependent surveillance- broadcast (ADS-B) and wide area multilateration are being used in combination to provide extended surveillance.

Despite the bright outlook for the market, there are some aspects, clouding its landscape. The high cost of technology development has led to the realisation of lower ROI to the airports, and deterred the adoption of the technology by ATC authorities.

Governments across the region are facing a resource crunch, and the lack of substantial budgets has delayed the modernisation programme. This is one of the biggest deterrents for the growth of the ATC equipment market. Apart from these factors, the lack of qualified employees also restricts market growth.

The complex Asia Pacific airspace has thrown up considerable challenges for manufacturers and users alike. Major congestion in airspace has endangered the safety of travellers. Accommodating growing traffic demand requires efficient airspace usage. Allocation of resources, including airspace, requires adept planning and management. These conditions may provide opportunities for foreign firms specialising in ATC equipment and services.

"Streamlining the ATM system is a major objective for participants in this domain as a fast-growing airline industry must be accompanied by a safe ATM system," says Sinha. "The goal over the next seven years is to modernize facilities such as comprehensive data network, automation center systems, ground-air voice/data communications, and radar systems."

There is approximately a 15- to 20 year gap between technology development and adoption by the airports, and most of the OEMs have to wait for a long period to recover their cost.

As far as the competitive landscape is concerned, major participants hold sway over the market, holding more than 50 percent of the total market share. The top market participants are vertically integrated players and have a wide product portfolio. To ensure successful business outcomes, participants in this space must focus on rolling out niche products that offer additional benefits.

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Asia Pacific Air Traffic Control Equipment Market is part of the Aerospace Growth Partnership Service program, which also includes research in the following markets: Asia Pacific Satellite-based Earth Observation Market, Asia Pacific Airlines Growth Opportunities Market, APAC Engine MRO Market - Revenue Opportunities and Stakeholder Mapping, Asia Pacific Commercial Rotary Wing MRO Revenue Opportunities & Stakeholder Mapping, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Asia Pacific Air Traffic Control Equipment Market / P4C2

 
 
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Boom in Infrastructure Development Triggers Growth in the Asia Pacific ATC Equipment Market Reports Frost & Sullivan

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