Introduction to the Air Traffic Management Market 

The air traffic management market is entering a phase of steady growth as global air travel recovers and airspace complexity increases. According to Mordor Intelligence, the air traffic management market size is estimated at USD 12.51 billion in 2026 and is forecast to reach USD 18.62 billion by 2031, reflecting sustained demand for modern airspace control systems. This growth is supported by rising passenger traffic, regulatory mandates for satellite-based surveillance, and the growing presence of unmanned aircraft in shared airspace. 

Key Trends Shaping the Air Traffic Management Market 

Expansion of Airport Infrastructure Drives System Upgrades 

Major airport expansion initiatives, especially in Asia-Pacific and the Middle East, are boosting demand for advanced ATM technologies such as surface movement guidance systems and satellite-linked surveillance. These projects support increasing passenger traffic and require modern tools to improve safety and operational efficiency.  

Regulatory Mandates Accelerating Modernization 

Regulations such as Automatic Dependent Surveillance-Broadcast (ADS-B) and Performance-Based Navigation (PBN) are pushing aviation authorities to upgrade legacy systems. Compliance with these mandates is raising demand for both hardware and software solutions in the air traffic management market.  

Rising Commercial Drone Activity Necessitates UTM Integration 

The growth in commercial drone operations and urban air mobility is creating the need for Unmanned Traffic Management (UTM) systems. These systems help integrate UAVs safely with traditional air traffic control, expanding the overall air traffic management market size and introducing new use cases beyond conventional aviation. 

Shift Toward Software-Defined Systems 

While traditional hardware remains dominant, there is a noticeable shift toward software-led solutions. Software platforms, particularly those that offer automation and decision-support capabilities, are gaining traction as they integrate better with legacy systems. This is transforming how the air traffic management industry delivers value. 

Air Traffic Management 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 (UAM) and Drone Operators 

By Geography 

  • North America 

  • Europe 

  • Asia-Pacific 

  • South America 

  • Middle East 

  • Africa 

Key Players in the Air Traffic Management Industry 

The air traffic management industry features a mix of established aerospace suppliers and software-focused providers. Leading companies maintain long-term relationships with air navigation service providers, supported by regulatory expertise and integrated solution portfolios. 

Key players include 

  • Thales Group 

  • RTX Corporation 

  • L3Harris Technologies, Inc. 

  • Honeywell International Inc. 

  • Indra Sistemas, S.A. 

Conclusion: Air Traffic Management Market  

The air traffic management market is positioned for steady expansion as aviation demand grows and airspace operations become more complex. Investments in automation, satellite surveillance, and digital traffic coordination are enabling air navigation service providers to increase capacity while maintaining safety and reliability. 

The air traffic management market forecast is being shaped not only by traditional aviation needs but also by the rise of drones and new airspace users. This broadening scope is reinforcing the importance of flexible, interoperable systems across the air traffic management industry.