Technavio Identifies Three Key Trends Impacting the Global Satellite Based Augmentation Market Through 2020

LONDON--()--Technavio’s latest global satellite based augmentation market report highlights three key emerging trends predicted to impact market growth through 2020. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.

“Airport development and modernization projects have augmented the growth of the global satellite-based augmentation system market. Increase in air traffic, in the passenger and cargo segments, have resulted in the expansion and modernization of existing airports, as well as construction of new airports. As of 2014, there were several airport projects planned, or in progress, estimated to be worth more than USD 350 billion led by Asia with close to 30% of the total projects. Such favorable developments are anticipated to positively impact the global satellite based augmentation systems market until 2020,” said Abhay Singh, one of Technavio’s lead industry analysts for aerospace components research.

Technavio’s market research study identifies the following three emerging trends that are expected to propel the growth of the global satellite based augmentation systems market:

  • Growing implementation of satellite-based navigation systems
  • Retrofitting aircraft for new ATC equipment
  • 'Single European Sky' and 'US NextGen' plans

Growing implementation of satellite-based navigation systems

Implementation of satellite-based navigation systems equipped with GPS, has enabled aircrafts to fly closer. Thanks to its implementation, airline operators have improved their fuel efficiency, reduced traffic delays, and optimized flight time to a great extent.

Ground-based air traffic management (ATM) systems that use ground navigational aids and radars are perceived as incapable of handling future air traffic needs. Thus, the need for advanced ATM systems that can provide greater capacity in the future. An ATM using a satellite-based navigation system is one of the potential solutions is already under consideration under upgrade programs, such as the NextGen in the US. The International civil aviation organization (ICAO) has also come forward with a global implementation plan that encourages transition from ground-based systems to satellite-based systems. These trends are anticipated to immensely support market growth for satellite based augmentation systems over the next four years.

Retrofitting aircraft for new ATC equipment

Apart from modernization of airports and upgradation from ground-based to satellite-based systems, aircrafts also require retrofitting with new air traffic control (ATC) equipment. Market estimates indicates that it costs USD 160,000 to retrofit every aircraft with new ATC systems. Considering the large fleet of aircrafts already in operations globally, retrofitting of aircrafts with new ATC equipment is a trend that is going to boost the global satellite-based augmentation system market during the forecast period.

As part of the NextGen program, ATC systems are being upgraded in the US. As a result, US aircraft carriers have already invested hundreds of millions of dollars to fit the NextGen technology in their aircrafts. The government has also established a USD 1.5 billion capital pool to enable airlines to retrofit their fleet, and this is likely buoy the market significantly until 2020.

'Single European Sky' and 'US NextGen' plans

Two major projects are presently underway and predicted to play a key role in shaping the future of the global satellite based augmentation systems market. These are the ‘Single European Sky’ (SES) and the U’S NextGen’ programs aimed at improving efficiency of air traffic management in the future. For example, SES is aimed at achieving a three-fold increase in the current capacity by 2020, by improving efficiency of the networks through modernization of ATM systems.

Also, as part of the ATM efficiency improvement program, International Air Transport Association (IATA) is working with air navigation service providers across the globe. All these programs have stimulated the ATC equipment market and are going to benefit the industry further in the long run.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com

Release Summary

Technavio’s latest global satellite based augmentation market report highlights three key emerging trends predicted to impact market growth through 2020.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com