Implementation of Innovative Concepts to Drive Growth in North American Air Traffic Management Markets

fROST: The adoption of revolutionary ATM concepts such as satellite navigation, digital communications and datalinks as well as ADS-B will primarily drive growth in the North American air traffic management (ATM) markets. Although the markets are unlikely to sustain its growth momentum until 2014, their substantial value and revenue potential will attract new participants, including non-regional vendors, despite the significant entry barriers.

The North American Air Traffic Management Markets earned revenues of $1.2 billion in 2005 and estimates this to reach $700 million in 2014.

The North American aviation industry is finally recovering, following the events of 9/11 . During the next ten years, North America will witness the realisation of innovative ATM concepts such as satellite navigation and ADS-B that are transforming civil aviation as well as the dynamics of the ATM markets.

North American countries have been among the earliest adopters of digital air-ground communications, satellite navigation based on GPS and ADS-B. Such initiatives will drive revenues in the communications navigation and surveillance segments in the future.

However, regional competitors still dominate the North American ATM markets due to historic contract allocations. This trend is projected to continue, as the North American industry is more than capable of meeting the regions' needs. Also, reduced funding capabilities and its programme-driven, cyclic nature will make it difficult for the market to achieve a sustainable growth rate.

In this competitive environment with its significant entry barriers, product differentiation will be highly irrelevant, . Instead, the way to secure contracts will be through partnerships with North American industry giants that will remain preferred suppliers and prime integrators in the region until 2014.

Also, in this programme-driven market, with 90 per cent of anticipated revenues expected to derive from FAA Programs, early participation in such projects will be a key success factor in the region.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of the North American Markets for Air Traffic Management Systems 2005-2014 Publ 20060510