Market Trends of Commercial Aircraft Collision Avoidance System Industry
This section covers the major market trends shaping the Commercial Aircraft Collision Avoidance System Market according to our research experts:
Narrow-body Aircraft Segment to Register High Growth Rate During the Forecast Period
The 38.8% increase in global passenger traffic between 2013 and 2018 has driven airline operators to initiate procurement drives and place firm orders for new aircraft. In 2019, the global air traffic increased by 4.2%, and around 1,385 commercial aircraft were delivered to several airline operators across the globe. The growth of air passenger traffic is also supplemented by the emergence of the low-cost carrier (LCC) business model, wherein the primary focus of airline operators is on catering to more customers at a minimal cost per mile per passenger. The typical cost-saving practices of LCCs have promoted the adoption of a single aircraft type, generally, a narrow-body aircraft to minimize operational costs and earn maximum revenues by stimulating traffic through competitive pricing strategies. In June 2019, Virgin Atlantic ordered 14 Airbus A330-900neo aircraft and further ordered 36 A321 XLR, and in the same month, American Airlines Group Inc. ordered 50 Airbus A321XLR.
In August 2019, ACSS announced a contract extension with Airbus, selecting the T3CAS integrated solution as the standard line-fit solution for the A320 family of aircraft. ACSS, a joint venture of L3 Harris Technologies and Thales Group, provides CAS and T3CAS traffic management computer onboard the Airbus A320 family of aircraft.
North America to Dominate the Market During the Forecast Period
North America is anticipated to dominate the market during the forecast period. In North America, the United States is expected to register a high CAGR. The US aerospace industry is mature and strongly supported by robust aviation infrastructure. The presence of a highly vigilant aviation regulatory agency, the FAA, which actively participates in the formulation and update of applicable regulations for civil and commercial aviation, has driven the adoption of mandated safety measures, such as the integration of CAS onboard every aircraft originating or operating in the US airspace. The growing air traffic has resulted in the procurement of more aircraft by many regional and international airline operators in the region. Boeing, one of the major aircraft OEMs based in the United States, generates a huge demand for aircraft collision avoidance systems. As OEMs receive new orders for aircraft, the demand is simultaneously generated for commercial aircraft collision avoidance systems, as the FAA mandates the installation of collision systems in all active aircraft.
