Impact of COVID-19 on Global Airport Surveillance Radar Market
The COVID-19 pandemic has forced the governments of several countries worldwide to declare either complete or partial lockdowns. The operations in many industries have been affected by these lockdowns, particularly those categorized as non-essential, including the aviation & defense industry.
The aviation industry has witnessed an unprecedented decline in the last two months due to the COVID-19 pandemic. The outbreak of the virus has significantly impacted the airline and airport operators. The spread of COVID-19 and the response by the aviation industry has resulted in an unparalleled decline in global air traffic. The average number of flights per day in March 2020 was 145,000, which is 17.61% lower than that of 176,000 in March 2019. Moreover, after several governments around the world announced restrictions on air travel, commercial air traffic registered a 41% decrease as compared to the 2019 levels in the last two weeks of March. Moreover, according to the International Civil Aviation Organization (ICAO) number of departures on 11th March 2020 was 22,568, which decreased by 8.45%, to 2,387 by 26th May 2020. Thus, due to this drastic decrease in air passenger traffic globally, the revenues of airport operators from airport charges such as the landing and parking charges that are paid by airlines and passenger service charges paid by passengers are expected to decrease by around 50% in 2020. This is also expected to decrease the demand for new airport surveillance radars during this year.
Pre-COVID-19 Airport Surveillance Radar Market
Before the COVID-19 pandemic, International Air Transport Association (IATA) estimated that global air travel is likely to double by 2036. The airport surveillance radar market was set to witness significant growth due to factors such as increasing defense expenditure and the development of new and existing airports. The US is expected to be the leading country in terms of air passenger traffic, growing at a rate of 6.34%, while in China, the air passenger traffic is expected to grow at a rate of 5.69% during the forecast period, 2019 to 2025. Moreover, air passenger traffic in countries such as India, China, Brazil, and Indonesia are expected to increase with the introduction of low-cost airlines and increasing per capita incomes. The increasing air passenger traffic is also expected to increase the demand for new aircraft globally, which is further increasing the need for airport capacity addition and creating a requirement for new systems. For instance, in 2018, Munich Airport engaged with Siemens to work on the digitalization of the airport, including developing solutions for mobility, energy management, and safety and security by using data analytics, radar systems, IoT technologies, and artificial intelligence.
Therefore, before the COVID-19 pandemic, the global airport surveillance radar market was expected to reach USD 1,986.3 million by 2025 growing at a CAGR of 6.49% from 2019 to 2025.
Post-COVID-19 Impact on the Airport Surveillance Radar Market
Post COVID-19, Market Research Future estimated that the global airport surveillance radar market is likely to reach USD 1864.2 million by 2025 at a CAGR of 5.37%. The current projections for 2025 are expected to be lower than pre-COVID-19 estimates. The pandemic has had a devastating negative impact on the aviation industry across the world. Post the impact of the pandemic, very few countries have allowed transportation by air. Most of the airline companies have grounded their fleets due to a significant reduction in air travel. Global organizations, including the International Air Transport Association (IATA), has estimated a decrease in international air passenger revenues by approximately 50%.
Moreover, due to a decrease in revenues, it is also expected that new and existing airport development projects will be kept on halt till mid-2021. Therefore, the demand for airport surveillance radar is also expected to decrease in the next few years. However, the growing demand for air cargo is resulting in airline operators converting their passenger aircraft into cargo aircraft to find new revenue sources and ensure company sustainability. This is expected to help airport operators generate revenue from air cargo activity.
In the defense industry, due to a decrease in tax revenues, it is also expected to decrease the demand for airport surveillance radar for military airports in the next few years.
COVID-19 Impact on the Airport Surveillance Radar Market in Key Regions
North America: North America covers the US and Canada. North America is likely to be the largest market for airport surveillance radar during the forecast period post-COVID-19. Large-scale investments by airport authorities for improving airport operations and offering enhanced surveillance capabilities to pilots are expected to be halted during the pandemic.
Europe: Europe includes the UK, Germany, France, and Italy. In the region, the initiatives undertaken by the governments to modernize the European airspace and offer enhanced air traffic management to airport authorities and airline operators are expected to postpone during the pandemic. Furthermore, the region hosts many major companies, such as BAE Systems, Thales Group, Leonardo SpA, and Blighter Surveillance Systems Ltd, that offer airport surveillance radars are also expected to be affected by the cancellation of orders or delays in payments.
Asia-Pacific: Asia-Pacific covers China, India, Japan, Australia, Singapore, and Australia. The region is gaining prominence in the global aviation industry and is projected to become the world’s leading market for air travel. It is expected that due to the COVID-19 pandemic, the decreasing revenues from airport operations will result in decreasing investments in airport surveillance radars by airport authorities.
Middle East & Africa: In the Middle East & Africa, the market for airport surveillance radar is primarily affected by the decreasing passenger traffic in countries such as Saudi Arabia and the UAE due to the COVID-19 pandemic. This will also be expected to decrease investments in advanced air traffic control systems, including airport surveillance radar in the next few years.
Latin America: In South America, the market growth is significantly affected by major countries, such as Brazil and Mexico, due to the decrease in air passengers. This will also lower the investments for the modernization of airports in these countries in the next few years.
The Road Ahead
Airport operators that have orders placed with airport radar surveillance companies have either been postponed or canceled due to the pandemic. Moreover, the development of the new and existing airports will be resumed after the pandemic but with a lower rate for some period. Thus, the airport surveillance radar market is expected to recover after the pandemic ends and will be struggling with a lower growth rate.
Role of Market Research Future
As a market research and consulting company, Market Research Future has been continuously monitoring and tracking the COVID-19 pandemic and its impact on various markets within the aerospace & defense industry. All our research studies have been updated to accommodate the impact of COVID-19 in the respective market to provide our customers with comprehensive market data along with present and future trends with macro and micro-level impact factors.
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*Note: The above mentioned datapoints will be provided on best effort basis