ID: MRFR/A&D/5747-CR | January 2019 | Region: Global | 105 pages
Air-ground communication systems offer a medium of transmission of secure data between air traffic controllers and pilots. The VHF or very high frequency bandwidth has been integrated into multiple aircraft for communicating securely in the 117.975-137 MHz range. The steady rise in air traffic has made it vital for airports to adopt air-ground communication stations to prevent accidents and ensure the efficiency of airlines. The global VHF air-ground communication stations market is expected to reach a valuation of USD 569.9 million by 2023, as per the report by Market Research Future (MRFR). It can showcase a CAGR of 15.46% over the forecast period (2018-2023).
Rising trend of wireless communication made popular by network communication technologies has led to significant developments in VHF-based communication systems. This is likely to augur massive growth of the VHF air-ground communication stations market till 2023. Rising air traffic volume and declining prices of airfares are predicted to elicit the demand for secure systems. In addition, the focus of communication component manufacturers in developing next-generation systems can fuel the VHF air-ground communication stations market till 2023.
But infrequent approval of licenses to operate within the VHF spectrum can pose a challenge to the market growth. High wherewithal required to make a mark in the market is another growth deterrent.
The VHF air-ground communication stations market report covers all the stages from raw material acquisition to end-use. Its granular outlook on the supply chain is likely to deliver keen insights for buyers. In addition, it covers trends, factors, opportunities, and policies pertaining to manufacture on the basis of type, application, and region. Recent developments are added to provide readers a fair view of the market. Identification of key players coupled with competitive intelligence have also been included.
To provide an in-depth look in the industry, the global VHF air-ground communication stations market is segmented by type and application. Based on type, the VHF air-ground communication stations market can be segmented into desktop and portable VHF air-ground communication stations. By application, it is segmented into air traffic control system, civil aviation air-ground communication, military aviation communication, and others. ‘Others’ comprise disaster relief operations, search and rescue, and others.
Region-specific analysis of the VHF air-ground communication stations market encompasses latest trends across five major regions, namely North America, Europe, Asia Pacific (APAC), South America, and the Middle East & Africa (MEA). Among these, North America was responsible for ordering nearly 25 thousand units. This can be attributed to the region handling largest ratio of air traffic and presence of communication system component manufacturers such as Raytheon, Rockwell Collins, among others. The region can lead the global market till 2023.
Prominent names profiled in the VHF air-ground communication stations market report include Rohde & Schwarz (Germany), Northrop Grumman Corporation (U.S.), Selex ES (U.S.), Becker Avionics (U.S.), Viasat Inc. (U.S.), Spaceon (China), Rockwell Collins (U.S.), Honeywell International Inc. (U.S.), Raytheon Company (U.S.), Thales Group (France), and others.
This research is the outcome of expert analysis conducted by skilled researchers of the Market Research Future (MRFR) who ensured that the best-suited methodologies have been integrated. The extensive report has two distinct stages; primary and secondary. In the primary stage, data is collected from interviews with the market doyens and then analyzed as per the standard parameters. The secondary approach has a detailed analysis of the market with a microcosmic view of the entire industry. The report also includes trends, factors and expert inputs that provide a holistic view of the entire market.
For the scope of the report, the VHF air-ground communication stations market is segmented in the following manner
Frequently Asked Questions (FAQ) :
The market value by 2023 could be USD 569.9 million.
The market can attain a CAGR of 15.46% in the years ahead.
Emerging trend of wireless communication boosted by network communication technologies has resulted in substantial developments in VHF-based communication systems, which can induce market growth in the ensuing years.
Infrequent approval of licenses to operate within the VHF spectrum can slow down the market growth during the evaluation period.
North America handles the highest ratio of air traffic, which augers its market position. The strong presence of renowned communication system component manufacturers such as Rockwell Collins, and Raytheon also helps the region maintain its lead in the global market.
The key types mentioned in the market report are Desktop Air-Ground Communication Station as well as Portable Air-Ground Communication Station.
Air traffic control systems have remained the leading application-based segment since 2017.
Global VHF Air-Ground Communication Stations Market - Summary
The global VHF air-ground communication stations market is poised to touch USD 569.9 million by 2023. It is likely to expand at a CAGR of 15.46% during the forecast period (2018-2023). VHF spectrums which were used for receiving signals on televisions and radios have successfully penetrated communication avionics. The implementation of these bands can be attributed to signals being lost between air traffic towers and pilots, which can result in accidents.
Technological advances in VHF communication systems have led to their implementation in civil and military aviation. This is furthered by collaborations between government agencies, component manufacturers, and other industries for developing next-generation technologies. Furthermore, the sharp uptick in air traffic owing to disposable income of consumers is likely to trigger the demand in the VHF air-ground communication stations market. Airports will integrate the latest systems to ensure the safety of passengers. This can culminate in the acquisition of aircraft with these systems.
Upgradation of airports and their systems to ensure their performance and pave the way for digitized communication. Policies rolled out by aviation agencies to ensure the implementation of VHF communication systems is likely to bode well for the market. Recently, Federal Aviation Administration, a federal aviation agency in the U.S., has ensured its execution by doling out the Next-Generation Air to Ground Communication (NEXCOM) program culminating in a major opportunity for players.
In addition, recent commercialization of unmanned aerial vehicles (UAVs) or drones for flight monitoring and surveillance purposes has also offered ample scope of growth for the VHF air-ground communication stations market.
The VHF air-ground communication stations market has been segmented on the basis of type and application.
By type, it is segmented into desktop and portable VHF air-ground communication stations. Desktop stations had a higher market share in 2017 owing to enhanced operational efficiency, low pilot workload, and ability to transmit information between different radio channels. On the other hand, portable communication stations are expected surge in growth thanks to digitization of communication technologies and the shift from legacy to advanced systems by most airlines. In addition, high safety levels, low staff requirement, and low maintenance costs are benefits which can lead to its adoption.
By application, it is segmented into civil aviation air-ground communication, military aviation communication, air traffic control system, and others. Air traffic control systems is touted to be the biggest application of the VHF air-ground communication stations market. This can be attributed to high rate of lost connection signals between airline pilots and ground control staff. Civil aviation air-ground communication is the second biggest application owing to establishmen of airports to control the mass volume of passenger traffic.
Geographically, the VHF air-ground communication stations market spans across North America, Asia Pacific (APAC), Europe, Latin America, and the Middle East & Africa (MEA).
The North America region dominated the global market thanks to presence of various airline carriers, high amount of passenger traffic, and various communication system manufacturers. In addition, the plans to increase the fleet numbers can boost the demand for communication stations exponentially. The regional VHF air-ground communication stations market growth can explode owing to investments by airports in upgrading their systems.
The Europe region can experience massive growth due to Italy, France, Germany, and U.K. The expansion to existing aircraft fleet by carriers in the region combined with collaborations between carriers and system assemblers can bode well for the market. Implementations in airports has reduced the provider abort (PA) numbers considerably.
The APAC market is predicted to exhibit the highest CAGR owing to adoption of next-generation communication technologies by airports in China, India, South Korea, and Japan. Agreements between communication station assemblers and airports to provide VHF air-ground data links to ensure open communication channels can augur well for the market.
Becker Avionics (U.S.), Rohde & Schwarz (Germany), Selex ES (U.S.), Raytheon Company (U.S.), Viasat Inc. (U.S.), Spaceon (China), Northrop Grumman Corporation (U.S.), Rockwell Collins (U.S.), Honeywell International Inc. (U.S.), and Thales Group (France) are some of the reputed players in the VHF air-ground communication stations market.
Global VHF Air-Ground Communication Stations Market: Competitive Landscape
Thales Group, Northrop Grumman Corporation, Rockwell Collins, and Honeywell International Inc. are the five major players operating in the global VHF air-ground communication stations market. Thales Group held the largest share among top five players with a share of 28.67%, in 2017, followed by Northrop Grumman Corporation, Rockwell Collins with respective shares of 24.16% and 20.35%. These companies continue to retain their strong global presence through expansions, mergers & acquisitions, partnerships & collaborations, and extensive product portfolio.
Thales Group, the leading player of the market, is focusing on market diversification of its existing products, developing innovative products, and expansion of its avionics product portfolio. The company is focusing on collaborating with the major players in the VHF air-ground communications stations market. This would simultaneously help improve the company’s position in the VHF air-ground communication stations market and enhance its presence across the globe.
Northrop Grumman Corporation will continue to experience significant changes to its business practices, globally, as a result of an increased focus on affordability, business systems, efficiencies, recovery of costs, and a reprioritization of available defense funds. Northrop Grumman Corporation is significantly investing in research and development (R&D) to support future technologies and mission solutions. Moreover, the company is focusing on to increase their sales to customers outside the US.
Rockwell Collins is focusing on contracts from the US government to improve its overall financial position. As the company has a large customer base, along with good brand equity, the provision of new product offerings would revamp their revenue. This would simultaneously help improve the company’s position in the VHF air-ground communication stations market.
Honeywell International Inc. is primarily focused on business opportunities in the Asia-Pacific region. The company mainly targets the business in the aircraft communication systems market and tries to develop innovative products. It also tries to acquire more contracts by establishing strategic partnerships with other players in the VHF air-ground communications stations market to offer combined solutions.
The leading players, as mentioned above, are dominating the market due to their wide product offering, vast industry experience, and geographic reach. These players may strengthen their presence worldwide through strategic partnerships and acquisitions during the forecast period. Players with access to better technologies can develop unique and innovative products and services, which could render the competitors’ offerings, obsolete. The competitive environment in the market is likely to intensify further due to the increasing number of contracts and acquisitions.