by Market Overview:
A flight tracking system is used to track aircraft flights in real time with the help of avionics. It provides accurate information on flight schedules, location, fleet status, and destination of the airline. Flight tracking systems provide airlines operational efficiencies by optimizing routing, enhancing crew management, and improving maintenance scheduling.
Market key trends:
The growth of the flight tracking system market is majorly driven by the increased connectivity trend. The modernization of air traffic management with advances in air-ground communication technology is enabling improved real-time aircraft tracking. Next-generation systems provide enhanced capabilities such as automatic dependent surveillance-broadcast (ADS-B) for improved situational awareness. The adoption of satellite-based flight tracking is also increasing owing to their ability to provide coverage across remote and oceanic areas not served by ground-based air traffic control. This is helping boost market revenue growth during the forecast period.
Porter’s Analysis
Threat of new entrants: Flight Tracking System Market Demand requires significant investment in infrastructure and has barriers of technical expertise and regulatory compliance. This creates high barriers for new players to enter the market.
Bargaining power of buyers: The buyers have moderate bargaining power due to availability of substitutes and presence of several established vendors providing similar solutions. However, compliance with aviation safety regulations provides some advantage to existing vendors.
Bargaining power of suppliers: The suppliers have low bargaining power due to availability of several component suppliers and lack of product differentiation. This allows buyers to negotiate better prices.
Threat of new substitutes: Though new substitutes continue to emerge, their viability and compliance with regulations poses challenges. Established players have advantage of strong brand image and technological leadership.
Competitive rivalry: Strong as major players compete on the basis of technology, features, pricing and customer support.
SWOT Analysis
Strength: Established global presence, domain expertise, strong brand image and technological leadership.
Weakness: High R&D and infrastructure costs, compliance with dynamic regulations.
Opportunity: Growth in air travel, provisions for monitoring smaller aircraft, integration of additional data sources like weather.
Threats: Economic slowdowns affecting travel industry, regulatory uncertainties impacting operations.
Key Takeaways
The global flight tracking system market is expected to witness high growth at a CAGR of 5.5% over the forecast period due to increasing air traffic. Air passenger traffic has doubled over the last two decades and is expected to further grow significantly driven by factors such as increasing incomes, globalization and low airfares supported by no-frills carriers.
North America dominates the global market currently owing to largest fleet of commercial and general aviation aircraft and presence of prominent vendors. However, Asia Pacific is expected to witness fastest growth driven by strong economic growth, expansion of low-cost carriers and government initiatives to enhance aviation infrastructure in countries like China and India.
Key players operating in the flight tracking system market are Aireon LLC, Spider Tracks Limited, BLUE SKY NETWORK, SKY TRAC SYSTEMS LTD, FLYHT Aerospace Solutions Ltd., Rockwell Collins, Garmin International Inc., and Honeywell International Inc. Major players are focusing on partnerships, new product launches and expansion in emerging markets to strengthen their market presence.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
