Remote Towers Market Size, Share & Growth

^{_{Update: 11/22/2024}}

The Global Remote Towers Market Size was valued at USD 0.3 Billion in 2022 and is estimated to reach USD 0.6 Billion by 2027, growing at a CAGR of 19.6% during the forecast period.

Remote tower is a innovative concept where the air traffic service (ATS) at an airport is performed somewhere other than in the local control tower. Although it was originally developed for airports with low traffic levels, in 2021 it was implemented at a major international airports in London, Norway and few other places. Also, this report dicusses the digital tower concept. To capture the increasing demand for integration of a wide range of ATM systems and data in support of advanced air traffic operations, the digital towers concept was launched.

This market report covers various applications and systems related to remote towers that are used in commercial and military airports. Remote towers are evolving rapidly in terms of technology, with the development of new, advanced, and high-speed cameras, remote modules, and communication systems.   Increased cost saving, efficiency, and safety fuel the demand for Remote Towers Industry.

Saab (Sweden), Thales Group (France), Frequentis Group (Austria), Indra Sistemas  (Spain), and L3Harris Technologies (US) are some of the leading players operating in the remote towers market. A general overview of these companies, an analysis of their financials, products, and services, and the key developments undertaken by them are covered in this report.

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COVID-19 impact on the Remote Towers Market

The COVID pandemic has had and will linger to have for some time a devastating impact on air traffic, which indirectly would hit the remote towers market negatively. Airports of all sizes have been impacted, but smaller and regional airports are predominantly vulnerable. Due to COVID-19 crisis, the research & development (R&D) in numerous remote towers system has been hindered due to the declared lockdowns and government restrictions on public gatherings. Due to COVID-19 crisis worldwide, the major airports have been non-operational, which has deferred ongoing upgradation of airports with multiple remote tower systems. Maintaining production has become a challenge for every category of remote tower manufacturers as businesses and supply chains observed temporary shutdowns or disruption due to the financial losses sustained owing to strict lockdowns, closures of international borders, and a fall in import and export activities. Start-ups faced a financial crunch as these factors discouraged investor funding. The financial impact of COVID-19 on airlines and the aviation supply chain pushed many businesses and organizations to execute cost cutting measures. Most of these measures consist of reduction in staff, whether in the form of staff furlough or early retirements. In addition to this having a negative impact on staff morale, it has changed the working environment for crews, ATCOs, and dispatchers in the aviation sector.

Remote Towers Market Dynamics:

Driver: Increased cost savings

Remote towers can operate both, a single airport as well as multiple airports simultaneously from a remote location. This leads to cost savings in civil infrastructure and ATM systems. Small- and medium-sized airports that have low traffic operate in loss due to heavy ATC tower costs that cannot be balanced out with the volume of air traffic. Multiple such airports can be controlled from one location through remote towers simultaneously as well as sequentially based on a schedule. The cost of having independent towers at such airports is far too high as compared to installing a high-end camera system that relays the video footage to a remote tower for ATC operations. The first tower in Norway to be run through the remote tower technology was rolled out in 2019, while three more towers are being implemented by Avinor AS in partnership with SESAR 2020 programme in 2020. The remote towers technology will be rolled out at a total of 15 airports in Norway by the end of 2022, which will be run from the centre in Bodø. This is expected to be significantly cheaper than installing independent towers at each of these airports. The remote towers will cater to this increasing passenger traffic at a cost that will be significantly less than upgrading and developing traditional air traffic control towers. The need to reduce the ATM costs is expected to spur the demand for remote towers.

Opportunity: Digitalization in air traffic management

The aviation industry is undergoing a digital transformation. Digital MRO, autonomous aircraft and drones, and digital airport technologies, among others, are driving the industry toward digitalization. Remote towers are at the forefront of airport digitalization. They replace human OTW view with digital equipment that functions using highly automated systems. Besides the digital displays, the aeronautical data received by remote towers and the automated algorithms creating terrain mapping as well as anti-collision mapping for the controllers are digital. For instance, ENAIRE (Spain) aims in development of its Digital Control Tower project, Along with Indra Sistemas (Spain)as the technological partner,in a project that goes well beyond the mere remote provision of Tower Control Traffic Services. This advanced solution integrates the current ATS surveillance data, Air Traffic Control and Communications systems with a panoramic visualization system furnished with innovative information and alert functionalities, based on the application of Augmented Reality and Artificial Intelligence. This progress of “remote concept” to a new “digital concept” is based on the objective to expand the human and ATMS system cooperation, moving from the “visual” concept of operations of the exiting Towers to a new concept of operations based on the amalgamation of a new digitalized visual together with ATM system information.

Challenge: Rise in cyber threats to air traffic management

The use of Information and Communications Technology (ICT) in remote towers systems to create a network between the airport and CWPs could expose the ATC operations to cyber hacking. Digitalization of such complex instrumentation has introduced considerable issues related to cybersecurity. Traditional ATC towers work in an isolated environment, which is protected against cyber threats. However, remote towers and their components are connected to the internet or a network, thus making them vulnerable to hacking. Due to this interface and interdependence inherent to ICT, the threat to remote towers has increased.

The most direct threat to ATM systems is posed by non-state actors, including terrorists, hacktivists, and cybercriminals. The major impact of such threats can involve information theft, general disruption in aviation, and potential loss of life. Some of the recent instances of cyberattacks on the ATM system include the December 2014 coordinated attack by Iranian hackers against computer systems of over 16 countries, including attacks on systems of Pakistan, South Korea, Saudi Arabia, and the US. In June 2015, a cyberattack on the network of Polskie Linie Lotnicze (Polish National Airline) grounded ten flights to Poland, Germany, and Denmark, and caused delays for another ten by compromising the system that creates flight plans.

Market Ecosystem Map

The key stakeholders in the Remote Towers Market ecosystem are Airport Developers, Software Developers, Research Bodies, Governmental Bodies, Remote Tower Systems Manufacturers, Government Agencies, Regulators and Investors and Financial Community Professionals

Market ecosystem map: remote towers market

“By operation type, the multiple segment is projected to grow at the highest CAGR  during the forecast period”

By operation type, the multiple segment is projected to grow at the highest CAGR during the forecast period. SESAR 2020 and PJ.05, an innovative programme for researching the future of air traffic management in Europe, plans to further develop the Multiple Remote Tower Concept and an efficient Remote Tower Centre.Also, in the simultaneous configuration, the module and CWP enable Air traffic Service (ATS) to operate for two or more airports at the same time. In order to operate airport safely and to save build cost, equipment and manpower, major airport operators and Ain Navigation Service together are working towards connecting various small airport with low traffic and making centralized to manage.

“Based on investment, the expansion & modernization segment is projected to lead the remote towers market during the forecast period”

Based on investment, the expansion & modernization segment is projected to lead the remote towers market during the forecast period. Various European and American airports, including London City Airport (UK), Heathrow Airport (UK), Saarbrücken (Germany), Erfurt (Germany), and Dresden (Germany) are operating through expansion and modernization programs. The key priority of airport operators and air navigation service providers is to centralize 2-3 airports with low and medium air traffic with remote towers infrastructure.

“By application, the communication segment is estimated to lead the market during the forecast period”

Communication segment would lead based on application, because it is a crucial component for air traffic management. Communication between air traffic controllers and aircraft is in the form of voice and text. Remote towers are equipped with specific systems that process and display communication data. These systems collect and relay communications between control working positions (CWPs) and the aircraft.

“Europe to lead the remote tower market in 2022”

Europe to lead the remote tower market in 2022, with the UK, and Sweden  accounting for the significant share of the regional market. The growing demand for remote towers in the European rgion with yhe development of new and technologically advanced remote towers component such as high resolution cameras, and panaromic display and communication systems are the key factors driving the market in Europe.

Europe is Projected to have the Highest Market Share for Remote Towers Market in 2021

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Key players operating

The Remote Towers Companies are dominated by a few globally established players such as Saab (Sweden), Thales Group (France), Frequentis Group (Austria), Indra Sistemas  (Spain), and L3Harris Technologies (US).

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Scope of the Report

This research report categorizes the remote towers market based on end user, operation type, system type, application, investment and regions.

Remote Tower Market , By Operation Type

• Single / Sequential
• Multiple/ Simultaneous
• Contigency
• Supplementary Remote Tower

Remote Tower Market , By System Type

• Airport Equipment
  • Cameras (180/360/Pan).
  • Display
  • Vhf/Uhf Radios
  • Nav Aids
  • Met Sensors
• Remote Tower Module
  • Heads-Up Display (Hud)
  • Heads-Down-Display (Hdd)
• Solutions & Software
  • Wide Area Network (Wan)
  • High Speed Ip Network

Remote Tower Market , By Application

• Communication
• Information & Control
• Flight Data Handling
• Surveillance
• Visualization

Remote Tower Market , By End User

• Military Airport
• Commercial Airport
  • Class A (>20 Million)
  • Class B (10-20 Milion)
  • Class C (1-10million)
  • Class D  (<1 Million)

Remote Tower Market , By Investment

• New Construction
• Expansion & Modernization

Remote Tower Market , By Region

• North America
• Europe
• Asia Pacific
• Rest of the World

Recent Developments

• In November 2021, China Southern signed a purchase agreement with Thales Group for their selection of the NXT-800 Automatic Dependent Surveillance – Broadcast (ADS-B) Transponder from ACSS, an L3Harris Technologies and Thales company, during the fourth China International Import Expo (CIIE).
• In October 2021, The Korean Airport Corporation (KAC) has conferred Indra Sistemas (Spain) a contract for the supply and installation of Indra Sistemas’s Normarc Instrument Landing Systems (ILS) and Distance Measuring Equipment (DME) with a total value of roughly USD 7 million.
• In January 2021, Frequentis Group (Austria) acquired parts of the ATM product segment from L3Harris Technologies (US)

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