Automatic Dependent Surveillance-Broadcast (ADS-B) is a surveillance technology for an aircraft to self-report its GPS position through satellite navigation and broadcast it by a datalink, in a networked environment. It enables the aircraft to be tracked by ground-based controllers or by other aircraft. Datalink weather and air traffic information are also available through ADS-B.
The growth of the Automatic Dependent Surveillance-Broadcast (ADS-B) market is attributed to the modernization of air traffic management infrastructure and development of new airports globally. The ADS-B market is projected to grow from USD 427.8 Million in 2016 to USD 1,316.9 Million by 2022, at a CAGR of 20.61% during the forecast period. Increasing airspace congestion, the growing need for an efficient surveillance system, and increasing development of new airport infrastructure across the globe are some of the most significant factors driving the growth of the ADS-B market.
Honeywell International, Inc. (U.S.), L3 Technologies, Inc. (U.S.), Esterline Technologies Corporation (U.S.), Garmin Ltd. (Switzerland), Rockwell Collins, Inc. (U.S.), Indra Sistemas, S.A. (Spain), Harris Corporation (U.S.), Thales Group (France), Avidyne Corporation (U.S.), and Trig Avionics Ltd. (U.K.), among others are key players operating in the ADS-B market.
Contracts and acquisitions are the key growth strategies adopted by leading players to strengthen their position in the ADS-B market. Core competencies of these leading market players include expansion of their geographical reach by increasingly investing in R&D and developing strong relationships with government and civil agency clients.
Honeywell International, Inc. is a global manufacturer of solutions for multiple segments, with strong distribution and service networks. The U.S. Department of Defense is a major customer of the company. Honeywell's major strategies include improving the quality of services, increasing operational efficiency, and innovating products. The company’s segmental sales reduced in 2015, due to exchange rate fluctuation and friction materials divestiture. The operating profits of the company’s aerospace segment are vulnerable to economic conditions and cyclical fluctuations as well as changes in supplier stability, buying patterns of customers, capacity constraints, and factory transitions. The company focuses on penetrating high growth regions, such as Latin America and the Middle East. The company also excels in cash flow conversions due to its efficient working capital. More than 50% of the company’s revenue is generated from outside the U.S., which implies that the company has a strong position in the international market. The company’s asset investment strategy focuses on maintaining a diversified portfolio using various asset classes to achieve long-term investment objectives.
L-3 Technologies, Inc. (U.S.) is a major player in the ADS-B market. In 2015, the net sales of the company reduced by 5% due to a decrease in organic sales 2.4% and a reduction of 3.2% related to business divestitures. The profits gained by the company due to contracts and agreements were balanced by an increase in payable accounts. In 2015, the company generated 41% of its revenues through Electronic System, which is the largest business segment of the company. The company’s main strategy is to focus on new contracts to enhance growth prospects in the ADS-B market. For instance, in 2016, L3 Technologies, Inc. (U.S.) signed a four-year contract with ATP Flight School (U.S.) to provide ADS-B solution. Furthermore, in 2015, L3 Technologies, Inc. (U.S.) signed a 10-year contract with ATR (France) for the upgrade of LCD displays. This contract enabled the company to replace older CRTs with LCD retrofit displays and supply hundreds of LCD retrofit displays for the next 10 years.
Esterline Technologies Corporation (U.S.), another key player in the ADS-B market, generated 41% of the total revenue from the Avionics & Controls business segment, which was the largest business segment of the company in 2015. More than 50% of the company’s revenue is generated from outside the U.S., which implies that the company has a strong position in the international market. The company is highly dependent on government contracts. One of the key strategies adopted by the company is to focus on contracts and acquisitions. For instance, in 2016, Esterline CMC Electronics (CMC) (Canada), a wholly owned subsidiary of Esterline Technologies Corporation (U.S.), signed a contract with French Direction générale de l’armement (DGA) and Airbus Helicopters (France) for the supply of GPS landing systems and flight management systems. In 2015, Esterline Technologies Corporation (U.S.) acquired Barco N.V. (Belgium) for USD 175 million, in cash. Barco N.V. is a technology company that specializes in designing and manufacturing display hardware and software. This acquisition enabled Esterline Technologies to expand its presence outside the U.S. and strengthen its overall business.
Automatic Dependent Surveillance Broadcast (ADS-B) Market by Type (On-Board, Ground Stations), Fit (Line, Retrofit), Platform (Fixed, Rotary), Component (Transponder, Receiver), Application (TMA, Airborne Surveillance), and Region - Global Forecast to 2022
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