MILITARY AIRCRAFT MARKET ANALYSIS

The global military aircraft market size was valued at USD 96.23 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.4% from 2022 to 2030. The military aircraft market is driven by the increasing expenditure for defense and the introduction of new advanced military aircraft into the fleet. Fixed wing aircraft dominate the military aircraft market. The market is highly competitive, with many players offering products and services for the military. The major companies in the market compete based on their cost effectiveness, technological capability, and ability to develop complex, integrated systems architecture.

Global Military Aircraft Market: Regional Insights

The global military aircraft market is regionally segmented into North America, Latin America, Asia Pacific, Europe and Middle East & Africa.

North America among regions is expected to show dominant position in the global military aircraft market during the forecast period. This growth can be attributed to growing demand for specialized and advanced aircrafts and rise in spending on military in the U.S. and growing focus on modernization of military aircraft fleet in Canada to reduce its dependency on the U.S. Air Force for specific aerial missions. For instance, according to the Stockholm International Peace Research Institute (SIPRI), in 2021, the global military expenditure accounted for US$ 2.1 trillion.

Furthermore, Asia Pacific is also anticipated to witness robust growth in the global military aircraft market over the forecast period, owing to increasing focus on development of new aircrafts in countries such as China and growing defense spending in India. For instance, as per the SIPRI, the third-largest military spender around the world is India, after the U.S. and China. In 2020 the country spent US$ 72.9 Billion representing 2.1% increase from the previous year.

Figure 1. Global Military Aircraft Market Share (%), by Region, 2021

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Global Military Aircraft Market Drivers:

Increasing expenditure on military all around the world is expected to propel growth of the global military aircraft market over the forecast period. The configuration of international security systems are being undermined by increasing unilateralism, hegemonism and power politics due to increasingly changing international strategic landscape and this has led to various ongoing conflicts around the world. Thus, military spending around the world is increasing for improving security of the countries. For instance, as per the Stockholm International Peace Research Institute (SIPRI) data, there was an increase of 2.6% in the world military expenditure in 2020 compared to 2019, reaching US$ 1981 billion. According to the same source, the spending was higher by 9.3% than 2011.

Furthermore, growing importance of fleet expansion and replacement with newer and advanced aircrafts is also expected to boost growth of the global military aircraft market over the forecast period. Many countries are focusing on expansion and modernization of their aircraft fleets by obtaining new generation military aircraft. With increasing technological developments, these countries are improving their aerial support and combat abilities. Thus, increasing fleet expansion replacements of aircrafts is fueling the market growth.

Global Military Aircraft Market Opportunities:

Increasing developments in sensor technology and demand for unmanned aerial vehicles is expected create growth opportunities for market players in the global military aircraft market over the forecast period. modern-day warfare shows importance of unmanned aerial vehicles (UAVs). Due to increasing territorial disputes around the world along with rise in deployment of asymmetric warfare methods, the demand for combat unmanned aerial vehicles is increasing globally. Moreover, these UAVs are also being adopted in different civil and commercial applications. Thus, rise in demand for these vehicles is likely to create a lucrative growth environment in the market.

The demand for air launched small satellites is increasing around the world and it is also anticipated to create growth opportunities for the global military aircraft market during the forecast period. For instance, in August 2022, the Indian Space Research Organization (ISRO) successfully achieved first flight of its new satellite launcher, the Small Satellite Launch Vehicle (SSLV). Thus, the market is likely to witness growth opportunities with increasing demand for small satellites.

Global Military Aircraft Market Trends:

Increasing development procurement of fifth-generation fighters is dominating the global military aircraft market. As the defense expenditure is increasing around the world, several countries are targeting large-scale procurement as well as development activities for fighter jets. The fighter aircraft market is growing due to increasing technological development in precision and stealth weapons. As all the countries want to keep their combating abilities updated, their focus on fifth- and sixth-generation fighter jets is increasing, and this trend is likely to continue in the market during the forecast period.

The fixed-wing segment among the aircraft type is gaining traction in the market which is expected to propel growth of the global military aircraft market during the forecast period. Increasing technological developments in precision and stealth weapons is supporting the fighter aircraft market, as countries are increasingly focusing on improving combat capabilities. Thus, this trend is likely to persist in the global military aircraft market over the forecast period.

Global Military Aircraft Market Restraints:

High cost of platforms resulting into leasing of aircrafts, and delayed procurement plans are expected to restrain growth of the global military aircraft market over the forecast period. Due to procurement and modernization of newer generation military aircrafts having all the necessary subsystems leads to high costs. Thus countries are delaying or canceling the plans of aircraft procurement. For instance, in September 2020, the government of Germany revealed cancellation of its plans for replacing air force’ Sikorsky CH-53s with either the Boeing CH-53K or CH-47F, owing to budgetary constraints.

Moreover, strict regulations for manufacturing of components of special mission aircraft is also a restraining factor that is likely to impede the market growth. The risk related to flight operations is why the aerospace industry has stringent regulations of manufacturing. The safety levels linked to special mission aircrafts operations are governed by regulatory bodies in countries around the world. Moreover, under the rules implemented by the International Civil Aviation Organization, all the components of special mission aircraft need to meet the regulatory requirements of the organization for ensuring the safety and control risks related to defective components.

Figure 2. Global Military Aircraft Market Share (%), By Location of Deployment, 2021

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Global Military Aircraft Market Segmentation:

The global military aircraft market report is segmented into Aircraft Type and Geography.

Based on Aircraft Type, the market is segmented into Fixed Wing and Rotorcraft. Out of which, Fixed-Wing segment is expected to dominate the global market over the forecast period and this is attributed to the increasing defense budget for combat aircraft as well as rise in demand for air force fleet expansion around the world. In June 2022, The Indian Air Force announced that it is considering acquisition of 114 fighter jets, 96 out of which are likely to be built in the country and the remaining 18 would be imported from the foreign vendors selected for this project.

Rotorcraft segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for military helicopters and their growing deliveries across the globe. For instance, as per the Leonardo Company, in next 20 years, nearly 14,000 military helicopters are expected to be built around the world.

Global Military Aircraft Market: Key Developments

In November 2021, PZL Mielec, announced to have manufacture assemblies for global F-16 Program. The company revealed its plans of becoming a manufacturing partner for fighter aircraft programs, and starting from year 2022, the company will be staring to build components as well as assemblies for new generation F-16 Block 70/72.

In October 2021, the Japan Air Self-Defense Force (JASDF) received its first Boeing KC-46A tanker, which was the first delivery of the program outside of the U.S. The Japan KC-46A can refuel JASDF, the US Navy, the US Air Force and the US Marine Corps aircraft.

Global Military Aircraft Market: Key Companies Insights

The global military aircraft market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global military aircraft market are Lockheed Martin Corporation, The Boeing Company, Northrop Grumman Corporation, Saab AB, BAE Systems PLC, Rostec, Aviation Industry Corporation of China, Korea Aerospace Industries Ltd, Mitsubishi Heavy Industries Ltd, Leonardo SpA, Textron Inc., Airbus SE, Dassault Aviation SA, and Piper Aircraft Inc.

*Definition:

A military aircraft is an airplane that is used by the armed forces for military operations. A military aircraft may have a single or multiple engines. Military aircraft are also used for various kinds of surveillance. Some military aircraft are also used for commercial purposes.