Market Trends of Asia-Pacific Attack Helicopter Industry
Army Segment is Expected Witness the Highest Growth During the Forecast Period
The Army segment is expected to grow at the highest CAGR during the forecast period. This growth is mainly due to the procurement and fleet modernization plans of governments like India, Japan, and South Korea to increase aerial combat capabilities. South Korea is one of the major countries in the Asia-Pacific region, that is currently investing in procurement of advanced attack helicopters. Furthermore, the Indian Cabinet Committee had given its sanction for the procurement of 39 AH-64 Apache attack helicopters from the US in 2020 at a cost of around USD 800 million. As a part of the contract, the Army will receive the first AH-64 Apache in February 2024, and delivery of the first six would be completed within three months by April 2024.
In January 2021, the Australian Army announced that it had selected Boeing’s 24 AH-64E Apache Guardian as its next armed reconnaissance helicopter, to replace its Airbus Helicopters Tiger fleet. The initial operational capability is expected in 2026 with 12 helicopters and the final operational capability with all 29 aircraft two years later. Such developments will drive the demand for attack helicopters for the Army segment in the Asia-Pacific during the forecast period.
China is Projected to Dominate the Market During the Forecast Period
China has been steadily increasing its defense budget making it one of the largest defense spenders globally. The substantial investments in defense modernization programs have contributed to the growth of the military helicopter segment. In 2022, China allocated an estimated USD 292 billion to its military in 2022. This was 4.2% more than in 2021.
Additionally, border issues with India, increasing face-offs with the US in the disputed South China Sea, and claims over Taiwan are some of the reasons for China to aggressively modernize its weaponry and equipment. The country is working on stealth technology for its helicopters and this factor will significantly drive the demand at the domestic and global level.
Furthermore, in August 2022, amid rising tensions with Taiwan, the first images of the Z-10ME helicopter were revealed, and the new chopper seems to have striking similarities with the Boeing-made Apache. The new helicopter is a modified version of the new Z-10 attack helicopter used by the Chinese armed forces. In September 2021, the country announced its plans to procure three dozen Russian naval attack helicopters, the Ka-52Ks. This procurement would support the Chinese military's new generation of amphibious assault ships.
