Europe Military Aircraft Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2031)

The Europe Military Aircraft Market is segmented by Aircraft Type​ (Fixed-wing, Rotorcraft), and by Geography (United Kingdom​, Germany​, France, Russia​, Italy​, Spain, Rest of Europe​). The report offers market size and forecasts for all the above segments in value (USD billion).

Market Snapshot

Europe Military Aircraft Market Growth
Study Period: 2018-2031
Base Year: 2021
CAGR: >3 %
Europe Military Aircraft Market Key Players

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Market Overview

The Europe Military Aircraft market is expected to grow with a CAGR of over 3% during the forecast period (2022-2027).

The market witnessed a negligible impact due to the COVID-19 pandemic, as the military budget spending of the major defense spending nations in Europe continued to witness growth even during the pandemic. Though the major aircraft production programs faced challenges due to the strict lockdowns and the disruption in the supply chains in 2020, most of the programs reached their pre-pandemic production levels in 2021.

According to the Stockholm International Peace Research Institute (SIPRI), the total military spending in Europe in 2021 amounted to USD 418 billion, which represents a 3% increase compared to the 2020 levels and a 19% increase compared to that of 2012. The huge military expenditure by various countries in the region has been driving the growth of new aircraft procurements in the region. Furthermore, the ongoing Russia-Ukraine war and the perceived threat by Russia are anticipated to force the NATO countries in the region to further increase their spending on new military aircraft procurements to enhance their aerial combat and support capabilities.

Scope of the Report

The Europe military aircraft market is segmented by aircraft type into fixed-wing and rotorcraft. The fixed-wing segment is further segmented into combat and non-combat aircraft. The non-combat subsegment of fixed-wing aircraft segment is further classified into special mission aircraft, trainer aircraft, and transport aircraft. Special mission aircraft include SAR aircraft, airborne early warning and control (AEW&C), electronic warfare, and maritime patrol aircraft. The rotorcraft segment is further classified into combat and non-combat segments. The report also covers the market sizes and forecast for the military aircraft market in major countries in Europe. The market sizing and forecasts have been provided in value (USD billion). The report also provides the fleet composition, aircraft on order, and future procurement plans by major countries in the region.

Aircraft Type
Fixed-wing
Combat
Non-combat
Special Mission Aircraft
Trainer Aircraft
Transport Aircraft
Rotorcraft
Combat
Non-combat
Geography
Europe
Germany
United Kingdom
France
Russia
Italy
Spain
Rest of Europe

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Key Market Trends

Combat Aircraft Subsegment Expected to Grow with the Highest CAGR During The Forecast Period

In the Europe military aircraft market, the combat aircraft subsegment is expected to grow with the highest CAGR during the forecast period. The increase in the geopolitical rift between the nations in the region is expected to drive the procurements of advanced fighter aircraft in the region, as the countries modernize the existing fleet and enhance their aerial warfighting capabilities. For instance, in response to the ongoing tensions with Turkey, in March 2022, Greece signed a deal to buy six additional Rafale fighter jets from France to boost its armed forces. The Rafale fighter jets will be sold to Greece by Dassault Aviation and would be delivered in the summer of 2024, bringing the total Hellenic Air Force's Rafale fleet to 24. Likewise, in March 2022, Germany announced that it will buy 35 U.S. F-35 fighter jets following the government’s EUR 100 billion military upgrade plans in response to Russia's invasion of Ukraine. Likewise, as of April 2022, the United Kingdom is in negotiations with the F-35 Joint Project Office to buy another tranche of F-35 jets. The second batch will consist of 26 aircraft, in addition to the 48 already under contract. Such procurements are expected to drive the growth of the combat aircraft segment during the forecast period. On the other hand, technological advancements in stealth and precision weapons are further supporting the development of the fighter aircraft market, as the countries in the region envision their combat capabilities to be up to date. For instance, the European companies BAE Systems, Rolls-Royce, Leonardo, and MBDA, have been developing sixth-generation fighter aircraft called Tempest. The United Kingdom government announced its plan to invest approximately GBP 2 billion in the development of aircraft till 2025 and plans to induct the aircraft into service by 2035. The new generation aircraft are expected to replace the Eurofighter Typhoons currently used by the RAF and Italian Air Force. Thus, the growing focus on combat aircraft development and procurement are expected to bolster the prospects of the combat aircraft segment in Europe in the years to come.

Europe Military Aircraft Market Share

Russia Held the Largest Market Share in 2021

Russia held the largest share in the market in 2021. Russia’s military expenditure grew for the third consecutive year in 2021. Spending rose by 2.9%, to reach USD 65.9 billion, or 4.1% of its gross domestic product (GDP). Russia has consistently been among the world’s top 5 military spenders in the past decade. In recent years, Russia has embarked on a military modernization program funded by the rapidly increasing military spending and has pursued a more assertive foreign policy. The country is rapidly enhancing its aerial attack capabilities with the introduction of new generation aircraft in the coming years to maintain its air supremacy. Under the Russian State Armament Programme (2018 – 2027), the country plans to induct various advanced aircraft into service. Some of the plans include the induction of at least 186 Su-30SM aircraft (4+ fighter aircraft) and 200 Su-35S (4++ multi-role fighters) by 2027, the acquisition of at least 24 MiG-35, and replace older versions of the MiG-29 with the MiG-and the replacement of  Su-24M aircraft with a new Su-34 frontline fighter-bomber and increasing its fleet of Su-34 to more than 200 aircraft (as of 2019, 123 Su-34 aircraft are in service) by 2027. ​Also, the country will be procuring 76 Su-57 aircraft by 2028. ​ On the other hand, in December 2020, the United Aircraft Corporation (UAC) announced that it has been contacted to produce and deliver the first ten Ilyushin Il-78M-90A tanker aircraft for the Russian Ministry of Defense (MoD). The country is also procuring new helicopters on a large scale. For instance, in 2021, Russian Helicopters announced the launched serial production of Mi-28NM, the fifth-generation derivative Mi-28 attack helicopter. The company serial production of the helicopter began as a part of agreement between Russian Defense Ministry and Rostec for delivery of 98 Mi-28NM helicopters by 2027. In addition, the country is also developing several newer generation fighter, transport, special mission aircraft and rotorcraft for its armed forces. Furthermore, the Russian invasion of Ukraine in February 2022 has forced the country to increase its defence expenditure by nearly 40% in the first four months of the year. Due to the war and the threat from the NATO countries, the country is anticipated to enhance its military aircraft procurements in the coming future, thereby driving the market growth.

Europe Military Aircraft Market Size

Competitive Landscape

Some of the major players in the Europe Aviation Market include Lockheed Martin Corporation, Rostec, Dassault Aviation, Airbus SE and Leonardo SpA. Local players from Russia, France, Spain, Sweden, and the US have dominated the Europe military aircraft market for years and are expected to continue to do so during the forecast period, as they enjoy a significant presence and customer reach in the region. Multiple countries in the region are also partnering to develop new military aircraft models, which is expected to bolster the prospects of the local players in those countries. For instance, Germany, France, and Spain are involved in the development of a next-generation fighter jet named Future Combat Air System (FCAS). Such partnerships are expected to facilitate technology transfer among the players from these countries and help them minimize the overall development timelines. With the rapid pace of technological innovations, players are focusing on the development of advanced aircraft with better aerial combat and support capabilities, which is expected to help their growth in the market in the coming years.

Recent Development

In January 2022, Airbus Helicopters announced that it has received orders for 30H160M helicopters from the French armed forces taking the total order to 169. Also, the OEM received orders for 36 H135 helicopters from the Spanish Ministries of Defence and Interior.

In November 2021, Russia unveiled the extensively upgraded Kamov Ka-226T light utility helicopter at the Dubai Airshow 2021. The modernized Ka-226T is the first Russian helicopter to be digitally designed. The Ka-226T Climber features an updated layout with improved aerodynamic performance and upgraded navigation and communications hubs.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Aircraft Type

      1. 5.1.1 Fixed-wing

        1. 5.1.1.1 Combat

        2. 5.1.1.2 Non-combat

          1. 5.1.1.2.1 Special Mission Aircraft

          2. 5.1.1.2.2 Trainer Aircraft

          3. 5.1.1.2.3 Transport Aircraft

      2. 5.1.2 Rotorcraft

        1. 5.1.2.1 Combat

        2. 5.1.2.2 Non-combat

    2. 5.2 Geography

      1. 5.2.1 Europe

        1. 5.2.1.1 Germany

        2. 5.2.1.2 United Kingdom

        3. 5.2.1.3 France

        4. 5.2.1.4 Russia

        5. 5.2.1.5 Italy

        6. 5.2.1.6 Spain

        7. 5.2.1.7 Rest of Europe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Lockheed Martin Corporation

      2. 6.2.2 The Boeing Company

      3. 6.2.3 Northrop Grumman Corporation

      4. 6.2.4 Saab AB

      5. 6.2.5 BAE Systems PLC

      6. 6.2.6 Rostec

      7. 6.2.7 Leonardo SpA

      8. 6.2.8 Textron Inc.

      9. 6.2.9 Airbus SE

      10. 6.2.10 Dassault Aviation

      11. 6.2.11 Piper Aircraft Inc.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Europe Military Aircraft Market market is studied from 2018 - 2031.

The Europe Military Aircraft Market is growing at a CAGR of >3% over the next 5 years.

Lockheed Martin Corporation, Airbus SE, Rostec, Dassault Aviation, Saab AB are the major companies operating in Europe Military Aircraft Market .

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