Market Trends of Europe Military Aircraft Modernization And Retrofit Industry
Fixed-Wing Segment Will Showcase Remarkable Growth During the Forecast Period
There has been significant growth, in recent years, concerning the acquisition of new and advanced military fixed-wing aircraft across the European region. The changing nature of warfare has increased the need for various countries within the region to acquire technologically advanced aircraft as well as retrofit and modernize the fleet of older fixed-wing aircraft to ensure that they are updated with new technology.
Furthermore, various military aircraft retrofit companies are now investing significantly to provide significant aircraft upgrades that match the requirements of the defense forces within Europe. For instance, in October 2023, the Czech Republic announced entering negotiations with Brazil’s aircraft manufacturer Embraer to acquire two C-390 millennium military transport aircraft. Moreover, the aircraft will be used to carry out various military operations such as air transport, air assault operations, and aerial resupply, amongst others.
In another instance, in March 2023, Raytheon UK announced that they completed the critical design review for upgrading the shadow surveillance aircraft fleet of the Royal Air Force (RAF). The upgrade program which was valued at USD 133 million will lead to bringing the Beechcraft King Air 350CER-based twin-turboprops to the enhanced R2 standard. Additionally, the company has further announced that the first three upgraded aircraft will be delivered back to the RAF by 2024.
The United Kingdom to Dominate the Market During the Forecast Period
Factors such as the growth in defense expenditure within the country as well as the increasing need to acquire advanced military aircraft to strengthen defense capabilities will provide a boost to the military aircraft modernization and retrofit market within the country in the years to come.
According to the data presented by the Stockholm International Peace Research Institute (SIPRI), the defense expenditure of the UK for 2022 amounted to USD 68.5 billion. Furthermore, the growth in defense expenditure within the country has led to the UK increasing its military aircraft acquisition programs to strengthen its defense capabilities. For instance, in September 2023, the UK announced that they have merged their fighter jet development efforts with Japan and are in the process of developing an advanced military aircraft by the beginning of the next decade.
On the other hand, the increase in the number of military aircraft acquisitions by the UK has also led to the opening up of new business opportunities for military aircraft retrofit companies which are now engaged in investing heavily to provide advanced modernization and retrofit services to upgrade the existing military fleet of the country. For instance, in July 2022, the UK announced awarding a USD 2.78 billion contract to Leonardo S.p.A. to upgrade the Eurofighter Typhoon combat jet with a new radar and enhanced electronic warfare capability. Moreover, the new radar which is known as ECSR MkII will be developed by Leonardo and will be installed on the third tranche of typhoon aircraft by the end of the decade.
