|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The military aircraft market was valued at USD 96.24 billion in 2021, and it is projected to register a CAGR of over 4% during the forecast period (2022-2031).
The COVID-19 outbreak impacted the supply chain of certain aircraft programs, which resulted in delivery delays in 2020. However, the situation improved in 2021 for several military aircraft manufacturers worldwide. On the other hand, no visible impact was noted on the orders placed by various armed forces worldwide. Certain countries that were already struggling with weak economies before the pandemic felt the impact of COVID-19. According to the Stockholm International Peace Research Institute (SIPRI), defense expenditure in 2020 reached USD 1,981 billion, an increase of 2.6% in real terms from 2019.
Political conflicts and territorial disputes continue to fuel the demand for advanced military aircraft with multi-mission capabilities. Also, several countries are looking to modernize their fleets by replacing older models with newer generation aircraft that require less maintenance and have lower operating costs.
Numerous countries are focusing on reducing the reliance on foreign vendors for their military platforms and equipment. Also, the high costs involved in acquiring foreign aircraft are forcing several developing countries to embark on their military aircraft development programs. On the other hand, players are also focusing on localized manufacturing of military aircraft and enhancing their indigenous platform development capabilities through technology transfer agreements.
Scope of the Report
The 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 combat segment is classified into fighter and bomber aircraft. The non-combat segment of fixed-wing aircraft is 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 across different regions. 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 worldwide.
Key Market Trends
Revenues from the Fighter Aircraft Segment Dominated the Market in 2021
As tensions between various global nations have increased, countries are striving to enhance their aerial combat capabilities. Several nations have upgraded their fighter jets or replaced their aging fleet with newer-generation aircraft with advanced features. With the growth in defense spending by several countries worldwide, the industry witnessed large-scale procurement and development activities for fighter jets in the last few years. Technology advancements in stealth and precision weapons have further supported the development of the fighter aircraft market, as each country wants its combat capabilities to be up-to-date. The focus is slowly shifting toward the era of fifth- and sixth-generation fighter jets. However, apart from a very few countries globally, several countries do not have fifth-generation fighters at their disposal. Hence, the development and procurement of fifth-generation fighters are expected to increase during the forecast period. Players from North America and Europe have dominated the fighter aircraft industry over the years. However, players from Asia-Pacific have been rapidly developing their fighter aircraft manufacturing capabilities. They are expected to provide tough competition to the established players from the other regions in the coming years. For instance, in April 2021, Korea unveiled the first prototype of the KF-21 fighter aircraft developed in partnership with Indonesia. The aircraft was officially given the name Boramae. The first test flight is anticipated in 2022, with manufacturing scheduled to begin in 2026. Such developments are expected to drive the market's growth in the coming years.
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Asia-Pacific is Expected to Experience the Highest Growth During the Forecast Period
Over the past few years, there has been a growing demand for new military aircraft from the Asia-Pacific region as major countries look to modernize their fleet and increase their capabilities. In July 2021, the Australian Army received the first two of the four new Boeing CH-47F Chinook transport helicopters. The contract is worth USD 441 million and will increase the army's fleet of heavy-lift CH-47Fs to 14. The third and fourth helicopters are scheduled for delivery in mid-2022. The Royal Australian Air Force (RAAF) also ordered two more P-8As, bringing its number of P-8As under contract to 14. The P-8As are land-based anti-submarine and anti-surface ship jets designed for intelligence, surveillance, and reconnaissance missions. The P-8s are also operated by the Indian Navy, Royal New Zealand Air Force, and the Republic of Korea Navy. In September 2021, the Indian government approved a procurement request for 56 C295 transport aircraft from Airbus Defence and Space in Spain, under which 40 military planes will be manufactured in India by the local firm Tata Group. India is currently taking the deliveries of Rafale Jets from France as part of a deal signed in 2016. A total of 36 jets were ordered, with deliveries expected to be completed by April 2022. China has also inducted several new military aircraft into its fleet over the past five years. Such procurements may result in Asia-Pacific recording the highest CAGR during the forecast period.
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The military aircraft market is highly fragmented due to the presence of many players that offer several types of aircraft. Lockheed Martin Corporation, The Boeing Company, Textron Inc., Rostec, and Airbus SE are some of the prominent players in the military aircraft market. The companies' increased investments in the development of new and advanced aircraft have been helping them maintain their market positions. For instance, HAL is developing a fifth-generation fighter aircraft under the Advanced Medium Combat Aircraft (AMCA) program. Northrop Grumman is developing the B-21 Raider with a unique design and structure. The development of such new aircraft may generate demand from the armed forces worldwide. Companies, in collaboration with governments, are investing in the development of new-generation special mission and maritime patrol aircraft equipped with the modern surface ship and submarine detection systems and combat ability. The development of such advanced aircraft with advanced surveillance and reconnaissance, along with anti-submarine warfare and anti-ship warfare capabilities, is expected to strengthen the presence of players in the market in the coming years.
- In February 2022, the French government announced that Indonesia had agreed to buy six Rafale fighter jets produced by the French manufacturer Dassault Aviation. In total, Indonesia will order 42 Rafale fighter jets in a USD 8.1 billion deal.
- In November 2021, the Indonesia Ministry of Defence ordered two Airbus A400M aircraft in multirole tanker and transport configuration. The contract, which became effective in 2022, will bring the total number of A400M operators to 10 nations.
- In September 2021, the Indian government formalized the order of 56 C295W tactical transport aircraft from Airbus Defense & Space, valued at USD 2.5 billion at list prices, to replace the Indian Air Force (IAF) legacy AVRO fleet.
- In September 2021, The Indian Cabinet Committee on Security (CCS) cleared the procurement of 56 C295 military transport aircraft from Airbus. While 16 aircraft will be imported from Airbus directly, the rest will be made in India by a Tata-Airbus Joint Venture. The value of the program is estimated to be USD 2.5 billion.
- In July 2021, the Australian Army took delivery of the first two of the four new Boeing CH-47F Chinook transport helicopters. The contract is worth USD 441 million and will increase the army's fleet of heavy-lift CH-47Fs to 14.
- In May 2021, France, Germany, and Spain announced that they had reached a deal regarding the development of a new fighter jet, Europe's largest defense project, at an estimated cost of more than EUR 100 billion (USD 121.4 billion).
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
1.3 Currency Conversion Rates for USD
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 Market Size and Forecast, Global, 2018 - 2031
3.2 Market Share by Aircraft Type, 2021
3.3 Market Share by Geography, 2021
3.4 Structure of the Market and Key Participants
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Trends
4.3 Market Drivers
4.4 Market Restraints
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers/Consumers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2031)
5.1 Aircraft Type
184.108.40.206.1 Fighter Aircraft
220.127.116.11.2 Bomber Aircraft
18.104.22.168.1 Special Mission Aircraft
22.214.171.124.2 Trainer Aircraft
126.96.36.199.3 Transport Aircraft
5.2.1 North America
188.8.131.52 United States
184.108.40.206.1 Aircraft Type
220.127.116.11.1 Aircraft Type
18.104.22.168 United Kingdom
22.214.171.124.1 Aircraft Type
126.96.36.199.1 Aircraft Type
188.8.131.52.1 Aircraft Type
184.108.40.206.1 Aircraft Type
220.127.116.11.1 Aircraft Type
18.104.22.168 Rest of Europe
22.214.171.124.1 Aircraft Type
126.96.36.199.1 Aircraft Type
188.8.131.52.1 Aircraft Type
184.108.40.206.1 Aircraft Type
220.127.116.11 South Korea
18.104.22.168.1 Aircraft Type
22.214.171.124.1 Aircraft Type
126.96.36.199 Rest of Asia-Pacific
188.8.131.52.1 Aircraft Type
5.2.4 Latin America
184.108.40.206.1 Aircraft Type
220.127.116.11 Rest of Latin America
18.104.22.168.1 Aircraft Type
5.2.5 Middle-East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199.1 Aircraft Type
188.8.131.52 United Arab Emirates
184.108.40.206.1 Aircraft Type
220.127.116.11.1 Aircraft Type
18.104.22.168.1 Aircraft Type
22.214.171.124 Rest of Middle-East and Africa
126.96.36.199.1 Aircraft Type
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Lockheed Martin Corporation
6.2.2 The Boeing Company
6.2.3 Northrop Grumman Corporation
6.2.4 Saab AB
6.2.5 BAE Systems PLC
6.2.7 Hindustan Aeronautics Limited
6.2.9 Korea Aerospace Industries
6.2.10 Mitsubishi Heavy Industries Ltd
6.2.11 Leonardo SpA
6.2.12 Textron Inc.
6.2.13 Airbus SE
6.2.14 Dassault Aviation
6.2.15 Piper Aircraft Inc.
7. MARKET OPPORTUNITIES
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Frequently Asked Questions
What is the study period of this market?
The Military Aircraft Market market is studied from 2018 - 2031.
What is the growth rate of Military Aircraft Market?
The Military Aircraft Market is growing at a CAGR of >4% over the next 5 years.
What is Military Aircraft Market size in 2018?
The Military Aircraft Market is valued at 96 Billion USD in 2018.
Which region has highest growth rate in Military Aircraft Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Military Aircraft Market?
North America holds highest share in 2021.
Who are the key players in Military Aircraft Market?
Lockheed Martin Corporation, The Boeing Company, Rostec, Airbus SE, Textron Inc. are the major companies operating in Military Aircraft Market.