Military Aircraft Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Military Aircraft Market has been segmented by Aircraft Type (Fixed-wing, and Rotorcraft), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers market size and forecasts for all the above segments in value (USD billion).

Market Snapshot

Military Aircraft Market Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 4.5 %

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Market Overview

The military aircraft market was valued at USD 93.22 billion in 2020, and it is projected to register a CAGR of 4.5%, reaching USD 120.16 billion by 2026.

The outbreak of the COVID-19 pandemic impacted the supply chain of certain aircraft programs which resulted in delivery delays. However, no visible impact was noted on the orders placed by various armed forces across the globe. Impact on defense budget allocation was felt in certain countries that were already struggling with weak economies before the pandemic. According to Stockholm International Peace Research Institute (SIPRI), defense expenditure in 2020 rose to USD 1981 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 fleet 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 also further classified into combat and non-combat segments. The report also covers the market sizes and forecasts 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 across the world.

Aircraft Type
Fixed-wing
Combat
Fighter Aircraft
Bomber Aircraft
Non-combat
Special Mission Aircraft
Trainer Aircraft
Transport Aircraft
Rotorcraft
Combat
Non-combat
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Russia
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Israel
Turkey
Rest of Middle-East and Africa

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Key Market Trends

Revenues from the Fighter Aircraft Subsegment Dominated the Market in 2020

As tensions between various global nations have increased, countries have been striving to enhance their aerial combat capabilities. Several nations have upgraded their existing fighter jets or replaced their aging fleet with newer-generation aircraft with advanced features. With the growth in defense spending by several nations around the world, the industry has witnessed large-scale procurement and development activities for fighter jets in the last few years. Technology advancements in stealth and precision weapons have been further supporting the development of the fighter aircraft market, as each nation 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 nations in the world, several nations 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 and are expected to provide tough competition to the established players from the other regions in the years to come. For instance, in April 2021, Korea has 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 growth of the market in the years to come.

military_aircraft_market_trends1

The Asia-Pacific Region is Expected to Experience the Highest Growth During the Forecast Period

Over the past few years, there is a growing demand for new military aircraft generated from the Asia-Pacific region, as major countries look to modernize their fleet and increase their capability. In July 2021, the Australian Army took delivery of the first two of 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) has 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 has 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 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 to its fleet over the past five years. Such procurements will result in Asia-Pacific recording the highest CAGR during the forecast period.

military_aircraft_market_trends2

Competitive Landscape

The military aircraft market is highly fragmented due to the presence of many players who 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 position. For instance, HAL is developing a fifth-generation fighter aircraft under the Advanced Medium Combat Aircraft (AMCA) program, and Northrop Grumman has been developing the B-21 Raider with a unique design and structure. The development of such new aircraft may generate demand from the armed forces across the world. Moreover, collaborations, mergers, and acquisitions among the OEMs are expected to make the market consolidated over the forecast period.

Recent Developments

  • In November 2021, the Indonesia Ministry of Defence placed an order for two Airbus A400M aircraft in multirole tanker and transport configuration. The contract, which will become effective in 2022, will bring the total number of A400M operators to ten 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 July 2021, the Australian Army took delivery of the first two of 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 April 2021, the US Air Force rolled out its F-15EX fighter jet. The service plans to buy at least 144 "Eagle II" jets to replace the aging fleet of F-15C/Ds.
  • In January 2021, the UAE signed an agreement with the United States to purchase 50 F-35 jets and up to 18 armed drones.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    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 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Aircraft Type

      1. 5.1.1 Fixed-wing

        1. 5.1.1.1 Combat

          1. 5.1.1.1.1 Fighter Aircraft

          2. 5.1.1.1.2 Bomber Aircraft

        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 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 Germany

        3. 5.2.2.3 France

        4. 5.2.2.4 Russia

        5. 5.2.2.5 Italy

        6. 5.2.2.6 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Japan

        4. 5.2.3.4 South Korea

        5. 5.2.3.5 Australia

        6. 5.2.3.6 Rest of Asia-Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Rest of Latin America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 United Arab Emirates

        3. 5.2.5.3 Israel

        4. 5.2.5.4 Turkey

        5. 5.2.5.5 Rest of Middle-East and Africa

  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 AVIC

      8. 6.2.8 Korea Aerospace Industries

      9. 6.2.9 Mitsubishi Heavy Industries Ltd

      10. 6.2.10 Leonardo SpA

      11. 6.2.11 Textron Inc.

      12. 6.2.12 Airbus SE

      13. 6.2.13 Dassault Aviation

      14. 6.2.14 Piper Aircraft Inc.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Military Aircraft Market market is studied from 2018 - 2026.

The Military Aircraft Market is growing at a CAGR of 4.5% over the next 5 years.

The Military Aircraft Market is valued at 93 Billion USD in 2018.

The Military Aircraft Market is valued at 120 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Lockheed Martin Corporation, The Boeing Company, Rostec, Airbus SE, Textron Inc. are the major companies operating in Military Aircraft Market.

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