Aerial Refueling Systems Market Report

Market Insights

“The aerial refueling systems market size was US$ 0.6 billion in 2024 and is likely to grow at a decent CAGR of 2.2% in the long run to reach US$ 0.8 billion in 2034.”

Market Dynamics

Introduction

The aerial refueling systems play a crucial role in enhancing the operational capabilities of both military and civilian aviation. Aerial refueling involves the transfer of fuel from one airborne aircraft to another, extending the range and endurance of aircraft in flight. This capability is vital for long-duration missions, providing strategic advantages for defense operations and enabling commercial aircraft to undertake longer flights. The market has seen significant expansion in recent years, driven by rising defense budgets, technological innovations, and the increasing demand for extended-range operations across various sectors. As military forces continue to modernize their fleets and the commercial aircraft industry seeks to reduce flight times and increase operational flexibility, the demand for aerial refueling systems is poised to grow further in the coming years.

 Market Drivers

Increasing demand for tanker aircraft, owing to rising defense budgets in the developing economies and expected replacement of the old tanker aircraft fleet of KC-135 in the USA, the emergence of multirole aircraft tankers, increasing demand for long-run military jets for special-purpose missions, and rising tanker fleet size are the major growth drivers for the aerial refueling systems market.

The USA, the largest market for the defense industry, has a large aging tanker fleet that needs replacement with the latest tanker aircraft. As of April 2025, Boeing has delivered 89 KC-46A Pegasus aerial refueling tankers to the U.S. Air Force, and it will eventually replace 470 KC-135 tanker aircraft with KC-46 aircraft. In November 2024, the US Air Force gave Boeing a contract of about US$ 2.38 billion for 15 additional KC-46 Pegasus tanker aircraft under the Lot 11 procurement, so it now has 168 KC-46A tankers on contract globally. (Currently, the US Air Force has grounded its KC-46 fleet (delivered by Boeing) due to cracks found in two of four new aircraft)

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In June 2021, Eaton acquired Cobham Mission Systems for an enterprise value of US$ 2.83 billion (approx.). This acquisition expanded Eaton’s aerospace business and enhanced its fuel systems offerings. Cobham Mission Systems (CMS), one of the leading manufacturers of air-to-air refueling systems, environmental systems, and actuation, primarily for defense markets.
• In January 2020, Advent International acquired Cobham plc for an enterprise value of US$ 5 billion (approx.). Cobham plc was a British defense and aerospace group known for its pioneering air-to-air refueling technology.

Segments' Analysis

By Aircraft Type

“The combat aircraft segment accounted for the largest market share and is also expected to experience the fastest growth over the next nine years.”

The market is segmented based on the aircraft type as combat aircraft, helicopters, and UAVs. Increasing demand for combat aircraft, owing to rising tensions, and large aging combat aircraft fleet size, and a greater need for multiple tanker aircraft for refueling are the major factors that are proliferating the demand for refueling systems in the segment. The increasing frequency of long-range missions, multinational joint exercises, and the need for force projection in contested regions have made in-flight refueling a strategic necessity for air forces worldwide. The UAV segment is likely to witness the second-highest growth during the forecast period, driven by the increasing production of long-range UAVs.

By System Type

“The hose & drogue segment accounted for the larger market share of the market among both the system types.”

Based on the system type, the market is segmented into hose & drogue and boom & receptacle. Hose & Drogue are expected to remain the larger and faster-growing system type in the market during the forecast period of 2025 to 2034, driven by low cost and ease in refueling. All the major tanker aircraft are increasingly opting for the hose & drogue system. KC-46 tanker aircraft of Boeing, the most talked-about tanker aircraft, are equipped with a permanent centerline drogue system and removable wing air refueling pods.

Regional Analysis

“North America is expected to remain the largest region, whereas Asia-Pacific is projected to experience the fastest-growing region over the next nine years."

In terms of region, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The USA is likely to remain the growth engine of the North American market, propelled by a high defense budget, large tanker aircraft fleet (KC-135), and expected replacement of the old aircraft fleet with new KC-46 tanker aircraft in the coming years. North America is home to key defense contractors such as Boeing, Lockheed Martin, and Northrop Grumman, which are deeply involved in the development and modernization of aerial refueling platforms.

Asia-Pacific is projected to witness the highest growth in the aerial refueling systems market, driven by rising defense budgets in countries like China, India, Japan, and South Korea. The region is seeing increased procurement of advanced combat aircraft and tanker fleets to enhance operational range and readiness. Geopolitical tensions, along with territorial disputes, are prompting military modernization. Indigenous development efforts and strategic partnerships with global allies are also boosting the integration of advanced refueling technologies, making Asia-Pacific a key driver of market growth.

Key Players

The aerial refueling systems market is highly concentrated, with a few key players holding a significant share of the global market. These major companies dominate through their technological expertise, extensive defense contracts, and strong global supply networks. The presence of only a limited number of manufacturers across regions further intensifies this concentration, resulting in a competitive landscape where innovation, government relationships, and long-term agreements are critical for market leadership.  

Here is the list of the Top Players (Based on Dominance)

• Eaton Corporation
• Safran S.A.
• GE Aerospace
• Northstar Engineering Group
• Marshall

Developing high-performance aerial refueling systems and components and building long-term relations with customers are the key strategies adopted by the major players to gain a competitive edge in the market.

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at sales@stratviewresearch.com

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s aerial refueling systems market realities and future market possibilities for the forecast period.

• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The aerial refueling systems market is segmented into the following categories. 

Aerial Refueling Systems Market, by Aircraft Type

• Combat Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Helicopter (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• UAV (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Aerial Refueling Systems Market, by System Type

• Hose & Drogue (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Boom & Receptable (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Aerial Refueling Systems Market, by Component Type

• Refueling Pods (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Refueling Probes (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Drogues (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Hoses (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Boom (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Other Components (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Aerial Refueling Systems Market, by End-User Type

• OE (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Aftermarket (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Aerial Refueling Systems Market, by Region

• North America (Country Analysis: The USA and Rest of North America)
• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Latin America, The Middle East, and Others)

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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