Military Aircraft Market Forecast Analysis | 2022-2028

Market Insights

The military aircraft market is estimated at US$ 96.24 Billion in 2021 and is expected to grow at a CAGR of 4.2% during the forecast period to reach US$ 133.75 Billion in 2028.

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What is a military aircraft?

A military aircraft is a rotary or fixed-wing aircraft that functions for the armed service. Military aircraft can also be combat military aircraft or non-combat military aircraft. The combat aircraft is intended to abolish enemy equipment utilizing aircraft ordnance. Whereas Non-combat aircraft are not meant for combat as their primary purpose, they were utilized for weapons, armed personnel in combat, or any other military operation.

COVID-19 Impact Analysis

The COVID-19 epidemic affected aircraft projects' supply chains globally, consequent delays in delivery in 2020. Aside, the status quo improved in 2021 for military aircraft makers Globally. At the same time, no apparent effect was noted on the orders by different militaries globally. Various nations previously battled with powerless economies before the epidemic felt the effect of COVID-19. As per SIPRI, defense expenditure in 2020 increased by 2.6% from 2019 to around $1,981 billion.

Market Dynamics

The  market is driven by a host of factors, some of which are noted below:

• Territorial disputes and political conflicts continue to boost demand for military aircraft.
• Correspondingly, numerous countries are looking to update their fleets by swapping older models with newer aircraft demanding lower operating costs and less maintenance.
• Several countries are concentrating on decreasing their dependence on foreign vendors for their military equipment and platforms.
• Similarly, the high costs of obtaining foreign aircraft are compelling numerous developing countries to get on their military aircraft advancement programs.
• Instead, players also concentrate on localized manufacturing and developing their native platform development competencies through technology transfer agreements.

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Global Upgrades and Emerging Competitors:

As numerous global nations' stiffness has augmented, countries attempt to improve their air combat competencies. Numerous nations have swapped their aging fleet and updated their fighter jets with gen x aircraft with advanced features. With high growth in the defense budget and expenditure by countries globally, the industry has observed large-scale development and procurement activities for military aircraft in the past few years

Advancements in technology for precision weapons and stealth have further pushed the advancement of the market, as every nation wants updated combat capabilities. The focus of nations is slowly shifting from 4^th gen combat aircraft to 5^th and 6^th gen combat aircraft. However, it has been observed that apart from a few nations, numerous nations do not have access to 5^th and 6^th gen combat aircraft in their fleet. Thus, it has been anticipated that such countries' up-gradation of the fleet may influence the growth opportunity for combat aircraft globally.

However, market players in countries in the Asia-Pacific region are rapidly developing their military aircraft manufacturing capabilities. Such players will likely offer tough competition to the market leaders from the developed regions in the forecast period. For example, in April 2021, Korea revealed the KF-21 fighter aircraft prototype developed in collaboration with Indonesia

Boramae is the official name given to the aircraft, and 1^st test flight is expected to be done by the end of 2022, whereas the manufacturing of these aircraft is expected to start in 2026. Such developments are expected to boost the market growth in the forecast period.

Segment Analysis

Aircraft Trends

The market is bifurcated into fixed-wing and rotorcraft. The fixed-wing aircraft are further segmented into combat and non-combat aircraft. Combat aircraft further include bombers and fighter aircraft. The non-combat aircraft is further segmented into special mission, trainer, and transport aircraft. Moreover, with the increasing terror threats and border disputes, the demand for military aircraft is expected to intensify. Special mission aircraft comprise maritime patrol aircraft, airborne early warning and control (AEW&C), SAR aircraft, and electronic warfare.

Regional Analysis:

North America will likely maintain its supremacy in the market throughout the forecast period. 

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• This is mostly due to major market players within the region. The escalating inclination toward enhancing war capabilities creates an enormous opportunity for the North American market.
• Concurrently, Asia Pacific is expected to witness the fastest growth in the market during the forecast period.  
• The key factors responsible for the swift growth are an increased focus on strengthening the military air capabilities and a rise in overall military expenditure (especially in China and India). The increased defense and individual spending on security in countries such as China and India inject huge growth prospectus for the market in the Asia Pacific region.
• The Royal Australian Air Force (RAAF) has ordered 2 more P-8As, taking several P-8As to 14 under contract. In July 2021, the Australian army received the first 2 of 4 new Boeing CH-47F Chinook transport helicopters. The contract is valued at $441 million and will raise the army's fleet of CH-47Fs to 14. The 3^rd and 4^th helicopters are booked for delivery in 2022.
• In Sep-2021, the Indian government permitted an obtaining request for C295 transport aircraft total count of 56 from Airbus Defence and Space in Spain; out of that, 40 military planes are planned to be mass-produced in India by Tata Group.
• China has also initiated numerous new military aircraft into the army fleet in the past five years. Such procurement of military aircraft from Asia Pacific countries contributes to the highest CAGR during the forecast period.\

Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories. 

By Aircraft Type

• Rotorcraft
• Fixed-wing

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and Rest of Asia-Pacific
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

Key Players

The following are the major players in the military aircraft market:

• Airbus SE
• Lockheed Martin Corporation
• Rostec
• Textron Inc.
• The Boeing Companya

There is stiff competition in the market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their military aircraft offerings based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

In December 2021, the Israeli Defence Ministry announced that Israel had entered into a contract deal with the United States to buy 12 Sikorsky CH-53K helicopters from Lockheed Martin and 2 KC-46 refueling planes from Boeing.

In September 2021, The purchase of 56 C295 military transport aircraft was cleared by The Indian Cabinet Committee on Security (CCS) from Airbus. Whereas 16 aircraft are expected to be imported from Airbus, a Tata-Airbus Joint Venture will be made in India. The program is valued to be around $2.5 billion.

In November 2021, the Indonesia Ministry of Defense ordered two Airbus A400M aircraft in transport configuration and a multirole tanker. The contract, operative in 2022, is anticipated to take the total number of A400M operators to 10 countries.

In February 2022, Indonesia bought 6 Rafale fighter jets from Dassault Aviation, a French manufacturer announced by French Government. Indonesia is expected to order 42 Rafale fighter jets for an $8.1 billion deal.

Research Methodology

This report offers high-quality insights and is the outcome of 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 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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

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