Market Insights
The military aircraft market was estimated at USD 58 billion in 2024 and is likely to grow at a CAGR of 5.9% during 2025-2030 to reach USD 82.05 billion in 2030.

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Market Dynamics
Introduction
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.
Market Drivers
The key factors driving the growth of the military aircraft market are:
Rising Global Defense Budgets: As geopolitical tensions rise and global security concerns become more pressing, numerous nations are ramping up their defense expenditure. This increase in funding allows military forces to invest in the latest advancements in military aviation, thereby boosting air power and combat preparedness. Countries like the U.S., China, and India are setting aside considerable amounts for cutting-edge fighter jets, surveillance aircraft, and unmanned aerial vehicles (UAVs). This trend of escalating defense budgets is driving significant demand and innovation in the global military aircraft market.
Modernization of Aging Fleets: A significant number of military aircraft currently in service have been around for decades, leading to rising maintenance and upgrade costs. To ensure they remain ready for missions and maintain a technological edge, countries are shifting from outdated platforms to modern, multi-role aircraft that incorporate stealth capabilities, advanced avionics, and improved endurance. These fleet modernization initiatives are also designed to meet the needs of digital warfare, enhancing interoperability and operational efficiency. This worldwide movement to update aging aircraft is driving market growth as defense agencies focus on adopting advanced solutions to secure operational superiority.
Geopolitical Tensions and Regional Conflicts: Ongoing tensions over borders, territorial disputes, and escalating conflicts are prompting nations to bolster their air defense systems. Military aircraft are crucial for tasks such as intelligence gathering, swift deployment, and combat operations. Consequently, countries in unstable regions are hastening their procurement and development of aircraft to secure a strategic edge. The demand spans both manned fighter jets and unmanned systems, fueling diversification and innovation in the sector. These geopolitical challenges are not only increasing the urgency but also ensuring sustained long-term growth in the military aircraft market.

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Challenges
High Development and Procurement Costs: Advancing the development of next-gen military aircraft requires substantial investment in research and development, alongside the use of innovative materials and state-of-the-art technologies—resulting in a significant hike in expenses. In many emerging economies, budget limitations frequently hinder acquisition processes or cause program delays.
Stringent Regulatory and Compliance Requirements: Military aircraft are required to comply with rigorous government and international defense regulations, which can result in delays in production, testing, and deployment. Additionally, managing intricate export controls such as ITAR (International Traffic in Arms Regulations) poses significant challenges for manufacturers operating on a global scale.
Segment Analysis
By Aircraft Type
The market is bifurcated into fixed-wing and rotorcraft. The military aircraft market is witnessing notable growth in the fixed-wing segment, fueled by a rising demand for advanced fighter jets and long-range transport planes. Countries are stepping up their efforts to modernize outdated fleets with cutting-edge platforms that boast superior stealth, speed, and multi-role capabilities. The increase in global defense budgets is further bolstering large-scale procurement and research and development investments. Moreover, fixed-wing aircraft play a critical role in intelligence, surveillance, and reconnaissance (ISR) missions, highlighting their importance in contemporary warfare. Ongoing technological advancements in areas such as avionics, propulsion, and weapon systems are also contributing to their adoption, establishing fixed-wing aircraft as essential components for air superiority, deterrence, and quick response missions.
Regional Insights
North America is experiencing remarkable growth in the military aircraft sector, largely driven by substantial defense expenditures, especially in the United States. This region hosts some of the most prominent defense contractors and aerospace innovators, leading to the advancement of cutting-edge aircraft such as the F-35 and B-21 Raider. The ongoing modernization of fleets, a commitment to enhancing air superiority, and rising geopolitical tensions are all boosting demand. Furthermore, significant investments in research, surveillance systems, and next-generation combat technologies are enhancing the region's growth. With a robust logistical framework and crucial military alliances, North America is solidifying its position as a powerhouse in global military aviation.
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 prospects for the market in the Asia Pacific region. The Royal Australian Air Force (RAAF) has ordered 2 more P-8As, taking the total number of P-8As under contract to 14. 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 3rd and 4th helicopters are booked for delivery in 2022. In Sep-2021, the Indian government permitted an obtaining request for a total count of 56 C295 transport aircraft 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.

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Key Players
The following are the major players in the military aircraft market:
- Airbus SE
- Lockheed Martin Corporation
- Rostec
- Textron Inc.
- The Boeing Company
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 Defense 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 strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s military aircraft market realities and future market possibilities for the forecast period of 2025 to 2030. After a continuous interest in our military aircraft market report from the industry stakeholders, we have tried to further accentuate our research scope to the military aircraft market to provide the most crystal-clear picture of the market. The report segments and analyses 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 the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the 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 1000 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 the 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 in the most comprehensive way. The report structure has been kept such 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.
Market Segmentation
This report studies the market, covering a period of 12 years of trends and forecasts. 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 military aircraft market is segmented into the following categories:
By Aircraft Type
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)

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Report Customization Options
Stratview Research offers one of the following free customization options to our respectable 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: Product portfolio, geographical reach, regional presence, and strategic alliances.
Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.