Fighter Aircraft Market Growth Analysis

Market Insights

The Fighter Aircraft Market was estimated at US$ 28.8 Billion in 2021 and is expected to grow at a CAGR of 3.8% during 2022-2028 to reach US$ 38.4 Billion in 2028.

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What is a Fighter Aircraft?

A Fighter Aircraft is a high-speed military aircraft that can execute air-to-air combat missions. Ease in maneuvering, high speed, and comparatively smaller size are the main characteristics of fighter aircraft. Such aircraft can perform air-to-air combat, ground attack, electronic warfare, and carry hefty payloads.

Market Dynamics

Territorial disputes continue to boost demand for fighter aircraft. Correspondingly, numerous countries are looking to update their fleets by swapping older models with newer aircraft demanding lower operating costs and less maintenance.

It has been analyzed that fighter aircraft production is expected to increase over the next decade compared to the last decade. The governments are looking forward to acquiring the next-generation fighter aircraft due to increased geopolitical tension across nations. As countries attempt to improve their mid-air combat abilities, numerous nations are modernizing their 2^nd and 3^rd generation aircraft with innovative 4^th and 5^th gen fighter aircraft. Moreover, development in armory precision, hypersonic speed, and stealth mode play a crucial part in the fighter aircraft market.

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 fighter aircraft in the past few years. Advancements in technology for precision weapons and stealth have further pushed the advancement of the fighter aircraft 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 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.

Covid-19 Impact

The COVID-19 epidemic has affected aircraft projects' supply chains globally, consequent to delays in delivery in 2020. Aside, the status quo improved in 2021 for fighter 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. The increased defense expenditure is also expected to inject a huge growth prospectus into the global market.

Segments Analysis

By Take-off & Landing Type

The market is bifurcated into conventional take-off & landing aircraft, short take-off & landing aircraft, and vertical take-off & landing aircraft. Conventional take-off is expected to register the highest growth rate during the forecasted period. Moreover, with the increasing terror threats and border disputes, the demand for fighter aircraft is expected to intensify. Technological development and reduced procurement costs coupled with fighter aircraft which execute conventional take-off & landing are one of the major factors boosting the growth in the market. Such aircraft can carry a superior payload of equipment and weapons alongside a larger combat variety. Fighter aircraft programs, such as India’s Tejas MK2, Su 57, Su-37, and China’s J-20, F-35A, and Mig-35, are expected to substitute aging 4^th gen fighter aircraft with 4.5 & 5^th gen aircraft throughout the forecast period.

Regional Analysis

In terms of regions, North America will likely maintain its supremacy in the fighter aircraft market throughout the forecast period. 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 fighter aircraft market.

Concurrently, Asia Pacific is expected to witness the fastest growth in the global fighter aircraft 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 military aircraft market in the Asia Pacific region. The rise in conflicts with China and Pakistan has pushed India to strengthen its defense expenditure. To evade a disparity in aerial combat abilities, the Indian Air Force proposes obtaining 450 fighter aircraft for operation on the western and northern borders of the nation by 2035. The modernization focuses and plans on indigenization endeavors of the Indian Air Force (IAF) is ready to complete a contract with Hindustan Aeronautics Limited (HAL) for 12 Su-30 MKI and 83 LCA MK 1A from Russia. Thus, intensified focus on increasing aerial combat capabilities by countries in the Asia Pacific, specifically in India, is offering huge growth prospects in the Asia Pacific market.

Key Players

There is stiff competition in the fighter aircraft market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their fighter 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 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.
• In November 2021, The production of Sukhoi Checkmate has started by United Aircraft Corporation at a facility in Siberia. The Sukhoi Checkmate is a single-engine 5^th gen fighter jet. The project is being aimed at UAE; as part of Russia and UAE’s partnership for the advancement of a single-engine jet; for that, the countries authorized an MoU in 2017.

The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the fighter aircraft market:

• Hindustan Aeronautics Limited
• Lockheed Martin Corporation
• Dassault Aviation
• United Aircraft Corporation
• The Boeing Company

Research Methodology

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 10 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 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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