Military Rotorcraft Market Report

Market Insights

The military rotorcraft market was estimated at US$ 35.1 billion in 2021 and is expected to grow at a CAGR of 7.3% during 2022-2028 to reach US$ ~79.9 billion in 2028.

COVID- The 19 epidemic had a huge influence on the aerospace sector, which in turn led to a large reduction in aircraft sales, a lack of raw materials, and a delay in aircraft delivery. The government-mandated plant closures and other problems that the companies in the aviation sector are dealing with have a detrimental influence on the market as a whole. Many aviation-related businesses are stepping up and reorganizing their supply chains, production, and services to accommodate the delivery of vital medical supplies.

Due to geopolitical unrest and border disputes, countries are investing more in their militaries and speeding their plans to buy new planes and helicopters to improve their aerial capabilities. The nations are also spending money to upgrade the capability of their existing helicopters with new machinery. During the projected period, such expenditures in the acquisition and modernisation of the military helicopter fleet are anticipated to drive market expansion. Governments and military forces throughout the world are investing in the development of new helicopter models with cutting-edge sensor suites for situational awareness, communication suites, and armament systems, among other things. It is projected that future expenditures in the creation of new helicopter programmes would accelerate market expansion.

Military transport aircraft are specifically constructed freight transport aircraft & helicopters that demonstrate high payload capacity and are meant to efficiently move military equipment, personnel, and vehicles. Military transport aircraft have a sizable cargo hold that may hold a broad variety of goods. Additionally, there are many different kinds of helicopters that can transport armored vehicles, light trucks, and military tanks from military bases to battle zones or other necessary areas without the need for much human labor. The market has expanded globally as a result of the development and introduction of large payload aeroplanes and helicopters for military applications by several industry players.

The market is expanding as a result of factors including the increase in demand for rotorcraft aircraft and the swift technical improvements in air transportation services. However, the existing aircraft fleet's expensive maintenance and upgrade costs prove to be a market-limiting constraint. On the other hand, increased global defence spending and the necessity to replace outdated fleets are anticipated to open up the attractive potential for market expansion throughout the forecast period.

Several investments/guidelines in the industry have been directed in recent years, which would boost the overall market. Some of them are:

• The attack helicopter segment currently controls the market and is anticipated to keep doing so during the projected period. This is a result of attack helicopters being bought in significant quantities all around the world to bolster defensive capabilities. For instance, the US Department of Defense (DoD) was negotiating with Boeing as of October 2021 to purchase at least 100 more AH-64E Apache assault helicopters. By the end of 2022, a second multi-year contract for the AH-64 program is anticipated to be finalized. Australia, Egypt, Kuwait, and the Philippines are among the nations whose purchases of 86 AH-64E aircraft, both brand-new and refurbished, have been authorized by the US State Department. The US Army awarded Boeing a contract in April 2021 for the full-rate manufacturing of AH-64E Apache helicopters for Saudi Arabia, valued at about USD 437 million. By 2025, work on this project should be finished.

Segment Analysis

Due to the rising military expenditure of the nations in the area, the Asian-Pacific region is anticipated to see the largest market growth during the projected period. China, India, Japan, and South Korea were among the top military spenders globally in 2021, and it was anticipated that they would keep up this trend as they modernized their military hardware in response to escalating tensions with their immediate neighbors. For instance, as part of a government-to-government arrangement, the Philippine Air Force (PAF) received two of the six T129 Atak helicopters ordered from Turkish Aerospace Industries in March 2022. The purchase of T129 Atak helicopters, which cost USD 269.38 million, is a component of the Philippine Armed Forces' Horizon 2 Modernization Plan. Between 2022 and 2023, the last four are anticipated to be delivered. Additionally, Australia decided to replace its current fleet of 22 Airbus Tiger helicopters with Boeing's AH-64E Apache Guardian in January 2021. The Land 4503 program of the Royal Australian Army was responsible for the contract. By 2025, the first helicopter is anticipated to be delivered. Transport planes are enormous in size and need frequent maintenance, which is a more expensive procedure. Continuous component repair and maintenance is time-consuming and expensive, which ultimately serves as a barrier to the market's expansion. Additionally, numerous governments have signed contracts and agreements with transportation aircraft manufacturers like Airbus SE, Boeing, and Embraer SA to provide as well as maintain and upgrade their current fleet of defense aircraft on a regular basis. These operations require significant investment to be carried out, adding to the cost. Therefore, expensive maintenance and upgrade costs are major market barrier.

Key Players

There is stiff competition in the military rotorcraft market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their military rotorcraft 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 addition to such procurement initiatives, regional businesses are creating new helicopter models that are specifically adapted to the needs of the armed services. In this regard, Mitsubishi Heavy Industries of Japan said that the first flight of the XSH-60L Seahawk helicopter was accomplished in May 2021. The Japan Maritime Self-Defense Force developed the Sikorsky XSH-60L Seahawk helicopter as an upgraded version of the Sikorsky SH-60 Seahawk for shipborne anti-submarine/anti-surface warfare (ASW) missions (JMSDF). It is projected that these nations' efforts in the acquisition and development of new helicopters would fuel market expansion in the area.
• In 2021, Boeing delivered 20 CH-47 Chinook and 83 AH-64 Apache (up from 71 in 2020). (compared to 30 in 2020). Through new contracts with governmental organisations and the military forces in various locations, the corporations are expanding their geographic presence in the market with assistance from the government. A deal for the purchase of AW169M Light Utility Helicopters (LUH) for the Austrian Ministry of Defense was signed between the Italian Secretariat General of Defence/National Armaments Directorate and Leonardo in January 2022. The deal was signed as part of a Government-to-Government (G2G) arrangement between Italy and Austria and was valued EUR 346 million (USD 422.8 million).
• The US government and Sikorsky inked a five-year agreement in June 2022 for the delivery of 120 H-60M Black Hawk helicopters to the US Army and clients for Foreign Military Sales (FMS) as well as the option to purchase an additional 255 helicopters.
• Israel will receive a brand-new AW119Kx helicopter thanks to a Foreign Military Sales (FMS) deal that the US Department of Defense granted in April 2022. The contract had a 29 million dollar value.

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

• Airbus SE
• Changhe Aircraft Industries Corporation
• Hindustan Aeronautics Ltd
• Leonardo SpA
• Rostec
• Kaman Corporation
• Turkish Aerospace Industries Inc.
• Lockheed Martin Corporation
• The Boeing Company
• Korea Aerospace Industries Ltd
• MD HELICOPTERS Inc.
• Textron Inc.

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 book, press release, journals, investor presentation, 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 the 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. 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, product portfolio, product launches, etc.
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for the existing and new players
• Key success factors