by Military aircraft play a crucial role in strengthening a country’s defence capabilities by providing logistical support during combat, surveillance, and transport operations. They come equipped with advanced sensors, communication systems and weapons that enables armed forces to gain air superiority. Ranging from fighter jets, transport aircraft, helicopters, surveillance aircraft and more, these platforms allow the execution of critical missions in challenging terrains and conditions. The global military spending has witnessed a consistent rise over the past few years with major economies allocating large budgets towards procuring next generation combat jets, upgrading legacy fleets and bolstering their aviation assets. The need for aircraft with capabilities like vertical take-off and landing, carrier-based operations, deep strike, electronic warfare has also been accentuated in view of the evolving security dynamics.
The global Military Aircraft Market is estimated to be valued at US$ 106.9 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends observed in the military aircraft market has been the increased focus on development and production of fighter jets with fifth generation technologies. The procurement of F-35 Lightning II joint strike fighters by many NATO allies and F-22 Raptors in the US inventory has significantly enhanced their aerial combat capabilities. Stealth, advanced avionics and payload makes these platforms highly versatile to carry out both air dominance and ground support missions. Their integration with larger sorties consisting of legacy fleets promises an edge in modern battlefields. Furthermore, investment in upgrades of existing fleets through integration of weapons, sensors and engines allowing longer service life is another significant trend witnessed. Overall, growing territorial conflicts coupled with increased defense modernization initiatives are slated to boost demand of military aircraft over the coming years.
Porter’s Analysis
Threat of new entrants: The military aircraft market requires huge investments in R&D and manufacturing facilities which poses high entry barriers for new companies.
Bargaining power of buyers: Military forces have limited options for procurement of military aircraft and are largely dependent on few key established players globally.
Bargaining power of suppliers: Key components and parts suppliers for military aircraft have significant influence over OEMs due to their specialized expertise and technology.
Threat of new substitutes: There are limited alternatives available for military aircraft for defense requirements.
Competitive rivalry: The market is highly competitive with presence of few globally operating players continuously investing in new technologies and upgrades.
Key Takeaways
The Global Military Aircraft Market Demand is expected to witness high growth. The North American region currently dominates the market owing to large defense modernization budgets in US and Canada. However, Asia Pacific is expected to be the fastest growing market with increasing focus on defense capabilities by major economies like China and India.
Regional analysis The Asia Pacific region is projected to witness the highest CAGR during the forecast period. This is attributed to increased defense spending by major economies like China and India. Countries in the region are focusing on domestic production of military aircraft and components. China is a major supplier of aircraft to countries in the Southeast Asia and Middle East regions.
Key players operating in the Military Aircraft are Lockheed Martin Corporation, The Boeing Company, Northrop Grumman Corporation, Saab AB, BAE Systems PLC, Rostec, Aviation Industry Corporation of China, Korea Aerospace Industries Ltd, Mitsubishi Heavy Industries Ltd, Leonardo SpA, Textron Inc., Airbus SE, Dassault Aviation SA, and Piper Aircraft Inc. Key players are investing in R&D for developing new variants, integrating advanced technologies like stealth, avionics and engines to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
