April 24, 2024
Military Aircraft Market

Military Aircraft Market is Expected to be Flourished by Increased Defense Budget Allocation

The military aircraft includes fixed-wing and rotary-wing aircraft including transport aircraft, fighter jets, helicopters, trainers, and unmanned aerial vehicles (UAVs). Most military aircraft are designed for combat roles such as bomber, fighter, attack, and electronic warfare missions as well as transport and tanker operations. Major applications of military aircraft include homeland security, border patrolling, military transport, search and rescue, coast guard operations, and air ambulance services. The global military aircraft market is driven by growing geopolitical tensions, rising defense budget allocation, and modernization of aging aircraft fleet across countries.

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 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Increased defense budget allocation of major economies is one of the primary drivers of the global military aircraft market. For instance, the US defense budget witnessed an increase from $649 billion in 2020 to $716 billion in 2021. Moreover, modernization programs of aging aircraft fleet across developed and developing countries propel the demand for new military aircraft. For example, in 2021, the Indian air force placed an order for 83 indigenous Tejas light combat aircraft from Hindustan Aeronautics Limited (HAL) marking one of the biggest deals for HAL. Growing geopolitical tensions as well as rising instances of cross-border terrorism also necessitate enhanced surveillance capabilities and military preparedness, fueling investments in military aircraft. Military aircraft manufacturers are also expanding their product portfolio by adding new variants and capabilities to existing aircraft types through advanced avionics, weapons, and communication systems. Such efforts are expected to boost the market growth over the forecast period.

Segment Analysis
The global military aircraft market is segmented by type, application, technology and geography. By type, the market is classified into fixed-wing aircraft, rotorcraft and unmanned aerial vehicles. Among these, the fixed-wing aircraft segment accounts for the largest share of around 60% as of 2023 owing to high demand for transport aircraft, fighter jets and trainer jets. By application, the combat aircraft segment dominates with over 55% share due to ongoing modernization programs globally to enhance defense capabilities.

PEST Analysis

Political: Military aircraft market is highly influenced by political dynamics of nations. Changing political relationships influence defense budgets and procurement plans. Nations aim to achieve self-reliance in defense production through collaborations and technology transfers between OEMs.

Economic: Global economic growth influences defense spending of nations. Slowdown prompts cuts in military budgets impacting aircraft procurements. However, growing strategic competition has ensured steady budgetary support.

Social: Rising global threats such as terrorism intensify need for enhanced military capabilities. Societies expect strong national security leading to general acceptance of defense spending.

Technological: Continuous R&D leads to newer aircraft with higher efficiency, increased payloads and enhanced capabilities. Developments in AI, robotics, cyber and anti-stealth technologies are changing combat strategies driving new platform needs.

Key Takeaways
The Global Military Aircraft Market Size is estimated to be valued at US$ 106.9 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.

The global military aircraft market is expected to witness high growth during the forecast period driven by modernization programs across regions. The North American region currently dominates the market with a share of over 35% in 2023 owing to large procurement budgets of US and innovation led programs. Countries are procuring advanced aircraft with 6th generation technologies and are investing in development of cutting edge platforms like unmanned combat aerial vehicles and hybrid-electric aircraft. The Asia Pacific region is projected to be the fastest growing market during the forecast period supported by increasing indigenous production capabilities and large procurement programs in China, India, Japan and South Korea. Countries in the region are mainly procuring 4th and 5th generation aircraft with focus on self-reliance. Their increased defense budgets are supporting continuous modernization of Air forces.

Key players operating in the military aircraft market are Cameron International Corporation, Eaton Corporation Plc., Gates Corporation, Parker Hannifin Corporation, Manuli Hydraulics, Kurt Hydraulics, RYCO Hydraulics pty. Ltd., ITI Corporation, SPX Corporation. Major players are engaging in strategic partnerships and collaborations for new product development. They are also focusing on digital technologies to enhance aircraft platform efficiencies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it