by Market Overview:
The military aircraft market includes fixed-wing aircraft and rotary wing aircraft that are used by armed forces worldwide for defense and security purposes. Some key products in this market includes fighter jets, cargo planes, helicopters, surveillance aircraft, and trainer aircraft. These aircrafts are equipped with advanced avionics, navigation systems, communication systems, weapons and ammunition to effectively carry out missions such as air superiority, ground attack, anti-submarine warfare, maritime patrol, airlift operations, and aerial refueling.
Market Dynamics:
One of the key drivers for growth in the military aircraft market is increasing defense budgets of countries globally. According to data from SIPRI, global military expenditure rose to nearly $2 trillion in 2020 which is the highest level since 1988. Growing geopolitical tensions and security threats have prompted many nations to modernize and strengthen their military capabilities. Another driver is the rapid replacements of aging aircraft fleets. Many militaries currently operate aircraft that have exceeded their operational lifespan. This is driving requirements for new procurement programs. For instance, the U.S. plans to replace its aging F-15C/D fleet with the new F-15EX aircraft. Additionally, the development of advanced aircraft with new technologies such as stealth, hypersound, and drones is expected to create growth opportunities in the coming years.
Segment Analysis
The global Military Aircraft Market Demand is segmented on the basis of aircraft type, application and region. By aircraft type, fighter jets dominates the market and accounted for around XX% market share in 2023. Fighter jets provides highly capable multi-role capabilities to the militaries like air dominance, air interception, close air support, etc. Further, rising territorial conflicts and increasing defense budgets of countries like US, China and India have propelled the demand for fighter jets globally.
PEST Analysis
Political: Rising geopolitical tensions across regions like Middle-East, South China Sea have compelled countries to strengthen their military capabilities. This is positively impacting the demand for military aircraft.
Economic: Increasing defense budgets of major economies along with growing indigenous production is promoting the growth of military aircraft market. For instance, defense budget of the US accounted for over US$ 800 billion in 2023.
Social: Ensuring national security has become one of the top priorities of governments worldwide which is fueling investments in military aircraft.
Technological: Ongoing R&D towards development of sixth generation fighter aircraft with technologies like artificial intelligence, laser weapons, hypersonic missiles is accentuating the market growth.
Key Takeaways
The global military aircraft market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing geopolitical tensions worldwide. The market size for 2023 is US$ 106.9 Mn. North America dominated the market in 2023 with a share of around 35%, led by substantial defense spending of the US. In Asia Pacific, China accounted for majority of the market share owing to large-scale indigenous military aircraft production programs like J-20 and J-16. Key players operating in the military aircraft market include 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. These players are focused on projects like F-35, Gripen, Eurofighter and Su-57 to strengthen their product portfolio.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
