Global Military Aircraft Market Extends at a Healthy CAGR of 2.9 by 2031

Introduction

As tensions between various international powers increase, nations are working to enhance their aerial combat and support capabilities. Many countries are replacing their outdated fleet with newer models or modernizing their current fleets of military aircraft. In addition, nations seek to enhance their aerial combat and support capabilities in response to the rapid evolution of technology by investing in next-generation aircraft with cutting-edge features requiring less maintenance and lower operating costs.

Market Dynamics

Rising Military Spending Worldwide Drives the Global Market

One or more of the main elements upsetting the geopolitical situation is the uncertainty surrounding territorial claims, political upheaval, and the military superpowers' quest for world dominance. The most common response from governments in this area is to increase military spending to improve national security. According to SIPRI, global military expenditure reached USD 1981 billion in 2020, an increase of 2.6% over 2019.

Military superpowers, including the US, UK, China, and India, have focused on increasing the size of their military aircraft fleets. There are many military aircraft developments, procurement, and modernization efforts to enhance the armed services' capacity to offer aerial aid. The massive defense budget funds these projects. The countries with the most significant worldwide defense budgets also purchase the most military aircraft, which is expected to drive market growth over the forecast period.

Increasing Emphasis on Fleet Replacement and Expansion of Newer Generation Aircraft Creates Tremendous Opportunities

Nations strive to enhance their aerial support and combat capabilities by acquiring next-generation aircraft with lower operating costs and maintenance requirements. Military aircraft over 50 years old are still in operation in many nations. These aircraft are vulnerable to enemy assaults because they do not have threat recognition and mitigation systems. In addition, these antiquated aircraft are prone to mishaps when in use. This factor is also boosting demand for modern platforms.

The most cutting-edge jets in the fighter aircraft industry are fifth-generation fighters designed to be operated with digital programs and fly-by-wire technologies. With advanced avionics, stealth technology, and exceptional mobility, these jets offer significant advantages over past generations of fighter military aircraft. These features give them unmatched capabilities and let them rule the skies during the conflict.

Regional Analysis

North America is the most significant global military aircraft market shareholder and is expected to grow at a CAGR of 4.45% during the forecast period. The United States Air Force's USD 4.2 billion budget for aircraft procurement for FY2022 covers a projected shortage as the service sells off its obsolete F-15C/D fleet with a proposal to buy 12 new F-15 EX fighter jets from Boeing. The US Air Force released their FY22 budget in April 2021, which included a request for financing for 48 F-35s. The USD 825 million included a sizeable budgetary allocation for maintaining weapons systems and buying replacement parts for maintaining and operating aircraft. These factors are expected to drive the market over the forecast period.

Asia-Pacific is expected to grow at a CAGR of 5.95%, generating USD 45.67 billion during the forecast period. In 2020, China spent the second-highest amount in the world on its military, and in 2021, it is anticipated to surpass USD 252 billion. China upped its defense spending for FY 2021 over FY 2020 by 6.8% as it works to modernize and bolster its armed forces. As it works to develop into a strong air force of the highest caliber, outfitted with a wide range of capabilities to address the ever-increasing security challenges and tackle numerous threats, the Indian Air Force places a strong emphasis on fleet modernization.

Key Highlights

• The military aircraft market was valued at USD 43.5 billion in 2022. It is projected to reach USD 56.26 billion by 2031, growing at a CAGR of 2.9% during the forecast period (2023-2031).
• Based on aircraft type, the global military aircraft market is bifurcated into fixed-wing and rotorcraft. The fixed-wing segment is the highest contributor to the market and is expected to grow at a CAGR of 4.50% during the forecast period.
• North America is the most significant global military aircraft market shareholder and is expected to grow at a CAGR of 4.45% during the forecast period.

Competitive Players

Competitive Players

The global military aircraft market's companies are Lockheed Martin Corporation, The Boeing Company, Northrop Grumman Corporation, Saab AB, BAE Systems PLC, Rostec, AVIC, Korea Aerospace Industries, Mitsubishi Heavy Industries Ltd, Leonardo SpA, Textron Inc., Airbus SE, Dassault Aviation, and Piper Aircraft Inc.

 

Recent Developments

Market News

• In February 2022, the French government revealed that Indonesia had decided to purchase six Rafale combat jets from French manufacturer Dassault Aviation. Indonesia would spend USD 8.1 billion to purchase 42 Rafale combat jets.

Segmentation

Global Military Aircraft Market: Segmentation

By Military Aircraft Type

• Fixed-wing
• Rotorcraft

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA