Military aircraft are specially designed aircraft, which are used by military forces of any nation for various military operations and missions. Such aircraft include tactical transport aircraft, bombers, fighter aircraft, special mission aircraft, and training aircraft. With changing nature of warfare and rising geopolitical tensions across regions, the demand for advanced and versatile military aircraft has been increasing significantly. Furthermore, continuous modernization of aging military aircraft fleets by defense forces to enhance their air combat capabilities is boosting the demand for new military aircraft. Some of the key end-users of military aircraft include Naval air forces, Army aviation, and air forces of several nations.
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.
The global military aircraft market is expected to be flourished by rising defense budget allocations worldwide. Many nations have been increasing their defense spending to buy new advanced military aircraft amid geopolitical tensions and increasing instances of cross-border terrorism. According to the Stockholm International Peace Research Institute (SIPRI), the global military expenditure rose to $2.1 trillion in 2021, registering an increase of 0.7% from 2020. Growing investments in military modernization programs across major economies such as the US, China, and India are fuelling demand for new aircraft platforms. Additionally, with changing battleground dynamics, there is an increasing preference for multirole combat aircraft with advanced avionics and capabilities such as electronic warfare and intelligence, surveillance, and reconnaissance (ISR). This is expected to drive higher demand for military aircraft over the forecast period.
The global military aircraft market is segmented into fighter aircraft, transport aircraft, helicopters, trainer aircraft, special mission aircraft, and unmanned aerial vehicles. Amongst these, the fighter aircraft segment accounts for the largest market share of over 30% in 2023. Fighter aircraft are primarily procured for airborne combat missions like air-to-air and air-to-surface warfare. Countries are investing heavily in procuring and upgrading their fighter aircraft fleets which has propelled demand in this segment.
Political: Government defense modernization plans and rising geopolitical tensions have increased military budgets for procuring new aircraft. However, delays in finalizing contracts and offset policies pose challenges.
Economic: The defense budget allocation influences procurement cycles. However, economic slowdowns can negatively impact investments.
Social: Rising nationalism and security threats have led to greater social acceptance for defense spending. However, some regions witness opposition to local production of weapons.
Technological: Developments in avionics, aircraft systems, stealth technology andComposite materials allow for capability enhancement of existing fleets.Indigenous R&D is helping newer platforms meet requirements.
The Global Military Aircraft Market Growth is expected to witness high driven by aircraft replacement programs, fleet modernization, and territorial conflicts. The North American region currently dominates the market owing to high defense spending and presence of key OEMs like Lockheed Martin and Boeing.
The North American region accounts for over 35% of the global market share in 2023 primarily led by the US and Canada. Large procurement programs for fighters like F-35 by the US along with helicopter, transport and trainer aircraft are driving demand. Upgrades to platforms like the F-15 and F-16 are further stimulating growth.
Key players operating in the military aircraft market 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. Lockheed Martin leads with programs like F-35 while Boeing has a vast portfolio including the F/A-18, F-15, and P-8.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it