Market Overview:
The military aircraft market comprises transport, trainer, and combat aircraft used by armed forces and law enforcement agencies for various applications such as combat, airlift, early warning, and surveillance. Key types of military aircrafts include fighter jets, drones, helicopters, transport aircraft and others. These aircrafts play a vital role in performing critical missions such as border protection, intelligence gathering, aerial combat, and transportation of troops and supplies. With rising geopolitical tensions and increasing defense spending of emerging economies, the demand for advanced military aircrafts is growing at a robust pace.
Market key trends:
One of the major trends in the military aircraft market is the increasing adoption of unmanned combat aerial vehicles (UCAVs) commonly known as drones. Drones offer several advantages such as greater endurance, no risk to human life, more flexible deployment and lower operating costs. Many countries are significantly investing in stealth drone programs to enhance their intelligence, surveillance and reconnaissance capabilities. Another trend is the growing demand for multi-role aircraft to perform a variety of missions including air defense, ground attack and electronic warfare. OEMs are developing advanced multi-mission aircraft with attributes such as VTOL (vertical take-off and landing) capabilities. Modernization of aging fleets is also a key trend as many countries are replacing their older military aircraft with new generation combat jets.
Porter’s Analysis
Threat of new entrants: The Military Aircraft Market Demand requires huge capital investment and strong technical expertise which makes the threat of new entrants low. Regulatory norms also acts as a barrier.
Bargaining power of buyers: Military forces of various countries have high bargaining power as buyers since they can freely choose between various global players based on cost and technical specifications.
Bargaining power of suppliers: Major component suppliers possess moderate bargaining power due to a small number of global players in the market and differentiated components.
Threat of new substitutes: There exists low threat of substitutes as military aircraft are specialized products used for unique applications like defense, surveillance, etc. with no close substitutes.
Competitive rivalry: The rivalry in the military aircraft market is high among top global players due to presence of large players and requirement of continuous technological upgradations and innovation.
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 defense budget worldwide and procurement of new generation aircraft.
On regional analysis, North America dominates the global military aircraft market and is expected to continue dominating over the forecast period. This is attributed to presence of major players and higher defense expenditure in the US. Asia Pacific is expected to be the fastest growing market due to increasing procurement of military aircraft by countries like China, India.
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 has the largest share in military aircraft manufacturing globally.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
