Military Aviation Market

Market Perspective

The global Military Aviation Market was valued at USD 31.56 billion in 2022 and is projected to reach USD 45.40 billion by 2030, growing at a CAGR of 5.30% from 2023 to 2030.

Military aviation plays a pivotal role in modern warfare, providing a strategic advantage and enhancing operational capabilities. It encompasses the utilization of aircraft and related technology for combat missions, surveillance, reconnaissance, and transportation purposes. The drivers behind the growth of military aviation include advancements in technology, such as unmanned aerial vehicles (UAVs) and stealth capabilities, which enhance operational efficiency and minimize risks to personnel. Additionally, the need for rapid deployment and global reach has led to the development of long-range aircraft, enabling swift response times and effective force projection. Furthermore, ongoing geopolitical tensions and the increasing demand for national security contribute to the continuous evolution and investment in military aviation capabilities.

Moreover, the military aviation industry is influenced by rising defense expenses and the inclusion of modern, sophisticated military aircrafts in the inventory. The fixed wing aircraft category holds a major share in the market for military airplanes. The principal businesses in the market contend on the basis of their economic feasibility, technological adeptness, and competence to construct intricate, integrated systems architecture.

Analyst’s Review on Military Aviation Market

The global demand for fifth-generation jet fighters has surged due to their exceptional features such as high-performance airframes, low-probability-of-intercept radar, advanced avionics, and integrated computer systems that can coordinate effectively with other elements in the battlespace, leading to a subsequent augmentation of the military aircraft market.

In line with this, Lockheed Martin Corporation collaborated with the U.S. Air Force to enhance its weapon systems and integrate new capabilities to its F-22 Raptor, currently the only fifth generation fighter aircraft that is combat-ready. However, In India, Hindustan Aeronautics Limited is developing a fifth generation supermaneuverable stealth multirole fighter known as the HAL Advanced Medium Combat Aircraft (AMCA). Planned and designed by the Aeronautical Development Agency (ADA), the AMCA is in its detailed design phase as of 2019, with its first prototype slated to fly in or prior to 2025.

Market Definition

Military Aviation refers to the use of aircraft and other flying machines for conducting or enabling aerial warfare, including national defense and other related activities. Military aircraft have been adapted for use in combat and have significantly contributed to the development of air warfare technology over time. The Military Aviation Museum in Virginia Beach boasts of an extensive collection of vintage military aircraft. Meanwhile, the Military Aviation and Installation Assurance Siting Clearinghouse (The Clearinghouse) works with industry experts to mitigate risks to national security and ensure compliance with established security protocols.

Moreover, the development of modern military aviation technology, including unmanned aerial vehicles or drones, have significantly transformed air warfare in recent years. Various governmental agencies, including the Military Aviation Authority, regulate, enforce, and ensure the safe operation of military aircraft. Finally, the Military Aviation Logistics & Maintenance Symposium (MALMS), provides an opportunity for members of the military and various public and private sectors to engage, share insights, and discuss issues and developments in military aviation logistics and maintenance.

Additionally, various companies in the defense industry have introduced large payload aircraft and helicopters, which have contributed to the growth of the defense market worldwide. While there are several types of conventional and improvised weapons used in terrorist attacks, there is no direct connection between these and military helicopters.

Market Dynamics

The market is poised to exhibit prominent growth supported by the rising military expenditures worldwide. These developments have resulted in several ongoing conflicts around the world, triggering a shift towards stronger defense capabilities. As a result, countries are allocating higher budgets towards military spending to improve their security and combat these emerging threats. For instance, in April 2023, according to Stockholm International Peace Research Institute, world military expenditure reached a new record high of $2,240 billion in 2022, reflecting a real-term increase of 3.7%. In the past decade from 2013 to 2022, global military spending has grown 19% and has witnessed a continuous rise since 2015. These figures indicate a consistent trend toward increased military expenditures across the world.

The market faces a significant restraint in the form of budget limitations imposed by various governments. Governments worldwide often confront financial constraints, leading to reduced defense spending or delays in procurement programs. Such limitations can hinder the development and acquisition of new military aircraft and related technologies. This constraint not only affects the ability of countries to upgrade their existing fleets but also impacts the initiation of new projects, thereby influencing the overall growth and innovation within the military aviation sector. As a consequence, defense contractors and aerospace companies face challenges in securing contracts and sustaining robust development, given the uncertain and fluctuating nature of defense budgets globally. Meeting military aviation needs within constrained financial parameters remains a persistent challenge in driving market growth and technological advancements in this sector. For instance, in September 2020, budgetary constraints led the German government to cancel its plans to upgrade its airforce Sikorsky CH-53s with either the Boeing CH-53K or CH-47F.

Segmentation Analysis

The global military aviation market is segmented based on aircraft type, system, application, and geography.

Based on aircraft type, the military aviation market is bifurcated into fixed-wing and rotory-wing. The fixed-wing segment held the largest market share in 2022 owing to the increased procurement of next-generation combat aircraft by several countries including Australia, China, Germany, India, UAE, and United States. Additionally, the military aviation market is expected to be driven by the planned replacement of aging aircraft fleets with fighter jets, big transport aircraft, and special-mission aircraft by military forces worldwide.

The emphasis on domestic manufacturing by various countries is also expected to boost the procurement of advanced aircraft and rotorcraft by armed forces in the coming years. To cite an instance, as part of their Vision 2030 plan, Saudi Arabia's government intends to raise local military equipment spending to 50% by 2030, chiefly to bolster their local manufacturing sector. Similarly, in September 2022, India's "Make in India" initiative proposes allocating around USD 8 billion (representing approximately 64% of defense outlay) for domestic defense manufacturers. The country's defense manufacturing programs include the Light Combat Aircraft Tejas and Transport Aircraft C-295, both major programs being developed by Tata-Airbus.

Based on system, the military aviation market is categorized into airframe, engine, avionics, landing gear system, and weapon system. The engine segment accumulated the largest market in 2022 buoyed by increasing research and development initiatives from key industry players. Manufacturers of engines are focusing on R&D to develop new hybrid engines that are expected to meet the rising demand for efficient propulsion systems. With fuel prices surging, the demand for hybrid propulsion systems will likely soar, bolstering the growth prospects for the engine segment through the forecast period.

Based on application, the military aviation market is bifurcated into combat, military transport, maritime patrol, tanker, reconnaissance & surveillance, and others. The military transport segment held the largest market share in 2022 and is expected to witness significant growth in the forthcoming years driven by the escalating demand for versatile transport capabilities. This surge is attributed to the need for rapid and efficient deployment of troops, equipment, and humanitarian aid worldwide. With evolving military operations requiring swift and agile logistical support, there's a heightened emphasis on modernizing and expanding transport fleets. Additionally, the increasing adoption of sophisticated, multi-role transport aircraft, featuring enhanced payload capacities and longer operational ranges, further propels this segment's growth within the global military aviation market.

Geography Analysis

Based on region, the global military aviation market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America dominated the market in 2022 due to the increase in demand for specialized and advanced aircrafts and rising military spending, focus on modernizing the military aircraft fleet has contributed to the growth of the defense industry. Furthermore, the global military expenditure, which amounted to USD 2.1 trillion in 2021, has also contributed to the growth of this industry. Consequently, NATO nations are expanding their fleets through modernization and procurement programs, acquiring new fixed-wing aircraft. For instance, in April 2022, SIPRI published that the surge in R&D expenditure between 2012 and 2021 indicates that the United States is placing greater emphasis on developing advanced technologies for the future.

Competitive Landscape

The global military aviation market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolios and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives. Industry players are investing in R&D activities, building new manufacturing facilities, and supply chain optimization. The major manufacturers in the military aviation market are:

• Airbus SAS
• Dassault Aviation
• Lockheed Martin Corporation
• Textron Inc.
• Boeing
• Leonardo S.p.A
• Northrop Grumman
• Pilatus Aircraft Ltd
• Russian Helicopters
• Saab AB
• Hindustan Aeronautics Limited
• General Electric
• FACC AG

Key Developments

• July 2023 (Investment): Airbus delivered two H225M multi-purpose helicopters to Hungary and offered a comprehensive training and support package to ensure maximum operational uptime.
• May 2023: Lockheed Martin entered into a Cooperative Research and Development Agreement (CRADA) with the U.S. Army Combat Capabilities Development Command’s Aviation and Missile Center (AvMC) to enhance and expand Beyond Line of Sight (BLOS) connectivity. This collaboration between Lockheed Martin and AvMC aimed to co-create and showcase cutting-edge defense systems, leveraging space-enabled technologies.
• March 2022 (Acquisition): Dassault Aviation and the Greek Ministry of Defence signed a new contract for the acquisition of six additional new Rafale aircraft in Athens.

The global Military Aviation Market is segmented as:

By Aircraft Type

• Fixed-Wing
• Rotory-Wing

By System

• Airframe
• Engine
• Avionics
• Landing Gear System
• Weapon System

By Application

• Combat
• Military Transport
• Maritime Patrol
• Tanker
• Reconnaissance & Surveillance
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America