The global military aircraft industry size was valued at USD 40.22 billion in 2018 and is anticipated to reach USD 58.03 billion by 2026, exhibiting a CAGR of 3.08% during the forecast period.
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Report Source:
https://www.fortunebusinessinsights.com/military-aircraft-market-102771
Highlights of the Report: Military Aircraft Industry
- Detailed analysis of growth stimulators and demand drivers.
- Snapshot of the modernization and expansion models of various regions worldwide.
- Industry challenges and the latest developments in the technology of military aircraft.
- In-depth information about the key programs in each segment.
- Overview of reputed companies and their strategic initiatives to intensify competition.
Drivers & Restraints-
Replacement of Old Aircraft with Innovative Ones to Propel Growth
The technical challenges mainly associated with propulsion, structures, and other similar systems are resulting in a surge in the demand for the replacement and upgradation of conventional aircraft with the innovative 4th and 5th generation aircraft. Old fleet of aircraft often require additional capabilities to fulfil the latest mission requirements, as well as reduce the rising number of threats. It is set to drive the Military Aircraft Industry growth in the coming years. However, the increasing demand for unmanned aerial vehicles (UAVs) may hinder market growth.
Segmentation: Military Aircraft Industry
Combat Aircraft Segment to Grow Rapidly Backed by Development Projects
In terms of application, the Military Aircraft Industry is divided into reconnaissance and surveillance, tanker, training, search & rescue, maritime patrol, multirole transport, multirole aircraft, and combat aircraft. Out of these, the combat aircraft segment held 33% Military Aircraft Industry share in 2018. This growth is attributable to their increasing number of deliveries across the globe, as well as the value associated with them. In addition to that, development projects, namely, F/A-18 programme and F-35 programme would also contribute to the growth of this segment. The export of Gripen E/F, Rafale, and Typhoon are also set to aid growth.
Regional Analysis-Military Aircraft Industry
Rising Defence Budgets to Favor Growth in Europe
Based on region, the market is segregated into Asia Pacific, Europe, North America, and the rest of the world. Amongst these, North America is anticipated to leads the market throughout the forthcoming period. Regionally, North America earned the dominant Military Aircraft Industry share with a revenue of $16.29 billion earned in 2018. The U.S. is set to be the major contributor to growth as it would be responsible for approximately 50% of the global demand for both unmanned and manned military aircraft. Europe is expected to grow considerably owing to its surge in the defence budgets. Lastly, Asia Pacific is projected to grow at a fast pace stoked by the modernization of armed forces, especially in the developing nations, such as India.
Competitive Landscape-
Key Companies Aim to Bag Contracts for Strengthening their Positions
The market includes several industry giants that are presently engaging in research and development (R&D) activities to introduce new products in the market. They are trying to launch affordable military aircraft to cater to the needs of their consumers. Also, they are focusing on bagging contracts from the government agencies to gain competitive edge. Below are two of the latest industry developments:
- April 2019: The Boeing Company bagged a new contract from the U.S. Department of Defence (DOD) worth USD 14.3 billion. It will be able to upgrade and deliver B-52 Stratofortress and B-1B Lancer military aircraft that serve the U.S. Air Force. This new deal is expected to enhance the responsiveness, supportability, lethality, and survivability of both the aircraft.
- October 2019: The U.S. Air Force awarded a contract worth USD 2.6 billion to the Boeing Company for providing fifteen KC-46A tanker military aircraft, wing air refueling pod kits, spare engines, support equipment, and spares.
