Market Highlights

The global military rotorcraft market is predicted to expand at a compound annual growth rate (CAGR) of 7.1% from 2022 to 2028, reaching US$ 80.1 billion in 2028 from its estimated value of US$ 35.3 billion in 2021.

Military Rotorcraft Market CAGR

2022-2028

CAGR OF

7.1%

Military Rotorcraft Market

COVID-19: The pandemic had a significant impact on the aerospace industry, which in turn caused a decline in sales of aircraft, a shortage of raw materials, and a hold-up in the supply of new aircraft. The military rotorcraft market is negatively impacted by the government-mandated plant closures and other issues facing the aviation industry's businesses. In order to facilitate the delivery of essential medical supplies, a large number of aviation-related businesses are stepping up and restructuring their supply chains, production, and services.

Countries are increasing their military spending and expediting their plans to purchase new aircraft and helicopters to enhance their aerial capabilities as a result of geopolitical upheaval and border disputes. Additionally, the countries are investing money to equip their current helicopters with new equipment to increase their capabilities. Such investments in the purchase and modernization of the military helicopter fleet are expected to fuel military rotorcraft market growth over the forecast timeframe. Around the world, governments and armed forces are devoting resources to the creation of new helicopter models equipped with state-of-the-art sensor suites for communication, weaponry, and situational awareness, among other uses. Future investments in the development of new helicopter programs are expected to hasten industry expansion.

Military transport aircraft are specially designed freight transport aircraft and helicopters with a large cargo capacity that are intended to convey military vehicles, soldiers, and equipment in an efficient manner. Large cargo holds on military transport aircraft can accommodate a wide range of cargo. Furthermore, a variety of helicopter models are available that, with minimal human labor, may move military tanks, light trucks, and armored cars from military facilities to combat zones or other locations that are required. Due to the development and introduction of heavy payload helicopters and airplanes for military use by a number of industrial participants, the military rotorcraft market has grown internationally.

Military Rotorcraft Market

By Application

Cargo Supply

Troop Airlifting

Others

The Market will Grow

At the CAGR of:

7.1%

The Forecast Market

Size for 2028 in USD:

$80.1B

The military rotorcraft market is growing due to many factors such as the rising demand for rotorcraft aircraft and the rapid advancements in technology in air transportation services. The military rotorcraft market is, however, limited by the high maintenance and upgrading expenses associated with the current aircraft fleet. However, it is projected that rising defense spending worldwide and the need to replace aging fleets would create enticing opportunities for military rotorcraft market growth throughout the course of the projection period.

Recent years have seen a number of directives and investments in the sector that should expand the military rotorcraft market as a whole. Among them are the following: • The attack helicopter segment is expected to maintain its market leadership position throughout the duration of the projection. This is the outcome of attack helicopters being purchased in large quantities to strengthen defense capabilities all across the world. As of October 2021, for example, the US Department of Defense (DoD) was in talks with Boeing to acquire at least 100 additional AH-64E Apache assault helicopters. It is expected that a second multi-year contract for the AH-64 program would be finalized by the end of 2022. The US State Department has approved the acquisition of 86 AH-64E aircraft, both new and reconditioned, from countries including Australia, Egypt, Kuwait, and the Philippines. In April 2021, the US Army awarded Boeing a contract for around USD 437 million to manufacture AH-64E Apache helicopters for Saudi Arabia at full rate. The project should be completed by 2025.
 

Market Segment Analysis

Military Rotorcraft Market

By Aircraft Type

XX%

Rotorcraft

Fixed Wings

35.3

Total Market Size

USD (Billion), 2022

7.1%

CAGR

2022 - 2028

The Asia-Pacific region is expected to experience the most market growth during the forecast period because to the rising military expenditures of the surrounding nations. As tensions with their immediate neighbors increased, it was expected that China, India, Japan, and South Korea, who were among the top military spenders globally in 2021, would continue this pattern as they modernized their military gear. For example, the Philippine Air Force (PAF) received two of the six T129 Atak helicopters ordered from Turkish Aerospace Industries in March 2022 as part of a government-to-government agreement. One of the components of the Philippine Armed Forces' Horizon 2 Modernization Plan is the acquisition of T129 Atak helicopters, which were purchased for USD 269.38 million.
The last four are expected to be delivered in 2022 and 2023. In January 2021, Australia also made the decision to swap out its fleet of 22 Airbus Tiger helicopters for Boeing's AH-64E Apache Guardian. The contract was the result of the Royal Australian Army's Land 4503 program. It is projected that the first helicopter will be delivered by 2025. Due to their massive size, transport planes require more expensive routine maintenance. The time-consuming and costly nature of ongoing component repair and maintenance eventually acts as a barrier to the military rotorcraft market expansion. Furthermore, a number of governments have contracts and agreements in place with transportation aircraft manufacturers such as Airbus SE, Boeing, and Embraer SA, requiring them to regularly provide, maintain, and upgrade their fleet of defense aircraft. The expense of these activities is increased by the need for a large investment to be made. Consequently, a significant market hurdle is the high cost of upkeep and upgrades.

Military Rotorcraft Market

By Region

The Market will Grow

At the CAGR of:

7.1%

The Forecast Market

Size for 2028 in USD:

$80.1B

Key Players

The military rotorcraft market is highly competitive. The state of the sector and government assistance have a direct impact on the companies' growth. These businesses set themselves apart with their military helicopters thanks to their high caliber and market presence in both target and growing markets. Additionally, a few recent large mergers and acquisitions in the sector have had a big impact on the competitive dynamics.
For instance:
• Regional companies are developing new helicopter models that are especially tailored to the requirements of the military forces, in addition to such procurement programs. According to Mitsubishi Heavy Industries of Japan, the XSH-60L Seahawk helicopter successfully completed its maiden flight in May 2021. The improved Sikorsky XSH-60L Seahawk helicopter was created by the Japan Maritime Self-Defense Force (JMSDF) for use in shipborne anti-submarine/anti-surface warfare (ASW) operations. It is anticipated that these countries' attempts to develop and acquire new helicopters will support regional market growth.
• 20 CH-47 Chinook and 83 AH-64 Apache aircraft were delivered by Boeing in 2021 (compared to 71 in 2020). (as opposed to thirty in 2020). With support from the government, the firms are increasing their geographic footprint in the military rotorcraft market through new contracts with governmental organizations and armed units in different areas. In January 2022, the Italian Secretariat General of Defence/National Armaments Directorate and Leonardo inked an agreement for the Austrian Ministry of Defense to purchase AW169M Light Utility Helicopters (LUH). The EUR 346 million (USD 422.8 million) agreement was struck as part of a Government-to-Government (G2G) agreement between Italy and Austria.
• The US Department of Defense awarded a Foreign Military Sales (FMS) deal in April 2022 that will see Israel receive a brand-new AW119Kx helicopter. • The US government and Sikorsky signed a five-year agreement in June 2022 for the delivery of 120 H-60M Black Hawk helicopters to the US Army and clients, with the option to purchase an additional 255 helicopters. The contract was worth a total of $29 million.

These mergers and acquisitions have had an impact on the competitive landscape as a whole. The leading companies in the military rotorcraft market include:
The Boeing Company; Airbus SE; Lockheed Martin Corporation; Kaman Corporation; Leonardo SpA; Changhe Aircraft Industries Corporation; Hindustan Aeronautics Ltd; Rostec; Turkish Aerospace Industries Inc.; Textron Inc.; MD HELICOPTERS Inc.; Korea Aerospace Industries Ltd.

Military Rotorcraft Market Scope: