February 22, 2024
Military Aircraft Market
Ict

Military Aircraft Market is Expected to be Flourished by Rising Defense Budget Allocations Across Regions

The military aircraft include fighter planes, transport aircraft, special mission aircraft, and other combat and non-combat aircraft that are used for surveillance, airlift, maritime patrol, air-to-air refueling, and other applications by armed forces. Key military aircraft include the F-16 Fighting Falcon, F-15 Eagle, F-22 Raptor, F-35 Lightning II, A-10 Thunderbolt II, EA-18G Growler, E-2 Hawkeye, P-8 Poseidon, C-17 Globemaster III, KC-135 Stratotanker, C-130 Hercules, C-5 Galaxy, and AH-64 Apache among others. The global military aircraft market is estimated to be valued at US$ 123.15 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Military Aircraft Market is Expected to be Flourished by Rising Defense Budget Allocations Across Regions

One key driver spurring the growth of the military aircraft market is the rising defense budget allocations across major economies. Governments around the world are significantly raising their defense spending to modernize their aging fleets and procure new military aircraft for enhancing national security. For instance, according to data published by the World Bank, the U.S. defense budget increased from US$ 686 billion in 2019 to US$ 738 billion in 2021. Similarly, China’s defense budget has grown consistently over the past few years, reaching US$ 252 billion in 2021. Growing geopolitical tensions and ongoing territorial disputes are fueling increased military aircraft procurement worldwide. Additionally, the need for surveillance, ISR, and air-to-air refueling capabilities is further boosting demand for specialized military aircraft.

Segment Analysis
The Global Military Aircraft Market Share can be segmented based on type, application, propulsion, end use and region. Based on type, fighters constitute the largest segment owing to their vital usage in air superiority and aerial reconnaissance missions. Fighters dominated the market in 2021 with a share of over 35%. Transport aircraft forms the second largest segment due to their increasing usage in troop transportation, casualty evacuation and logistical resupply.

PEST Analysis
Political: Government defense budgets and geopolitical tensions significantly impact demand. Countries are increasingly investing in fifth generation fighters to strengthen their military capabilities.
Economic: A positive economic outlook fuels the procurement of new aircraft to replace ageing fleets. However, high aircraft costs impact budgets of many countries.
Social: Ensuring security of borders and territories from external threats remains a key priority. However, public sentiment towards growing defense spending varies globally.
Technological: Continuous innovation leads to development of new variants with advanced avionics, sensors, engines and stealth capabilities. Focus is on autonomous and unmanned aircraft.

Key Takeaways
The global military aircraft market is expected to witness high growth over the forecast period supported by increasing defense budgets of major economies and replacement of ageing fleets.

Regional analysis – North America dominated the market in 2021 with a share of over 35% led by heavy investments by the US. Asia Pacific is expected to witness the fastest growth on account of rising defense spending of China and India.

Key players – Key players operating in the military aircraft market are Argus Control System, Koninklijke Philips NV, General Hydroponics, Inc., Lumigrow, Inc., Hydrofarm Inc., Heliospectra AB, and Soave Enterprises LLC. The market is fragmented in nature with intense competition among major OEMs for new contracts.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it