MILITARY AIRCRAFT MARKET ANALYSIS

Military Aircraft Market Size and Trends

Global military aircraft market is estimated to be valued at US$ 48.27 Bn in 2024 and is expected to reach US$ 66.29 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.

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Global military aircraft market is expected to witness positive growth over the forecast period due to rising geopolitical tensions across regions supplementing the demand for military aircraft fleet modernization. Furthermore, increasing defense budget allocation of emerging economies such as China, India, South Korea is expected to create new opportunities for aircraft OEMs. However, high investment costs associated with the development and procurement of new aircraft may hamper the market growth. Key players operating in the market are focusing on reducing production costs by investing in additive manufacturing and advanced composite materials to gain a competitive edge in the market.

Modernization of Aging Aircraft Fleets

As military aircraft fleets around the world are aging, countries are investing heavily in modernizing their existing aircraft as well as procuring new advanced aircraft. The average age of aircraft fleets for countries like the U.S., Russia, China, and some Western European nations is over 25-30 years. While these countries have been able to extend the life of existing aircraft through several avionics, structural, and systems upgrades, newer threats and technology advancements are making the older aircraft less capable and viable. Upgrading or replacing these aging fleets become a top priority for military modernization plans. Countries want their air forces equipped with the latest sensors, weapons, self-protection systems as well as increased networking capabilities to gain an edge over adversaries. This is a big reason why militaries are spending a lot of money from their defense budgets to either improve current aircraft or buy new, more advanced multi-purpose aircraft.

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Growing geopolitical tensions between nations as well as heightened security concerns have led to increased defense spending and a focus on strengthening military capabilities. While diplomatic relations among some countries may have improved, the overall security environment remains uncertain. Militaries are on high alert due to fights over land, countries wanting nuclear weapons, the risk of terrorism across borders, and unstable situations in different parts of the world. This has especially impacted the global demand for military aircraft as countries look to project air power and safeguard national interests. Nations want to convey strength by expanding their aerial strike capabilities through advanced jet fighters, bombers, surveillance aircraft as well as build stronger air defense systems through interceptors and airborne early warning platforms. Non-state actors acquiring sophisticated weapons have also heightened the need for countries to modernize their aircraft fleets with superior networking and intelligence capabilities and acquire specialized aircraft like aerial refuelers to support out-of-area operations. Geopolitical tensions boosts demand for military aircraft as nations prepare for future security challenges