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The fighter aircraft market size is estimated to grow by USD 17.69 billion at a CAGR of 6.4% between 2022 and 2027. The increasing number of military aircraft, driven by factors such as modernization efforts and the need to replace aging fleets, is boosting the demand for aircraft and associated systems. Rising geopolitical tensions between countries are also driving growth as nations seek to enhance their defense capabilities. Strategic collaborations between defense contractors and governments are further fueling market growth by enabling the development and deployment of advanced military aircraft and systems.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by technology (conventional take-off and landing, short take-off and landing, and vertical take-off and landing), type (fixed-wing and rotorcraft), and geography (APAC, Europe, North America, Middle East and Africa, and South America).
The conventional take-off and landing segment will contribute a major share of the market, as it is widely used for fighter aircraft. The conventional take-off and landing segment showed a gradual increase in market share with USD 18.27 billion in 2017 and continued to grow by 2021. The conventional take-off and landing require long runways to take off and land with the help of a tailhook and arresting wire system. It provides supportability, operational effectiveness, and advanced avionics to fighter aircraft.
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Longer-range combat operations are supported by fighter aircraft with conventional takeoff and landing. In comparison to other technologies, the designs using conventional takeoff and landing technology are more affordable. Because of this, the aerospace and defense industries are witnessing an increase in the demand for conventional take-off and landing technology, which is anticipated to propel the development of this market segment during the forecast period.
Fixed-wing fighter aircraft are powered by propellers, require a landing area, and have immovable wings. This is widely used for long-distance purposes, such as maneuverability and inspection of infrastructure, as it can go further before refueling. Additionally, to improve situational awareness and safety, they are used for critical operational requirements. These main characteristics are their high speed, firepower, and maneuverability of the target. Therefore, such factors are expected to drive the growth of the fixed-wing segment in the global market during the forecast period.
APAC is estimated to contribute 35% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Countries like India, China, and Japan dominate the APAC market. Amidst stringent regulations and geopolitical tensions in APAC, the fighter aircraft market witnesses a focus on modernizing existing fleets and developing advanced fighter aircraft for enhanced aerial defense capabilities. China, as the world's second-largest military spender, leads the investment in this sector. India, Japan, and other developing countries follow suit, funding R&D efforts for stealth, precision weapons, and avionics advancements. Production and delivery face challenges due to the virus and resulting layoffs. Budget constraints persist, but a positive outlook prevails with the development of next-generation transport aircraft like the C-295 by Airbus. International powers continue investing in fighter jets, bombers, and assault aircraft, integrating onboard computers and autonomous systems. Technological advancements in wings, airplanes, and rotorcraft shape the future of aerial combat. Global defense spending remains high despite the crisis, with aircraft carriers and fixed-wing aircraft remaining key components.
Defense funding agencies are supporting research and development projects to create sophisticated fighter jets that can operate successfully in challenging environments and meet the demands of a variety of mission profiles. After the US, China is the country that spends the most on its armed forces globally. Furthermore, India has reportedly surpassed China as the region's top arms importer and has emerged as one of the top global markets for foreign defense contractors. Hence, such factors will fuel the regional market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market is driven by several factors, including the need for modernization of military fleets, geopolitical tensions, and technological advancements. They play a crucial role in defense spending and international security systems. They are designed for air-to-air combat, ground attacks, and electronic warfare, often incorporating stealth technology and supersonic speeds. The market includes various types of fighter aircraft, such as bombers, assault, and indigenous fighter aircraft. Advancements in avionics, sensors, and imaging systems, along with the integration of artificial intelligence, are shaping the future of fighter jets development, including the potential for 6th generation fighter aircraft. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The increasing number of military aircraft is notably driving the market growth. The market is experiencing significant growth, primarily driven by increased investments in their development and acquisition. Recent geopolitical tensions in regions like the South China Sea, where countries such as Japan, Vietnam, and the Philippines are expanding their aerial fleets in response to China's territorial claims, have fueled the growth of the Market. This has led to an increased demand for advanced fighter aircraft, fixed-wing transport aircraft, and equipment for the Marine Corps in these regions. Additionally, ongoing conflicts, such as the one between Russia and Ukraine, have contributed to increased purchases, especially in the Asia-Pacific (APAC) and Europe regions.
The market is driven by substantial defense budgets and procurement activities due to the need for advanced air combat competencies. With an aging fleet of Gen X aircraft, there is a growing demand for 4th, 5th, and 6th generation combat aircraft. APAC and Europe are major markets, with countries like Japan, Vietnam, and the Philippines expanding their fleets in response to regional conflicts and terror threats. Industry leaders, such as KF-21 Boramae, are undergoing large-scale development and test flights. However, supply chains face challenges from delays in delivery, impacting militaries' readiness. Defense expenditure continues to increase, fueling the market's growth, as technological development enhances combat capabilities, payload, equipment, and weapons, offering a diverse range of combat variety.
China's efforts to expand its influence in South Asia and border disputes between India and Pakistan have also led to a rise in fighter aircraft acquisitions. This includes aircraft with advanced capabilities such as stealth, bombers, assault, and those capable of supersonic speeds and electronic warfare. Moreover, concerns over North Korea's military advancements have further spurred the demand. These factors are expected to continue driving the growth of the market in the forecast period.
Increasing military spending is an emerging trend in the market. Modernizing the fleets of existing has been made possible by the growing investments being made by nations like the US, Russia, and China in achieving integrated air defense capabilities. The need to develop and use long-range airborne surveillance and strike platforms has also arisen when operating against nations that are capable of using advanced anti-access offensive weapon systems, such as cruise and ballistic missiles.
The market has witnessed substantial growth due to the large-scale development and procurement activities driven by the need for advanced air combat competencies. Countries, including the US, Russia, and China, have invested heavily in their defense budgets to modernize aging fleets of Gen X aircraft and acquire 4th, 5th, and 6th generation combat aircraft. Advanced features, such as long-range surveillance, stealth technology, and increased payload capacity, are key priorities. Market leaders, such as the KF-21 Boramae, are undergoing test flights, while supply chains face challenges due to delays in delivery. Militaries continue to prioritize investments in combat capabilities to counteract terror threats, border disputes, and technological development by potential adversaries. The industry's focus on technological advancements and combat variety ensures ongoing expenditure in the sector.
Investment in war and conflict has grown significantly over the past ten years on a global scale. The purpose of this investment by governments is to give citizens security and protection while gaining geopolitical influence over other nations. For instance, US military spending increased by 2.86% from 2020 to 2021, reaching USD 800.67 billion. Therefore, increasing military investments are expected to boost the growth of the global market during the forecast period.
Barriers to adopting new technology and equipment are major challenges impeding market growth. companies that offer products that are integrated with upgraded must abide by the strict regulatory standards of each nation. With government organizations and defense departments in various nations, many companies are also involved. As a result, service providers are now required to adhere to strict laws at the local, state, and federal levels.
The market is characterized by the need for air combat competencies to counteract advanced threats, yet militaries grapple with an aging fleet of Gen X aircraft. To address this, large-scale development and procurement activities for 4th, 5th, and 6th generation combat aircraft are underway. Defense budgets and expenditures are crucial for industry growth, with market leaders like the KF-21 fighter aircraft (Boramae) undergoing test flights. However, supply chains face challenges, including delays in delivery, due to the stringent regulatory norms at federal, state, and local levels. Technological development in areas such as missile technology, rocket-propelled grenades, smart munitions, and advanced electronic warfare necessitates continuous upgrades. Militaries require these advanced features to counteract terror threats and border disputes, making the need for aircraft manufacturing capabilities more pressing. The payload and equipment of combat aircraft must keep pace with the combat variety to ensure optimal performance.
Adopting new technologies is difficult for military forces because they tend to become obsolete. Advanced improvised explosive devices, rocket-propelled grenades, smart munitions, advanced electronic warfare, and other systems used are all advancing rapidly. Countries cannot afford to adopt every new technology because it will delay the operation. Many development initiatives have recently been shelved or delayed as a result of these difficulties. Hence, such factors will hamper the growth of the global market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Dassault Aviation SA - The company focuses on the aerospace domain comprising defense programs and falcon programs. The key offerings of the company include alpha jet fighter aircraft, which is being designed to carry AIM 9 sidewinder, matra magic II series air-to-air missiles, as well as AGM 65 maverick air-to-ground missiles to execute new and emerging threats.
Hindustan Aeronautics Ltd. - The company deals with the production, service, and export of these, helicopters, power plants, future products, aerospace solutions, and systems and accessories. The key offerings of the company include multi-role fighter aircraft, which is designed to take up offensive air support, close combat, ground attack role, along with ground maritime operations.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is driven by stringent regulations and the need to modernize existing fleets. Advancements in aerial defense capabilities and precision weapons are key factors influencing market growth. However, budget constraints in developing countries pose challenges. The market is witnessing the emergence of next-generation fighter jets with improved battle range and aerial troop support capabilities. Countries like Brazil are investing in advanced aircraft such as the Saab-Embraer F-39E jets to enhance their aerial defense capabilities. The market also sees demand for next-generation transport aircraft like the C-295 for aerial assets. Geopolitical factors like territorial disputes impact procurement and modernization initiatives.
The market is influenced by various factors such as advancements in technology and the emergence of fourth-generation fighter aircraft alongside newer 5th and 6th generation. Aging military fleets are driving the need for fleet modernization and upgrading existing old fighters. Countries like Brazil are investing in Gripen NG to enhance their aerial defense capabilities. Geopolitical factors like hegemonism and power politics also play a role in market dynamics. The market sees demand with improved payload capacity and stealth capabilities like the F-35 fighter jets. Defense investments and research and development efforts are crucial for the market's growth.
The market is undergoing significant advancements, including the development of 5th, 5th, and 6th generation aircraft. Countries like Brazil are adopting advanced platforms such as the Gripen NG aircraft to bolster their defense capabilities. Technological progress is evident in CMV-22B Osprey and H-60M Black Hawk helicopters, enhancing operational efficiency. However, the market faces challenges such as delays and layoffs, along with geopolitical tensions and geopolitical crises impacting defense budgets. The United States Department of Defense plays a crucial role, in issuing contracts for high-performance fighter jets. Overall, the market is driven by the need to enhance aerial defense capabilities and modernize existing fleets.
Fighter Aircraft Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.4% |
Market growth 2023-2027 |
USD 17.69 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.44 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, Aviation Industry Chengdu Aircraft Industry Group Co. Ltd., BAE Systems Plc, Dassault Aviation SA, Embraer SA, Hindustan Aeronautics Ltd., KOREA AEROSPACE INDUSTRIES LTD., Leonardo Spa, Lockheed Martin Corp., Mitsubishi Heavy Industries Ltd., Northrop Grumman Systems Corp., Piper Aircraft Inc., Rostec, Saab AB, Textron Inc., The Boeing Co., United Aircraft Corp., and Kawasaki Heavy Industries Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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