Global Military Aerial Refueling Tanker Market by Technology, Type, and Geography - Forecast and Analysis 2023-2027

The military aerial refueling tanker market is estimated to grow at a CAGR of 8.13% between 2022 and 2027. The size of the market is forecast to increase by USD 4,709.07 million. The growth of the market depends on several factors, including a joint development/acquisition approach, a shift toward a next-generation long-range strike platform, and a measured quantity of fuel onboard to optimize performance.

This report extensively covers market segmentation by technology (probe-and-drogue and boom-and-receptacle), type (manned and unmanned), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Military Aerial Refueling Tanker Market During the Forecast Period?

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Parent Market Analysis

The reports categorize the global military aerial refueling tanker market as a part of the global aerospace and defense market within the global capital goods market. The parent, global aerospace and defense market covers products and companies engaged in the production of aerial platforms used under commercial and general aviation; defense platforms used under naval, land, and air domains; arms and ammunition; defense electronics; defense logistics equipment; and space platforms, equipment, and launch vehicles. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

Military Aerial Refueling Tanker Market: Key Drivers, Trends, Challenges, and Customer Landscape

The joint development/acquisition approach is notably driving the market growth, although factors such as the development of unmanned jet tankers may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Military Aerial Refueling Tanker Market Driver

The joint development/acquisition approach is notably driving market growth. Maintaining combat-ready force for uncertain security challenges often requires the development and acquisition of new and technologically advanced equipment and war platforms. However, this phenomenon brings a significant burden on a budget of a particular nation. Therefore, many countries are showing interest in the joint development/acquisition approach that helps diminish the capital load and operating expenses in the host country.

The joint development program allows countries to share technical knowledge and resources, which can help relatively less technologically developed countries to transform their technical skill sets. Similarly, the joint acquisition program also helps collaborating countries to set a common target toward specific defense or security needs while maintaining a lesser burden on a participating country. In July 2016, the Netherlands and Luxembourg jointly signed a contract for the acquisition of two A330 MRTT tankers from Airbus. 

These two participating countries are strategizing on extending their collaboration with other European countries. Therefore, such collaborative efforts are expected to bring significant alteration in the existing acquisition approach, which will propel the global military aerial refueling tanker market during the forecast period.

Key Military Aerial Refueling Tanker Market Trend

Growing investments in multi-layered air defense network is the primary trend in the market. The increasing investments in achieving integrated air defense capabilities among countries such as the US, Russia, and China have been playing a pivotal role in the modernization of existing fighter aircraft fleets. Similarly, operating against countries that are capable of deploying advanced anti-access offensive weapon systems, like cruise and ballistic missiles, have encountered the need to develop and operate long-range airborne surveillance and strike platforms.

China has been investing in the development of a multi-layered air defense network to counter threats arising from the US and allied air forces. In 2013, China inducted an updated variant of the H-6 medium-range bomber, namely the Xian H-6K, for long-range attacks and standoff attacks. China also operates the aerial refueling version of Xian H-6K strategic bombers, namely Xian H-6U. The country is investing in the enhancement of the existing performance capability of its Xian H-6U tankers by replacing the payload bay (fitted in the fuselage) with additional fuel tanks that can reflect augmented fuel-carrying capacity to support aerial surveillance and attack platforms. The investment in such fighter and tanker aircraft will support the growth of the global military aerial refueling tanker market during the forecast period.

Key Military Aerial Refueling Tanker Market Challenge

The development of unmanned jet tankers is the major challenge impeding the market growth. The US Navy had long been experimenting with the Unmanned Carrier-launched Airborne Surveillance and Strike (UCLASS) program targeted toward the development of unmanned aerial vehicles (UAV). The program was merged in debates over the specialized function of these UAVs - either in strike or Intelligence, surveillance, and reconnaissance (ISR) roles. 

This new UAV or drone will exhibit limited combat and ISR capabilities, and it will primarily function as an aerial tanker for refueling other aircraft in mid-air. This project was adopted to address the US Navy's expected shortfall of fighter jets, as several F/A-18E/F are currently employed for tanking purposes.

A significant portion of the investment is being directed toward the research and development of carrier-based unmanned aerial tankers, which can refuel combat aircraft during missions over long ranges across oceans and continents. With the successful development and induction of these unmanned jet tankers, which will be remotely controlled, the focus on manned aerial refueling tankers is likely to get clouded. 

Key Military Aerial Refueling Tanker Market Customer Landscape

The 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 Military Aerial Refueling Tanker Market Customer Landscape

Who are the Major Military Aerial Refueling Tanker Market Vendors?

Vendors 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.

Parker Hannifin Corp. - The company offers military aerial refueling tankers such as Lockheed L1011 Tristar. Through the diversified industrial segment, the company manufactures motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Airbus Group SE
• BAE Systems Plc
• Bandak Aviation Inc.
• Cobham Ltd.
• Dassault Aviation SA
• Draken International, LLC
• Embraer SA
• General Electric Co.
• Israel Aerospace Industries Ltd.
• Lockheed Martin Corp.
• Marshall of Cambridge Holdings Ltd.
• Omega Aerial Refueling Services Inc.
• Protankgrup
• Rostec
• Safran SA

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Military Aerial Refueling Tanker Market?

The market share growth by the probe and drogue segment will be significant during the forecast period. The probe-and-drogue approach uses a trailing hose, which has a basket or a drogue at the end. In this approach, the tanker engineers are required to unspool a long hose from either the wing tips or below the fuselage. Once the hose is extended to the fullest, the receiving pilot maneuvers a retractable probe mounted on the aircraft nose into the drogue of the aerial refueling tanker. This approach has many advantages over its counterpart, i.e., the tankers equipped with probe-and-drogue systems can allow the refueling of three aircraft at once (however, as a standard practice, two aircraft are allowed to get refueled at one go). Due to operational flexibility and ease of use, such an approach is prevalent among the naval forces in many countries, especially in North America and European countries.

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The probe and drogue segment was valued at USD 5,381.37 million in 2017 and continues to grow until 2021. Defense forces of these nations make use of the drogue system, which is capable of delivering a flexible transfer rate of refueling. Usually, this type of military aerial refueling tanker is fitted with one boom, which requires integration with the fuselage to make an easy design work. The integration of drogue systems does not involve many complexities. Besides, this approach requires fewer dedicated operators.

Owing to these advantages, multiple drogue systems can be fitted into a large refueling aircraft, which can facilitate the aerial refueling of combat and surveillance aircraft, as well as military helicopters. This approach is suitable for conditions wherein numerous small combat aircraft must be refueled to remain airborne and accomplish missions.

Which are the Key Regions for the Military Aerial Refueling Tanker Market?

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North America is projected to contribute 39% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The changing nature of warfare has led the US DoD to make a strategic move toward the development of long-range strike platforms, which have supported the deployment of aerial refueling aircraft. Also, any shortfall in the availability of international airbases can become a major challenge for the USAF in operating against both sophisticated and asymmetric adversaries. Simultaneously, both China and Russia are investing in enhancing their anti-access/area-denial capabilities (an area-denial strategy is exercised by the use of advanced integrated weapons that prevents an adversary from traversing an area of land). These pose potential threats to the US in maintaining stable dominance in the Western Pacific region. Therefore, the need to deploy advanced aerial refueling tankers for aiding the airborne platforms (both surveillance and attack) of the US has become paramount.

In 2020, the outbreak of COVID-19 severely affected the growth of the defense industry in North America. However, lockdowns were lifted in the second half of 2020 owing to large-scale vaccination programs across North America. This has led to the resumption of production activities, including that of military aerial refueling tankers, since the first half of 2021, which is expected to drive the demand for military aerial refueling tankers during the forecast period. Moreover, in 2021, the US had the highest military spending of $801 billion, which is around 38% of global military spending. Such factors are expected to boost the growth of the military aerial refueling tanker market in North America during the forecast period.

Segment Overview

The 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 has been segmented by technology (probe-and-drogue and boom-and-receptacle), type (manned and unmanned), and geography (North America, APAC, Europe, Middle East and Africa, and South America).

• Technology Outlook (USD Million, 2017 - 2027)
  • Probe-and-drogue
  • Boom-and-receptacle

• Type Outlook (USD Million, 2017 - 2027)
  • Manned
  • Unmanned

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina

Military Aerial Refueling Tanker Market Scope
Report Coverage	Details
Page number	165
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.13%
Market growth 2023-2027	USD 4,709.07 million
Market structure	Fragmented
YoY growth (%)	6.18
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 39%
Key countries	US, China, India, France, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Airbus Group SE, BAE Systems Plc, Bandak Aviation Inc., Cobham Ltd., Dassault Aviation SA, Draken International, LLC, Embraer SA, General Electric Co., Israel Aerospace Industries Ltd., Lockheed Martin Corp., Marshall of Cambridge Holdings Ltd., Omega Aerial Refueling Services Inc., Parker Hannifin Corp., Protankgrup, Rostec, Safran SA, Smiths Group Plc, The Boeing Co., Eaton Corp. Plc, and Liebherr International AG
Market dynamics	Parent market analysis, 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.

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What are the Key Data Covered in this Military Aerial Refueling Tanker Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the military aerial refueling tanker market between 2023 and 2027
• Precise estimation of the military aerial refueling tanker market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across North America, APAC, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of military aerial refueling tanker market vendors

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