Military Aircraft Market Research: Key Findings and Recommendations 2032

The global military aircraft market was valued at USD 40.22 billion in 2018 and is projected to reach USD 85.79 billion by 2032, growing at a CAGR of 6.0% during the forecast period. North America led the market in 2018 with a 40.5% share. Military aircraft play a critical role in both combat and non-combat operations and are primarily operated by national defense forces and security agencies. While combat variants such as fighters and bombers are designed for offensive, defensive, and reconnaissance missions, non-combat aircraft support essential functions like transport, training, and surveillance. The market remains highly consolidated, with a limited number of key suppliers and government buyers shaping demand dynamics.

Geopolitical tensions and defense spending continue to be the primary growth drivers for this sector. The Russia-Ukraine war has heightened global interest in air dominance and triggered increased procurement activities, particularly among NATO allies and Eastern European countries. In the Asia Pacific region, governments are accelerating aircraft modernization efforts, driven by regional security challenges. Meanwhile, growth in the Middle East remains constrained due to budgetary pressures. These trends are comprehensively analyzed in Fortune Business Insights™’s report titled, "Military Aircraft Market, 2024–2032."

LIST OF KEY COMPANIES PROFILED IN THE REPORT

• Airbus S.A.S. (Netherlands)
• The Boeing Company (U.S.)
• Dassault Aviation SA (France)
• Lockheed Martin Corporation (U.S.)
• Saab AB (Sweden)
• Embraer S.A. (Brazil)
• GE Aviation (U.S.)
• Hindustan Aeronautics Limited (India)
• Bell Textron Inc. (U.S.)
• Sukhoi Corporation (Russia)
• Korea Aerospace Industries (South Korea)
• Chengdu Aircraft Industry Group (China)

Information Source:

https://www.fortunebusinessinsights.com/military-aircraft-market-102771

Segmentation: Military Aircraft Market

Fixed-Wing Aircraft Led the Market in 2024 Due to Strong Global Investments
Based on type, the market is segmented into fixed-wing and rotary-blade aircraft. The fixed-wing segment dominated the market in 2024, driven by global procurements of advanced multirole and stealth aircraft such as the F-35, Rafale, and Su-35. Meanwhile, rotary-blade aircraft are expected to grow rapidly due to increasing demand in Asia, the Middle East, and Africa.

Multirole Aircraft Dominated Due to Operational Versatility
By application, the military aircraft market is categorized into combat, multirole, transport, maritime patrol, reconnaissance & surveillance, and others. Multirole aircraft held the highest market share in 2024, supported by their flexible mission capabilities. The U.S., India, Russia, and China remain major buyers. The demand for reconnaissance and maritime patrol aircraft is also rising, particularly in emerging economies.

Engine Systems Held the Largest Share; Avionics to Grow Fastest
Based on system, the market is segmented into airframe, engine, avionics, landing gear, and weapon systems. The engine segment led the market in 2024 due to growing interest in fuel-efficient and hybrid propulsion. The avionics segment is projected to witness the fastest growth, as autonomous technology and integrated sensor systems gain prominence.

Drivers and Restraints

Rising Need to Replace Aging Fleets
Military aircraft fleets in countries like the U.S. are aging rapidly, prompting demand for advanced replacements. Modern aircraft with better sensors, fuel efficiency, and versatility are in high demand.

Fifth-Generation Aircraft Drive Innovation
The adoption of fifth-generation jets like the F-35, J-20, and AMCA (India) is reshaping air warfare. These aircraft offer stealth, supercruise, and sensor fusion, becoming central to modern defense strategies.

Global Arms Race to Accelerate Procurement
As geopolitical tensions rise, countries are boosting their air force capabilities. India, South Korea, and France are ramping up fighter programs, while nations like the U.S. continue their modernization with platforms like the B-21 Raider.

UAV Proliferation May Hinder Market Growth
The increasing use of unmanned aerial vehicles (UAVs) for reconnaissance, combat, and logistics could reduce the demand for traditional manned aircraft in some segments.

Regional Insights

North America Dominated the Market in 2018 and Will Retain Lead
The U.S. is expected to continue leading global military aircraft demand, with significant investments in stealth, transport, and bomber programs like the F-35, B-21 Raider, and KC-46.

Europe Boosting Procurement Amid Rising Security Threats
European nations are increasing their defense spending. Collaborative programs like FCAS (France-Germany) are reshaping the regional outlook.

Asia Pacific Rising Fast Due to Border Conflicts and Modernization
Countries like India and China are heavily investing in indigenous aircraft programs. India’s HAL AMCA and Tejas Mk2, along with China’s J-20 and FC-31, are shaping regional capabilities.

Middle East Growth Constrained by Budget Challenges
Despite demand for new aircraft, economic volatility and fiscal pressures are slowing market growth in this region.

Competitive Landscape

Boeing and Lockheed Martin Hold Market Leadership Due to Strategic U.S. Government Contracts
Major players are benefiting from long-term military contracts. Boeing’s $14.3 billion U.S. Air Force deal in April 2019 for the B-1B and B-52 bombers highlights sustained investment in long-range strike capabilities.

Notable Industry Development

April 2019 – The Boeing Company secured a USD 14.3 billion contract from the U.S. Department of Defense
This agreement focused on upgrading and supporting B-1B Lancer and B-52 Stratofortress bombers. The initiative will enhance aircraft survivability, responsiveness, and weapon integration capabilities, including radar and communication system modernization.