Market Trends of America Attack Helicopter Industry
Airforce Platform Segment to Witness the Highest Growth During the Forecast Period
The close air support function of the airforce holds significant importance, particularly in its direct assistance of ground forces engaged in combat. Attack helicopters can maneuver at low elevations and maintain a stationary position above specified targets, thus allowing for the accurate and expeditious discharge of gunfire when necessary. This characteristic renders them well-suited for engagements about close-air support (CAS). As the notion of CAS endures as a pivotal concept within modern warfare, the Air Force is witnessing a growing demand for attack helicopters.
Various air forces in the American region are currently facing the problem of an aging fleet of existing helicopters. The relatively new Apache AH-64 has served the US for over three decades and is expected to reach its operational life between 2030 and 2040. Similarly, in December 2022, the Canadian Air Force announced that the country was planning to spend USD 1.24 billion to upgrade its fleet of military search-and-rescue helicopters, which will include modernizing its 13 existing helicopters and buying three new ones.
The United States to Dominate the Market During the Forecast Period
Competition in technology between China and the US is accelerating as both countries are increasingly focused on the R&D of emerging technologies to prepare for future warfare. In 2022, the US accounted for 39% of global defense spending. Military spending increased by USD 877 billion in 2022, or 0.7%. The total includes military assistance to Ukraine, estimated at USD 19.9 billion. In 2022, the US released the Department of the Air Force budget, which outlined that for FY 2023, the budget request is approximately USD 194.0 billion, a USD 20.2B or 11.7% increase from the FY 2022 request.
The US is heavily investing in upgrading its air dominance capability. Innovations are significantly driving the market growth for attack helicopters. In March 2023, Boeing announced that the US Army had awarded a contract to build new AH-64E Apache Guardian attack helicopters under a USD 1.95 billion four-year order. The latest upgrade will give the AH-64E drone and ship-hunting capabilities. The advanced optronic and sight systems will increase the efficiency of reconnaissance operations.
Similarly, in October 2023, Sikorsky unveiled the RAIDER X Prototype for the US Army FARA Program. Raider X is developed on the existing S-97 Raider scout attack helicopter platform and has high agility and maneuverability. The FARA program is set to acquire the next generation of scout helicopters, which will replace the now-retired OH-58D Kiowa Warrior.
