Market Trends of Asia-Pacific Attack Helicopter Industry
Army Segment is Expected Witness the Highest Growth During the Forecast Period
Countries like China, India, Japan, and South Korea are ramping up their aerial combat capabilities through procurement and fleet modernization plans, driving growth in the Army segment. Rising geopolitical tensions among neighboring countries fuel defense spending, boosting the market for attack helicopters. For instance, in 2023, countries in the Asia and Oceania region collectively spent about USD 595 billion on defense, marking a 4.4% increase from 2022.
As defense spending rises, several countries in the region are modernizing their fleets and procuring new attack helicopters, propelling market growth. For example, in June 2024, the Indian government issued a Request for Proposal (RFP) to Hindustan Aeronautics Ltd., the designer and manufacturer of the 5.8-ton LCH Prachand helicopter. The RFP is for 156 helicopters: 90 for the Indian Army and 66 for the Indian Air Force. Once negotiations conclude and a contract is finalized, the deal is projected to exceed USD 5 billion. The LCH, capable of taking off and landing at altitudes of 16,400 feet, is particularly suited for operations along India's mountainous borders with China and Pakistan. Its armaments include Mistral air-to-air missiles, up to four 70mm FZ231 rocket pods, a nose-mounted 20mm M621 cannon, and future integration of Dhruvastra air-to-ground missiles.
Similarly, South Korea is making significant investments in advanced attack helicopters. In August 2024, the US State Department greenlit South Korea's purchase of up to 36 Boeing Apache AH-64E helicopters, estimated at USD 3.5 billion. South Korea will also acquire 76 GE T700 engines for the helicopters, with each helicopter using two engines and an additional four as reserves. Furthermore, each helicopter will feature the AN/ASQ-170 Modernized Target Acquisition and Designation Sight, and be armed with an extensive missile arsenal, including 456 Hellfire missiles, captive training missiles, and 152 Joint Air-to-Ground Missiles. Such advancements underscore the growing demand for attack helicopters in the Asia-Pacific Army segment during the forecast period.
China is Projected to Dominate the Market During the Forecast Period
China's defense budget has seen a consistent uptick, positioning the nation among the world's top defense spenders. These significant investments in defense modernization have notably bolstered the military helicopter segment. In 2023, China's military budget reached an estimated USD 296 billion, marking a 6% increase from 2022.
Border disputes with India, escalating confrontations with the U.S. in the contested South China Sea, and assertive claims over Taiwan are pivotal reasons behind China's aggressive weaponry and equipment modernization. The nation's advancements in stealth technology for helicopters are poised to amplify domestic and global demand. China's military spending aligns with the directives of its 14th Five-Year Plan (2021–2025). This robust defense expenditure has facilitated diverse military aircraft procurements, modernization, and retrofit initiatives. For example, in August 2022, coinciding with heightened tensions with Taiwan, China unveiled the Z-10ME helicopter, showcasing notable resemblances to Boeing's Apache. This helicopter is an upgraded variant of the Z-10 attack model already in service with the Chinese armed forces.
Further emphasizing its military advancements, in February 2024, China showcased the export variant of its flagship Z-10-ME-02 attack helicopter at the Singapore Airshow. This helicopter, as reported by Flight Daily News, the airshow's official magazine, boasts capabilities like carrying 23mm high-explosive incendiary ammunition, a 280kg drop tank, a mast-mounted radar, a missile approach warning system, and advanced countermeasures against heat-seeking infrared missiles. Such advancements are anticipated to bolster market demand in China throughout the forecast period.
