Market Trends of Military Rotorcraft Industry
Attack Helicopter Segment to Dominate Market Share During the Forecast Period
Attack helicopters are indispensable for modern warfare, providing effective aerial support during precision strikes and closer air support. Many countries have increased their defense budgets to strengthen their military capabilities, and this factor is driving the demand for the combat and attack helicopters market. For instance, in February 2024, the US approved the sale of 12 AH-1Z Viper attack helicopters to Nigeria for USD 1 Billion to bolster the country’s defense. The contract is expected to be completed by June 2024. Similarly, in December 2023, the German MoD awarded a contract to Airbus to deliver 62 H145M light attack helicopters for USD 2.3 billion. Of these 62 helicopters, approximately 57 are procured for the country’s army, and the rest are for the Air Force. Deliveries of these helicopters are stated to be started in 2024.
Furthermore, in March 2023, the US Army awarded Boeing a multi-year contract to purchase up to 184 AH-64E Apache attack helicopters for USD 1.9 billion. An additional 54 Apaches will be built under the contract for foreign nations that have purchased Apaches through the foreign military sales program. The US State Department also authorized several countries to buy 86 new attack helicopters, including Australia, Egypt, Kuwait, and the Philippines. Such future procurement programs of these countries are anticipated to accelerate the segment's growth during the forecast period.
Asia Pacific to Exhibit the Highest Growth During the Forecast Period
Several countries in Asia-Pacific are actively modernizing their defense forces to enhance their combat capabilities, leading to a surge in demand for military helicopters. The expansion of defense budgets in the region is a significant driver for market growth. China’s current military spending priorities follow the guiding principles in the 14th Five-Year Plan (2021–2025). China implements military aircraft modernization and retrofit programs with this mass defense spending.
Additionally, in 2023, it was observed that multiple countries in the region had increased their defense spending, which resulted in a USD 41.5 billion increase in defense spending in 2023 compared to 2022. With this vast defense spending, various countries in the region are upgrading their helicopter fleets and placing huge helicopter orders to bolster their defense capabilities. For instance, in March 2024, the Indian MoD awarded a contract to HAL India to deliver 34 ALH Dhruv attack helicopters to enhance its combat capabilities in the Western desert sector. Similarly, in November 2023, India contracted HAL to 156 Prachand helicopters to boost the overall combat capability of the armed forces.
Similarly, in December 2023, Japan MoD announced that for FY 2024, it approved the procurement of six SH-60L helicopters. In addition to such procurement programs, various companies are developing new helicopter models tailored to meet the requirements of the armed forces. In this regard, in February 2024, China's Aviation Industry Corporation unveiled its Z-10EM attack helicopter at the Singapore Airshow. Such investments in the procurement and development of new helicopters are anticipated to propel the market's growth in the region during the forecast period.
