Military Aircraft Modernization and Retrofit Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Military Aircraft Modernization and Retrofit Market is Segmented by Aircraft Type (Fixed-Wing and Rotary-Wing), and Geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

Military Aircraft Modernization and Retrofit Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Military Aircraft Modernization And Retrofit Market Size

Military Aircraft Modernization And Retrofit Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 52.35 Billion
Market Size (2030) USD 52.46 Billion
CAGR (2025 - 2030) 0.04 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Military Aircraft Modernization and Retrofit Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Military Aircraft Modernization And Retrofit Market Analysis

The Military Aircraft Modernization And Retrofit Market size is estimated at USD 52.35 billion in 2025, and is expected to reach USD 52.46 billion by 2030, at a CAGR of 0.04% during the forecast period (2025-2030).

  • The military aviation sector has faced mild challenges during the pandemic. Major defense contractors such as Airbus and Boeing halted production due to employee safety concerns and lockdowns imposed by governments. Local players faced supply chain issues and a shortage of components which hindered market growth during the pandemic period. The market showcased a strong recovery post covid due to the increasing number of military modernization programs and rising procurement of advanced military aircraft.
  • The increasing military expenditure of emerging economies is propelling investments in the modernization of the existing equipment in aging aircraft, mainly with new and advanced equipment. This is expected to drive the growth of the military aircraft modernization and retrofit market during the forecast period. 
  • The evolution of technology in military aircraft, such as advanced materials, avionics, and mission systems, contributes to the growth of the market. As aircraft become more sophisticated, specialized expertise and advanced diagnostics tools are required to maintain and repair these complex systems effectively. 
  • The incorporation of advanced technologies, including stealth capabilities and cybersecurity measures, presents new challenges and opportunities for MRO providers, driving the need for specialized services and expertise to address these evolving requirements. Continuous technological advancements and innovations also drive market growth in military aviation.

Military Aircraft Modernization And Retrofit Industry Overview

The military aircraft modernization and retrofit market is fragmented with many players supporting various aircraft programs, along with a diversified product portfolio. Some of the prominent players in this market are Lockheed Martin Corporation, Northrop Grumman Corporation, RTX Corporation, Elbit Systems Ltd., and BAE Systems plc, among others.

Advancements in cockpit technologies, weapon systems, and structural upgrades are some of the factors driving the growth of the military aircraft upgrade and retrofit market as several countries look to modernize their existing fleet and enhance their aerial combat and surveillance capabilities.

The growing demand for modernization will open new market opportunities for manufacturers and the contracts from various countries for the modernization of existing aircraft equipment are expected to help the companies enhance their global presence as well as sales in the coming years.

Military Aircraft Modernization And Retrofit Market Leaders

  1. Lockheed Martin Corporation

  2. Northrop Grumman Corporation

  3. BAE Systems plc

  4. Elbit Systems Ltd.

  5. RTX Corporation

  6. *Disclaimer: Major Players sorted in no particular order
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Military Aircraft Modernization And Retrofit Market News

  • June 2023: Following the announcement of the qualification of the combat aircraft to the F4.1 standard in March 2023, DGA, the French procurement agency, proceeded with retrofitting the Dassault Rafale for the Block 4.2 standard. The contract for upgrading the Rafale to the F4 standard had been granted to Dassault Aviation in 2019 under a USD 2.04 billion development contract.
  • March 2022: Lockheed Martin Corporation's LMT business segment, Aeronautics, received a modification contract from the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH, for providing F-16 retrofits. The value of the contract was USD 33.6 million. Under the contract, the company would offer the Kapton replacement harness installation, harness one-time inspections, and aircraft mod line extension of 140 Taiwan F-16A/B aircraft.

Military Aircraft Modernization & Retrofit Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Porter's Five Forces Analysis
    • 4.4.1 Threat of New Entrants
    • 4.4.2 Bargaining Power of Buyers/Consumers
    • 4.4.3 Bargaining Power of Suppliers
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Aircraft Type
    • 5.1.1 Fixed-Wing
    • 5.1.2 Rotary-Wing
  • 5.2 Geography
    • 5.2.1 North America
    • 5.2.1.1 United States
    • 5.2.1.2 Canada
    • 5.2.2 Europe
    • 5.2.2.1 Germany
    • 5.2.2.2 United Kingdom
    • 5.2.2.3 France
    • 5.2.2.4 Russia
    • 5.2.2.5 Rest of Europe
    • 5.2.3 Asia-Pacific
    • 5.2.3.1 China
    • 5.2.3.2 India
    • 5.2.3.3 Japan
    • 5.2.3.4 South Korea
    • 5.2.3.5 Rest of Asia-Pacific
    • 5.2.4 Latin America
    • 5.2.4.1 Brazil
    • 5.2.4.2 Rest of Latin America
    • 5.2.5 Middle East and Africa
    • 5.2.5.1 Saudi Arabia
    • 5.2.5.2 United Arab Emirates
    • 5.2.5.3 Turkey
    • 5.2.5.4 Rest of Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 RTX Corporation
    • 6.2.2 L3Harris Technologies, Inc.
    • 6.2.3 BAE Systems plc
    • 6.2.4 Elbit Systems Ltd.
    • 6.2.5 Honeywell International Inc.
    • 6.2.6 Israel Aerospace Industries Ltd.
    • 6.2.7 Lockheed Martin Corporation
    • 6.2.8 Northrop Grumman Corporation
    • 6.2.9 Leonardo S.p.A
    • 6.2.10 Safran
    • 6.2.11 General Dynamics Corporation
    • 6.2.12 THALES
    • 6.2.13 The Boeing Company
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Military Aircraft Modernization And Retrofit Industry Segmentation

Military aircraft modernization includes modification, upgradation, and replacement of existing infrastructure and equipping new technologies to improve the efficiency and effectiveness of the aircraft. Many of the global military aircraft fleets have been in service for decades. Several countries upgrade and retrofit the aircraft with modern systems to modernize their existing fleet and to extend the aircraft service life. The report provides insights into all the recent contracts awarded.

The military aircraft modernization and retrofit market is segmented based on aircraft type and geography. By aircraft type, the market is segmented into fixed-wing and rotary-wing. The report also covers the market sizes and forecasts for the military aircraft modernization and retrofit market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).

Aircraft Type Fixed-Wing
Rotary-Wing
Geography North America United States
Canada
Europe Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America Brazil
Rest of Latin America
Middle East and Africa Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East and Africa
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Military Aircraft Modernization & Retrofit Market Research FAQs

How big is the Military Aircraft Modernization and Retrofit Market?

The Military Aircraft Modernization and Retrofit Market size is expected to reach USD 52.35 billion in 2025 and grow at a CAGR of 0.04% to reach USD 52.46 billion by 2030.

What is the current Military Aircraft Modernization and Retrofit Market size?

In 2025, the Military Aircraft Modernization and Retrofit Market size is expected to reach USD 52.35 billion.

Who are the key players in Military Aircraft Modernization and Retrofit Market?

Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems plc, Elbit Systems Ltd. and RTX Corporation are the major companies operating in the Military Aircraft Modernization and Retrofit Market.

Which is the fastest growing region in Military Aircraft Modernization and Retrofit Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Military Aircraft Modernization and Retrofit Market?

In 2025, the North America accounts for the largest market share in Military Aircraft Modernization and Retrofit Market.

What years does this Military Aircraft Modernization and Retrofit Market cover, and what was the market size in 2024?

In 2024, the Military Aircraft Modernization and Retrofit Market size was estimated at USD 52.33 billion. The report covers the Military Aircraft Modernization and Retrofit Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Military Aircraft Modernization and Retrofit Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Military Aircraft Modernization and Retrofit Industry Report

Statistics for the 2025 Military Aircraft Modernization And Retrofit market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Military Aircraft Modernization And Retrofit analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.