NATO Military Aircraft Modernization And Retrofit Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 28.26 Billion |
| Market Size (2029) | USD 28.31 Billion |
| CAGR (2024 - 2029) | 0.04 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
NATO Military Aircraft Modernization And Retrofit Market Analysis
The NATO Military Aircraft Modernization And Retrofit Market size is estimated at USD 28.26 billion in 2024, and is expected to reach USD 28.31 billion by 2029, growing at a CAGR of 0.04% during the forecast period (2024-2029).
NATO countries are committed to economically integrating advanced technologies into their defense fleets. As a result, numerous modernization and upgrade programs are either currently underway or are set to be initiated during the forecast period.
With an aging fleet and no viable replacements, these countries are modernizing their current aircraft to extend their operational lifespan and stave off obsolescence. Consequently, the US and its NATO allies are channeling resources into upgrading their combat and multirole aircraft. They're integrating advanced weaponry and systems to bolster survivability in an evolving technological landscape. Advancements in stealth technology and precision aerial weaponry are poised to present significant opportunities for market players during the forecast period.
NATO Military Aircraft Modernization And Retrofit Market Trends
Fixed-wing Segment to Continue its Dominance During the Forecast Period
NATO countries are significant users of fixed-wing aircraft, with demand primarily fueled by increasing defense budgets in key member nations. In 2022, defense spending in the US, Canada, the UK, France, Germany, and Italy—some of the most prominent NATO members—tallied a staggering USD 1.11 trillion. These nations consistently rank among the top global defense spenders, underscoring their commitment to R&D in advanced weaponry and the acquisition of sophisticated military assets.
In March 2023, the French government marked a notable achievement by receiving their cutting-edge Rafale fighter jets, culminating in a four-year development journey. The F4 standard, which underwent flight tests by France's DGA, is set to be fully operational by 2025. Noteworthy features of the F4 include the Thales Scorpion helmet-mounted display, MBDA's MICA NG air-to-air missile, and Safran's AASM hammer precision-guided munition in a 1,000-kilogram variant.
In a parallel move, the UK revealed plans in June 2023 to upgrade its Beechcraft King Air 350ER fleet, previously utilized for training by the Royal Air Force and Royal Navy. This upgraded fleet is slated to serve from 2023 to 2033 and will be enhanced with features like an active electronically scanned array radar, an electro-optical camera, and reconfigured cabin and mission consoles, all part of a USD 155 million rear crew sustainment deal. Such advancements are poised to bolster the market's growth during the forecast period.
The United States to Dominate the Market During the Forecast Period
In 2023, the US dominated the market share, fueled by defense spending far surpassing other NATO nations. The US defense budget grew 2.3% year-on-year, reaching a staggering USD 916 billion. This substantial expenditure, coupled with escalating geopolitical tensions—particularly between China and Russia—has spurred a surge in military aircraft procurement and modernization efforts in the U.S.
For FY2024, the US Department of Defense (DoD) has set its sights on a USD 61.1 billion budget, targeting developing, modernizing, and procuring advanced air forces. This includes spotlighting fighters like the F-22, F-35, F-15EX, the B-21 bomber, and the KC-46A.
Echoing this commitment, in November 2023, the US Air Force inked a USD 2.3 billion deal with Boeing for 15 KC-46 Pegasus tanker aircraft, enhancing its aerial refueling and cargo transport capabilities. Beyond new acquisitions, the US heavily upgrades its military aircraft fleet to ensure peak readiness.
Similarly, in November 2023, the US Army contracted The Boeing Company to enhance its Apache helicopter fleet, opting for new engines and the latest software. Such strategic moves and contracts are poised to bolster demand in the US throughout the forecast period.
NATO Military Aircraft Modernization And Retrofit Industry Overview
The NATO military aircraft modernization and retrofit market is semi-consolidated, with major players like Lockheed Martin Corporation, Leonardo S.p.A, BAE Systems plc, The Boeing Company, and Airbus SE dominating the market. The stringent safety and regulatory policies in the defense segment are expected to restrict the entry of new players. However, a trend of strategic collaboration has been observed in the market, wherein the market players enter into a mutual partnership to develop advanced aircraft and associated subsystems according to the specifications of the end-users. New players find it time-consuming to establish themselves in the market due to the long-term nature of most modernization contracts and existing competition.
The key trend during the forecast period will be the widespread adoption of AI-based predictive maintenance technologies. To facilitate this transition, MRO operators must invest in bolstering their IT capabilities. This enhancement will cover areas such as maintenance execution, supply chain management, mobility improvements, and the adoption of e-signatures. MROs leverage advanced data analytics for inventory optimization, ensuring timely planning and stocking spares while minimizing procurement costs. Such tools boost operational efficiency and profitability for operators and play a pivotal role in the digitization of military aircraft modernization operations.
NATO Military Aircraft Modernization And Retrofit Market Leaders
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Lockheed Martin Corporation
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Airbus SE
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The Boeing Company
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BAE Systems plc
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Leonardo S.p.A
*Disclaimer: Major Players sorted in no particular order
NATO Military Aircraft Modernization And Retrofit Market News
- July 2024: Amentum secured a USD 145 million contract to oversee comprehensive system maintenance and modernization for the US Marine Corps' UC-35D aircraft fleet. The firm will deliver life-cycle transport aircraft system upgrades, integration, logistical and operational support, and engineering and technical services.
- March 2023: GE Aerospace has extended a service contract with ITP Aero, allowing them to perform maintenance, repair, and overhaul services for CT7 engines at ITP Aero's facility in Albacete, Spain. The CT7-8 engine is engineered to fulfill the rigorous mission requirements of contemporary military medium helicopters.
NATO Military Aircraft Modernization And Retrofit Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 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 United States
5.2.2 Canada
5.2.3 United Kingdom
5.2.4 France
5.2.5 Germany
5.2.6 Italy
5.2.7 Rest of NATO Countries
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 Lockheed Martin Corporation
6.2.5 Elbit Systems Ltd.
6.2.6 Honeywell International, Inc.
6.2.7 Northrop Grumman Corporation
6.2.8 Safran SA
6.2.9 General Dynamics Corporation
6.2.10 Leonardo S.p.A
6.2.11 The Boeing Company
6.2.12 Airbus SE
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
NATO Military Aircraft Modernization And Retrofit Industry Segmentation
The study encompasses the fixed-wing and rotary-wing aircraft programs underway or scheduled to be initiated during the forecast period. The study also analyzes the national defense budgets of the NATO countries, their defense acquisition regulatory environment, and the production capabilities of the market players in the region to provide a broader basis for assessing past and future trends in NATO defense capabilities. The study incorporates data-driven assessments to provide critical insights and opportunities in the NATO aircraft modernization industry.
The NATO military aircraft modernization and retrofit market is segmented by aircraft type and geography. By aircraft type, the market is segmented into fixed-wing and rotary-wing. The report also offers the market size and forecasts for six member countries. For each segment, the market sizing and forecasts have been done based on value (USD).
| Aircraft Type | |
| Fixed-wing | |
| Rotary-wing |
| Geography | |
| United States | |
| Canada | |
| United Kingdom | |
| France | |
| Germany | |
| Italy | |
| Rest of NATO Countries |
NATO Military Aircraft Modernization And Retrofit Market Research Faqs
How big is the NATO Military Aircraft Modernization And Retrofit Market?
The NATO Military Aircraft Modernization And Retrofit Market size is expected to reach USD 28.26 billion in 2024 and grow at a CAGR of 0.04% to reach USD 28.31 billion by 2029.
What is the current NATO Military Aircraft Modernization And Retrofit Market size?
In 2024, the NATO Military Aircraft Modernization And Retrofit Market size is expected to reach USD 28.26 billion.
Who are the key players in NATO Military Aircraft Modernization And Retrofit Market?
Lockheed Martin Corporation, Airbus SE, The Boeing Company, BAE Systems plc and Leonardo S.p.A are the major companies operating in the NATO Military Aircraft Modernization And Retrofit Market.
What years does this NATO Military Aircraft Modernization And Retrofit Market cover, and what was the market size in 2023?
In 2023, the NATO Military Aircraft Modernization And Retrofit Market size was estimated at USD 28.25 billion. The report covers the NATO Military Aircraft Modernization And Retrofit Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the NATO Military Aircraft Modernization And Retrofit Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
NATO Military Aircraft Modernization And Retrofit Industry Report
Statistics for the 2024 NATO Military Aircraft Modernization And Retrofit market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. NATO Military Aircraft Modernization And Retrofit analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
