Market Trends of Utility Aircraft Industry
Rotorcraft to Dominate Market Share During the Forecast Period
There is an increase in the use of rotorcraft due to military conflicts, terrorism, border disputes, territory invasion, and violations. Various countries are procuring and upgrading these helicopters to advanced platforms that enhance operational capabilities, increase safety standards, and ensure interoperability with allied forces. For instance, in December 2021, the French Armament General Directorate (DGA) signed a deal with Airbus Helicopters for the acquisition of 169 H160M utility helicopters under the Light Joint Helicopter program. The delivery of these helicopters will likely start in 2027.
Additionally, in March 2021, Saudi Arabia signed a contract for 25 UH-60M utility helicopters from Sikorsky for the Saudi Arabian National Guard (SANG). All the helicopters are scheduled to be delivered before October 2024 and will be used for a wide range of missions, including air assault, MEDEVAC, CSAR, command and control, and VIP transport.
Additionally, rotorcraft are versatile to use as they are capable of VTOL operations and are even priced lower than their fixed-wing counterparts. Such developments render a positive outlook for the segment during the forecast period.
Asia-Pacific to Register Highest CAGR During the Forecast Period
Owing to the increased spending of the government in the defense sector to replace the old technology under the modernization program of the defense technology and other technological advancements in the economic conditions and activities in the region, the utility aircraft market in the Asia-Pacific region is expected to dominate the global market.
In 2022, Asia-Pacific spent a total of USD 572 billion on military expenditure. Over the past few years, terrorist operations increased in nations like Afghanistan, Pakistan, India, and the Philippines. As a result, more anti-terrorism funding is being made available to combat terrorism at the domestic and international levels.
In August 2022, the Indian MoD approved the purchase of 12 Light Utility Helicopters (LUH) from Hindustan Aeronautics Ltd (HAL) under the Make in India initiative. The aircraft is expected to perform various combat missions, including anti-submarine and anti-surface warfare, and combat search and rescue.
In June 2020, Japan placed orders with Bell Helicopters for 150 Bell 412 UH-X transport helicopters. Till 2021, three helicopters were delivered, and the remaining aircraft are expected to be delivered by 2039. These multi-purpose helicopters are ordered to replace Japan’s Ground Self-Defense Force’s (JGSDF) current fleet of UH-1J aircraft.
