The Global Military Fixed-Wing Aircraft Market 2013 2023 - SP.pdf · The Global Military Fixed-Wing...

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The Global Military Fixed-Wing Aircraft

Market 2013–2023

The Global Military Fixed-Wing Aircraft Market 2013-2023

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TABLE OF CONTENTS

1 Introduction ......................................................................................................................... 14

1.1 What is this Report About? ............................................................................................................. 14

1.2 Definitions ...................................................................................................................................... 14

1.3 Summary Methodology ................................................................................................................... 16

1.4 About Strategic Defence Intelligence .............................................................................................. 17

2 Executive Summary ............................................................................................................ 18

3 Global Military Aircraft Market Size and Drivers ............................................................... 20

3.1 Military Aircraft Market Size and Forecast 2013–2023 .................................................................... 20

3.1.1 Global military aircraft market to witness a robust growth over the forecast period .................................20

3.2 Global Military Aircraft Market – Regional Analysis ......................................................................... 21

3.2.1 North America dominates the global military aircraft market ....................................................................21

3.2.2 North American market to remain robust during the forecast period despite budget cuts ........................23

3.2.3 The market for multi-role aircraft in Asia-Pacific expected to witness significant spending over the forecast

period ...................................................................................................................................................................25

3.2.4 European military aircraft market expected to increase despite defense budget cuts .............................26

3.2.5 Markets in the Middle East to record robust spending on military aircraft ................................................28

3.2.6 Brazil to dominate the military aircraft market in Latin America ................................................................29

3.2.7 Markets in Africa expected to decline during the forecast period .............................................................30

3.3 Military Aircraft Sub–Sector Market Size Composition .................................................................... 31

3.3.1 Multi-role aircraft to witness highest spending among all categories ........................................................31

3.3.2 Multi-role aircraft to witness robust spending throughout the forecast period and is expected to grow at a

CAGR of XX% during the forecast period .............................................................................................................33

3.3.3 Global spending on transport aircraft expected to value US$XX billion over the forecast period ............34

3.3.4 Market for reconnaissance and surveillance aircraft expected to constitute the third largest category....35

3.3.5 The global military aircraft market expected to witness renewed interest in bombers..............................36

3.3.6 Global market for training aircraft to increase at a CAGR of XX% during the forecast period .................37

3.3.7 Global market for attack aircraft expected to decline over the forecast period .........................................38

3.4 Demand Drivers and Growth Stimulators ........................................................................................ 39

3.4.1 Replacement of the ageing aircraft fleet to drive military aircraft market ..................................................39

3.4.2 Rising tensions globally warrant the demand for military aircraft ..............................................................40

3.4.3 Need for balance of power to sustain the global military aircraft market through the forecast period ......40

3.5 Defense Budget Spending Review ................................................................................................. 41

3.5.1 European capital expenditure expected to increase during the forecast period .......................................41

3.5.2 Asian defense budgets expected to increase at a robust pace ................................................................42

3.5.3 North American defense expenditure projected to decline marginally during the forecast period............43


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3.5.4 Modernization programs likely to drive defense expenditure in Latin American countries .......................44

3.5.5 Military budgets of African countries expected to increase during the forecast period .............................45

3.5.6 Defense budgets of Middle Eastern countries likely to increase during the forecast period ....................46

3.6 Defense Modernization Review ...................................................................................................... 47

3.6.1 Debt crisis in Europe leading to postponement of modernization plans ...................................................47

3.6.2 Arms race in Asia reflected in modernization plans ..................................................................................47

3.6.3 North American modernization plans marginally affected by economic recession ...................................47

3.6.4 Modernization programs in South America driven by replacement of obsolete armaments ....................48

3.6.5 African countries mainly spending on infantry weapons, and surveillance and monitoring equipment to

slow growing crime rate .........................................................................................................................................48

3.6.6 Middle Eastern countries pursuing modernization of Air Force and air defense systems ........................48

4 Industry Trends, Recent Developments, and Challenges ................................................ 49

4.1 Technological Developments .......................................................................................................... 49

4.1.1 The ADaptive Versatile ENgine Technology (ADVENT) program to improve fuel efficiency ...................49

4.1.2 Rapid development in stealth aircraft coating technology .........................................................................49

4.1.3 Aircraft fire quenching technology .............................................................................................................50

4.1.4 Ground breaking radar systems and sensors are the key to modern day air superiority .........................50

4.2 Market Trends ................................................................................................................................ 51

4.2.1 Several programs underway for the procurement of multi-role platforms .................................................51

4.2.2 Demand for early warning aircraft anticipated to rise over the forecast period .........................................51

4.3 Industry Consolidation .................................................................................................................... 52

4.3.1 Joint research and development programs expected to increase during the forecast period ..................52

4.3.2 Companies are entering into marketing agreements in order to cater to specific markets .......................52

4.4 Key Challenges .............................................................................................................................. 53

4.4.1 Global defense budget cuts expected to have an impact on market size of military aircraft ....................53

4.4.2 Increased electrification leads to thermal challenges for a military aircraft ...............................................53

5 SWOT Analysis of the Military Aircraft Market ................................................................. 54

5.2 Strengths ........................................................................................................................................ 55

5.2.1 Volatile relationships between neighboring countries resulting in an arms race ......................................55

5.2.2 Aging military aircraft fleet warrants spending on replacement programs ................................................55

5.2.3 Technological innovations .........................................................................................................................56

5.3 Weaknesses ................................................................................................................................... 57

5.3.1 The high cost of developing military aircraft to hamper spending on the sector .......................................57

5.3.2 High maintenance costs act as a deterrent ...............................................................................................57

5.4 Opportunities .................................................................................................................................. 58

5.4.1 The reduction in defense budgets to increase demand for multi-role aircraft ...........................................58

5.4.2 Improvements in technologies to support demand for training aircraft .....................................................58


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5.4.3 Territorial patrolling requirements to increase demand for reconnaissance and surveillance aircraft ......59

5.5 Threats ........................................................................................................................................... 60

5.5.1 Increasing focus on unmanned aerial vehicles to post a hurdle to the piloted aircraft market .................60

5.5.2 US and European economic crisis ............................................................................................................60

5.5.3 Shrinking military expenditure to impact demand .....................................................................................60

6 Country Analysis – Military Aircraft Market ...................................................................... 62

6.1 United States Market Size and Forecast 2013–2023 ...................................................................... 63

6.1.1 Multi-role aircraft expected to account for the largest share of US military aircraft expenditure ..............66

6.1.2 Transport aircraft expected to constitute the second largest market share in the US ..............................68

6.1.3 Poseidon P-8A program to drive the reconnaissance and surveillance aircraft market in the US during the

forecast period. ......................................................................................................................................................70

6.2 Russia Market Size and Forecast 2013–2023 ................................................................................ 71

6.2.1 Russian transport aircraft market to witness second highest expenditure during the forecast period......74

6.2.2 Procurement of Su-35S aircraft to drive the multi-role aircraft segment ...................................................75

6.2.3 Procurement of bombers is expected to constitute the third largest military aircraft market share in Russia

77

6.3 UK Market Size and Forecast 2013–2023 ...................................................................................... 79

6.3.1 Multi-role aircraft expected to account for the highest expenditure in the UK ..........................................82

6.3.2 Future Strategic Tanker Aircraft (FSTA) program to drive the UK MoD’s expenditure on transport aircraft

83

6.4 France Market Size and Forecast 2013–2023 ................................................................................ 84

6.4.1 French multi-role aircraft market to witness highest expenditure during the forecast period ...................87

6.4.2 Transport aircraft expected to account for the second largest segment in the French military aircraft

market 88

6.5 Australia Market Size and Forecast 2013–2023 ............................................................................. 89

6.5.1 Need to replace aging bombers and fighter aircraft to drive the procurement of multi-role fighter aircraft92

6.5.2 P-8 aircraft being procured to replace its fleet of AP-3C Orion aircraft by 2018 .......................................93

6.5.3 Australia’s spending on transport aircraft to value US$XX billion during the forecast period ...................94

6.6 South Korea Market Size and Forecast 2013–2023........................................................................ 95

6.6.1 South Korea is investing in the procurement of multi-role aircraft primarily due to the rising naval power of

China and North Korea and to replace its aging fleet of fighter aircraft ................................................................98

6.6.2 South Korea’s procurement of C-17 and C-130J transport aircraft to drive this market segment ............99

6.6.3 Procurement of reconnaissance and observation aircraft to constitute the third largest segment in the

South Korean market ...........................................................................................................................................100

6.7 India Market Size and Forecast 2013–2023 ................................................................................. 101

6.7.1 Multi-role fighter procurements to constitute the majority of Indian spending on military aircraft; threats

posed by China and Pakistan to drive expenditure .............................................................................................104

6.7.2 Robust aircraft procurements to result in significant training aircraft purchases ....................................105


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6.7.3 Market for transport aircraft to decrease at a CAGR of XX% during the forecast period .......................106

6.8 The UAE Market Size and Forecast 2013–2023 ........................................................................... 107

6.8.1 Lockheed Martin F-16 Block 60 fighters to drive expenditure in the multi-role aircraft market ...............110

6.8.2 Transport aircraft expected to constitute the second largest market share in the UAE ..........................111

6.9 Saudi Arabia Market Size and Forecast 2013–2023 ..................................................................... 112

6.9.1 The market for multi-role aircraft expected to increase at a CAGR of XX% during the forecast period .115

6.9.2 C-130 Super Hercules to drive the Transport aircraft demand during forecast period ...........................116

6.10 Brazil Market Size and Forecast 2013–2023 ................................................................................ 117

6.10.1 Multi-role aircraft to account for the largest segment in the Brazilian military aircraft market ................120

6.10.2 Brazil developing its own transport aircraft .............................................................................................121

6.11 Venezuela Market Size and Forecast 2013–2023 ........................................................................ 122

6.11.1 J-10 and Su-30MK2 multi-role fighters to be in demand during the forecast period ..............................125

6.11.2 Venezuela expected to spend on Chinese transport aircraft during the forecast period ........................126

6.12 South Africa Market Size and Forecast 2013–2023 ...................................................................... 127

6.12.1 South African defense ministry expected to acquire advanced high performance reconnaissance light

aircraft (AHRLAC) ................................................................................................................................................130

6.12.2 South Africa to upgrade its fleet of transport aircraft ...............................................................................131

6.13 Algeria Market Size and Forecast 2013–2023 .............................................................................. 132

6.13.1 Algeria investing heavily in the transport aircraft segment ......................................................................135

6.13.2 Demand for Multi-role aircraft is expected to decline in forecast period .................................................136

7 Major Military Military Aircraft Programs ........................................................................ 137

7.1 Multi-role Aircraft .......................................................................................................................... 137

7.1.1 F 35 Joint Strike Fighter ..........................................................................................................................137

7.1.2 F/A-18E/F Super hornet ..........................................................................................................................138

7.1.3 Rafale ......................................................................................................................................................139

7.2 Transport Aircraft .......................................................................................................................... 140

7.2.1 KC-46A aerial refueling tankers ..............................................................................................................140

7.2.2 V-22 Osprey ............................................................................................................................................141

7.2.3 C-17 Globemaster III ...............................................................................................................................142

7.2.4 KC-390 ....................................................................................................................................................143

7.3 Reconnaissance And Surveillance Aircraft ................................................................................... 144

7.3.1 P-8i Poseidon ..........................................................................................................................................144

7.3.2 E-3 Sentry (AWACS) ...............................................................................................................................145

7.3.3 E-2D Hawkeye ........................................................................................................................................146

7.3.4 Kawasaki P-1 ..........................................................................................................................................147

7.4 Bombers ....................................................................................................................................... 148

7.4.1 Su-34 fighter-bombers .............................................................................................................................148


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7.4.2 FB-7 Bomber ...........................................................................................................................................149

7.5 Training Aircraft ............................................................................................................................ 150

7.5.1 M-346 Master ..........................................................................................................................................150

7.5.2 Hawk ........................................................................................................................................................151

7.5.3 PC-7 MKII ................................................................................................................................................152

7.6 Attack Aircraft ............................................................................................................................... 153

7.6.1 MiG-31 – Upgrade Program ....................................................................................................................153

7.6.2 MF2000 Mirage F1 upgrade ....................................................................................................................154

8 Competitive Landscape and Strategic Insights .............................................................. 155

8.1 Competitive Landscape Overview ................................................................................................ 156

8.1.1 Lockheed Martin Corporation: Overview .................................................................................................156

8.1.2 Lockheed Martin Corporation: Products and services ............................................................................156

8.1.3 Lockheed Martin Corporation: Recent Announcements and strategic initiatives....................................156

8.1.4 Lockheed Martin Corporation: Alliances .................................................................................................157

8.1.5 Lockheed Martin Corporation: Recent contract wins ..............................................................................158

8.1.6 Lockheed Martin Corporation.: Financial analysis ..................................................................................159

8.1.7 Boeing: Overview ....................................................................................................................................161

8.1.8 Boeing: Products and services ................................................................................................................161

8.1.9 Boeing: Recent announcements and strategic initiatives .......................................................................162

8.1.10 Boeing: Alliances .....................................................................................................................................163

8.1.11 Boeing: Recent Contract wins .................................................................................................................163

8.1.12 Boeing: Financial analysis .......................................................................................................................164

8.1.13 Cassidian: Overview ................................................................................................................................166

8.1.14 Cassidian: Products and services ...........................................................................................................166

8.1.15 Cassidian: Recent announcements and strategic initiatives ...................................................................166

8.1.16 Cassidian: Alliances ................................................................................................................................166

8.1.17 Cassidian: Recent contract wins .............................................................................................................167

8.1.18 Saab: Overview .......................................................................................................................................167

8.1.19 Saab: Products and services ..................................................................................................................167

8.1.20 Saab: Recent announcements and strategic initiatives ..........................................................................168

8.1.21 Saab: Alliances ........................................................................................................................................168

8.1.22 Saab: Recent contract wins.....................................................................................................................169

8.1.23 Saab: Financial analysis..........................................................................................................................170

8.1.24 BAE Systems: Overview .........................................................................................................................172

8.1.25 BAE Systems: Products and services .....................................................................................................172

8.1.26 BAE Systems: Recent announcements and strategic initiatives.............................................................172

8.1.27 BAE Systems: Alliances ..........................................................................................................................173


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8.1.28 BAE Systems: Recent contract wins .......................................................................................................174

8.1.29 BAE Systems: Financial analysis ............................................................................................................174

8.1.30 Northrop Grumman: Overview ................................................................................................................176

8.1.31 Northrop Grumman: Products and services ............................................................................................176

8.1.32 Northrop Grumman: Recent announcements and strategic initiatives ...................................................177

8.1.33 Northrop Grumman: Alliances .................................................................................................................177

8.1.34 Northrop Grumman: Recent contract wins ..............................................................................................178

8.1.35 Northrop Grumman: Financial analysis ...................................................................................................179

8.1.36 Airbus: Overview .....................................................................................................................................181

8.1.37 Airbus: Products and services .................................................................................................................181

8.1.38 Airbus: Recent announcements and strategic initiatives ........................................................................181

8.1.39 Airbus: Alliances ......................................................................................................................................182

8.1.40 Airbus: Recent contract wins ...................................................................................................................182

8.1.41 Embraer: Overview ..................................................................................................................................182

8.1.42 Embraer: Products and services .............................................................................................................182

8.1.43 Embraer: Recent announcements and strategic initiatives .....................................................................183

8.1.44 Embraer: Alliances ..................................................................................................................................183

8.1.45 Embraer: Recent contract wins ...............................................................................................................184

8.1.46 Embraer: Financial analysis ....................................................................................................................184

8.1.47 Dassault Aviation: Overview....................................................................................................................186

8.1.48 Dassault Aviation: Products and services ...............................................................................................186

8.1.49 Dassault Aviation: Recent announcements and strategic initiatives .......................................................186

8.1.50 Dassault Aviation: Alliances ....................................................................................................................187

8.1.51 Dassault Aviation: Recent contract wins .................................................................................................187

8.1.52 Dassault Aviation: Financial analysis ......................................................................................................188

8.1.53 Russian Aircraft Corporation "MiG”: Overview ........................................................................................190

8.1.54 Russian Aircraft Corporation "MiG”: Products and Services ...................................................................190

8.1.55 Russian Aircraft Corporation "MiG”: Recent announcements and strategic initiatives ...........................190

8.1.56 Russian Aircraft Corporation "MiG”: Alliances ........................................................................................191

8.1.57 Russian Aircraft Corporation "MiG”: Recent contract wins .....................................................................191

8.1.58 Sagem: Overview ....................................................................................................................................192

8.1.59 Sagem: products and services ................................................................................................................192

8.1.60 Sagem: Recent announcements and strategic initiatives .......................................................................192

8.1.61 Sagem: Alliances .....................................................................................................................................192

8.1.62 Sagem: Recent contract wins .................................................................................................................193

8.1.63 Pilatus Aircraft Limited: Overview ...........................................................................................................193

8.1.64 Pilatus Aircraft Limited: Products and services .......................................................................................193

8.1.65 Pilatus Aircraft Limited: Recent announcements and strategic initiatives ...............................................194


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8.1.66 Pilatus Aircraft Limited: Alliances ............................................................................................................194

8.1.67 Pilatus Aircraft Limited: Recent contract wins .........................................................................................194

8.1.68 Pilatus Aircraft Limited: Financial analysis ..............................................................................................195

8.1.69 Alenia Aermachhi: Overview ...................................................................................................................196

8.1.70 Alenia Aermachhi: Products and services...............................................................................................196

8.1.71 Alenia Aermachhi: Recent announcements and strategic initiatives ......................................................196

8.1.72 Alenia Aermachhi: Alliances ....................................................................................................................197

8.1.73 Alenia Aermachhi: Recent contract wins .................................................................................................197

8.1.74 Eurofighter: Overview ..............................................................................................................................198

8.1.75 Eurofighter: Products and services .........................................................................................................198

8.1.76 Eurofighter: Recent announcements and strategic initiatives .................................................................198

8.1.77 Eurofighter: Alliances ..............................................................................................................................199

8.1.78 Eurofighter: Recent contract wins ...........................................................................................................199

8.1.79 Kawasaki Heavy Industries Limited: Overview .......................................................................................200

8.1.80 Kawasaki Heavy Industries Limited: Products and Services ..................................................................200

8.1.81 Kawasaki Heavy Industries Limited: Recent Announcements and Strategic Initiatives .........................200

8.1.82 Kawasaki Heavy Industries Limited: Alliances ........................................................................................201

8.1.83 Kawasaki Heavy Industries Limited: Financial analysis ..........................................................................201

8.1.84 Sukhoi: Overview ....................................................................................................................................203

8.1.85 Sukhoi: Products and Services ...............................................................................................................203

8.1.86 Sukhoi: Recent announcements and Strategic initiatives .......................................................................203

8.1.87 Sukhoi: Alliances .....................................................................................................................................204

8.1.88 Sukhoi: Recent contract wins ..................................................................................................................204

8.1.89 Mitsubishi Heavy Industries: Overview ...................................................................................................205

8.1.90 Mitsubishi Heavy Industries: Products and Services ..............................................................................205

8.1.91 Mitsubishi Heavy Industries: Recent announcements and strategic initiatives .......................................205

8.1.92 Mitsubishi Heavy Industries: Alliances ....................................................................................................205

8.1.93 Mitsubishi Heavy Industries: Recent contract wins .................................................................................206

8.1.94 Mitsubishi Heavy Industries: Financial analysis ......................................................................................206

8.1.95 Cobham: Overview ..................................................................................................................................208

8.1.96 Cobham: Products and Services .............................................................................................................208

8.1.97 Cobham: Recent announcements and Strategic initiatives ....................................................................208

8.1.98 Cobham: Alliances ..................................................................................................................................209

8.1.99 Cobham: Recent Contract Wins ..............................................................................................................209

8.1.100 Cobham: Financial Analysis ....................................................................................................................209

8.1.101 Hindustan Aeronautics Limited: Overview ..............................................................................................211

8.1.102 Hindustan Aeronautics Limited: Products and services ..........................................................................211

8.1.103 Hindustan Aeronautics Limited: Recent announcements and strategic initiatives..................................212


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8.1.104 Hindustan Aeronautics Limited: alliances ...............................................................................................212

8.1.105 Hindustan Aeronautics Limited: Recent contract wins ............................................................................213

8.1.106 Hindustan Aeronautics Limited: Financial analysis .................................................................................213

9 Appendix ............................................................................................................................ 215

9.1 Methodology ................................................................................................................................. 215

9.2 About SDI ..................................................................................................................................... 215

9.3 Disclaimer .................................................................................................................................... 215


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LIST OF FIGURES

Figure 1: Global Military Aircraft Market (US$ Billion), 2013–2023 ...................................................................................................................... 20 Figure 2: Military Aircraft Market Breakdown by Region (%), 2013–2023 ............................................................................................................ 22 Figure 3: North American Military Aircraft Market (US$ Billion), 2013–2023 ........................................................................................................ 24 Figure 4: Asia-Pacific Military Aircraft Market (US$ Billion), 2013–2023 .............................................................................................................. 25 Figure 5: European Military Aircraft Market (US$ Billion), 2013–2023 ................................................................................................................. 27 Figure 6: Middle East Military Aircraft Market (US$ Billion), 2013–2023 .............................................................................................................. 28 Figure 7: Latin American Military Aircraft Market (US$ Billion), 2013–2023 ......................................................................................................... 29 Figure 8: African Military Aircraft Market (US$ Billion), 2013–2023 ..................................................................................................................... 30 Figure 9: Military Aircraft Market Breakdown by Segment (%), 2013–2023 ......................................................................................................... 32 Figure 10: Multi-role Aircraft Market Size (US$ Billion), 2013–2023 .................................................................................................................... 33 Figure 11: Transport Aircraft Market Size (US$ Billion), 2013–2023.................................................................................................................... 34 Figure 12: Reconnaissance and Surveillance Aircraft Market Size (US$ Billion), 2013–2023 .............................................................................. 35 Figure 13: Bombers Market Size (US$ Billion), 2013–2023 ................................................................................................................................. 36 Figure 14: Training Aircraft Market Size (US$ Billion), 2013–2023 ...................................................................................................................... 37 Figure 15: Attack Aircraft Market Size (US$ Billion), 2013–2023 ......................................................................................................................... 38 Figure 16: Defense Capital Expenditure of Top Three European Defense Spenders (US$ Billion), 2013–2023 .................................................. 41 Figure 17: Defense Capital Expenditure of Top Three Asian Defense Spenders (US$ Billion), 2013–2023 ........................................................ 42 Figure 18: Defense Capital Expenditure of Top North American Defense Spenders (US$ Billion), 2013–2023 ................................................... 43 Figure 19: Defense Capital Expenditure of Top Three South American Defense Spenders (US$ Billion), 2013–2023 ........................................ 44 Figure 20: Defense Capital Expenditure of Top Three African Countries (US$ Billion), 2013–2023.................................................................... 45 Figure 21: Defense Capital Expenditure of Top Three Middle Eastern Defense Spenders (US$ Billion), 2013–2023 .......................................... 46 Figure 22: Military Aircraft Market in the US (US$ Billion), 2013–2023 ............................................................................................................... 64 Figure 23: Military Aircraft Market by Category in the US (%), 2013–2023 .......................................................................................................... 65 Figure 24: Multi-role Aircraft Market Size in the US (US$ Billion), 2013–2023 ..................................................................................................... 67 Figure 25: Transport Aircraft Market Size in the US (US$ Billion), 2013–2023 .................................................................................................... 69 Figure 26: Reconnaissance And Surveillance Aircraft Market Size in the US (US$ Billion), 2013–2023 .............................................................. 70 Figure 27: Military Aircraft Market in Russia (US$ Billion), 2013–2023 ................................................................................................................ 72 Figure 28: Military Aircraft Market By Category in Russia (%), 2013–2023 .......................................................................................................... 73 Figure 29: Transport Aircraft Market Size in Russia (US$ Billion), 2013–2023 .................................................................................................... 74 Figure 30: Multi-role Aircraft Market Size in Russia (US$ Billion), 2013–2023 ..................................................................................................... 76 Figure 31: Bombers Market Size in Russia (US$ Billion), 2013–2023 ................................................................................................................. 78 Figure 32: Military Aircraft Market in the UK (US$ Billion), 2013–2023 ................................................................................................................ 80 Figure 33: Military Aircraft Market Split by Sector in the UK (%), 2013–2023 ...................................................................................................... 81 Figure 34: Multi-role Aircraft Market Size in the UK (US$ Billion), 2013–2023 ..................................................................................................... 82 Figure 35: Transport Aircraft Market Size in the UK (US$ Million), 2013–2023.................................................................................................... 83 Figure 36: Military Aircraft Market in France (US$ Billion), 2013–2023 ................................................................................................................ 85 Figure 37: Military Aircraft Market Split by Sector in France (%), 2013–2023 ...................................................................................................... 86 Figure 38: Multi-role Aircraft Market Size in France (US$ Million), 2013–2023 .................................................................................................... 87 Figure 39: Transport Aircraft Market Size in France (US$ Million), 2013–2023 ................................................................................................... 88 Figure 40: Military Aircraft Market in Australia (US$ Billion), 2013–2023 ............................................................................................................. 90 Figure 41: Military Aircraft Market Split by Sector in Australia (%), 2013–2023 ................................................................................................... 91 Figure 42: Multi-role Aircraft Market Size in Australia (US$ Billion), 2013–2023 .................................................................................................. 92 Figure 43: Reconnaissance And Surveillance Aircraft Market Size in Australia (US$ Million), 2013–2023 .......................................................... 93 Figure 44: Transport Aircraft Market Size in Australia (US$ Million), 2013–2023 ................................................................................................. 94 Figure 45: Military Aircraft Market in South Korea (US$ Million), 2013–2023 ...................................................................................................... 96 Figure 46: Military Aircraft Market Split by Sector in South Korea (%), 2013–2023 ............................................................................................. 97 Figure 47: Multi-role Aircraft Market Size in South Korea (US$ Million), 2013–2023 ........................................................................................... 98 Figure 48: Transport Aircraft Market Size in South Korea (US$ Million), 2013–2023 ........................................................................................... 99 Figure 49: Reconnaissance and Surveillance Aircraft Market Size in South Korea (US$ Million), 2013–2023 ................................................... 100 Figure 50: Military Aircraft Market in India (US$ Billion), 2013–2023 ................................................................................................................. 102 Figure 51: Military Aircraft Market in India by Sector (%), 2013–2023 ............................................................................................................... 103 Figure 52: Multi-role Aircraft Market Size in India (US$ Billion), 2013–2023 ...................................................................................................... 104 Figure 53: Training Aircraft Market Size in India (US$ Million), 2013–2023 ....................................................................................................... 105 Figure 54: Transport Aircraft Market Size in India (US$ Million), 2013–2023 ..................................................................................................... 106 Figure 55: Military Aircraft Market in the UAE (US$ Billion), 2013–2023 ........................................................................................................... 108


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Figure 56: Military Aircraft Market Split By Category in the UAE (%), 2013–2023 ............................................................................................. 109 Figure 57: Multi-role Aircraft Market Size in the UAE (US$ Million), 2013–2023 ................................................................................................ 110 Figure 58: Transport Aircraft Market Size in the UAE (US$ Million), 2013–2023 ............................................................................................... 111 Figure 59: Military Aircraft Market in Saudi Arabia (US$ Billion), 2013–2023 .................................................................................................... 113 Figure 60: Military Aircraft Market Split By Category in Saudi Arabia (%), 2013–2023 ...................................................................................... 114 Figure 61: Multi-role Aircraft Market Size in Saudi Arabia (US$ Billion), 2013–2023 ......................................................................................... 115 Figure 62: Transport Aircraft Market Size in Saudi Arabia (US$ Million), 2013–2023 ........................................................................................ 116 Figure 63: Military Aircraft Market in Brazil (US$ Million), 2013–2023 ............................................................................................................... 118 Figure 64: Military Aircraft Market Split By Category in Brazil (%), 2013–2023 .................................................................................................. 119 Figure 65: Multi-role Aircraft Market Size in Brazil (US$ Million), 2013–2023 .................................................................................................... 120 Figure 66: Transport Aircraft Market Size in Brazil (US$ Million), 2013–2023.................................................................................................... 121 Figure 67: Military Aircraft Market in Venezuela (US$ Million), 2013–2023 ....................................................................................................... 123 Figure 68: Military Aircraft Market Split by Sector in Venezuela (%), 2013–2023 .............................................................................................. 124 Figure 69: Multi-role Aircraft Market Size in Venezuela (US$ Million), 2013–2023 ............................................................................................ 125 Figure 70: Transport Aircraft Market Size in Venezuela (US$ Million), 2013–2023 ............................................................................................ 126 Figure 71: Military Aircraft Market in South Africa (US$ Million), 2013–2023 ..................................................................................................... 128 Figure 72: Military Aircraft Market Split By Category in South Africa (%), 2013–2023 ....................................................................................... 129 Figure 73: Reconnaissance and surveillance Aircraft Market Size in South Africa (US$ Million), 2013–2023 .................................................... 130 Figure 74: Transport Aircraft Market Size in South Africa (US$ Million), 2013–2023 ......................................................................................... 131 Figure 75: Military Aircraft Market in Algeria (US$ Million), 2013–2023 ............................................................................................................. 133 Figure 76: Military Aircraft Market Split By Category in Algeria (%), 2013–2023 ................................................................................................ 134 Figure 77: Transport Aircraft Market Size in Algeria (US$ Million), 2013–2023 ................................................................................................. 135 Figure 78: Multi- Role Aircraft Market Size in Algeria (US$ Million), 2013–2023 ................................................................................................ 136 Figure 79: Lockheed Martin Corporation – Revenue Trend Analysis (US$ Billion), 2008–2012 ......................................................................... 159 Figure 80: Lockheed Martin Corporation – Operating Profit (US$ Billion), 2008–2012 ...................................................................................... 160 Figure 81: Lockheed Martin Corporation – Net Profit Trend Analysis (US$ Billion), 2008–2012 ........................................................................ 160 Figure 82: Boeing – Revenue Trend Analysis (US$ billion), 2008–2012 ........................................................................................................... 164 Figure 83: Boeing – Operating Profit (US$ million), 2008–2012 ........................................................................................................................ 165 Figure 84: Boeing – Net Profit Trend Analysis (US$ million), 2008–2012 .......................................................................................................... 165 Figure 85: Saab – Revenue Trend Analysis (SEK billion), 2008–2012 .............................................................................................................. 170 Figure 86: Saab – Operating Profit (SEK million), 2008–2012 ........................................................................................................................... 171 Figure 87: Saab – Net Profit Trend Analysis (SEK million), 2008–2012 ............................................................................................................ 171 Figure 88: BAE Systems – Revenue Trend Analysis (GBP billion), 2008–2012 ................................................................................................ 175 Figure 89: BAE Systems – Operating Profit (GBP million), 2008–2012 ............................................................................................................. 175 Figure 90: BAE Systems – Net Profit Trend Analysis (GBP million), 2008–2012 ............................................................................................... 176 Figure 91: Northrop Grumman – Revenue Trend Analysis (US$ billion), 2008–2012 ........................................................................................ 179 Figure 92: Northrop Grumman – Operating Profit (US$ million), 2008–2012 ..................................................................................................... 180 Figure 93: Northrop Grumman – Net Profit Trend Analysis (US$ million), 2008–2012 ....................................................................................... 180 Figure 94: Embraer – Revenue Trend Analysis (R$ million), 2008–2012 .......................................................................................................... 185 Figure 95: Embraer – Operating Profit (R$ million), 2008–2012 ........................................................................................................................ 185 Figure 96: Embraer – Net Profit Trend Analysis (R$ million), 2008–2012 .......................................................................................................... 186 Figure 97: Dassault Aviation – Revenue Trend Analysis (EUR billion), 2008–2012 ........................................................................................... 188 Figure 98: Dassault Aviation – Operating Profit (EUR million), 2008–2012 ....................................................................................................... 189 Figure 99: Dassault Aviation – Net Profit Trend Analysis (EUR million), 2008–2012 ......................................................................................... 189 Figure 100: Pilatus Aircraft Limited – Revenue Trend Analysis (CHF million), 2008–2012 ................................................................................ 195 Figure 101: Kawasaki Heavy Industries Limited – Revenue Trend Analysis (YEN trillion), 2008–2012 ............................................................. 201 Figure 102: Kawasaki Heavy Industries Limited – Operating Profit (YEN billion), 2008–2012 ........................................................................... 202 Figure 103: Kawasaki Heavy Industries Limited – Net Profit Trend Analysis (YEN billion), 2008–2012 ............................................................. 202 Figure 104: Mitsubishi Heavy Industries – Revenue Trend Analysis (YEN trillion), 2009–2013 ......................................................................... 206 Figure 105: Mitsubishi Heavy Industries – Operating Profit (YEN billion), 2009–2013 ....................................................................................... 207 Figure 106: Mitsubishi Heavy Industries – Net Profit Trend Analysis (YEN billion), 2009–2013 ......................................................................... 207 Figure 107: Cobham – Revenue Trend Analysis (GBP billion), 2008–2012 ....................................................................................................... 210 Figure 108: Cobham – Operating Profit (GBP million), 2006–2010 ................................................................................................................... 210 Figure 109: Cobham – Net Profit Trend Analysis (GBP million), 2006–2010 ..................................................................................................... 211 Figure 110: Hindustan Aeronautics Limited (HAL) – Revenue Trend Analysis (INR Billion), 2008–2012 ........................................................... 213 Figure 111: Hindustan Aeronautics Limited (HAL) – Operating Profit Trend Analysis (INR Billion), 2008–2012 ................................................. 214 Figure 112: Hindustan Aeronautics Limited (HAL) – Net Profit Trend Analysis (INR Billion), 2008–2012........................................................... 214


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LIST OF TABLES

Table 1: Global Military Aircraft Market Overview ................................................................................................................................................ 21 Table 2: Global Military Aircraft Market Overview ................................................................................................................................................ 31 Table 3: SWOT Analysis of the Military Aircraft Market ....................................................................................................................................... 54 Table 4: Leading Military Aircraft Markets and Top Three Segments .................................................................................................................. 62 Table 5: US Military Aircraft Market Overview ..................................................................................................................................................... 64 Table 6: Key US Military Aircraft Programs ......................................................................................................................................................... 65 Table 7: Russian Military Aircraft Market Overview ............................................................................................................................................. 72 Table 8: Major Russian Military Aircraft Programs .............................................................................................................................................. 73 Table 9: UK Military Aircraft Market Overview ..................................................................................................................................................... 79 Table 10: Major UK Military Aircraft Programs .................................................................................................................................................... 80 Table 11: French Military Aircraft Market Overview ............................................................................................................................................. 84 Table 12: Key French Military Aircraft Programs ................................................................................................................................................ 85 Table 13: Australian Military Aircraft Market Overview ........................................................................................................................................ 89 Table 14: Major Australian Military Aircraft Programs ......................................................................................................................................... 91 Table 15: South Korean Military Aircraft Market Overview .................................................................................................................................. 95 Table 16: Major South Korean Military Aircraft Programs .................................................................................................................................... 96 Table 17: Indian Military Aircraft Market Overview ............................................................................................................................................ 101 Table 18: Major Indian Military Aircraft Programs .............................................................................................................................................. 102 Table 19: The UAE Military Aircraft Market Overview ........................................................................................................................................ 107 Table 20: Key UAE Military Aircraft Programs ................................................................................................................................................... 108 Table 21: Saudi Arabian Military Aircraft Market Overview ................................................................................................................................ 112 Table 22: Major Saudi Arabian Military Aircraft Programs ................................................................................................................................. 113 Table 23: Brazilian Military Aircraft Market Overview ........................................................................................................................................ 117 Table 24: Key Brazilian Military Aircraft Programs ............................................................................................................................................ 118 Table 25: Venezuela Military Aircraft Market Overview ..................................................................................................................................... 122 Table 26: Key Venezuela Military Aircraft Programs ......................................................................................................................................... 123 Table 27: The South African Military Aircraft Market Overview .......................................................................................................................... 127 Table 28: Key South African Military Aircraft Programs ..................................................................................................................................... 128 Table 29: Algerian Military Aircraft Market Overview ......................................................................................................................................... 132 Table 30: Key Algerian Military Aircraft Programs ............................................................................................................................................. 133 Table 31: Program Details – F 35 Joint Strike Fighter procurement program .................................................................................................... 137 Table 32: Program Details – F/A-18E/F Super Hornet ...................................................................................................................................... 138 Table 33: Program Details – Rafale Aircraft ...................................................................................................................................................... 139 Table 34: Program Details – KC-46A procurement program ............................................................................................................................. 140 Table 35: Program Details – V-22 Osprey procurement program ...................................................................................................................... 141 Table 36: Program Details – C-17 Globemaster III defense program ................................................................................................................ 142 Table 37: Program Details – KC-390 ................................................................................................................................................................ 143 Table 38: Program Details – P-8i military aircraft program ................................................................................................................................ 144 Table 39: Program Details – E-3 AWACS Block 40/45 Modification program .................................................................................................... 145 Table 40: Program Details – E-2D Advanced Hawkeye program ...................................................................................................................... 146 Table 41: Program Details – P-1 program ......................................................................................................................................................... 147 Table 42: Program Details – Su-34 fighter bombers program ........................................................................................................................... 148 Table 43: Program Details – FB-7 procurement program .................................................................................................................................. 149 Table 44: Program Details – M-346 Master ....................................................................................................................................................... 150 Table 45: Program Details – Hawk Aircraft ....................................................................................................................................................... 151 Table 46: Program Details – PC-7 MK II trainer program .................................................................................................................................. 152 Table 47: Program Details – MiG-31 Upgrade program .................................................................................................................................... 153 Table 48: Program Details – MF2000 Mirage F1 upgrade program ................................................................................................................... 154 Table 49: Lockheed Martin Corporation – Alliances .......................................................................................................................................... 157 Table 50: Lockheed Martin Corporation – Recent Contract Wins ...................................................................................................................... 158 Table 51: Boeing – Alliances ............................................................................................................................................................................ 163 Table 52: Boeing – Recent Contract Wins ........................................................................................................................................................ 163 Table 53: Cassidian – Alliances ........................................................................................................................................................................ 166 Table 54: Cassidian – Recent Contract Wins .................................................................................................................................................... 167 Table 55: Saab – Alliances .............................................................................................................................................................................. 168


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Table 56: Saab – Recent Contract Wins ........................................................................................................................................................... 169 Table 57: BAE Systems – Alliances .................................................................................................................................................................. 173 Table 58: BAE Systems – Recent Contract Wins .............................................................................................................................................. 174 Table 59: Northrop Grumman – Alliances ......................................................................................................................................................... 177 Table 60 Northrop Grumman – Recent Contract Wins ...................................................................................................................................... 178 Table 61: Airbus – Alliances ............................................................................................................................................................................. 182 Table 62: Airbus – Recent Contract Wins ......................................................................................................................................................... 182 Table 63: Embraer – Alliances .......................................................................................................................................................................... 183 Table 64: Embraer – Recent Contract Wins ...................................................................................................................................................... 184 Table 65: Dassault Aviation – Alliances ............................................................................................................................................................ 187 Table 66: Dassault Aviation – Recent Contract Wins ........................................................................................................................................ 187 Table 67: Russian Aircraft Corporation "MiG” – Alliances ................................................................................................................................. 191 Table 68: Russian Aircraft Corporation "MiG” – Recent Contract Wins ............................................................................................................. 191 Table 69: Sagem – Alliances ............................................................................................................................................................................ 192 Table 70: Sagem – Recent Contract Wins ........................................................................................................................................................ 193 Table 71: Pilatus Aircraft Limited – Alliances .................................................................................................................................................... 194 Table 72: Pilatus Aircraft Limited – Recent Contract Wins ................................................................................................................................ 194 Table 73: Alenia Aermachhi – Alliances ............................................................................................................................................................ 197 Table 74: Alenia Aermachhi – Recent Contract Wins ........................................................................................................................................ 197 Table 75: Eurofighter – Alliances ...................................................................................................................................................................... 199 Table 76: Eurofighter – Recent Contract Wins .................................................................................................................................................. 199 Table 77: Kawasaki Heavy Industries Limited – Alliances ................................................................................................................................. 201 Table 78: Sukhoi – Alliances ............................................................................................................................................................................. 204 Table 79: Sukhoi – Recent Contract Wins......................................................................................................................................................... 204 Table 80: Mitsubishi Heavy Industries – Alliances ............................................................................................................................................. 205 Table 81: Mitsubishi Heavy Industries – Recent Contract Wins......................................................................................................................... 206 Table 82: Cobham – Alliances .......................................................................................................................................................................... 209 Table 83: Cobham – Recent Contract Wins ...................................................................................................................................................... 209 Table 84: Hindustan Aeronautics Limited – Alliances ........................................................................................................................................ 212 Table 85: Hindustan Aeronautics Limited – Recent Contract Wins .................................................................................................................... 213


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1 Executive Summary

The global military aircraft market is expected to increase at a CAGR of XX% during the forecast

period

In 2013, the global military aircraft market will value US$XX billion and is expected to increase at a CAGR of

XX%, to reach US$XX billion by 2023. The demand for military aircraft is anticipated to be driven by internal as

well external security threats, territorial disputes, and modernization initiatives undertaken by armed forces

across the world. Cumulatively, the global market for military aircraft is expected to value US$XX billion during

the forecast period. The global military aircraft market is expected to be dominated by the US during the

forecast period, closely followed by the European and Asia-Pacific regions. Military aircraft are an area of

prime importance for the US DoD as these platforms facilitate the nation’s military with capabilities such as

rapid strike capability, rapid deployment, transport, command and control, surveillance, and reconnaissance.

Therefore, the US Government is expected to allocate significant funds for the procurement of and regular

modernization and upgrades for its military aircraft. European spending in the military aircraft market is

primarily driven by the need to replace the ageing aircraft fleets of most of the countries in the region. As such,

spending on military aircraft in Europe is expected to witness steady investment over the forecast period.

Demand for advanced technology military aircraft forecast to rise

To increase the capabilities of modern military aircraft, the global defense industry is investing significantly in

R&D, which has led to the development of technologies to enhance the speed, power, stealth capabilities,

destructive force, and takeoff and landing capabilities of the various types of military aircraft. Current

innovations are oriented towards increasing speed in the form of supersonic aircraft, increasing stealth

capabilities such as the F-35 and F-22 multi-role fighter jets, and enabling vertical takeoff and landing

capabilities. An example of advanced technology being used for design purposes is the US F-35, which has

been designed to have a low radar cross section, shaped to defeat radars operating in the X and upper S

band. Such radars are typically found in fighters, surface-to-air missiles, and their tracking radars

.


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2 Global Military Aircraft Market Size and Drivers

2.1 Global Military Aircraft Market Size and Forecast 2013–2023

2.1.1 Global military aircraft market expected to show positive growth during the forecast period

The global military aircraft market is estimated to value US$XX billion in 2013. The market consists of six

categories of aircraft: multi-role, transport, attack, reconnaissance and surveillance, bombers, and training.

The value of the global military aircraft market is expected to increase at a CAGR of XX% during the forecast

period, to reach US$XX billion by 2023. The military aircraft market is expected to grow to 2017 before a

marginal decline in 2018 and 2019, with recovery to 2023. Within the global military aircraft market, multi-role

aircraft are expected to account for XX% of the market, followed by transport aircraft, and reconnaissance and

surveillance aircraft, with shares of XX% and XX% respectively. During the forecast period, the cumulative

global expenditure on military aircraft is expected to reach US$XX billion.

The chart below shows the global military aircraft market during 2013–2023:

Figure 1: Global Military Aircraft Market (US$ Billion), 2013–2023

Source: SDI analysis © SDI

XX

XX

XX

XX

XX

XX

XX

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

US

$ B

illi

on

2023


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2.2 Global Military Aircraft Market – Regional Analysis

2.2.1 North America dominates the global military aircraft market

The US has recently recorded budget cuts and is expected to record further budget cuts during the forecast

period. Despite this, North America is expected to account for the largest share, of XX%, of the total global

expenditure on military aircraft during the forecast period. The high demand in the region is primarily driven by

the development of XX F-35 multi-role fighter aircraft, as part of the Joint Strike Fighter program and XX V-22

Osprey transport aircraft. Other programs contributing substantially to North America’s expenditure on military

aircraft include the procurement of XX P-8A Poseidon reconnaissance and surveillance aircraft and XX KC-

46A transport aircraft. Asia and Europe are also expected to account for a significant portion of the total

military aircraft during the forecast period, with shares of XX% and XX% respectively. This will be largely

driven by the efforts of countries such as India, China, and Russia to modernize their armed forces. The

Middle East, Latin America, and Africa account for XX%, XX%, and XX% of global military aircraft expenditure

respectively.

The table below gives a brief overview of military aircraft market:

Table 1: Global Military Aircraft Market Overview

Region Market in 2013 Market in 2023 Total Market (2013–2023)

Annualized growth/decline

(2013–2023)

North America US$XX million US$XX billion US$XX billion XX%

Asia Pacific US$XX million US$XX billion US$XX billion XX%

Europe US$XX million US$XX billion US$XX billion XX%

Middle East US$XX million US$XX billion US$XX billion XX%

Latin America US$XX million US$XX million US$XX billion XX%

Africa US$XX million US$XX million US$XX billion XX%

Total Military Aircraft Market US$XX billion US$XX billion US$XX billion XX%



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2.3 Global Military Aircraft Sub-Sector Market Size Composition

2.3.1 Multi-role aircraft to witness highest spending among all categories

The global demand for multi-role aircraft is expected to increase moderately over the forecast period, at a

CAGR of XX%, with spending remaining robust throughout. The category is expected to account for XX% of

the total military aircraft market; transport aircraft is expected to be the second largest category, with a share

of XX%. Reconnaissance and surveillance aircraft, bombers, training aircraft, and attack aircraft are estimated

to account for XX%, XX%, XX%, and XX% respectively.

The table below gives a brief overview of the global military aircraft market:

Table 2: Global Military Aircraft Market Overview

Particulars Market in 2013 Market in 2023 Total Market (2013–2023)

Annualized growth/ decline (2013–2023)

Multi-role aircraft US$XX billion US$XX billion US$XX billion XX%

Transport aircraft US$XX billion US$XX billion US$XX billion XX%

Reconnaissance and surveillance aircraft

US$XX billion US$XX billion US$XX billion XX%

Bombers US$XX billion US$XX billion US$XX billion XX%

Training aircraft US$XX billion US$XX billion US$XX billion XX%

Attack aircraft US$XX billion US$XX billion US$XX billion XX%

Multi-role aircraft US$XX billion US$XX billion US$XX billion XX%

Total Military Aircraft Market USXX billion US$XX billion US$XX billion XX%


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