According to Custom Market Insights (CMI), The Global Military Aircraft Modernization and Retrofit Market size was estimated at USD (52.4B) in 2021 and is expected to hit around USD (72.7B) by 2030, poised to grow at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2030.
A military aircraft is modernized, updated, or retrofitted by adding new capabilities and features or making other changes to the plane to keep it current with the demands of the military and advancing technology.
Any rotary- or fixed-wing aircraft flown by a legitimate armed service qualifies as a military aircraft. They are employed for combat operations or the movement of military people and equipment. To extend their service life for contemporary combat conditions and strategic objectives, the fleet must be modernized and equipped with new aircraft equipment. These aircraft are equipped with current aircraft systems and parts to remain operable. Some Eastern European and Asia-Pacific nations have the highest prevalence of this tendency. These markets chose the refit option due to tight budgets and an aging fleet composed mainly of aircraft from the Soviet period. Military aircraft modernization and refit enable the construction and modification of an existing aircraft with a digital cockpit, weaponry, mission, and defensive equipment. It improves functionality, extends service life, carries out regular maintenance, upgrades the avionics system, and fixes mechanical issues.
Browse the full “Military Aircraft Modernization and Retrofit Market Size, Trends and Insights By Aircraft Type (Fixed-wing Aircraft, Helicopter), By Application (Combat aircraft, Multirole aircraft, Multirole transport, Others), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share Outlook, and Forecast 2022–2030” report at ReportURL
Market Dynamics.
Drivers.
Both combat and non-combat aircraft platforms are used in military aircraft. Combat aircraft are often produced and acquired only by the armed forces and are intended to attack, conduct reconnaissance & surveillance, and destroy the adversary using their own weaponry. The non-combat planes are employed for training and transportation. The military, border patrol authorities, law enforcement, paramilitary forces, and other specialized security organizations use these aircraft. The market is expanding due to evolving threats and rising geopolitical instability. The sector is highly concentrated in terms of suppliers and customers and is heavily dependent on government funding. Market expansion is anticipated in areas like Asia Pacific and Europe.
Aircraft using fifth-generation technology
High-performance airframes, low probability-of-intercept radar (LPR), cutting-edge avionics features, and highly integrated computer systems that can communicate with other components in the battlespace for situation awareness are just a few of the features that make the fifth-generation jet fighter more popular than ever. The military aircraft market will benefit as a result of this. Hindustan Aeronautics Limited and the Aeronautical Development Agency are working together to produce the HAL Advanced Medium Combat Aircraft (AMCA), an Indian fifth-generation supermaneuverable stealth multirole fighter (ADA).
Rising geopolitical tensions
Governmental organizations from many nations are updating their current fleet of military aircraft with cutting-edge technology and components in response to escalating geopolitical tensions to preserve a strategic edge on the modern battlefield. This stands as one of the significant elements favorably affecting market expansion. Additionally, the popularity of combat aircraft is driving demand for military aircraft modification and retrofitting to upgrade their aerial combat and surveillance capabilities by equipping them with defensive mechanisms and equipment.
Investment in research and development
Market participants are investing in research and development (R&D) operations to improve aircraft speed, destructive force, power, and stealth capabilities and offer autopilot landing systems to aid pilots in severe weather. Market participants are investing in research and development (R&D) operations. In addition, to increase situational awareness and lighten the strain on pilots, these players are also incorporating advanced communication navigation surveillance (CNS) systems. In the upcoming years, this is expected to provide manufacturers with attractive chances to increase their customer base.
Demand for modifications to older aircraft
Modern technology must be added to older aircraft to satisfy mission requirements and combat growing threats. Most military aircraft are of the fourth generation, which can incorporate modern radars and are adaptable. The fifth-generation types of military aircraft are the latest and most advanced technologically. They have contemporary avionics, data connection, and sensors. Increasing investments in military modernization and rising public awareness of the advantages of military aircraft are anticipated to fuel demand for military aviation globally for the projected period.
Restraints.
Uncrewed aerial vehicles (UAVs) are employed for target acquisition, reconnaissance, and surveillance. In addition, they offer combat operations, delivery and transportation, and battle damage control. The safety of the crew members is a crucial factor driving an increase in demand for UAVs. However, an increase in UAV usage would restrict the market’s expansion.
Opportunities.
The U.S. Navy (USN) and U.S. Air Force (USAF) have each established their own standards for a sixth-generation fighter. In addition, new technological improvements are giving opportunities for the military aircraft market.
Challenges.
The shortage of parts for military aircraft may challenge the modernization and retrofit market growth. The old aircraft model production has been stopped and their features are available in a very stringent manner.
Report Highlights.
Based on aircraft type, the fixed-wing aircraft category is expected to grow at the most excellent CAGR and is projected to be in a dominant position in the future. Due to rising demand for the expansion of the air force fleet and rising defense expenditures for combat aircraft, the fixed-wing sector is predicted to be the largest segment in the market.
Based on application, the multirole segment is the leading segment and is expected to significantly contribute to the military aircraft modernization and retrofit market. A multi-role combat aircraft (MRCA) is designed for many combat missions. For example, air-to-air combat, air support, aerial bombardment, reconnaissance, electronic warfare, and the defeat of air defenses can all fall under this category.
Regional Snapshots.
North America held a dominant position and is predicted to dominate during the forecast period in the military aircraft modernization and retrofit market. In terms of both human-crewed and uncrewed military aircraft, it is anticipated that the U.S. will account for more than 50% of worldwide demand. North American nations, particularly the U.S., have been at the forefront of creating modern aerial assets to maintain their air superiority. To improve its aerial combat capabilities, North America is replacing its aging fighter jet, helicopter, and unmanned aerial vehicle fleet with newer models while upgrading its current fleet. Hence, the demand for military aircraft is increasing in this region which drives this region’s dominance across the globe.
Report Scope
| Feature of the Report | Details |
| Market Size in 2021 | USD (year from) |
| Projected Market Size in 2030 | USD (yearto) |
| Market Size in 2022 | USD (2022Value) Billion/Million |
| CAGR Growth Rate | XX% CAGR |
| Base Year | 2021 |
| Forecast Period | 2022-2030 |
| Prominent Players | ARINC, Thales Group, Boeing, IAI, Lockheed Martin, Rockwell Collins, Northrop Grumman, Cassidian, Lufthansa, BAE Systems, Dassault Aviation, Elbit Systems, Leonardo-Finmeccanica, and Others |
| Key Segment | By Aircraft Type, Application, and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors, and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfill your requirements for research. |
Key Players
- ARINC
- Thales Group
- Boeing
- IAI
- Lockheed Martin
- Rockwell Collins
- Northrop Grumman
- Cassidian
- Lufthansa
- BAE Systems
- Dassault Aviation
- Elbit Systems
- Leonardo-Finmeccanica
Recent Developments.
The most significant contract to date for the fighter program was awarded to Lockheed Martin Corporation by the US Department of Defense for the delivery of 478 F-35 aircraft. Due to this deal, all three F-35 aircraft types will have an average cost decrease of 12.7%.
Segments covered in the report
By Aircraft Type
- Fixed-wing Aircraft
- Helicopter
By Application
- Combat aircraft
- Multirole aircraft
- Multirole transport
- Others
On the basis of Geography
North America
- The U.S.
- Canada
- Mexico
Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America