The fighter jet market is a key component of the larger aerospace and defense sector, typified by quick technological progress and increased geopolitical tensions. The past few years have witnessed a high level of demand for sophisticated fighter aircraft, stemming from the desire for technologically advanced air forces to counter asymmetric warfare and new threats. Countries globally are modernizing their air warfare capabilities by investing in fifth-generation planes, which have stealth capability, advanced avionics, and state-of-the-art missile systems. Moreover, international defense cooperation and alliances are impacting the market, resulting in more production and export operations. As countries place defense budgets high on their agenda in view of changing security issues, the market for fighter jets is likely to witness consistent growth during the forecast period, with investments in research and development pouring in to improve performance and combat capabilities.

Fighter Jet Market Driver

Rising Security Concerns and Modernization Efforts Boost Market Growth

The development of the fighter aircraft market is greatly driven by various critical factors, with increasing security issues and modernization processes being the foremost. With the heightening of geopolitical tensions and terrorism threats, countries are devoting more efforts to their defense systems, resulting in increased demand for advanced fighter jets. Moreover, most countries aim at modernizing their current fleets to improve operational effectiveness and facilitate interoperability with allies. This modernization includes the upgrading of avionics, weaponry, and the general performance of the aircraft, fueling further market growth. Collectively, these factors provide a strong framework for investment and growth in the fighter jet market during the considered forecast period.

Fighter Jet Market Restraint

High Development, Maintenance, and Procurement Costs Hinder Market

The market experiences various limiting factors that have a strong effect on its growth and sustainability. One of the main issues is the enormous development, upkeep, and purchasing expenditure of sophisticated fighter aircraft. Such expenses may discourage potential purchasers, especially for nations with small defense budgets. Further, the growing use of Unmanned Aerial Vehicles (UAVs) presents the challenge of competition to conventional manned fighter aircraft. As military activities become more dependent on UAVs for all types of missions because of their affordability and lower human life risk, the market for fighter jets could feel the pinch. All these factors collectively make the environment for the fighter jet market difficult to increase and grow.

Fighter Jet Market Trend

Introduction of Multirole Aircraft, Integration of AI and Electronic Warfare, and Other Advancements are Emerging as Major Trends in Market

The advent of multirole aircraft is a significant trend that has emerged in the market, enabling greater adaptability and cost-effectiveness in terms of a variety of missions. Furthermore, the combination of artificial intelligence (AI) and sophisticated electronic warfare capability is heightening the performance of fighter aircraft, allowing for more advanced threat detection and countermeasures. These technology advancements, coupled with continued breakthroughs in stealth, weaponry, and communication systems, are paving the way for sixth-generation fighter jets. These trends are expected to propel the market during the forecast period.

For instance, in March 2025, the U.S. President Donald Trump awarded Boeing the contract to build the Air Force’s next-generation fighter jet, the F-47, under the highly anticipated Next Generation Air Dominance (NGAD) program. The deal, valued at over USD 20 billion, is set to replace Lockheed Martin’s F-22 Raptor with a new crewed aircraft designed to operate alongside drones.

Segmentation

 Analysis by Engine Configuration

The fighter jet market can be segmented by engine configuration into single-engine and twin-engine.

Currently, the market is dominated by fighter jets with a twin-engine configuration. This dominance is due to superior thrust and performance, better redundancy for combat survivability, and the ability to carry heavier payloads. This segment is expected to show good growth during the forecast period.

The single-engine segment is expected to show fast growth during the forecast period due to cost efficiency, reduced maintenance, and better fuel economy.

Analysis by Role

The fighter jet market can be segmented by role of the jet into air superiority, carrier-based, fighter-bomber, multi-role, electronic warfare, and trainer.

The multi-role segment holds the largest market share currently. Military organizations prefer jets that can function effectively in air-to-air, air-to-ground, and reconnaissance missions. This increases flexibility in operations and helps in reducing fleet diversity, which can also help in reducing operational and maintenance costs.

The electronic warfare segment is expected to show the fastest growth during the forecast period, driven by the need for electronic superiority in the modern digital battlefield.

The trainer segment is also expected to show great growth during the forecast period as sixth-generation fighters come into service and training becomes essential.

Analysis by MTOW Capacity

The fighter jet market can be segmented by MTOW (Maximum Take-Off Weight) capacity into Light (Below 15000 lbs), Medium (15000 - 40000 lbs), and Heavy (Above 40000 lbs).

The medium segment holds the largest market share. This is due to the balance this segment strikes between agility and combat endurance, which also makes them suited for both defensive and offensive operations. This segment is expected to show great growth during the forecast period.

The heavy segment is expected to show the fastest growth during the forecast period, driven by rising demand for jets capable of longer and more strategic missions, and also the ability to carry heavier payloads.

Analysis by Mission Radius

The fighter jet market can be segmented by mission radius into short range - tactical (less than 1000 km), medium range (1000 km - 2500 km), and long range - strategic (above 2500 km).

Medium-range fighters dominate the current market due to their compatibility with a wide range of missions. These jets are capable of both offensive and defensive missions and generally don’t require midair refueling, which makes them highly desirable. This segment is expected to show good growth during the forecast period.

The long-range fighter segment is expected to show the fastest growth during the forecast period. This is due to the overall shift towards more strategic and power-projection operations. Long-range jets are preferred for naval operations, for conducting operations where the only option to land is on aircraft carriers at sea.

Analysis by Component

The fighter jet market can be segmented by components used in it into airframe & mechanisms, sensor & avionics suite, propulsion systems, weapons, countermeasures, control surfaces, flight control systems, cockpit systems, and mission systems & software.

Sensors and avionics suites dominate the market as they are very crucial and also require frequent maintenance and upgrades. This segment is expected to show impressive growth during the forecast period.

Mission systems and software are expected to show the fastest growth during the forecast period, driven by a shift toward electronic warfare, integration of AI, network-centric warfare, and multi-platform coordination.

Analysis by End User

The fighter jet market can be segmented by end users into the air force, navy, and special forces.

The air force dominates the market as it is a primary user of fighter jets across nations. They conduct operations to ensure national security, deterrence, and other missions. This segment is expected to show great growth during the forecast period.

The naval aviation segment is expected to show the fastest growth during the forecast period, driven by rising demand for carrier-based fighters as countries look for ways to increase their maritime defense capabilities. This has led to the navy procuring jets more than ever, and thus, this segment is expected to show the fastest growth.

Regional Analysis

The fighter jet market can be segmented regionally into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America currently dominates the market, driven by a huge defense budget and large procurement of fighter jets. This region also has excellent manufacturing capabilities for different components. This region is also dominant in the exports of jets. This region is thus expected to show good growth during the forecast period.

The Asia Pacific region is expected to show the fastest growth during the forecast period. Developing countries such as India, China, South Korea, and others are actively expanding and upgrading their fleet through procurement and modernization programs. This is driven by increasing military budgets and the rise of geopolitical tensions over certain areas in this region.

For instance, in June 2025, Dassault Aviation and Tata Advanced Systems Limited signed four Production Transfer Agreements to manufacture the Rafale fighter aircraft fuselage in India, marking a significant step forward in strengthening the country’s aerospace manufacturing capabilities and supporting global supply chains. Tata Advanced Systems will set up a cutting-edge production facility in Hyderabad for the manufacture of key structural sections of the Rafale, including the lateral shells of the rear fuselage, the complete rear section, the central fuselage, and the front section.

Key Insights

• The report covers the following key insights:
• Latest Technological Advancements/Developments.
• Increasing demand for Fighter Jets.
•  Upcoming missions that have the potential to drive market growth.

Potential Market According to Regions

 Key Players Covered:

•   Lockheed Martin Corp. -- (U.S.)
•  Airbus SE -- (Netherlands)
• The Boeing Company -- (U.S.)
• BAE Systems plc. -- (U.K.)
• Northrop Grumman Corp. -- (U.S.
• General Dynamics Corp. -- (U.S.
•  Dassault Aviation SA -- (France
• Hindustan Aeronautics Ltd. -- (India)
• Chengdu Aircraft Corp. -- (China)
•  Textron Inc. -- (U.S.)
•  Embraer S.A. -- (Brazil)
•  Saab AB -- (Sweden)

Key Industry Developments

•  In June 2025, the Czech Republic Ministry of Defence (MoD) gave its consent to the Swedish proposal to extend the lease of its Saab JAS-39 Gripen multirole fighter aircraft fleet. The agreement, which extends the contract until 2035, received backing from the Minister of Defence’s Collegium. The proposed agreement is set to be submitted to the government for approval.
• In February 2025, Lockheed Martin Corporation’s LMT Aeronautics business segment clinched a modification contract to support the F-35 Joint Strike Fighter aircraft program. The award has been provided by the Naval Air Systems Command, Patuxent River, Maryland. Valued at nearly USD 28 million, the contract is expected to be completed by December 2028. Per the terms of the deal, Lockheed will provide program management support for special test and tooling equipment, aircraft modifications, and flight test instrumentation to aid the F-35 Joint Strike Fighter aircraft. The contract will serve the U.S. Navy, Air Force, Marine Corps, Foreign Military Sales customers, and non-Department of Defense participants. The work related to this deal will be executed in Fort Worth, Texas.
•   In November 2024, Kongsberg Defence & Aerospace was awarded a USD 171.72m contract to provide Joint Strike Missiles (JSM) for the Japan Air Self-Defense Force’s (JASDF) F-35A fighter jet fleet.
•  In September 2024, the US government approved the potential sale of 20 F-16 fighter jets valued at approximately USD 5.6 billion to the Philippines Air Defence. This acquisition will enhance the Philippine Air Force’s ability to safeguard its airspace, improve regional security, and boost interoperability with allied forces in the Indo-Pacific.