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The global helicopter market size was valued at USD 48.19 billion in 2019 and is projected to reach USD 68.34 billion by 2027, exhibiting a CAGR of 6.96% during the forecast period (2020-2027).
According to Airbus SAS, there will be almost 22,000 new rotorcraft demand in the next 20 years. The demand for robust systems and advanced technologies used in rotary-wing aircrafts will boost the growth of the market. The investment in infrastructure facilities by developing countries and the replacement of existing fleet are the factors for the drastic demand for rotorcraft. Moreover, the use of big data and industry 4.0 in maintenance, repair, and overhaul (MRO) will facilitate the growth of the market. The development of eVTOL is an another advanced feature for commercial applications. The development of smart city in Asian countries will propel the growth of the market.
However, the COVID-19 pandemic has changed the dynamics of the market for the upcoming years. To overcome this pandemic companies are focusing on factors such as
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Development of Autonomous Flight Technology to Aid Market Development
The advancement in technology such as artificial intelligence (AI), big data analytics, and the internet of things (IoT) has forged a new platform to develop real-time data-based systems. The drastic change in the military warfare systems has facilitated the manufacturers to imbibe these technologies in the rotary-wing aircraft. The governments across the countries are looking forward to procuring helicopters equipped with these user-friendly technologies to improve the efficiency of the fleet and the combat programs.
Rising demand for Advanced Military Helicopters due to Transnational Disputes
The rising transnational disputes on the border have led the government of various countries, mainly India and China, to strengthen their security, monitoring, and combat capabilities. Moreover, due to the rising disputes and terrorist activities, the government of various countries has increased their defense budgets. They are focused on modernizing and strengthening their defense capabilities, specifically fighter jets in the airborne domain.
The rising defense budget is anticipated to augment market growth. There has been a significant rise in the defense budget in recent years from the year 2016 to 2019. As stated by the Stockholm International Peace Research Institute (SIPRI), the global military expenditure has increased by 3.6% in 2019 as compared to 2018. This rising defense budget for modernization programs is expected to impact the market growth positively. The COVID-19 pandemic may hinder the growth of the market in 2020 and 2021.
Modernization of Conventional Rotary-wing Aircrafts to Boost Market Growth
Change in warfare and battlefield management, the need for modernization of conventional military rotorcraft has increased. Modernization is necessary to keep pace with the technological progress during the battlefield; this demand for up-gradation is expected to drive the growth of the market. Modernization aims to enhance quality, close the capability gap, and decrease the cost.
Similarly, commercial applications of rotary-wing aircrafts such as air ambulance service, firefighting, search and rescue operations. The manufacturers and service providers are investing in highly advanced rotary-wing aircrafts with high maneuverability and fuel-efficient engines. The demand for MRO services has also significantly improved due to the replacement of conventional equipment and systems with new equipment and systems, including the latest technologies.
High Cost Involved In the Research and Development (R&D) of Metrological Software and Engine Systems
The military rotary-wing aircrafts have to meet the standard for combat operations, surveillance applications, electronic warfare, and others. With an increase in technological development in airborne applications, the rotary-wing aircraft needs to be developed for its compatibility with other rotary-wing aircrafts. However, high costs are involved in R&D of the software, specifically metrological software and efficient engine development. The development, integration of systems across the platforms, and the maintenance of these systems are very expensive. Hence, the market growth is anticipated to affect due to these factors negatively.
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Civil and Commercial to Grow at Faster Pace during 2020-2027
On the basis of type, the market includes civil & commercial and military. The civil and commercial segment held a dominant share of the market in 2019. The dominance is due to the high demand for emergency medical service helicopters, offshore applications, and corporate services. The military segment is projected to register a higher CAGR by 2027 due to its surveillance and homeland security applications. Moreover, the rise in the procurement of advanced military rotorcraft for border security will propel the growth of the market.
A surge in the Usage of Rotary-wing Aircraft for Oil and Gas Rigs
Based on application, the market is segmented into emergency medical service (EMS), corporate services, search and rescue operations, oil and gas, defense, homeland security, and others. EMS segment accounted for the largest helicopter market share in 2019. Owing to the rise in the demand for medical services during COVID-19 pandemic for faster and safer transport.The oil and gas segment is anticipated to project a significant CAGR during the forecast period on account of the rise in oil and gas exploration activities in the Middle East and Africa, specifically in Saudi Arabia.
Engine Segment to Register a Higher CAGR during the Forecast Period
In terms of system, the market is segmented into airframe, engine, avionics, landing gear system, and cabin interiors. The engine segment isexpected to have a dominant share in the market during the forecast period. The dominance is due to technological advancement for hybrid-based engine and investment in single engine MRO services. The avionics segment is expected to grow at a significant CAGR during the forecast period due to the increasing demand for metrological software, real-time data management, and other electronic systems and equipment.
Rise in the Demand for Replacement of Conventional Rotorcraft Parts to Propel the Growth of Aftermarket Segment
In terms of point of sale, the market is segmented into OEM and aftermarket. The OEM segment is expected to have a dominant share in the rotary-wing aircraft market during the forecast period. The dominance is due to an increase in demand for technologically advanced military and civil helicopters in Asian countries, specifically China and India.The aftermarket segment is expected to grow at a significant CAGR during the forecast period due to a rise in the demand for replacement of systems and components in the existing rotary-wing aircrafts.
North America Helicopter Market Size, 2019 (USD Billion)
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The market size in North America stood at USD 14.41 billion in 2019. The regional dominance is attributable to the presence of major players in the market and the rise in defense expenditure by the U.S. government on the modernization of military rotorcraft. Similarly, there has been a rise in the demand for rotary-wing aircrafts in air ambulance applications and other American helicopters for search and rescue missions along with healthcare services during the COVID-19 pandemic. This, along with the presence of favorable policies in the U.S and Canada, are behind the dominance of the market in North America. The European market is expected to grow at a significant CAGR owing to the rising awareness regarding advanced technology-based rotary-wing aircrafts. The market in the Asia Pacific is expected to exhibit healthy growth owing to the increasing investment by commercial key players in countries such as China and India. South America & the Middle East & Africa accounted for a comparatively lower share of the market owing to the presence of a OEMs and defense activities market.
Advanced Technology Based Development by Airbus SAS and Bell Helicopter Textron to Lead the Global Market.
The number of players areinvolved in designing and developing advanced helicopters for various commercial and military. Companies are looking forward to developing the technologically advanced product and establish a strong partnership with the government of developed and emerging countries. Currently, Airbus SAS, The Boeing Company, and Bell Helicopter Textronlead the market, these three companies accounting formore than 60% market share in 2019. The impact of COVID-19 pandemic has changed dynamics of these companies and thus compelled to rethink on the strategies of respective companies.
The helicopter market research report provides a detailed industry analysis and focuses on key aspects such as leading companies, types, and leading applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
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Value (USD billion)
By Point of Sale
Fortune Business Insights says that the global helicopter market size was valued at USD 48.19 billion in 2019 and is projected to reach USD 68.34 billion by 2027.
In 2019, the North America market value stood at USD 14.41 billion.
Growing at a CAGR of 6.96%, the market will exhibit steady growth in the forecast period (2020-2027).
The emergency medical service (EMS) segment is expected to be the leading segment in the market during the forecast period.
An increase in demand for advanced helicopters due to growing transnational disputes and modernization of conventional to technologically advanced helicopters is a factor driving the growth of the market.
Airbus SAS, The Boeing Company, Leonardo Spa, Bell Helicopter Textron, Lockheed Martin Corporation are major players of the global market.
North America dominated the market share in 2019.
The key companies are adopting expansion strategies by establishing a strong partnership with the companies and governments. Moreover, companies are also involved in designing and developing advanced helicopters for various applications.
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