Global helicopter market to hit $74.46 bn level by 2029
Increased demand for military helicopters is a significant growth driver for the helicopters market
image for illustrative purpose
The global helicopter market size is expected to grow from $48.74 billion in 2022 to $74.46 billion by 2029, at a CAGR of 6.24 per cent in forecast period, 2022-2029. Increased demand for military helicopters is a significant growth driver for the helicopters market. Increased demand for light weight and emergency medical services (EMS) helicopters are other drivers for the market, according to a recent report.
The helicopter market includes major players Airbus Helicopters SAS (France), Bell Helicopters (US), The Boeing Company (US) and Leonardo S.p.A. (Italy). These players have spread their business across various regions like North America, Europe, Asia Pacific, Middle East, Africa, and South America. Covid-19 has impacted their businesses as well.
The Maintenance, Repair, and Overhaul (MRO) industry is an emerging segment that contributes to the largest market in airworthiness of helicopters for the safety of passengers, operations, and other crew members.
Furthermore, rotorcraft MRO includes the replacement of different systems or repair. Rotorcraft MRO includes spare parts & component management, component services, and cockpit and cabin upgrades. The MRO operations improve rotor global market growth.
Saving fuel and operational efficiency are the prime focus areas of helicopter manufacturers based on end-user requirements. Technological advancements in the aerospace and defense industry and demand for improved helicopter power performance are driving the need to update military and commercial helicopters. Manufacturers have undertaken efforts to reduce the overall weight of helicopter engines to help reduce fuel consumption and enhance cost-effectiveness. Increased efforts of helicopter manufacturers to reduce the size and weight of helicopters have resulted in technological advancements. On average, a helicopter engine weighs approximately 10-15 per cent of the overall operating weight, depending on the helicopter type and the application. Moreover, fuel is one of the major costs for helicopter operators.
Combat helicopter manufacturers are expected to face tough market conditions during the next few years owing to the declining defense budgets of the US, Japan, the UK, France, Italy, and Russia, among others. The declining defense budgets are expected to significantly impact the helicopters market.
The market is segmented into North America, Asia Pacific, Europe, and the rest of the world.
North America dominated the market in 2021 and was valued at $17.15 billion. The growth is attributed to highest defense expenditure, and large number of procurement of advanced lightweight helicopters from the company, Bell Textron, Lockheed Martin Corporation, and others propel the market growth in the region.
The North American market is expected to grow significantly during the forecast period due to the growing demand for rotorcraft in the oil and gas and renewable energy industries. The Asia Pacific market was valued at the largest revenue share in 2021 and is expected to grow during the forecast period. Due to the easing of space rules and the rise of the regional aviation sector, countries like India and China are likely to emerge as fast-growing markets. Asia Pacific is expected to display significant growth during 2021-2028. The growth is attributed to increase in the economies such as India and China.
Asia-Pacific is anticipated to grow at a higher CAGR of 7.8 per cent from 2022 to 2030. Factors such as investment in indigenous aviation, relaxation of airspace restrictions, rising tourism demand for rotorcraft, and infrastructure development in emerging economies are expected to drive the growth of commercial helicopters in the region.
Europe will witness significant growth due to increase in defense expenditure from the UK, Russia, and Germany. Russian and European made aircraft are trusted worldwide for their high precision and reliability standards on surveillance applications.
The rest of the world is expected to showcase moderate growth from 2022 to 2029. This growth is due to improve of next-generation rotorcraft from Israel, Saudi Arabia, and others. The growing programs for modernization of budget in Latin American and the Middle Eastern countries are expected to foster the market growth.
