Rising Tensions & the Balance of Power Will Drive the Global Military Fixed-Wing Aircraft Market Over the Next Decade

Thursday 12 September 2013, Amsterdam

Over the next decade the demand for military aircraft is expected to be driven by internal and external security threats, territorial disputes and modernization initiatives are expected to drive marginal growth – at a CAGR of 2.54% - in the Global Military Fixed-Wing Aircraft market, according to this new report: The Global Military Fixed-Wing Aircraft 2013-2023. This market will be dominated by the US, with military aircraft considered an area of prime importance for the US DoD, thanks to their facilitating the nation’s military with rapid strike capability, rapid deployment, transport, command and control, surveillance, and reconnaissance; consequently, the US Government is expected to allocate significant funds for the procurement of, and regular modernization and upgrades for its military aircraft

North America is the largest international market for military aircraft owing to the robust expenditure on the sector by the US, with Canada’s share of regional spending being comparatively small. Multi-role aircraft is expected to be the North American market’s largest segment due to major procurement projects such as the Joint Strike Fighter and the modernization or upgrade of programs of various aircraft including the F-22, F-16, and F-15. Ultimately, the North American market for military aircraft is expected to value US$34 billion by 2023, with the cumulative expenditure on military aircraft in the region during the preceding decade set to be US$326.4 billion.

KEY DEMAND DRIVERS & GROWTH STIMULATORS
A number of key demand drivers will stimulate growth in the global fixed-wing aircraft market over the next decade, and a proper understanding of these is vital for those seeking to capitalize on the opportunities it presents.

Modernization
Many countries are expected to replace their military aircraft fleets over the next ten years. One significant factor in this are the wars in Afghanistan and Iraq, with the US and its allies having taken a toll on their military aircraft after almost continuous use over the last decade. Moreover, the global threat posed by countries such as Iran, North Korea, and recently Syria, means that nations have to be adequately prepared militarily in the event of a hostile attack.

Rising Tensions
In 2013, the global environment is characterized by ongoing tensions and conflicts among various countries around the world. These tensions – either military or diplomatic – are supporting the demand for military aircraft globally. Historically, countries follow a policy of enhancing their military as a deterrent to hostile nations and consequently the military aircraft market is recording strong growth despite existing budget cuts.
Examples of tensions between countries include India and Pakistan, India and China, North Korea and South Korea, Brazil and Colombia, Venezuela and Ecuador, and Chile and Peru. The chemical weapons attack in Syria and the consequent military intervention anticipated by the US is a recent example of growing tensions that will primarily drive the demand for multi-role aircraft.  

Balance of Power
During the past decade, the defense ministries of major countries around the world spent significantly on procuring aircraft of various types for their peacekeeping operations in Iraq and Afghanistan. With the completion of war in Iraq and the withdrawal of troops in Afghanistan, these countries are currently cutting down their spending on the sector owing to the prevailing economic climate and budget cuts. However, the industry is expected to be sustained by some major long term programs and the persistent need for maintenance and upgrade of ageing aircraft fleets.
Additionally, the growth in the market can be attributed to the needs of various countries in a region such as India, Pakistan, China, etc., in the Asia Pacific to maintain the balance of power. The rapid growth of the Chinese military strength is spurring reactive measures from countries including the US, India, Taiwan, South Korea etc. These factors are therefore expected to result in the sustainment of the military aircraft market during the forecast period.

The Global Military Fixed Wing Aircraft Market 2013-2023
The Global Military Fixed Wing Aircraft Market 2013-2023 provides detailed analysis of the global Military Fixed-Wing Aircraft market, offering insight regarding countries’ fluctuating defense expenditure, the changing preferences of military forces and the industry trends this sparks, and analysis of the key markets in each region. Furthermore, it offers SWOT analysis of the Military Fixed-Wing Aircraft market, along with details of major programs in each segment, and a rigorous investigation of the competitive landscape of the industry.
With this rich provision of data and analysis, The Global Military Fixed Wing Aircraft 2013-2023 facilitates a clear understanding of the market and its drivers, the competitive landscape, and the clear and informed identification of market opportunities and entry strategies, and can be considered required reading for those seriously seeking to capitalize on the opportunities presented by the global Military Fixed-Wing Aircraft market.

This report offers detailed analysis of the global Military Fixed-Wing Aircraft market over the next ten years. In particular, it provides an in depth analysis of:

• Global military fixed-wing aircraft market size and drivers: detailed analysis of the market for military fixed-wing aircraft during 2013-202 , including the factors that influence the reasons countries are investing or cutting defense expenditure.
• Recent developments and industry challenges: insights into the developments in the military fixed-wing aircraft market and a detailed analysis of the changing preferences of military forces around the world. It also analyses changing industry structure trends and the challenges faced by the industry participants.
• SWOT analysis of military fixed-wing aircraft market: a study of the military fixed-wing aircraft industry’s characteristics using SWOT analysis to determine its strengths, weaknesses, opportunities, and threats.
• Global military fixed-wing aircraft analysis: analysis of the key markets in each region, providing an analysis of the top three military fixed-wing aircraft segments expected to be in demand in each region.
• Major programs: details of the top three programs in each segment expected to be executed during the forecast period.
• Competitive landscape and strategic insights: analysis of competitive landscape of the military fixed-wing aircraft industry. It provides an overview of key defense companies, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

This will facilitate:

• Clear identification of market opportunities and entry strategies to gain or grow market share in the global military fixed-wing aircraft market.
• A proper understanding of the competitive landscape of the military fixed-wing aircraft market, including key domestic and foreign defense companies, key alliances and strategic initiatives.
• A clear understanding of market drivers, and actionable insight on forthcoming developments that will shape the landscape of opportunity for the foreseeable future.