Wednesday, September 11, 2013

New Report: The Global Military Fixed-Wing Aircraft Market Analysis 2013 - 2023



The Global Military Fixed-Wing Aircraft Market 2013 - 2023

Product Synopsis

This report is the result of SDI's extensive market and company research covering the global military aircraft industry. It provides detailed analysis of both historic and forecast global industry values, factors influencing demand, the challenges faced by industry participants, analysis of the leading companies in the industry, and key news.


Introduction and Landscape

Why was the report written?

The Global Military Aircraft Market 2013-2023” offers the reader detailed analysis of the global military aircraft market over the next ten years, alongside potential market opportunities to enter the industry, using detailed market size forecasts.

What are the key drivers behind recent market changes?

Many countries are expected to replace their ageing military aircraft fleet during the forecast period. The wars in Afghanistan and Iraq have meant that the US, which is the biggest market for military aircraft and other allied countries in Europe, Asia-Pacific, Latin America and the Middle East, need to replace their aircraft which have been in 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.  The US military has undertaken a significant investment plan to phase out its old fleet of military aircraft and replace them with more technologically advanced planes. Examples of US modernization initiatives include the Joint Strike Fighter program which involves the production of over 2400 F-35 aircraft at a cost of over US$392 billion, the production of 79 C-130J transport aircraft to replace its C-130E and C-130H models and 33 EA-18G Growler multi-role aircraft to replace the older Navy and Marine Corps equipment. Moreover, France is also procuring 50 A-400M transport aircraft to replace its fleet of Hercules and Transall military transporters as well as A330 multi-role tankers to replace KC-135 tankers, A340 and A310 transports.

What makes this report unique and essential to read?

The Global Military Aircraft Market 2013-2023” provides detailed analysis of the current 
industry size and growth expectations from 2013 to 2023, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

Key Features and Benefits

  • The report provides detailed analysis of the market for military aircraft during 2013-2023, including the factors that influence why countries are investing or cutting expenditure on military aircraft. It provides detailed expectations of growth rates and projected total expenditure.
  • A significant number of countries are investing in the development of their domestic military aircraft industries by establishing strategic alliances and technology transfer agreements with global military aircraft manufacturers. In addition to improving the indigenous capabilities of a domestic defense firm, this provides the foreign original equipment manufacturer (OEM) with an opportunity to cater to a new market. Furthermore, some European countries that are still suffering from the effects of a recession, including France, Germany, Italy, and the UK, are undertaking joint research and development projects to reduce the per-unit costs of an aircraft. Additionally, partnerships between countries that possess an advance defense industrial base, such as the UK and France, aid the mutual sharing of advanced technology.

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Key Market Issues

  • Traditionally, North America and Europe accounted for around 80% of global defense spending. However, the global economic downturn, US economic crisis, and European debt crisis are expected to negatively impact the defense spending and lead to defense budget cuts. As a consequence, the allocation for military aircraft is not expected to grow significantly during the forecast period owing to financial constraints faced by most of the leading defense spenders. For example, the US, the largest defense spender, announced defense budget cuts of US$178 billion between 2011 and 2015. As a result, the US government cancelled its C-17 transport aircraft project in 2010, which resulted in an estimated US$3 billion savings. In January 2011,  the German government decided to cut orders for A400M military transport aircraft from 60 to 53 aircraft and is also planning to sell 13 aircraft to foreign customers.
  • Aircraft such as the F-35 and F-22 require large amounts of on-board electrical power. Power demand has been rising sharply, especially for military platforms. Associated with this trend is an increased need for efficient power conversion and distribution, and thermal management systems. High power electrical systems on aircraft flying at high-speed and high altitude present unique thermal challenges both at the application and system level. Although electrical systems are highly efficient, the magnitude of on-board power demand and unique design aspects of on-board aviation systems lead to considerable thermal management challenges. Even if a 1 MW system were to be up to 95% efficient, a total of 50 kW of heat has to be removed without exceeding acceptable junction temperatures. This poses significant challenges to the thermal management system, as it has to remove the total capacity of waste heat with minimal temperature rise at a minimum of weight and volume.

Key Highlights

A prominent trend that is expected to be highlighted over the forecast period is the increased focus on the acquisition of multi-role aircraft. The multirole fighter aircraft market is expected to attract the largest amount of spending globally during the forecast period owing to its capability to function in multiple roles. The US DoD is undertaking its largest ever defense program known as the Joint Strike Fighter through which it intends to equip its Air Force with new F-35 multi-role aircraft. This program is estimated to value up to US$392 billion until 2037. Several other countries including Canada, Australia, UK, Italy, Norway, Netherlands, Turkey, Japan and Israel are also vying to acquire these fifth generation multi-role aircraft for their militaries. Furthermore, France and India are procuring 286 and 126 Rafale fighter aircraft which are cumulatively expected to value approximately US$25 billion. There are numerous models of multi-role aircraft under demand such as SU-30MK, Eurofighter Typhoon, F-16, F/A-18F Super Hornet, EA-18G Growler etc. by countries across the world in order to maintain their fleets' battle readiness.

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With a number of technological advances that have been implemented in modern ballistic missile technology, it has become possible for countries possessing such technologies to accurately target military installations or critical infrastructure of rival nations in different continents. Also, with the incorporation of stealth and radar evading technologies that have been developed for these missiles it has become imperative for countries defending against such attacks to possess early warning of the launch, the missile's trajectory and other details such as speed and elevation. This has spurred a number of major defense spending countries as well as developing countries to invest in the procurement of early warning aircraft which can detect missile launches and provide accurate flight data in order to facilitate timely counter action. It is anticipated that in order to enhance the quality of information derived from such aircraft platforms, these aircraft may also be linked to satellites. Countries which are expected to invest significantly in the acquisition of early warning aircraft include the US which will procure E-3 Sentry and E2D Hawkeye platforms, Chinese investment in the Kongjing 2000, Australian procurement and upgrade of the E7A Wedgetail platform and Brazil's upgrade of the Embraer 145 fleet among several others.

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