Military Aircraft Modernization And Retrofit Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 52.33 Billion |
| Market Size (2029) | USD 52.44 Billion |
| CAGR (2024 - 2029) | 0.04 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Military Aircraft Modernization And Retrofit Market Analysis
The Military Aircraft Modernization And Retrofit Market size is estimated at USD 52.33 billion in 2024, and is expected to reach USD 52.44 billion by 2029, growing at a CAGR of 0.04% during the forecast period (2024-2029).
- The military aviation sector has faced mild challenges during the pandemic. Major defense contractors such as Airbus and Boeing halted production due to employee safety concerns and lockdowns imposed by governments. Local players faced supply chain issues and a shortage of components which hindered market growth during the pandemic period. The market showcased a strong recovery post covid due to the increasing number of military modernization programs and rising procurement of advanced military aircraft.
- The increasing military expenditure of emerging economies is propelling investments in the modernization of the existing equipment in aging aircraft, mainly with new and advanced equipment. This is expected to drive the growth of the military aircraft modernization and retrofit market during the forecast period.
- The evolution of technology in military aircraft, such as advanced materials, avionics, and mission systems, contributes to the growth of the market. As aircraft become more sophisticated, specialized expertise and advanced diagnostics tools are required to maintain and repair these complex systems effectively.
- The incorporation of advanced technologies, including stealth capabilities and cybersecurity measures, presents new challenges and opportunities for MRO providers, driving the need for specialized services and expertise to address these evolving requirements. Continuous technological advancements and innovations also drive market growth in military aviation.
Military Aircraft Modernization And Retrofit Market Trends
Fixed-Wing Aircraft Segment Holds Highest Shares in the Market
- The fixed-wing aircraft segment currently dominates the market, and it is expected to continue its dominance during the forecast period. The growth is attributed to the increasing procurement of fighter jets to improve air force capabilities and the rising number of military aircraft modernization programs. The old and aging aircraft fleet of various armed forces includes F-16 Fighting Falcon, F-15 Eagle, Northrop F-5, Sukhoi Su-27, L-100 Hercules, Antonov An-24, and Antonov An-24, among others. Developments in military equipment and onboard military aircraft, as well as the growth in the need for life extension programs, are bolstering the growth of the segment during the forecast period.
- For instance, in March 2023, Leonardo S.p.A and Armaereo, the Italian Defence Ministry's Air Force Armament and Airworthiness Directorate, signed a contract to upgrade Italian Air Force's C-27J Spartan fleet. The contract includes the development, integration, qualification, and certification of a new avionics configuration for the C-27J, the upgradation of the self-protection system, the replacement of general systems on the aircraft, and the flight simulator. It also includes the delivery of the first aircraft in this configuration and retrofitting of the remaining 11 aircraft. Such developments and modernization contracts drive the growth of the market during the forecast period.
Asia-Pacific Will Showcase Remarkable Growth During the Forecast Period
- The Asia-Pacific region is anticipated to register the highest growth during the forecast period. The increasing military spending and current ongoing political tensions in the region are propelling the modernization plans of the aging military aircraft fleet in the region. According to the 2022 edition of the Stockholm International Peace Research Institute (SIPRI) report, China and India were the second and fourth largest defense spenders in the world, with a defense budget of USD 293 billion and USD 81.4 billion, respectively. The Asian countries are upgrading their existing fleet of fighter aircraft to enhance their situational awareness.
- For instance, in February 2023, the Crown Group, which has a significant experience in modernization activities, announced that they would be providing full maintenance, replacement, and avionics support to the existing fleet of Indian fighter jets, such as the MiG 29K of the Indian Navy and the MiG 29, Mirage 2000 and Sukhoi under its significant international OEM tie up. Moreover, the Group is also supporting the Atmanirbhar Bharat initiative. It has set up two state-of-the-art facilities, managed by a core team of trained professionals from the military and industry catering to Defense Aerospace MRO and Avionics Repairs. Thus, increasing investment in military aircraft modernization and retrofitting programs and growing military aircraft fleets drive the growth of the market across the region.
Military Aircraft Modernization And Retrofit Industry Overview
The military aircraft modernization and retrofit market is fragmented with many players supporting various aircraft programs, along with a diversified product portfolio. Some of the prominent players in this market are Lockheed Martin Corporation, Northrop Grumman Corporation, RTX Corporation, Elbit Systems Ltd., and BAE Systems plc, among others.
Advancements in cockpit technologies, weapon systems, and structural upgrades are some of the factors driving the growth of the military aircraft upgrade and retrofit market as several countries look to modernize their existing fleet and enhance their aerial combat and surveillance capabilities.
The growing demand for modernization will open new market opportunities for manufacturers and the contracts from various countries for the modernization of existing aircraft equipment are expected to help the companies enhance their global presence as well as sales in the coming years.
Military Aircraft Modernization And Retrofit Market Leaders
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Lockheed Martin Corporation
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Northrop Grumman Corporation
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BAE Systems plc
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Elbit Systems Ltd.
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RTX Corporation
*Disclaimer: Major Players sorted in no particular order
Military Aircraft Modernization And Retrofit Market News
- June 2023: Following the announcement of the qualification of the combat aircraft to the F4.1 standard in March 2023, DGA, the French procurement agency, proceeded with retrofitting the Dassault Rafale for the Block 4.2 standard. The contract for upgrading the Rafale to the F4 standard had been granted to Dassault Aviation in 2019 under a USD 2.04 billion development contract.
- March 2022: Lockheed Martin Corporation's LMT business segment, Aeronautics, received a modification contract from the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH, for providing F-16 retrofits. The value of the contract was USD 33.6 million. Under the contract, the company would offer the Kapton replacement harness installation, harness one-time inspections, and aircraft mod line extension of 140 Taiwan F-16A/B aircraft.
Military Aircraft Modernization & Retrofit Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Aircraft Type
- 5.1.1 Fixed-Wing
- 5.1.2 Rotary-Wing
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5.2 Geography
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.2 Europe
- 5.2.2.1 Germany
- 5.2.2.2 United Kingdom
- 5.2.2.3 France
- 5.2.2.4 Russia
- 5.2.2.5 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 China
- 5.2.3.2 India
- 5.2.3.3 Japan
- 5.2.3.4 South Korea
- 5.2.3.5 Rest of Asia-Pacific
- 5.2.4 Latin America
- 5.2.4.1 Brazil
- 5.2.4.2 Rest of Latin America
- 5.2.5 Middle East and Africa
- 5.2.5.1 Saudi Arabia
- 5.2.5.2 United Arab Emirates
- 5.2.5.3 Turkey
- 5.2.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 RTX Corporation
- 6.2.2 L3Harris Technologies, Inc.
- 6.2.3 BAE Systems plc
- 6.2.4 Elbit Systems Ltd.
- 6.2.5 Honeywell International Inc.
- 6.2.6 Israel Aerospace Industries Ltd.
- 6.2.7 Lockheed Martin Corporation
- 6.2.8 Northrop Grumman Corporation
- 6.2.9 Leonardo S.p.A
- 6.2.10 Safran
- 6.2.11 General Dynamics Corporation
- 6.2.12 THALES
- 6.2.13 The Boeing Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityMilitary Aircraft Modernization And Retrofit Industry Segmentation
Military aircraft modernization includes modification, upgradation, and replacement of existing infrastructure and equipping new technologies to improve the efficiency and effectiveness of the aircraft. Many of the global military aircraft fleets have been in service for decades. Several countries upgrade and retrofit the aircraft with modern systems to modernize their existing fleet and to extend the aircraft service life. The report provides insights into all the recent contracts awarded.
The military aircraft modernization and retrofit market is segmented based on aircraft type and geography. By aircraft type, the market is segmented into fixed-wing and rotary-wing. The report also covers the market sizes and forecasts for the military aircraft modernization and retrofit market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Aircraft Type | Fixed-Wing | |
| Rotary-Wing | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Rest of Latin America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East and Africa |
Military Aircraft Modernization & Retrofit Market Research FAQs
How big is the Military Aircraft Modernization and Retrofit Market?
The Military Aircraft Modernization and Retrofit Market size is expected to reach USD 52.33 billion in 2024 and grow at a CAGR of 0.04% to reach USD 52.44 billion by 2029.
What is the current Military Aircraft Modernization and Retrofit Market size?
In 2024, the Military Aircraft Modernization and Retrofit Market size is expected to reach USD 52.33 billion.
Who are the key players in Military Aircraft Modernization and Retrofit Market?
Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems plc, Elbit Systems Ltd. and RTX Corporation are the major companies operating in the Military Aircraft Modernization and Retrofit Market.
Which is the fastest growing region in Military Aircraft Modernization and Retrofit Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Military Aircraft Modernization and Retrofit Market?
In 2024, the North America accounts for the largest market share in Military Aircraft Modernization and Retrofit Market.
What years does this Military Aircraft Modernization and Retrofit Market cover, and what was the market size in 2023?
In 2023, the Military Aircraft Modernization and Retrofit Market size was estimated at USD 52.31 billion. The report covers the Military Aircraft Modernization and Retrofit Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Military Aircraft Modernization and Retrofit Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Military Aircraft Modernization and Retrofit Industry Report
Statistics for the 2024 Military Aircraft Modernization And Retrofit market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Military Aircraft Modernization And Retrofit analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
