Military Transport Aircraft Market Trends

Statistics for the 2023 & 2024 Military Transport Aircraft market trends, created by Mordor Intelligence™ Industry Reports. Military Transport Aircraft trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of Military Transport Aircraft Industry

Air Transport is Expected to Lead the Market During the Forecast Period

The air transport segment is expected to lead the market over the forecast period. Fixed-wing aircraft are majorly used to perform critical supply flights by delivering arms and ammunition, medicines, and personal protective equipment during combat missions.

Countries across the globe are focusing on improving their aerial support capabilities due to rising tensions and warfare situations among neighboring countries. Several nations are upgrading their existing transport aircraft or replacing their aging fleet with newer-generation aircraft. With the growth in defense spending by several nations around the world, the industry has witnessed several procurements and upgrade activities for military air transport aircraft, in the last few years. Moreover, the ongoing developments in military equipment, and onboard military aircraft, as well as the growth in the need for life extension programs to prolong the life of the military transport aircraft, are bolstering the growth of the segment during the forecast period.

In September 2021, the Indian Ministry of Defense announced that they have signed a contract worth USD 2.5 billion for the acquisition of 56 Airbus C-295 aircraft as a strategic replacement of the Indian Air Force's (IAF's) legacy fleet of Avro HS-748 aircraft. Under the terms of the contract, Airbus will deliver the first 16 aircraft in 'fly-away' condition from its final assembly line in Seville, Spain. The subsequent 40 aircraft will be manufactured and assembled in India by Tata Advanced Systems (TASL), as part of an industrial partnership between Airbus and TASL. The program is expected to be completed by 2025. In addition, in August 2022, the Canadian government allocated up to USD 4 billion to purchase four military transport aircraft from Airbus by 2023. Also, in June 2022, France, Germany, and Sweden agreed to the development of advanced medium-lift transport aircraft.

The increasing global defense expenditure across the world over the years due to various military conflicts arising in various geographies is expected to drive major investments into the military transport aircraft market, thus growing investment from defense forces for the procurement of high-capacity military transport aircraft is expected to drive the market growth and bolster the air transport segment during the forecast period.

Military Transport Aircraft Market: Global Defense Expenditure, in USD billion, 2016 - 2021

North America is Expected to Hold the Largest Market Share During the Forecast Period

The North American region is expected to hold the largest market share during the forecast period. The presence of a robust aviation industry and steadily increasing expenditure toward the procurement of military transport equipment has been the prominent driver of the military transport market in the region. The defense budget of the US in 2022 amounted to USD 777.7 billion. The US also has one of the largest fleets of military transport platforms in service. On this note, the US Air Force has 962 transport aircraft and 568 tankers in its fleet, while the US Army deploys a staggering 303,553 military vehicles in its fleet. There are also several acquisition plans underway to develop and deploy advanced transport platforms to rapidly deploy troops for foreign and domestic missions. For instance, in March 2023, the US Army began fielding its new armored Multi-Purpose Vehicles (AMPVs) to support various combat operations. The AMPVs are designed as potential replacements for the M113 family of armored personnel carriers and these vehicles provide soldiers with better protection and survivability during high-risk missions. Similarly, in February 2023, the US Navy christened its Spearhead-class expeditionary fast transport, the future USNS Cody (EPF 14). The USNS Cody is the first Flight II configuration in its class, bringing enhanced medical capabilities in addition to its high-speed sealift mobility and agility. Several such developments are expected to drive the military transport market in North America during the forecast period. 

Military Transport Aircraft Market: Military Transport Market - Growth Rate by Region, 2023-2028

Military Transport Aircraft Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)