Market Trends of North America Helicopters Industry
Military End-user Segment to Dominate the Market in Terms of Revenue
Military helicopters are used for numerous applications such as ground attack, military logistics, air assault, medical evacuation, command and control, and troop transport. An increase in defense expenditure, rising spending on procurement of advanced military helicopters, and a growing focus on strengthening defense capabilities from the US and Canada drive the market growth. In the US, the military helicopter industry has matured to a point wherein they constitute the aerial vehicle component of the defense forces for tactical troop lift, logistics transport, battlefield reconnaissance and surveillance, attack, and combat aircrew recovery.
The helicopter has become a key enabler in modern crisis management operations, especially when countering an asymmetric enemy. Despite having significant numbers of rotary-wing aircraft, military operations have been short of vital helicopter support. To cater to this demand, in December 2022, the US Army awarded Bell to deliver its V-280 Valor as its next-generation assault aircraft under the Future Attack Reconnaissance Aircraft (FARA) program to replace the army’s AH-65 Apache and roughly 2,000 Black Hawk utility helicopters under USD 1.9 billion contract. Additionally, the Canadian Air Force is envisioning refurbishing its 85 Bell CH-146 Griffon utility helicopters to extend its lifespan until 2031. Such developments are anticipated to foster the market's growth, with several units being inducted during the forecast period.
United States to Dominate the Market During the Forecast Period
Helicopters are used extensively in the US in the commercial and defense sectors. Helicopters are being used to transport personnel to offshore oil and gas production facilities, in helicopter emergency medical services (HEMS), VIP transport, law enforcement, and public safety domains. With the increase in inclination toward cleaner, more sustainable energy demands, the increasing offshore wind farm projects across the country have driven the demand for helicopter services. As a result, new contracts and partnerships have been increasing, increasing market value.
For instance, in September 2023, Airbus was awarded a contract by US offshore helicopter operator PHI Group for 28 medium and super-medium helicopters. Also, the US houses some leading global helicopter manufacturers, such as Bell and The Boeing Company. Furthermore, the country also supplies military helicopters, such as the Apache, to other countries under the Foreign Military Sales (FMS) program. On this note, in March 2023, Boeing was awarded a contract by the US Army to build 115 new AH-64E Apache Guardian attack helicopters with an additional 15 options under a USD 1.9 billion contract. Such developments are envisioned to drive the business prospects of the helicopter OEMs based in the US.
