Market Trends of Parachute Industry
Round Parachute Segment is Expected to Dominate the Market
In recent years, there has been a gradual growth of round parachutes in various defense forces worldwide. The expanding use of parachutes in the defense and military sector for personal transportation, training, and distribution, coupled with the multiple advantages on offer, are some of the important factors that will lead to growth in the demand and the usage of round parachutes in the worldwide defense sector in the coming years. Military parachutes are designed for military personnel to use during airborne operations. These parachutes are designed to be durable and reliable, allowing the defense personnel to make safe jumps from aircraft or helicopters and provide for a safe ground landing.
Furthermore, various defense personnel all over the world, including major countries such as the US, Russia, China, India, and the UK, still use round parachutes compared to other types of parachutes. The round military parachutes are ideal when dropping many defense personnel in a small area at relatively lower altitudes. It creates the demand for round parachute segment growth. Also, various defense parachute manufacturers invest heavily in research and development for manufacturing and testing round parachutes with advanced capabilities and qualities. For instance, in March 2023, the US Army tested an innovative reusable round parachute technology with airbags designed to airdrop military trucks ready for combat. Thus, the benefits that round parachute provides makes them an ideal choice to be still used by various defense personnel worldwide. Moreover, advancements in product design by various defense parachute manufacturers will drive a positive outlook on the market in the forecast period.
North America Dominates the Market During the Forecast Period
North America held the highest shares in the military parachute market and continued its domination during the forecast period due to the presence of major countries such as the US. In the last decade, the US witnessed persistent political unrest and frequent terrorist activities. Thus, the defense forces across the region need to be prepared for immediate deployments to tackle terrorist activities in a geographically diverse environment. The other driving factor is the US and Canada's rising defense expenditure and modernization programs. The US is the world's largest spender on defense, with a budget of USD 877 billion for fiscal year 2022. The US military constantly upgrades its equipment and capabilities to maintain its global dominance and readiness for potential threats.
Additionally, the US defense agencies highly invested in procuring advanced military parachutes. The US Army is using a T-11 parachute developed by Airborne Systems. The T-11 replaces the legacy T-10, used by the US Army for over 50 years. The T-11 is the next-generation non-steerable troop parachute system. Airborne Systems is the only company-qualified source to provide the T-11 system internationally. For instance, in August 2022, the US DoD signed a contract worth USD 36 million with the DeLand parachute maker to produce parachutes and related equipment for the US Navy SEALs through August 2027. Under the agreement, the company will develop MT-3 and MT-4 parachute systems.
Furthermore, the US Department of Defense budget request for 2024 prioritizes joint force readiness. The DoD plans to invest USD 146.0 billion to build and maintain warfighting forces and capabilities. For Army readiness, the US DoD is investing USD 28.8 billion; for Navy readiness, the investment is approximately USD 52.8 billion. Increasing focus on enhancing defense capabilities and future defense plans will create further opportunities in the coming years. Such investments are expected to drive the military parachute market in the region during the forecast period.
