Tanker Aircraft Market Size (2024 - 2029)

The tanker aircraft market is projected to experience growth over the forecast period, driven by increasing military expenditure in developing economies and modernization plans to replace outdated fleets. Despite the challenges posed by the COVID-19 pandemic, the market's expansion remained steady, supported by ongoing procurement projects and rising sales for manufacturers. Innovations and new technologies in tanker aircraft are expected to attract additional customers, contributing to market growth. However, the high costs associated with installing refueling systems may pose a challenge to the market's expansion.

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Market Size of Tanker Aircraft Industry

Tanker Aircraft Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 688.04 Million
Market Size (2029) USD 938.26 Million
CAGR (2024 - 2029) 6.40 %
Fastest Growing Market North America
Largest Market North America

Major Players

Tanker Aircraft Market Major Players

*Disclaimer: Major Players sorted in no particular order

Tanker Aircraft Market Analysis

The Tanker Aircraft Market size is estimated at USD 688.04 million in 2024, and is expected to reach USD 938.26 million by 2029, growing at a CAGR of 6.40% during the forecast period (2024-2029).

  • Despite the significant impact of the COVID-19 pandemic on the economy, the market for tanker aircraft market remained unaffected, as the procurement projects were on track, and the sales and revenues of the tanker aircraft market increased steadily for the manufacturing companies.
  • The increasing military expenditure of developing economies is driving the modernization plans of various countries to replace the old tanker aircraft fleet. This is anticipated to propel the growth of the key aircraft market during the forecast period.
  • The innovations in existing tanker aircraft, along with introducing the action of new tanker aircraft, are anticipated to attract new customers for the aircraft OEMs. Considering the new technology and innovation, the market is expected to grow in the coming year. However, the expensive installation of refueling systems is a restraining factor that might cause hindrance to market growth.

Tanker Aircraft Industry Segmentation

The tanker aircraft provides air-to-air refueling, the process of transferring aviation fuel from one aircraft to another during flight.

The tanker aircraft market is segmented by the system, propulsion type, type, and geography. By system, the market is segmented into probe and drogue, boom refueling, and autonomous. By propulsion type, the market is segmented into turboprop and turbofan. By type, the market is segmented into manned and unmanned. By geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

The report offers the market size and forecasts for all the above segments in value (USD).

System
Probe & Drogue
Boom Refueling
Autonomous
Propulsion Type
Turboprop
Turbofan
Type
Manned
Unmanned
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
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Tanker Aircraft Market Size Summary

The tanker aircraft market is poised for significant growth over the forecast period, driven by increasing military expenditures and modernization efforts in developing economies. Despite the challenges posed by the COVID-19 pandemic, the market has shown resilience, with steady sales and revenue growth for manufacturers. The need to replace aging fleets and the introduction of innovative technologies are key factors propelling market expansion. However, the high cost of installing refueling systems presents a challenge to growth. The unmanned segment, in particular, is expected to experience robust growth due to heightened military investment in research and development, as well as a rising demand for unmanned systems. Companies like Boeing are actively developing new variants, such as the MQ-25 tanker drone, to meet military needs, further driving market dynamics.

North America is anticipated to lead market growth, largely due to the U.S. Air Force's initiative to replace its aging KC-135 tankers, supported by substantial contracts with Boeing. The North American Aerospace Defense Command's operations and collaborations, such as those involving the MQ-25 unmanned aircraft, underscore the region's strategic focus on enhancing aerial refueling capabilities. The market is characterized by a few dominant players, including BAE Systems, Boeing, Airbus, Lockheed Martin, and United Aircraft Corporation, who are investing in new aircraft models and unmanned technologies to expand their market share. International collaborations and agreements, such as those involving Israel and India, highlight the global nature of the market and the ongoing demand for advanced tanker aircraft solutions.

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Tanker Aircraft Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 System

      1. 2.1.1 Probe & Drogue

      2. 2.1.2 Boom Refueling

      3. 2.1.3 Autonomous

    2. 2.2 Propulsion Type

      1. 2.2.1 Turboprop

      2. 2.2.2 Turbofan

    3. 2.3 Type

      1. 2.3.1 Manned

      2. 2.3.2 Unmanned

    4. 2.4 Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 United Kingdom

        3. 2.4.2.3 France

        4. 2.4.2.4 Russia

        5. 2.4.2.5 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 India

        2. 2.4.3.2 China

        3. 2.4.3.3 Japan

        4. 2.4.3.4 South Korea

        5. 2.4.3.5 Rest of Asia-Pacific

      4. 2.4.4 Rest of the World

Tanker Aircraft Market Size FAQs

The Tanker Aircraft Market size is expected to reach USD 688.04 million in 2024 and grow at a CAGR of 6.40% to reach USD 938.26 million by 2029.

In 2024, the Tanker Aircraft Market size is expected to reach USD 688.04 million.

Tanker Aircraft Market Report Snapshots

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