Military Aircraft Market Expected to Increase to $87.5 Billion by 2025
- Says New Study on ASDReports
The new report now available on ASDReports, provides readers with a detailed analysis of both historic and forecast global industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
The global military aircraft market is expected to be worth over US$61 billion in 2015 and is expected increase to US$87.5 billion by 2025, representing a CAGR of over 3% . The expenditure on military aircraft is expected to be driven by the ongoing global turmoil, internal and external security threats, fleet replacement programs, modernization strategies and territorial disputes across the world. Additionally, emerging economies in the Middle East and South Asian regions are witnessing increasing defense expenditure and are therefore likely to present global military aircraft manufacturers with greater opportunities in the coming decade. Cumulatively, the global market is expected to value under US$868 billion during the forecast period.
The Global Military Fixed-Wing Aircraft Market 2015-2025
The market is anticipated to be dominated by North America followed by Asia Pacific and Europe. The US is the largest spender, with a cumulative expenditure of under US$261 billion over the next decade. To maintain its military supremacy in the global defense arena, along with the ongoing arms race with nations such as China and Russia, the US DoD is expected to significantly invest in developing rapid strike capabilities during the forecast period. In spite of the military budget sequestration measures, the US government is expected to allocate significant funds for the procurement of and regular modernization and upgrades to, its military aircraft. Expenditure in the Asia-Pacific region, which occupies under 30% of the global market share, is driven by emerging nations, such as China, India, and South Korea, among others. Europe occupies 23% of the global military aircraft market share, and expenditure is driven by the need to replace the aging aircraft fleet in most nations. Though the region is witnessing delays and cancellations of military aircraft projects due to defense budget cuts, the region is expected to grow at a nominal CAGR of 1.8% by 2025.
Source : ASDReports - Market Research - view original press release