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Utility Aircraft Market Segmentation by Type (Fixed-Wing and Rotary-Wing); By Application (Commercial and Non-Commercial) - Demand Analysis & Opportunity Outlook 2027

Published: March, 2023
ID: 12512
Pages: 175
Formats: report pdf report excel report power bi report ppt

Utility Aircraft Market Size & Growth 2022 - 2027:

Utility Aircraft Market is expected to increase at a CAGR of over 4% during the forecast from 2022 - 2027

Utility aircraft includes planes and helicopters, are general-purpose aircraft that are used for cargo and passenger transport, peacekeeping, agricultural applications, firefighting, humanitarian aid, and military applications like military logistics, air assault, command and control, and troop transportation. The majority of these planes have a limited capacity.

Recent Developments:

The European Space Agency (ESA) has announced a partnership with Airbus for the building of a satellite to explore exoplanets or worlds outside of our solar system. The Atmospheric Remote-sensing Infrared Exoplanet Large-survey, or Ariel, is the third of three dedicated exoplanet missions planned by the European Space Agency. It will launch in 2029

At European Rotors, Bell Textron Inc., a Textron Inc. business, announced purchase agreements for five aircraft with customers in Ukraine. Heliclub Ukraine LLC, Bell's official representative in Ukraine, hosted the signing event at European Rotors. Two Bell 505s, two Bell 429s, and one Bell 407GXi with the newly certified Instrument Flight Rules (IFR) configuration have been signed purchase agreements.

The Indian government lifted a restriction on Leonardo conducting business with the Ministry of Defense on Friday. According to an MoD official, Leonardo S.p.A. and its subsidiary AgustaWestland International UK was removed from the list of entities prohibited from working with the ministry. Agusta Westland, on the other hand, is no longer an independent corporation, having been absorbed by Leonardo.

Lockheed Martin, a US aerospace manufacturer, has approved the production of F-16 fighter jet wings at the Tata-Lockheed Martin Aerostructures Limited (TLMAL) facility in Hyderabad, Telangana. The global market will be served by the joint venture with Tatas. TLMAL is a 21,000-square-meter facility. The factory is capable of producing 50 pairs of wings per year.

Market Drivers:

Over the last decade, governments worldwide have increased their capital investment to strengthen their military capabilities. According to studies, worldwide military spending climbed by 2.6 % to $ 1,981 billion in 2020, up from $ 1,981 billion in 2019. The United States military spending alone totalled $ 778 billion in 2020, up 4.4 % from the previous year and accounting for 39.27 % of worldwide military spending. Increased spending on long-term initiatives, such as the upgrading of military equipment and aircraft, as well as heavy investments in R&D. China is the world's second-largest military spender, with a projected military budget of $252 billion in 2020. The major economies are likely to continue investing in the development and acquisition of modern utility aircraft for logistics, command and control, and air attacks in the forecast period, boosting the worldwide utility aircraft market.

In the last decade, the e-commerce business has grown at a breakneck pace. The e-commerce business has gone a long way, thanks to technology improvements, saving consumers time and stress while also improving their shopping experience. Frictionless e-commerce operations have prioritised fast delivery. To fulfil the increased demand for the speedy delivery and maintain a competitive position in the market, logistic partners or divisions of e-commerce corporations have upscaled their delivery capacities and capabilities, and this is where utility planes come into play. Authorities have begun to use utility aircraft to give same-day delivery to their consumers. As a result, the booming e-commerce industry and rising demand for quick delivery create a profitable potential for companies in the global utility aircraft market.

Restraints:

The cost of utility aircraft has risen, which can be ascribed to advancements in engineering and manufacturing procedures aimed at increasing efficiency. For utility aircraft, the high cost of structural components and assemblies has been the key cost factor. Engines account for a large amount of the overall cost of a typical utility aircraft. The cost of aircraft engines has increased dramatically as a result of a focus on improving engine design to improve engine performance. As a result, the high cost of aircraft engines is likely to limit the global utility aircraft market's growth.

Market Segmentation:

Utility Aircraft Market Type: The market is segmented into Fixed-Wing and Rotary-Wing.

The rotary-wing segment is expected to grow significantly during the forecast period due to the rising demand for utility helicopters. Military utility helicopters are used for a wide range of duties, such as military logistics, air assault, command and control, and troop transportation. These are also used to combat fires and provide humanitarian aid.

Utility Aircraft Market Application: The market is segmented into Commercial and Non-Commercial.

The non-commercial market is anticipated to grow significantly in the next years as utility aircraft are increasingly used for various military reasons such as logistics, command and control, and air assault.

Regional Analysis

North America has had a rapid increase in utility aircraft demand, and it is expected to continue to lead the global market during the projection period. The United States is the leading contributor to the North American utility aircraft market's strong growth, which may be due to the country's massive military spending. The United States has had and continues to have the world's highest military expenditures and income. Along with being the world's greatest military spender, China is also home to the world's top utility aircraft producers, making it the world's largest utility aircraft market. Some of the most well-known utility aircraft manufacturers are based in the region. In addition, the US military has made significant investments in the design and development of utility aircraft to improve its military capabilities. In 2020, the country's military spending alone accounted for approximately 39% of worldwide military spending.

The Asia-Pacific utility aircraft market is predicted to develop at the fastest rate due to rising air freight demand and increased military spending by major economies in the area. The region is one of the world's largest and most diverse, with considerable established and rising economies.

China dominates the Asia-Pacific utility aircraft market, owing to its large military budget, which is the highest in the region and second highest globally. In 2020, China alone accounted for over $ 252 billion, up 1.9 % from 2019. Long-term military modernization and large-scale acquisitions of military aircraft and equipment have accounted for the majority of China's military spending.

Market Leader:

Airbus is the leading company with annual revenue of &78.9 billion in the global utility aircraft market.

Key Players:

  1. Boeing (US)
  2. Lockheed Martin (US)
  3. Bell Textron (US)
  4. Safran (France)
  5. Leonardo (Italy)
  6. Rolls-Royce Holdings (England)
  7. Embraer (Brazil)
  8. Bombardier (Canada)
  9. Comac (China)
  10. MAC (Japan)
  11. UAC (Russia)
  12. GippsAero (Australia)

Impact of COVID-19 On Aircraft Market:

The pandemic has had a detrimental effect on the aviation and defense industries around the world. The aviation transport sectors were severely disrupted, which had a negative impact on the growing utility aircraft market. Utility aircraft demand fell, resulting in sales losses in the commercial segment for the manufacturers involved.

Governments around the world are increasing their investments in healthcare equipment, as well as the manufacture and acquisition of vaccines. As a result, for the next few years, new utility aircraft spending is likely to be lower than pre-COVID predictions. Given the gradual recovery of the global economy, demand is expected to return to pre-COVID levels in a few years. As a result, the global utility aircraft market is predicted to develop at a slower rate in the first few years (compared to pre-COVID estimates) before picking up speed later.

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