Helicopter market to reach $41.2bn in five years
The global helicopter market will reach a value of $41.2bn by 2027 at a compound annual growth rate (CAGR) of 6.1%, according to the latest report by research group MarketsandMarkets. Words: Elena Lodge.
Increasing demand for light helicopters, of less than 3t, combined with the need for lift to service search-and-rescue (SAR) flights and emergency medical missions (EMS) services as well as military helicopters are all expected to drive growth.
“The market for military helicopters is projected to grow due to the replacement of aging helicopter components and systems and capacity expansion programmes in emerging economies,” said the report. “The development of next-generation compound and tilt helicopters is expected to contribute to a larger share of the helicopters market within the next decade and result in a significant number of helicopter replacements and capability expansions.” The military segment is predicted to show the highest CAGR, due to rising demands for transport helicopters and the increased procurement of reconnaissance and combat helicopters.
North America is predicted to account for the largest market growth this year due to the presence of major OEMs: Bell Helicopters, Lockheed Martin Corporation, MD Helicopters and Kaman Corporation among others. The current market is valued at $30.6bn.
The report also highlighted growth opportunities linked to Urban Air Mobility (UAM) and eVTOL technologies, hybrid-electric propulsion technology, scope for helicopters aftermarket and fuel-efficient turboshaft engines.
Factors slowing market growth are likely to be manufacturers’ backlogs and rising fuel prices. “There has been a significant rise in demand for helicopters in both civil and commercial and military applications. Due to limited production capabilities, the OEMs fail to deliver the required helicopters within the expected timeline,” said the report.
For example in 2020, Bell Helicopter witnessed a backlog of $5.3bn due to an increase in helicopter backlogs. In 2019, Airbus Helicopters received 369 orders and delivered 332, resulting in a backlog of 37 helicopters, according to MarketsandMarkets.
Other market challenges identified by the firm include rising fuel prices, high cost of helicopter components and strict regulatory and complex product certification procedure. “The rise in fuel prices results in budget issues, which adversely impact the market growth globally,” predicted the report. “High fuel prices have made the growth of the helicopters market sluggish in some countries, posing a challenge for the market.”
More information about the report is available here.
Helicopter trends report – at a glance
- $41.2 billion – expected value of helicopter market in 2027
- 6.1% – the projected compound annual growth rate (CAGR) of this growth
- The main factors driving growth are increasing demand for light helicopters, the need for search-and-rescue (SAR) flights, emergency medical missions services as well as military helicopters