Fighter Aircraft Market Size - By Take-off and Landing Capability, By Propulsion Type, By Application - Global Forecast, 2025 - 2034

Fighter Aircraft Market Size

The global fighter aircraft market size was valued at USD 50.8 billion in 2024, with a volume of 0.7 thousand units, and is estimated to grow at a 4.1% CAGR from 2025 to 2034. The demand for fighter aircraft is growing significantly owing to the increase in defense spending fueling fighter aircraft procurement along with increased focus on development    of unmanned combat aerial vehicles (UCAVs).
 

The fighter aircraft industry experienced disruptions during the Trump administration due to the imposition of tariff on aerospace components and retaliatory trade measures stemming from US-EU trade conflict. These tariffs increased input costs for aircraft manufacturers, which indirectly affected component suppliers, including those involved in avionics, propulsion systems, and stealth materials. Although the divisions posed challenges, the industry responded by diversifying supply chains and strengthening domestic sourcing strategies, which stabilized demand for critical subsystems and components in fighter aircraft production.
 

The continuous increase in defense expenditures, especially in key markets like the United States, is one of the primary factors propelling the growth of the fighter aircraft sector. As cited by Statista, US spending on defense is bound to escalate on an annual basis until the year 2034. In 2023, the spending amounted to USD 891 billion and is estimated to grow to USD 1.07 trillion by 2034. Such spending aids in the acquisition of advanced fighter jets, fleet modernization schemes, and the development of next-gen combat platforms.
 

The emphasis placed on aerial warfare, and consequently the fighter aircraft industry, is evolving due to the development of unmanned combat aerial vehicles (UCAVs). The additional operational freedom, less risk to a pilot, and ability to perform high-risk missions with little to no risk make UCAVs appealing, helping reshape the future of warfare. Global defense agencies are adopting UCAVs into their combat strategies, prompting increased investment in R&D along with procurement initiatives targeted toward unmanned systems.
 

Fighter Aircraft Market Trends

• Recent trend observed in the market of fighter aircraft is international collaboration for developing and producing next-generation advanced fighters. Nations are increasingly employing their capabilities and facilities in defense technologies to develop next-generation aircraft. The Global Combat Air Programme is a noteworthy example of this trend which was launched in 2022 as a trilateral cooperation involving Italy, Japan. and the UK.  It consolidates the UK's Tempest program and Italy’s Tempest Pagani with Japan's F-X initiative. GCAP's objective is to surpass milestones in the development of sixth generation stealth fighter jets and replace the Eurofighter Typhoon and Mitsubishi F-2 by 2035. This collaboration is representative of the transition towards multinational defense alliances for developing next-generation fighters and improving allied forces interoperability.
   
• The integration of artificial intelligence (AI) and autonomous systems poses a significant strategic shift within the fighter jet market. As global air forces strive to improve their operational readiness, AI technologies are being implemented to accomplish mission planning, enable decision-making, and execute autonomous flight activities. AI technologies is also enhancing sensor fusion. Consequently, modern fighter aircraft can more accurately perceive and react to intricate battle situations, integrate multiple data sources, conduct real-time decision-making, and enable for instantaneous data interpretation and processing.
   
• This trend is expected to create new opportunities for players as they can focus on development of modular AI-based mission systems that is capable in real-time data processing, threat detection, and autonomous target acquisition. This new development is expected to help players distinguish their product and attract new customers.
   

Fighter Aircraft Market Analysis

On the basis of take-off and landing capability, the market is categorized into conventional take-off and landing (CTOL), short take-off and vertical landing (STOVL), and vertical take-off and landing (VTOL).
 

• Conventional take-off and landing (CTOL) market held a share of 47.3% in 2024. CTOL fighter aircraft continues to dominate due to its compatibility with pre-existing airbases and CTOL has relatively lower technical complexity. Countries persist in upgrading CTOL fleets with stealth and multirole functionality to provide operational versatility, increased range, and reduced maintenance needs in comparison with more complex vertical take-off systems.
   
• Vertical take-off and landing (VTOL) market is anticipated to grow at a CAGR of 5.3% during the forecast period. Vertical Take-Off and Lift (VTOL) fighter aircraft are gaining traction due to deployment versatility in contested or infrastructure-limited environments. Naval and expeditionary forces seeking operational flexibility are the main driving force behind VTOL adoption. Programs like the F-35B are prime examples of heightened interest in VTOL by nations for enhancing carrier-based or rapid-response capabilities without full runways.
   

On the basis of propulsion type, the fighter aircraft market is divided into single-engine fighter aircraft and twin-engine fighter aircraft.
 

• Single-engine fighter aircraft industry is expected to reach USD 40.8 billion by 2034. Single-engine aircraft are being opted for cost-effective air policing and multirole operations. Economically strong nations and budget-constrained militaries are now opting for light-weight platforms with advanced avionics, reasonable range, and low life-cycle costs. Modern designs also feature stealth and network-centric capabilities, allowing them to be affordable, responsive combat solutions.
   
• Twin-engine fighter aircraft industry is projected to grow at a CAGR of 4.8% during the forecast period. The demand for twin-engine fighters is higher as it possess more thrust, payload, and survivability in hostile environments. They are preferable for long-range interdiction, air superiority, and deep strike missions. Global powers are investing in next-generation twin-engine platforms with integrated stealth, super cruise, and advanced electronic warfare capabilities.
   

On the basis of application, the fighter aircraft market is divided into strike / ground attack, electronic warfare (EW), reconnaissance & surveillance, air superiority, and others.
 

• Strike / ground attack market is projected to grow at a CAGR of 3.8% during the forecast period. The strike segment is being transformed by the development of precision guided munitions, AI-assisted targeting systems, and stealth features. Contemporary ground attack fighters concentrate on damage control during the violation of defended areas. The shift towards multipurpose roles provides that both air-to-ground and air-to-air missions can be completed rapidly and with much flexibility.
   
• Electronic warfare (EW) market is anticipated to reach USD 15.8 billion by 2034. Electronic warfare technologies are increasingly becoming an essential part of contemporary fighter aircraft as threats from radar and missile systems intensify. Fighters with EW systems are capable of jamming enemy sensors and disabling communications improving their survivability. With the addition of advanced jamming and cyber-electronic attack capabilities, alongside unmanned aircraft integration, greater control of the battlefield will be attained in future combat scenarios.
   

• The U.S. accounted for a share of 87.9% in the fighter aircraft market in 2024. The United States leads the market due to its investment on sixth-generation programs such as the NGAD and AI incorporation. The modernization of the F-35 fleet, addition of wingman drones, and increasing emphasis on electronic warfare will increase U.S. air dominance and interoperability globally.
   
• The Germany market is anticipated to grow at a CAGR of 4.7% during the forecast period. Germany along with France and Spain are collaborating on the FCAS project, and Eurofighter Typhoons have also been integrated with additional electronic warfare capabilities indicating a shift towards a more modern tech-driven air-force and joint interoperability. Germany aims to develop the next-gen fighter by 2040.
   
• The China fighter aircraft market is anticipated to grow at a CAGR of 4.6% during the forecast period. The indigenous J-20 stealth fighter program and the development of sixth-generation jets are fueling China's fighter jet market expansion. The priorities are stealth, AI integration, and longer-range capability. China's strategy reflects its attempt to acquire technological and strategic supremacy in the Indo-Pacific region.
   
• Japan accounted for a share of 15.2% in the fighter aircraft industry in 2024. Japan is leading the way in next-generation fighter development under its F-X program, now integrated into the Global Combat Air Programme (GCAP) alongside the UK and Italy. Japan aims to replace the outdated Mitsubishi F-2 with an advanced sixth-generation fighter and emphasizes stealth, international partnerships, and collaboration in the development of the aircraft.
   
• India’s market is expected to grow at a CAGR of 5.3% during the forecast period. India is enhancing its fighter aircraft capabilities with domestic efforts like the Tejas Mk2 and the AMCA (Advanced Medium Combat Aircraft). The focus on self-reliance, stealth features, and the incorporation of modern avionics systems demonstrates India's efforts to upgrade its fleet, mitigate imports, and respond to regional challenges with technologically advanced defensive measures.
   

Fighter Aircraft Market Share

The fighter aircraft industry is highly competitive. The major 3 players in the market are BAE Systems, Boeing and Lockheed Martin accounting for a significant share of over 25% in the market.
 

Intense innovation as well as multinational collaboration and strategic procurement are shaping the market landscape. AI and advanced electronic warfare capabilities are being integrated into next-generation platforms based on emerging combat requirements. There is an additional increase in joint development initiatives such as GCAP and FCAS, to pool R&D expenses, enhance interoperability, and accelerate program timelines. Export strategies continue to be essential, as nations like the U.S., France, and Russia utilize foreign military sales to expand their influence.
 

Emerging defense manufacturers in Asia are shifting their focus toward indigenously developed military platforms in a bid to decrease reliance on imports. Long-term service contracts and lifecycle support solutions are being leveraged to extend customer relationships and create recurring revenue streams. These strategies individually embody a dynamic, capability-oriented setting centred on technological excellence, cost-effectiveness, and long-term strategic alliances.
 

Lockheed Martin’s fighter aircraft market strategy is based on continuous advancements of the F-35 platform, establishing new international partnerships, and acquiring long-term sustainment contracts. The company emphasizes stealth, interoperability, and digital capabilities and uses foreign military sales and industrial offsets to enhance its presence in allied and emerging markets.
 

Saab's business approach is propelled by offering a cost-effective, modular fighter platform like the Gripen customized to suit varying customer requirements. The organization's strategy emphasizes a high level of technology transfer, local production, and customer support. With its flexible development model and supportive government, Saab is able to compete in both developed and sensitive defense markets.
 

Boeing aims to stay competitive in international defense contracting by modernizing and adding new features to existing fighters, such as the F-15EX and collaborating on R&D for next-gen fighters. Using strategic partnerships, the firm targets export markets. To stay relevant in the global defense procurement market, Boeing is focusing on incorporating advanced avionics, weapons, and mission systems to maximize lifecycle value of the aircraft.
 

Fighter Aircraft Market Companies

Some of the prominent market participants operating in the fighter aircraft industry include:

• Airbus
• BAE Systems
• Boeing
• Dassault Aviation
• Hindustan Aeronautics
• Korea Aerospace Industries
• Leonardo
   

Fighter Aircraft Industry News

• In May 2025, Boeing delivered the ninth new F-15EX Eagle II fighter jet to the Oregon Air National Guard’s 142nd Fighter Wing. The aircraft is the first of the second production lot under the U.S. Air Force modernization program to replace older F-15C/D aircraft and enhance operational readiness.
• In December 2024, BAE Systems (UK), Leonardo (Italy), and Japan Aircraft Industrial Enhancement Co. (JAIEC) formed a joint venture to build the next-generation supersonic air superiority jet under the Global Combat Air Program (GCAP). This coalition aims to develop 6th gen stealth fighter that will replace the Eurofighter Typhoon and Japan’s Mitsubishi F-2, intending to complete the project by 2035.
   

The fighter aircraft market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in (USD Million) & (Units) from 2021 to 2034, for the following segments:

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Market, By Take-off and Landing Capability

• Conventional take-off and landing (CTOL)
• Short take-off and vertical landing (STOVL)
• Vertical take-off and landing (VTOL)

Market, By Propulsion Type

• Single-engine fighter aircraft
• Twin-engine fighter aircraft 

Market, By Application

• Strike / ground attack
• Electronic warfare (EW)
• Reconnaissance & surveillance
• Air superiority
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE