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Helicopter Market size exceeded USD 29 billion in 2020 and is expected to grow at 4% CAGR between 2021 and 2027. The rising military spending across the globe is driving the industry growth.
Helicopter is a type of aircraft that is installed with horizontally spinning rotors that supply thrust and lift to it. This allow helicopter to land vertically, take-off, hover, to fly forward, backward and laterally.
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The growing application of helicopters in commercial and military activities coupled with the ability of the aircraft to operate in the harsh environment is propelling the market demand. Factors, such as cabin size, range, performance technology upgrades, and brand experience, are significantly contributing to the adoption of new helicopters.
Report Attribute | Details |
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Base Year: | 2020 |
Helicopter Market Size in 2020: | 29 Billion (USD) |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 4% |
2027 Value Projection: | 39 Billion (USD) |
Historical Data for: | 2016 to 2020 |
No. of Pages: | 300 |
Tables, Charts & Figures: | 553 |
Segments covered: | End-Use, Component, Sales Channel |
Growth Drivers: |
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Pitfalls & Challenges: |
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The increasing demand for helicopters for emergency medical services will provide growth opportunities through 2027. Helicopters have the ability to reach at high altitude locations faster than ground vehicles. At times, helicopters are the preferred mode of transport to reach inhospitable terrain in a limited timeframe. Patients receive early medical treatment and their chance of survival in critical cases surges significantly.
The factors hindering the industry growth include high operational and R&D costs associated with helicopters. These helicopters are operational for a long time in the air, increasing the overall maintenance cost owing to frequent wear and tear of vital components including tail rotor systems and engines. Additionally, end-users have to bear a heavy insurance cost and tax while purchasing a new helicopter, affecting the market representation of helicopters.
The aerospace & defense industry has been significantly impacted due to the prevailing situations of COVID-19. The manufacturing plants for various manufacturers have been shut down on account of the implementation of strict pandemic norms. The helicopter market globally has been adversely impacted during the escalating spread of the COVID-19 pandemic. Industry challenges, such as scarcity of labor and raw materials, led to numerous difficulties in the development of new helicopters, creating a vast gap in demand and supply. However, with the leniency on lockdown restrictions imposed by various governments, the market will witness significant growth by 2021.
The commercial end use segment is estimated to witness an upward trend during 2021 to 2027 driven by the increasing adoption of commercial helicopters in tourism, offshore, and transportation helicopter services. In 2020, around 550 commercial helicopters were sold in the U.S. The commercial helicopters will see surging demand from oil & gas and offshore segments led by the varied usage of these helicopters in inspection and maintenance of offshore oil rigs.
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The Europe avionics segment accounted for around 20% of the helicopter market share in 2020. The growing market trend of technologically upgrading the existing system is augmenting the demand for the avionics segment. These systems allow to function within recognized safety parameters and to track and report performance measures.
Key players operating in the helicopter industry are upgrading their systems with advanced avionics components. For instance, in March 2019, Honeywell introduced a new communication technology Aspire 200 satellite communications system for Bell B429 helicopter.
The Europe OEM segment held more than 75% of the helicopter market share in 2020 propelled by the increasing adoption in commercial and military sectors. OEMs including Airbus Helicopters SAS, Bell Helicopter, Boeing, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Leonardo S.p.A. are the major manufacturers catering to the changing demand.
Leading manufacturers majorly focus on introducing products to enhance their product line and comply with the changing end-user requirements. For instance, in August 2020, Airbus Helicopters SAS introduced a new Lakota helicopter fleet to the U.S. Army and National Guard. The company launched UH-72B Lakota. The acceptance of helicopters in the military sector will spur the market revenue during the forecast timeline.
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The North America helicopter market valued at around USD 10 billion in 2020 Impelled by rapidly increasing recreational activities in the region. Increasing air sports activities such as aerobatics, parachuting, and paragliding are generating lucrative growth opportunities.
The presence of various prominent players, such as Bell Textron, Boeing, Lockheed Martin, MD Helicopters, and Robinson Helicopter Company, in the region is anticipated to enhance the market share. These players focus majorly on building new long-term strategic partnerships to new business avenues and enhance their revenues. For instance, in December 2020, MD Helicopters, Inc. and the U.S. Army signed an agreement to provide logistics support for the MD 530F Cayuse Warrior reconnaissance and light attack helicopter fleet for Afghanistan Air Force. The agreement is worth USD 34 million, contributing positively to the accelerating market revenues.
Manufacturers in the helicopter industry are focused primarily on adopting strategies, such as product portfolio expansion and strategic partnerships, to enhance their market share. For instance, in December 2019, OCCAR (Organization for Joint Armament Co-operation) and Airbus Helicopters signed a tri-lateral global support contract to provide Tiger helicopters for the German, French, and Spanish Army. The contract includes critical matters such as continuous improvement & obsolescence treatment and secured repair & spares capabilities for the fleet.
The prominent players in the helicopter market include:
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Market, By End-Use
Commercial
Market, By Component
Aerostructures/Airframe
Market, By Sales Channel
OEM
The above information has been provided for the following regions and countries: