Military Aircraft Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Fixed Wing, Rotorcraft), By Application (Military Transport, Cargo Supply, Others), By Payload (Below 50 Tons, 51 Tons to 100 Tons, 101 Tons and Above), and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 64.94 Billion
CAGR (2026-2031)	5.08%
Fastest Growing Segment	Cargo Supply
Largest Market	North America
Market Size (2031)	USD 87.42 Billion

Market Overview

The Global Military Aircraft Market will grow from USD 64.94 Billion in 2025 to USD 87.42 Billion by 2031 at a 5.08% CAGR. The Global Military Aircraft Market comprises the development, procurement, and sustainment of fixed-wing and rotary-wing aviation assets designed for aerial warfare, tactical transport, and surveillance missions. The primary drivers supporting market growth include heightened geopolitical instability and the critical need for nations to modernize aging fleets with operationally capable platforms. Additionally, rising defense budgets allocated for strategic air superiority and rapid deployment capabilities are fueling large-scale procurement programs globally, distinct from technological trends such as the adoption of unmanned systems.

However, the market faces a significant impediment in the form of persistent supply chain disruptions, which cause production delays and cost overruns for major manufacturers. These logistical bottlenecks, often involving specialized raw materials and components, complicate delivery schedules and hinder the efficient fulfillment of defense contracts. According to the Aerospace Industries Association, in 2024, United States aerospace and defense exports reached a total value of $138.7 billion, highlighting the resilience of international demand despite these industrial challenges.

Key Market Drivers

Rising Global Defense Expenditure and Military Procurement Budgets act as the primary catalyst for the military aircraft market, enabling nations to fund large-scale acquisition programs. This financial surge supports the development of next-generation platforms and the integration of advanced avionics, as governments prioritize air superiority. According to the Stockholm International Peace Research Institute (SIPRI), April 2024, in the 'Trends in World Military Expenditure, 2023' Fact Sheet, total global military expenditure reached $2443 billion in 2023, representing a real-term increase of 6.8 percent. This growth is visible within specific alliances; according to NATO, in 2024, 23 member nations were expected to meet the alliance's guideline of spending at least 2 percent of their Gross Domestic Product on defense, bolstering procurement activities.

Escalating Geopolitical Tensions and Regional Security Threats are simultaneously forcing armed forces to accelerate the Modernization and Replacement of Aging Aircraft Fleets. As security environments in Eastern Europe and the Indo-Pacific deteriorate, nations are urgently seeking to enhance their aerial combat readiness through the purchase of multi-role fighters. This operational requirement has led to extended order books for major contractors. According to Lockheed Martin, October 2024, in the 'Third Quarter 2024 Financial Results', the company reported a backlog of $165.69 billion, underscoring sustained demand for platforms such as the F-35. Consequently, the convergence of heightened threat perceptions and fleet obsolescence ensures a positive growth trajectory for the sector.

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Key Market Challenges

The Global Military Aircraft Market is currently grappling with severe supply chain disruptions that are directly hampering its growth potential. This challenge manifests primarily through acute shortages of critical raw materials, such as titanium and aluminum, alongside a scarcity of specialized components like semiconductors and propulsion systems. These shortages create bottlenecks in the manufacturing process, forcing original equipment manufacturers to extend lead times and delay the completion of complex aerial platforms. Consequently, despite robust demand and record-breaking order backlogs, the inability to convert these orders into delivered assets restricts revenue realization and slows the overall expansion of the market.

The impact of these logistical impediments is quantifiable and significant across the broader defense and aerospace industrial base. According to ADS Group, in 2024, aircraft deliveries declined by 14 percent in the first half of the year compared to the same period in 2023, a contraction largely attributed to these persistent supply chain constraints. This reduction in output underscores how production inefficiencies are preventing the market from meeting the urgent modernization requirements of armed forces globally. By stalling the handover of essential tactical and strategic assets, these disruptions not only defer financial returns for manufacturers but also complicate the long-term fleet planning and operational readiness of defense customers.

Key Market Trends

The Development of Sixth-Generation Fighter Aircraft Programs marks a strategic pivot toward a "family of systems" integrating advanced stealth, variable-cycle engines, and hyper-connectivity. Major aerospace contractors are transitioning from conceptual design to manufacturing for platforms like the U.S. Next Generation Air Dominance (NGAD) to replace aging fifth-generation fleets. According to Thomson Reuters, March 2025, in the 'Pentagon set to award US Air Force's next-generation fighter jet contract, sources say' article, the U.S. Department of Defense is advancing this initiative with an engineering and manufacturing development contract valued at more than $20 billion. This massive capital injection underscores the focus on developing assets capable of penetrating dense anti-access zones.

The Integration of Manned-Unmanned Teaming (MUM-T) Capabilities redefines fleet operations by pairing crewed fighters with autonomous "loyal wingmen" to generate affordable mass. This trend allows unmanned systems to execute high-risk electronic warfare and strike missions under piloted command, significantly expanding sensor reach without risking human lives. According to DefenseScoop, June 2025, in the 'Pentagon's 2026 budget plan includes more than $4B for next-generation Air Force fighter jets' article, the U.S. Air Force allocated $804 million specifically for the Collaborative Combat Aircraft program in its fiscal 2026 budget. This funding supports the rapid production of autonomous assets to counter numerical disadvantages in potential near-peer conflicts.

Segmental Insights

The Cargo Supply segment is emerging as the fastest-growing category in the Global Military Aircraft Market, driven by an urgent requirement for enhanced strategic airlift capabilities. This growth stems from the necessity to transport heavy equipment and personnel efficiently across remote operational theaters. Defense ministries are prioritizing the modernization of aging transport fleets to maintain robust logistical lines amidst rising geopolitical tensions. Additionally, the dual-role capability of these aircraft to support humanitarian aid and disaster relief missions further accelerates demand, ensuring sustained procurement by government agencies globally.

Regional Insights

North America holds the leading position in the global military aircraft market, driven primarily by substantial defense budget allocations within the United States. The region benefits significantly from large-scale procurement programs initiated by the United States Department of Defense intended to replace aging fleets with newer models. Additionally, the concentrated presence of key original equipment manufacturers fosters continuous research and development in aviation technologies. This strong collaboration between government agencies and private industry ensures consistent demand and production, solidifying North America’s status as the central market for military aircraft.

Recent Developments

• In October 2024, Embraer Defense & Security signed a contract with the Ministry of Defence of the Czech Republic for the supply of two C-390 Millennium multi-mission transport aircraft. This agreement made the Czech Republic the fourth NATO member to select the platform, further solidifying the aircraft's position in the European market as a preferred replacement for legacy tactical airlifters. The contract includes a comprehensive training and support package to facilitate the smooth integration of the aircraft into the Czech Air Force, enhancing its capabilities in air-to-air refueling, medical evacuation, and humanitarian assistance operations.
• In July 2024, the industrial partners of the Global Combat Air Program, comprising BAE Systems, Leonardo, and Mitsubishi Heavy Industries, unveiled a new concept model of their next-generation fighter jet at the Farnborough International Airshow. The updated design featured a significantly larger wingspan to enhance aerodynamic performance and payload capacity compared to earlier iterations. This collaborative effort between the United Kingdom, Italy, and Japan aims to deliver a sixth-generation combat aircraft by 2035, integrating advanced technologies such as intelligent weapons systems and a software-driven cockpit to ensure interoperability and air dominance in future operating environments.
• In April 2024, the United States Air Force selected Anduril Industries and General Atomics Aeronautical Systems to proceed to the next phase of the Collaborative Combat Aircraft program. These companies were awarded contracts to design, manufacture, and flight-test production-representative prototypes of autonomous unmanned aircraft intended to operate alongside manned fighters like the F-35 and the future Next Generation Air Dominance platform. This decision eliminated other major competitors from the immediate development phase, highlighting a strategic shift toward incorporating non-traditional defense contractors and agile manufacturing capabilities to deliver affordable, scalable operational mass for future air combat scenarios.
• In February 2024, Turkish Aerospace Industries successfully conducted the maiden flight of its fifth-generation combat aircraft, Kaan, at the Murted Airfield Command near Ankara. The prototype aircraft, formerly known as the TF-X, completed a 13-minute flight, reaching an altitude of 8,000 feet and a speed of 230 knots before safely landing. This milestone marked a significant advancement in Turkey's strategic initiative to modernize its air force and reduce reliance on foreign suppliers for critical defense capabilities. The successful test demonstrated the company's growing engineering prowess in developing stealthy, twin-engine fighter jets designed for air superiority and complex multi-role missions.

Key Market Players

• Lockheed Martin Corporation
• The Boeing Company
• Northrop Grumman Corporation
• Airbus S.A.S.
• Dassault Aviation SA
• Saab AB
• Embraer S.A.
• Leonardo S.p.A.
• United Aircraft Corporation
• Korea Aerospace Industries Co., Ltd.

By Type	By Application	By Payload	By Region
Fixed Wing Rotorcraft	Military Transport Cargo Supply Others	Below 50 Tons 51 Tons to 100 Tons 101 Tons and Above	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Military Aircraft Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Military Aircraft Market, By Type:

• Fixed Wing
• Rotorcraft

• Military Aircraft Market, By Application:

• Military Transport
• Cargo Supply
• Others

• Military Aircraft Market, By Payload:

• Below 50 Tons
• 51 Tons to 100 Tons
• 101 Tons and Above

• Military Aircraft Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE