Aging Rotorcraft Fleet Driving Demand for Military Helicopters

Despite budget cuts and a consequent decline in defence capital expenditure by various countries around the world, the military helicopters market is expected to show sustained spending in the next decade. In recent years, low intensity conflicts such as combating drug trafficking and countering terrorism are on the rise and these operations require expeditionary capability and a rapid deployability of military forces and weapons to affected areas. For instance, helicopters were extensively used for combat support, search and rescue missions and played a crucial role in conflict zones such as Iraq, Afghanistan and Libya and as such replacements or upgrades are needed. Moreover, high demand from emerging markets such as Asia, Middle East and Africa is expected to further boost the helicopters market with most of the spending coming from China, India, South Korea, Saudi Arabia and Qatar. A recent report published by Strategic Defence Intelligence in February 2015, “The Global Military Rotorcraft Market 2015-2025” provides detailed analysis of the market over the next ten years, market size forecasts and a comprehensive view of the market opportunities and risks.

Most countries globally are operating an obsolete fleet of helicopters which have reached their end of operational lives and need urgent replacement; these major factors will drive the market and pose lucrative opportunities for suppliers. Additionally, as helicopters have an average life of 40 years with life extensions and upgrades, the number of helicopters reaching end of their operational lives is expected to make the market more attractive, leading to significant spending in the sector by major countries during the next decade. A number of major helicopter programs being undertaken globally include the US Army’s Future Vertical Lift (FVL) program (to replace the aging fleet of UH-60 Black Hawk and AH-64E Apache helicopters) with an investment of US$100 billion and the US Marines’ US$25.5 billion Heavy Lift Replacement (HLR) program; China’s US$3.3 billion procurement of Z-18A helicopters to replace the Z-8; and India’s US$8 billion Naval Multirole Helicopters (NMRH) program to replace Chetak and Sea King helicopters.