The helicopters market generated $25.3 billion in 2016, and it is projected to reach $31.8 billion by 2023, displaying a CAGR of 3.4% during the forecast period (2017–2023). The market growth is driven by the surging demand for technologically advanced helicopters, declining accident rate, aging helicopter fleet, increasing anti-terrorism activities, and growing number of joint ventures between helicopter manufacturers. Players operating in this market have a huge potential for growth due to the frequent orders for technologically advanced helicopters from nations such as South Korea, India, and Indonesia.
Helicopter Market - P&S Intelligence
Due to the increasing demand for technologically advanced helicopters, manufacturers have implemented several modifications in the engine, airframe, and emission system to make them more resilient and improve sustainability. These developments enable helicopters to perform efficiently in different environmental conditions, such as heavy rain and snow, strong winds, and blistering heat. These high-performance helicopters are being employed in the oil and gas industry to ferry personnel between the land and offshore rigs, as the winds above the seas often make ferrying people to and fro dangerous.
Additionally, the expansion of the aviation sector in developing nations is expected to drive the helicopters market growth during the forecast period. The original equipment manufacturers (OEMs) of the West are strengthening their presence in countries such as India and China because of the booming aviation industry in these nations. Additionally, countries such as the Philippines and Indonesia have showcased a strong growth potential due to the increasing demand for new helicopters and growing need to replace the aging fleet.
The type segment of the helicopters market is bifurcated into military and civil. Of these, the civil category is expected to display the faster growth due to increasing demand for helicopters from offshore rigs. On the basis of application, the military bifurcation is further divided into attack, heavy cargo, medium utility, reconnaissance, maritime, search and rescue, and light utility. Amongst these, the attack division accounted for the largest market share in the military helicopter category in 2016. During the forecast period, medium-utility helicopters will witness the fastest growth.
Geographically, the North American helicopters market generated the highest revenue in 2016, and it is expected to maintain its dominance during the forecast period. This can be ascribed to the gradual replacement of old helicopters with new ones and increasing activities in the oil and gas sector. Further, the Latin American (LATAM) market is expected to display the fastest growth during the forecast period due to the expansion of the aviation industry and fleet replacement. In this region, Mexico and Brazil will generate the maximum revenue in the future.
To cater to the surging demand for helicopters, companies such as Russian Helicopters JSC, Airbus SE, Bell Textron Inc., The Boeing Company, Lockheed Martin Corp., Leonardo S.p.A., and Textron Inc. are expanding their manufacturing capacity. Other players adding to the helicopters market revenue include Robinson Helicopter Co., MD Helicopters Inc., Kaman Corp., Gulf Helicopters Co., Vietnam Helicopter Corp., Volocopter GmbH, Petroleum Helicopters International Inc., and Hindustan Aeronautics Ltd. These companies have adopted methods such as collaborations, client order wins, and product launches to consolidate the competition.
Thus, fleet replacement and the availability of technologically enhanced helicopters are expected to boost the market during the forecast period.