North America Should Account for Nearly 43% Of Global Expenditures Over The Next Ten Years

North America is expected to account for  42.9%, of the total global expenditure on military aircraft over the next ten years despite expected cuts in its military budget, according to a recently-released report from ASDReports. The high demand in the region is primarily driven by the development of 2,456 F-35 multi-role fighter aircraft as part of the Joint Strike Fighter program and 452 V-22 Osprey transport aircraft. Europe and Asia are also expected to account for a significant portion of the total military aircraft during the forecast period, with shares of 24.1% and 21.8% respectively.

Many countries are expected to replace their ageing military aircraft fleet during the forecast period. The wars in Afghanistan and Iraq has meant that the US, which is the biggest market for military aircraft and other allied countries in Europe, Asia-Pacific, Latin America and the Middle East, need to replace their aircraft which have been in continuous use over the last decade.

The global environment is characterized by ongoing tensions and conflicts among various countries around the world which is supporting demand for military aircraft. Historically, countries follow a policy of enhancing their military as a deterrent to hostile nations and consequently the military aircraft market is recording strong growth despite the commercial aircraft industry exhibiting a downward trend.

The market for advanced trainer aircraft across the globe is growing, which is attributed to the significant number of countries involved in the process of upgrading to next-generation combat aircraft fleets. In meeting this growing demand, manufacturers are developing trainer aircraft that are able to perform a number of training roles for the armed forces of the countries involved in the procurement process.

Many nations around the world are involved in border disputes which have resulted in strained military relations. Some of these disputes could be resolved amicably through talks while others have the potential to escalate into a military conflict. Therefore countries across the world are expected to invest in reconnaissance and surveillance aircraft to safeguard borders.

In terms of categories, the multi-role aircraft is expected to account for the highest proportion of spending in the global military aircraft market. Following the budget cuts announced by various countries as a result of the global economic recession, the procurement of multi-role aircraft has increased significantly due to their ability to carry out various missions including attack, reconnaissance, rescue operations and transport.

To increase the capabilities of modern military aircraft, the global defense industry is investing significantly in R&D which has led to the development of technologies to enhance the speed, power, stealth capabilities, destructive force and takeoff and landing capabilities of the various types of military aircraft.

The global economic slowdown has reduced military expenditure worldwide, as a consequence of which a significant number of countries are establishing joint projects in order to share R&D costs. Partnerships between defense firms have also increased as a significant number of countries are investing in the development of their domestic military aircraft development capabilities, by establishing strategic alliances and technology-transfer agreements with global military aircraft manufacturers.
 
The global economic slowdown has reduced the defense budgets of most leading spenders in the world, including the US, France, Germany and the UK. Cuts to military expenditure have led to the cancellation and indefinite delays of various military aircraft programs, and are having a detrimental impact on the growth of the industry.

FMI: www.ASDReports.com