Attack Helicopter Market Trends

Market Driver - Rising Emphasis on Fleet Modernization in Countries

With aging fleets of attack helicopters across many nations, there has been increasing focus on replacing these old fleets with more modern and technologically advanced aircraft. Many countries operate attack helicopters that have been in service for several decades and need to be retired due to obsolescence. Upgrading and modernizing the fleets has become necessary to maintain military capabilities.

Many nations have already started the process or have plans to modernize sizeable parts of their helicopter fleets in the coming decade. The modernized fleets will incorporate advanced avionics, self-protection suites, improved engines, weapons, and sensor packages. This shifts the fleets to integrated “system of systems” configuration versus independent aircraft.

With major OEMs actively developing and offering upgraded helicopter variants, nations see modernization as an opportunity to procure new generation aircraft tailored to their long term requirements. Therefore, strategic imperative of fleet modernization continues to strengthen, driving greater demand for latest build attack helicopters globally.

Market Driver - Increased Defense Expenditures Globally

In the recent times, growing fiscal allocations for military modernization across key markets have positively impacted the aerial weapons segment including attack helicopters. After many years of budgetary constraints due to financial crisis, several nations are now actively raising defense budgets to modernize their armed forces and maintain military preparedness.

The mounting defense budgets provide the necessary financial means for military aviation procurement programs that were deferred earlier. Procuring state-of-the-art attack helicopters compatible with joint and networked operations concepts has become a high spending priority.

Faced with expanding national security roles and coalition operations abroad, demand for multi-role attack helicopters as power projection platforms stays robust among armed forces globally. Procurement programs for new or upgraded fleets are backed by stronger budgetary allocations which give confidence to manufacturers in the attack helicopter market. Governments would continue channeling growing procurement budgets into rotary wing systems that provide an optimal mix of mobility, lethality, tactical ISR and air cover support to troops on ground. This augurs well for demand generation from armed forces across key regions in the global attack helicopter market in the future.

Market Challenge - Stringent Aircraft Design Standards

One of the key challenges for the attack helicopter market is meeting stringent aircraft design standards. Attack helicopters are meant to operate in a variety of environments including highly hazardous battlefield conditions. They need to have high engine reliability and performance even in extreme weather and temperature conditions. Structurally, attack helicopters must be lightweight yet very robust to withstand potential battle damage.

Further, any upgrades or changes to existing helicopter designs mandated by evolving military requirements need to undergo similar rigorous tests and checks before implementation. Ensuring compliance with global interoperability standards also poses difficulties. Stringent compliance needs could restrict innovation and increase the financial risks involved, acting as a deterrent for new entrants in the attack helicopter market.

Market Opportunity - Partnership Between Global and Domestic Players

One of the major opportunities for the attack helicopter market is through strategic partnerships between global OEMs and domestic players. Global attack helicopter manufacturers continue to face import barriers in many emerging markets due to regulations favoring indigenous procurement. At the same time, these countries are looking to modernize their military helicopter fleets with state-of-the-art platforms. This opens up an opportunity for global players in the attack helicopter market to partner with domestic defense firms to set up joint venture facilities.

Through technology transfers and manufacturing partnerships, global majors can gain access to new markets while supporting the “Make in India” or “Make in Country” initiatives of partner nations. This collaborative approach helps address capability development needs of customer countries in a mutually beneficial manner. It also fosters development of a robust domestic attack helicopter manufacturing ecosystem and supply chain in partner countries over the long term.