Global Military Aircraft Modernization and Retrofit Market 2022 – 2030

Reports Description

According to Custom Market Insights (CMI), The Global Military Aircraft Modernization and Retrofit Market size was estimated at USD (52.4B) in 2021 and is expected to hit around USD (72.7B) by 2030, poised to grow at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2030.

Modernizing, updating, or retrofitting a military aircraft involves adding new features, capabilities, or other alterations to the plane to keep it current with the needs of the military and evolving technology. Modernization and upgrade initiatives aim to increase an aircraft’s effectiveness and efficiency while extending its service life. For example, the development and modification of an existing aircraft with a digital cockpit, armament, mission, and defensive systems are made possible by military aircraft modernization and refit. It enhances capability, increases service life, performs routine maintenance, updates the avionics system, and resolves mechanical problems. In addition, many businesses are currently providing cutting-edge support and services for modern fighter aircraft, including electronic warfare, optronics, communications, attack systems, fire control radars, radio-navigation and identification systems, cockpit display systems, helmet-mounted sight, avionics suite, and electrical power generation. 

Older aircraft must be equipped with contemporary technology to complete missions and combat evolving threats. Most military aircraft are of the fourth generation, flexible and capable of integrating current radars. The most recent and technologically sophisticated military aircraft are those of the fifth generation.

Governmental organizations from many nations are updating their current fleet of military aircraft with cutting-edge technology and components in response to escalating geopolitical tensions to preserve a strategic edge on the modern battlefield. This stands as one of the significant elements favorably affecting market expansion.

Growth Factors.

Investments in the modernization of aging aircraft’s existing equipment, primarily with new and advanced equipment, are driven by the rising military spending of emerging economies. During the forecast period, this is anticipated to fuel the market for modernizing and retrofitting military aircraft. The increasing demand for fighter jets from nations around the world, the rising number of orders for helicopters and transport aircraft, and the rising investments by governments in military aircraft modernization programs are just a few of the factors contributing to the growth of the global market for military aircraft modernization, upgrade, and retrofit.

Market players are spending on research and development (R&D) activities to increase aircraft speed, destructive force, power, and stealth capabilities and provide autopilot landing systems to assist pilots in bad weather conditions.

Aircraft using fifth-generation technology

The fifth-generation jet fighter is in greater demand than ever due to features like high-performance airframes, low probability-of-intercept radar (LPR), advanced avionics features, and highly integrated computer systems that can communicate with other components in the battlespace for situation awareness. This will have a positive impact on the military aircraft market. HAL Advanced Medium Combat Aircraft (AMCA), a fifth-generation supermaneuverable stealth multirole fighter independently developed by India, is being created by Hindustan Aeronautics Limited and designed by the Aeronautical Development Agency (ADA).

Aging fleets and the growing need to replace them

Due to technical difficulties with construction, propulsion, and other systems, there is an increasing demand for technologically superior military aircraft to replace conventional military aircraft. In addition, to handle increasing threats and completely new mission objectives, the fleet of older aircraft sometimes needs more capacity. Given that it is one of the largest operators of outdated aviation, the U.S. Air Force will face difficulties and problems due to the further aging of aircraft over the next ten years.

Rising geopolitical tensions

In reaction to growing geopolitical tensions and to maintain a strategic advantage on the contemporary battlefield, governmental organizations from several countries are modernizing their fleet of military aircraft with cutting-edge technology and components. This is one of the critical factors that favorably influences market expansion. Additionally, the need for military aircraft modification and retrofitting is increasing due to the increased popularity of combat aircraft. These military aircraft may improve their capabilities for aerial battle and observation by adding defensive equipment and mechanisms.

Military aircraft modernization and retrofit Market Segmentation.

Military aircraft modernization and retrofit Market, a segment based on Aircraft Type

The fixed-wing aircraft category is predicted to expand at the highest CAGR and have a solid future position in the military aircraft modernization and retrofit market. The fixed-wing sector is anticipated to be the largest segment in the market due to increased demand for the expansion of the air force fleet and rising defense expenditures for combat aircraft. Compared to helicopters, fixed-wing aircraft have more load capacity, more excellent range, less noise, less pilot and observer fatigue, and require fewer overhauls. However, the running cost is the most significant benefit.

The market for rotary wings is anticipated to develop the quickest. Over the next 20 years, there will likely be a global increase in the production of military helicopters. In Asia, the Middle East, Africa, and Eastern Europe, there is a greater need for military helicopters. As a result, the market is driven by an increase in Hilary helicopter deliveries worldwide.

Military aircraft modernization and retrofit Market, a segment based on the Application

According to the application, the multirole military aircraft is expected to grow significantly during the forecast period. The plane employed for ground attacks and fighter missions is a multi-role (or multirole) combat aircraft. Compared to air superiority fighters, they are smaller and weaker. A multi-role fighter and a strike fighter are distinct since the former was created to be equally effective in aerial warfare and ground assault, while the latter is often a fighter aircraft that can also carry air-to-ground bombs.

The segment with the most significant impact on delivery and value is combat aircraft. The F-35 program, the F/A-18 program, the export of the Typhoon and Rafale, and the new Gripen E/F are the combat aircraft or development initiatives responsible for the market expansion.

The U.S. manufacturers dominate the military transport market, and sales are anticipated to remain steady over the forecast period. The Airbus A4OOM heavy transport aircraft is dominant in the growing heavy military transport category.

Report Scope

Feature of the Report Details
Market Size in 2021 USD (52.4B)
Projected Market Size in 2030 USD (72.7B)
Market Size in 2022 USD (2022Value) Billion/Million
CAGR Growth Rate 5.1% CAGR
Base Year 2021
Forecast Period 2022-2030
Prominent Players ARINC, Thales Group, Boeing, IAI, Lockheed Martin, Rockwell Collins, Northrop Grumman, Cassidian, Lufthansa, BAE Systems, Dassault Aviation, Elbit Systems, Leonardo-Finmeccanica, and Others
Key Segment By Aircraft Type, Application, and Region
Report Coverage Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options Request tailored purchasing options to fulfil your requirements for research.

Regional Analysis

During the projected period, North America is expected to maintain its prominent position in the military aircraft modernization and retrofit market. To maintain aerial superiority, countries in North America, particularly the U.S., have been at the forefront of creating modern aerial capabilities. In addition, the evolution and development of stealth technology in fifth-generation fighter jets like the F-35 Joint Strike Fighter (JSF) and the X-47B have ushered in an era of constant research and development (R&D) to maintain a capability superiority over competitors like Russia and China. Moreover, they have domestically developed similar aerial capabilities to counter the spread of the US influence on a global scale. 

The U.S. intends to take the lead in the global arms race for military aircraft in terms of capability and quantity. For each duty, the U.S. Air Force (USAF) has the appropriate type of aircraft. Its combat aircraft are often considered its flagship assets as they are designed to be inherently capable of conducting various missions. The U.S. DoD is now concentrating on modernizing its combat aircraft fleet, which currently numbers over 1,800. Hence, this will drive its military aircraft modernization and retrofit market dominance.

The industry is predicted to increase significantly in Europe because of the region’s high need for transport and combat aircraft. In addition, due to the advanced security dangers and geopolitical tensions, defense spending in Europe is anticipated to increase.

Over the projection period, Asia Pacific is anticipated to grow at the quickest CAGR in the military aircraft modernization and retrofit market. The region’s old military aircraft fleet is being modernized due to rising military investment and ongoing political unrest. In addition, to improve their situational awareness, nations like China, India, Japan, and Singapore are modernizing their existing fighter aircraft fleet.

Key Players

  • Thales Group
  • Boeing
  • IAI
  • Lockheed Martin
  • Rockwell Collins
  • Northrop Grumman
  • Cassidian
  • Lufthansa
  • BAE Systems
  • Dassault Aviation
  • Elbit Systems
  • Leonardo-Finmeccanica

Recent Developments

The US Department of Defense (DOD) granted The Boeing Company a USD 14.3 billion contracts for the maintenance and modernization of 8-18 Lancer and B-52 Stratofortress aircraft used by the US Air Force. The B-1 and B-52 bombers are expected to become more resilient, deadly, supportable, and responsive due to the flexible acquirement and sustainment contract. In addition, the program comprises modifications to the radar and B-52 Software Block (BSB) enabling the integration of new weapons.

Segments covered in the report

By Aircraft Type

  • Fixed-wing Aircraft
  • Helicopter

By Application

  • Combat aircraft
  • Multirole aircraft
  • Multirole transport
  • Others

On the basis of Geography

North America

  • The U.S.
  • Canada
  • Mexico


  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific

The Middle East & Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa

Latin America

  • Brazil
  • Argentina
  • Rest of Latin America

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