Helicopters Market

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The Global Helicopters Market Size was valued at $30,600 Million in 2022 and is estimated to grow from $31,900 Million in 2023 to $41,200 Million by 2027 at a CAGR (Compound Annual Growth Rate) of 6.1%. The increasing demand for helicopters in Emergency Medical Services (EMS), Law Enforcement, and Oil & Gas Industries, along with the growing demand for military helicopters, are some of the key factors driving the growth of the market. Technological advancements such as the development of unmanned attack helicopters, hybrid-electric propulsion systems, and advanced avionics are also expected to create significant opportunities for market players during the forecast period. Factors such as high acquisition and maintenance costs, and stringent regulatory norms may hinder the growth of the hi-tech Helicopters Industry to some extent.

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Helicopters Market Dynamics:

Driver: Replacement of Aging Helicopters Fleets

The Military helicopters market is projected to grow due to the replacement of aging helicopter components and systems and capacity expansion programs in emerging economies. The development of next-generation compound and tilt helicopters is expected to contribute to a larger share of the helicopters market within the next decade and result in a significant number of helicopter replacements and capability expansions. Traditional surveillance systems are being replaced with active electronically scanned arrays on combat helicopters, owing to their ability to spread signal emissions across a wide range of frequencies. Emerging economies, such as China, India, Brazil, and South Africa, are investing in the development of electronically scanned array radar systems for combat helicopters. These countries have allocated substantial shares of their defense budgets to augment their existing defense power, which involves upgrading their helicopter fleet.

Driver: Increasing demand for lightweight helicopters

The prime focus areas for helicopter manufacturers based on end-user requirements are saving fuel and operational efficiency. Technological advancements in the aerospace & defense industry and demand for improved helicopter power performance drive the need to update military and commercial helicopters. Manufacturers have undertaken efforts to reduce the overall weight of helicopter engines to reduce fuel consumption and enhance cost effectiveness. On average, a helicopter engine weighs approximately 10- 15% of the overall operating weight, depending on the helicopter type and the application. Increased efforts of helicopter manufacturers to reduce the size and weight of helicopters have resulted in technological advancements.

Thus, the demand for lightweight helicopters is expected to drive the growth of the overall helicopters market in the forecast years.

Restraint: Delivery Backlogs by Major OEMs

Airbus Helicopters SAS (France), Bell Helicopter (US), and Lockheed Martin Corporation (US) are the top manufacturers of helicopters. Thus, delivery backlogs from these top players can affect the growth of the overall helicopters market. There has been a significant rise in demand for helicopters in both civil & commercial and military applications. Due to limited production capabilities, the OEMs fail to deliver the required helicopters within the expected timeline. In 2020, Bell Helicopter witnessed a backlog of USD 5.3 billion in 2020 due to an increase in helicopter backlogs. The increasing difference between the number of orders and deliveries hampers the growth of the global market. In 2019, Airbus Helicopters received 369 orders and delivered 332, resulting in a backlog of 37 helicopters.

Opportunity: Commercialization of UAM and eVTOL

Urban Air Mobility (UAM) is a concept that uses the vertical take off capabilities of helicopters and combines these with upcoming electric-hybrid propulsion technologies and an autonomous flight for inter- and intra-city travel. Electric helicopters, known as electric vertical take off and landing (e-VTOL) aircraft, have the capability to take off and land from vertiports built for urban transport in cities. In addition to speeding-up urban travel, these aircraft help reduce emissions and noise. Commercialization of this concept is expected to enable passengers to share e-VTOL air services between cities and suburbs and eventually within cities.

Opportunity: Fuel - efficient turbo shaft engines

The global economic recovery has led to an increase in the demand for oil, further increasing the price of oil. In addition, political instability in the Middle East and North Africa is also leading to a surge in the price of oil.

Manufacturers of helicopter engines worldwide focus on manufacturing fuel-efficient and environment-friendly engines. Fuel-efficient engines are expected to help reduce the operating costs of helicopters, as the fuel cost is 33% of the overall operating cost of a helicopter. HTS900 turboshaft engine by Honeywell International (US) is designed to increase power output, reduce fuel consumption, and allow for future engine growth using the same compressor architecture. The engine utilizes a dual-channel full authority digital engine control (FADEC) system with a manual backup provision to ease the pilot workload and facilitate engine maintenance planning and troubleshooting, along with less fuel consumption. The increase in the efficiency of the engine results in reduced maintenance costs.

Safran Turbomeca (France) has developed a new helicopter engine called Arrano, which is expected to be introduced into the market by 2019. Arrano received its type certification in June 2019, and the company is expected to start deliveries by 2020. Arrano is expected to offer a 10-15% reduction in specific fuel consumption, thereby increasing fuel efficiency significantly.

Challenge: Rising Fuel Prices

The helicopters market faces the challenge of rising fuel prices, which leads to lower purchases. Customers tend to withhold their purchase as they may not wish to spend excessively on the operation after investing hugely in acquiring the helicopter. The rise in fuel prices results in budget issues, which adversely impact the market growth globally. High fuel prices have made the growth of the helicopters market sluggish in some countries, posing a challenge for the market.

Challenge: Stringent regulatory and complex product certification procedure

The aerospace industry is highly regulated, mainly due to the risks associated with flight operations. A multitude of bilateral, national, and international regulations and standards bind the actions of manufacturers of helicopters and their components. Countries across the globe have regulatory bodies governing the safety levels associated with helicopter operations. In addition, the International Civil Aviation Organization (ICAO) has implemented regulations that are required to be adhered to globally. All helicopter components and systems must meet the regulatory requirements of the ICAO to ensure the safety of helicopter operations and control risks associated with defective components. Helicopter components and systems have to undergo stringent quality checks and rigorous testing to meet safety levels and reduce the risks of using faulty components. All components need to undergo a one-time inspection before they can be assembled in a helicopter, which impacts the delivery cycle of the market. Under the US Federal Aviation Administration’s (FAA) Airworthiness Directive (AD), components that do not meet safety requirements and design tolerance levels are required to be replaced. Hence, it is challenging for component manufacturers to adhere to stringent regulatory norms and deliver quality products.

Based on number of engines, the twin engine segment is projected to grow at the highest CAGR in the helicopters market during the forecast period

The Helicopters market has been segmented based on number of Engines into Twin engines and Single Engines. Twing Engine is segment is projected to register a highest CAGR during the forecast period. Helicopters that use 2 engines, each delivering equal power to the rotors, are considered in this segment. Twin engine helicopters are more reliable than single engine helicopters. For instance, if one engine fails in a twin-engine helicopter, the second engine is there to ensure the flight continues. The engine power required to sustain flight is a given for a certain weight, speed, and atmospheric conditions. In a twin engine helicopter, the power is equally supplied from each engine. Medium and heavy helicopters mostly use multi-engine designs. Thus, the high adoption of medium and heavy helicopters in the military segment is expected to increase the demand for twin engines.

By Type, Medium subsegment is projected to lead the Military segment of the helicopters market

By Type, Helicopter market is segmented into Military and Commercial. The Military segment is further subsegmented based on weight into Light (<4.5 TONS), Medium (4.5-8.5 Tons), Heavy (>8.5 Tons). The medium military helicopters segment, based on weight, is projected to lead the market as well as grow at the highest CAGR during the forecast period. Medium military helicopters are in high demand due to their use in multiple applications such as search & rescue, combat, transport, and training. They provide a balance between the easy maneuverability of light helicopters and the higher payload requirements of heavy helicopters.

Based on Application, the Military Segment is Projected to Grow at the Highest CAGR in the Helicopters Market During the Forecast Period

Factors such as increasing demand for transport helicopters and increased procurement of attack & reconnaissance helicopters for combat activities is responsible for the growth of military segment. Military helicopters, often known as combat helicopters, include attack helicopters and combat support helicopters. Military helicopters are used for ground attack missions, air-to-air combat, and maritime/naval attack by defense forces worldwide. Apart from attacks, they are also used to undertake various operations, including surveillance, observation, search & rescue, evacuating wounded soldiers from the battlefield, firefighting, and other life-saving activities.

North America Helicpoters Market Accounted for the Largest Share in 2023

Based on region, the helicopters market has been segmented into 5 regions, namely, North America, Europe, Asia Pacific (APAC), Latin America and Middle East & Africa. North America is estimated to account for the largest share of the global helicopters market in 2022. This can be attributed to the presence of major helicopter manufacturers such as Bell Helicopters (US), Lockheed Martin Corporation (US), MD Helicopters (US), and Kaman Corporation (US), among others.  

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Top Helicopters Companies: Key Market Players

The Helicopters Companies is dominated by globally established players such as Airbus Helicopters SAS (France), Bell Helicopters (US), The Boeing Company (US), Leonardo S.p.A. (Italy), Sirkorsky-Lockheed Martin (US), Russian Helicopters (Russia), and Kawasaki Heavy Industries (Japan), among others.

Helicopter Market Report Scope:

This research report categorizes the Helicopters Market based point of sale, OEM—by component & system, type, application, number of engines, and region, aftermarket-by component & system, and region.

By Point of Sale:

• OEM
• Aftermarket

OEM by Type:

• Military
  • Heavy Helicopters ( >8.5 Tons)
  • Medium Helicopters (4.5 -8.5 Tons)
  • Light Helicopters ( <4.5 Tons)
•  Civil & Commercial
  • Heavy Helicopters ( >9.0 Tons)
  • Medium Helicopters (3.1 –9.0 Tons)
  • Light Helicopters ( <3.1 Tons)

OEM by Application:

• Military
  • Attack & Reconnaissance Helicopters
  • Transport Helicopters
  • Maritime Helicopters
  • Training Helicopters
  • Search & Rescue Helicopters
•  Civil & Commercial
  • Transport Helicopters
  • Civil Utility Helicopters
  • Emergency Rescue & Medical Support Helicopters
  • Offshore Helicopters

 OEM by Component & System:

• Airframe
  • Aerostructures
  • Main Rotor Systems
  • Cabin Interiors
  • Anti-torque Systems
  • Transmission Systems
  • Electrical Systems
  • Hydraulic Systems
  • Avionics
  • Stability Augmentation Systems
  • Flight Control Systems
  • Undercarriages
  • Environment Control Systems
  • Emergency Systems
  • Special-purpose Systems
• Engines

OEM by number of engines:

• Twin Engines
• Single Engines

Aftermarket by Component & System:

• Aerostructures
• Main Rotor Systems
• Avionics
• Landing Gear Systems
• Emergency Systems
• Cabin Interiors
• Actuators
• Filters

OEM by Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Aftermarket by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Rest of the World

Recent developments

• In June 2022, Airbus Helicopters SAS (France) partnered with KLK Motorsport (Germany) and Modell- und Formenbau Blasius Gerg GmbH (Germany) to design, develop and manufacture the rear structure of CityAirbus NextGen, an ongoing multinational project by Airbus Helicopters. The companies will work on the development of an ultra-lightweight rear fuselage for CityAirbus NextGen.
• In April 2021, Leonardo S.p.A (Italy) presented the SH09 single-engine helicopter as AW09 after it acquired Kopter Group AG (Switzerland). The AW09 perfectly fits into the helicopters division portfolio and offers a variety of options to customers with its increased modularity.
• In April 2022, Bell Helicopter, a subsidiary of Textron Inc. (US) company, announced its purchase agreement with Karen SA (Switzerland) for two Bell 505s. Karen SA intends to use these helicopters for VIP and commercial flights and to provide pilot training courses.
• In June 2022, Sikorsky, a Lockheed Martin company (US),  signed a 5-year contract with the United States government for a baseline of 120 H-60M Black Hawk helicopters on behalf of US Army and Foreign Military Sales (FMS) customers.

Frequently Asked Questions (FAQ):

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