Europe Fighter Aircraft Market - Growth, Trends and Forecasts (2020 - 2025)

The Europe fighter aircraft market is expected to exhibit a growth rate of more than 4% during the forecast period.

• In an effort to enhance the aerial combat capabilities, several nations in the region are upgrading their existing fleets of fighter jets and replacing their aging and obsolete fleet with advanced new generation aircraft.
• European nations are investing in the modernization of air combat capabilities and these investments are driving the advancements in stealth technology and precision weapon development, which is subsequently driving the development of the market.
• Europe is witnessing rapid development in aerial fighting capabilities and air defense. Such factors are propelling the growth of the fighter aircraft market in the region. Various collaborative development programs, such as the Future Combat Air System of France, Spain, and Germany and the Tempest Fighter Development Program of the UK, are expected to propel the introdution of advanced fighter aircraft in Europe and replace theexisting fleets of Rafales, Typhoons, etc.

Key Market Trends

Short Take-off and Landing Aircraft Segment to Witness the Highest Growth During the Forecast Period

The market for short take-off and landing (STOL) fighter aircraft is expected to record a high CAGR during the forecast period. STOL fighter aircraft are advanced versatile aerial combat machines that can be deployed at shorter runways in very less time. Fighter aircraft manufacturers are focusing on integrating STOL and VTOL (vertical take-off and landing) capabilities in an aircraft, and significant investments have been made in this area in form of the fifth and sixth generation fighter aircraft development programs. In June 2019, France, Spain, and Germany entered an agreement (Future Combat Air System) to develop the sixth-generation fighter aircraft. This is the biggest arms development program in Europe to date, and an initial investment of EUR 4 billion is expected from France and Germany. The Joint Strike Fighter Program of the United States is also propelling the growth of the segment, with the objective of replacing the fleet of F-16, F-18, A-10, and AV-8B fighter aircraft with F-35 Lightning II in countries, such as United Kingdom, Italy, the Netherlands, and Belgium. The F-35B short takeoff/vertical landing (STOVL) variant is the world's first supersonic STOVL stealth aircraft.

The United Kingdom is Expected to Show the Highest Growth During The Forecast Period

During the forecast period, the UK is expected to show register the highest growth rate. The United Kingdom is in a formal partnership with the United States on the F-35 development program, along with Australia, Canada, Denmark, Italy, the Netherlands, and Norway. The F-35 features a significant chunk of components built in the UK, with up to 10-15% of the components of each aircraft being built or developed in the country. In addition, the United Kingdom is currently the largest foreign customer for the F-35 program of the US. The country's 138 aircraft will become the largest anticipated foreign fleet of the F-35, once all the aircraft are delivered to the country. In November 2018, UK signed a multi-million-pound contract, which will see the UK own 35 stealth jets by end of 2022. The new contract was for 17 F-35B aircraft, which will be delivered during 2020 - 2022. In addition, the country is planning to develop sixth-generation aircraft programs, likethe UK-led Tempest Stealth Fighter Project, for which Sweden and Italy became partners, and the Netherlands also expressed interest. Such programs are expected to help the growth of the market in the country in the years to come.

Competitive Landscape

Prominent players in the market are Saab AB, Lockheed Martin Corporation, Dassault Aviation, BAE Systems PLC, and Airbus SE. The market is being propelled by technological advancements and upgradation of the existing fleets. Many fighter aircraft development programs are underway in Europe, which is expected to significantly propel the growth of the players during the forecast period and the following 10 - 15 years. Russian Aircraft Corporation is currently working on a hypersonic fighter aircraft, Mig-41, and the first flight of the aircraft is expected during mid-2020. Russia is also currently working on the YAK 150 prototype capable of vertical take-off and landing. Due to recent advanced developments in aerial warfare, fighter jets are being designed for high-speed interception, electronic warfare, surveillance, breach detection, and other operations. Significant investments in R&D may help the development of sixth-generation fighters and bolster the market prospects for the manufacturers of such aircraft during the forecast period.

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