The Asia-Pacific Attack Helicopter Market is expected to exhibit a growth rate of more than 5% during the forecast period 2020 - 2025.
- Asia-Pacific region is marked by the presence of major military powers such as India, China, Japan, South Korea, etc. who are increasing their defense budget every year. A large part of this budget is going into the upgradation and enhancement of air superiority in the region. This factor is propelling the market growth for attack helicopters in the Asia-Pacific region.
- Factors such as rise in armed conflict, terrorism, border tensions, territory breach and violations, etc. are fueling the demand for attack helicopters. Also, the armed forces in the region are enhancing the effectiveness (in terms of lethality, situational awareness etc.) of attack helicopters with advanced technologies to have a tactical advantage over the enemy.
- The rapid adoption of advanced stealth technology to increase the lethality of helicopters and reduce sound and heat signatures is anticipated to help the market grow in the coming future.
Key Market Trends
Army Segment is Expected Witness the Highest Growth Rate
The Army segment is expected to grow at the highest CAGR during the forecast period. This growth is mainly due to the procurement and fleet modernisation plans of the governments like India, Japan, and South Korea to increase aerial combat capabilities. South Korea is one of the major countries in the Asia-Pacific region, that is currently investing procurement of advanced attack helicopters. In May 2018, the government signed a hybrid cost, cost-plus-fixed-fee and firm-fixed-price foreign military sale contract with the US Department of Defense (DoD) for the procurement of 36 AH-64E Apache helicopters. The contract is of worth more than USD 96.3 million and is scheduled to be completed by April 2023. Also, the country is set to receive 70 Surion helicopters by 2022 under a contract signed by the government with Korea Aerospace Industries (KAI). Similarly, Indian Army plans to procure and induct six Apache helicopters and an additional squadron of ALH Dhruv helicopter by 2021. Such robust plans of the armies in the region to increase their attack helicopter fleet are expected to accelerate the growth of the segment during the forecast period.
China has the Highest Share in 2019
According to the Chinese Finance Ministry, China’s defense budget stood at USD 177 billion in 2019. A large portion of this military spending is dedicated to the modernization of air and naval forces to counter any threat arising from the South China Sea and other neighbouring countries. This is generating demand for development and procurement of new and advanced attack helicopters by the country to increase its air capabilities.The country is working on stealth technology for its helicopters and this factor will significantly drive the demand at the domestic and global level. For instance, In February 2020, China unveiled a new variant of Z-10 attack helicopter with new engine exhaust upgrade. The new exhaust upgrade will help the helicopter decrease its infrared signal, making it difficult to target by the enemy forces. Also, China is reportedly working with an undisclosed European partner on the development of more powerful WZ-16 turboshaft engine for attack helicopters. Such factors are boosting the growth of the attack helicopter market in China.
The Attack Helicopters market in Asia-Pacific region is a highly consolidated one with The Boeing Company, Airbus SE, Hindustan Aeronautics Limited, Leonardo S.p.A., and Rostec State Corporation being the prominent companies in the market. There are some of the major local defense manufacturers and state-owned companies have started collaborating with global players to start production and assembly of parts, components and entire helicopter at a domestic level. For instance, in 2018, Tata Advanced Systems and The Boeing Company announced a joint venture for producing fuselage for Apache AH-64 helicopters. The joint venture will subsequently produce integrated systems in future. Due to the wide range of options available with global players, governments in the region are signing deals for procurement of attack helicopters that will suit the operating requirement in a particular terrain or region.
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Table of Contents
1.2 Scope of the Study
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
220.127.116.11 South Korea
18.104.22.168 Rest Of Asia-Pacific
6.1.1 The Boeing Company
6.1.2 Rostec State Corporation
6.1.3 Airbus SE
6.1.4 Textron Inc.
6.1.5 Hindustan Aeronautics Limited
6.1.6 Leonardo S.p.A.
6.1.7 Kawasaki Heavy Industries Ltd
6.1.8 Aviation Industry Corporation of China