North America Military Helicopter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American military helicopter market is expected to register a CAGR of more than 4% during the forecast period (2022-2027).

The market of military helicopters was significantly affected by the COVID-19 pandemic as there were supply chain issues in the defense sector due to the imposition of lockdowns in several countries globally. This has led to a significant decrease in total manufactured and delivered military helicopters in 2020. However, as the lockdowns were lifted in 2021, supply chain issues were mitigated, and the deliveries of helicopters in the region began to recover to pre-pandemic levels.

The United States is currently involved in geopolitical issues with China and Russia, leading to a significant rise in military spending. This military expenditure is investing in new aircraft and helicopter programs to strengthen its aerial capabilities. Similarly, as one of the key nations under NATO, Canada is investing in procuring new generation fixed-wing and rotary-wing aircraft. Such investments are expected to drive the growth of the market.

In addition to procurement, the governments and armed forces are investing in developing advanced helicopter models with advanced sensor suites and enhanced lethality. Developing new and advanced programs is anticipated to boost the market's growth during the forecast period.

Key Market Trends

Attack Helicopters Segment is Expected to Exhibit Significant Growth during the Forecast Period

The armed forces of countries in the North American region are acquiring new and advanced attack helicopters to provide additional capability for engaging ground targets. As of January 2022, more than 120 attack helicopters were on order for the US armed forces (including helicopters such as Boeing AH-64 Apache and Bell AH-1Z Viper). In addition to the existing order, as of October 2021, the US Department of Defense (DoD) was in talks with Boeing to procure at least 100 additional AH-64E Apache attack helicopters. The order is expected to be a second multi-year contract for the AH-64 program and is expected to be signed by the end of 2022. Moreover, the country is expected to acquire new generation helicopters under the Future Vertical Lift Program, which includes the Future Attack and Reconnaissance Aircraft (FARA) and Future Long-Range Assault Aircraft (FLRAA). Under the FARA program, the country is currently exploring its options between the Bell 360 Invictus and Sikorsky Raider X, and the final selection of the aircraft is expected to be completed by 2028.

Similarly, for the FLRAA program, the armed forces are considering Bell V-280 Valor and Sikorsky/Boeing Defiant X. The helicopters under the FLRAA program are expected to enter service by 2030 and replace the Sikorsky UH-60 Black Hawk utility helicopters. Such investments into new programs are anticipated to boost the segment's growth in the coming years.

United States Accounted for Highest Share in the Market in 2021

The United States currently dominates the market and is expected to continue its dominance over the market during the forecast period. This is primarily due to the DoD's investments in deploying advanced helicopter programs. As of January 2022, the United States armed forces, the US Army, and the US Navy had over 20 Boeing AH-64 Apache and over 100 Bell AH-1Z Viper helicopters on order, respectively. Furthermore, the US Army has more than 200 Sikorsky S-70 (and its variants like EH/HH/MH/UH-60) helicopters. Under the defense budget of FY2023, the US DoD requested to procure 53 UH-60 Black Hawk helicopters, including 10 UH-60M, 15 HH-60M, and 28 UH60V models. The US Marine Corp. previously announced its plan to procure 200 CH-53K heavy-lift-helicopters to replace the aging CH-53 Super Stallion helicopters. The deployment of the CH-53K helicopters is scheduled to begin in 2024, and final deliveries are scheduled to be completed by 2031. In addition to such procurements, the DoD is also undertaking several modernization programs to enhance the capabilities of the existing fleet of helicopters. For instance, in November 2021, the US National Guard's Eastern Army National Guard Aviation Training Site received the new UH-60V Black Hawk helicopter.

The UH-60V is a new variant of aging UH-60A and L helicopters with advanced flight planning and mission capability, a certified GPS RNAV database, and an upgraded digital glass cockpit. In 2020, the United States began the upgradation of the aging UH-60A and L helicopter fleets to the UH-60V variant. Such investments into the procurements and modernization programs of the United States are anticipated to propel the growth of the market in the country.

Competitive Landscape

The market for North American military helicopters is slightly consolidated, with few players accounting for the majority share in the market. Some of the prominent players in the North American military helicopter market are Lockheed Martin Corporation, The Boeing Company, Textron Inc. (through Bell), Airbus SE, and Leonardo SpA. Currently, the majority of helicopter fleet and aircraft on order in the North American region is dominated by US-based companies like Lockheed Martin Corporation, The Boeing Company, and Textron Inc. In addition to the US-based companies, other companies are expanding their regional presence through partnerships and contracts with governments and armed forces.

For instance, in September 2021, Airbus Helicopters announced that the company delivered the first UH-72B, the latest variant of its Lakota helicopter, to the US Army National Guard. The helicopter is the first of 18 UH-72B Lakota helicopters to support critical missions of the National Guard. Furthermore, the companies are also collaborating on developing new helicopter programs to cater to the requirement of future procurement programs. Such collaborations among the players in the market are expected to help them increase their presence in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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