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

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

Due to the COVID-19 pandemic, the military helicopter market was affected significantly as the total number of deliveries in the region decreased in 2020. This was primarily due to the supply chain disruptions in the defense sector due to lockdown imposition in various countries globally. Nevertheless, in 2021, as supply chain disruptions subsided, the deliveries of helicopters in the region increased to pre-pandemic levels.

Due to the ongoing war between Ukraine and Russia, various countries in the Europe region are robustly increasing their defense expenditure for the procurement of new military equipment, including aircraft and helicopter programs to strengthen their capabilities. Some countries are also investing in modernizing their fleet of aircraft with new cockpit and communication suites, among others. The growing military spending and subsequent investments into procurement and modernization of the military helicopter fleet are expected to drive market growth during the forecast period.

In addition to procurement, the countries in the European region are collaborating on developing advanced helicopter models with an advanced sensor suite and weapon systems. Such investments into developing new helicopter programs are anticipated to boost the market's growth in the future.

Key Market Trends

Multi-mission and Training Helicopters Segment is Expected to Exhibit Highest Growth during the Forecast Period

The multi-mission and training helicopters segment is expected to witness the highest growth during the forecast period owing to growing procurements of utility and multi-mission helicopters in the countries in the region. The armed forces in the region are robustly investing in acquiring new helicopters in support roles. As of June 2022, European countries like Belgium, Finland, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, and Sweden have orders for NHIndustries NH90 helicopters (order includes Tactical Transport Helicopter (TTH) and NATO Frigate Helicopter (NFH) variants). Furthermore, the Polish Armaments Inspectorate initiated Kondor and Perkoz programs in 2019 and 2020 to replace the aging helicopter fleet and introduce new helicopters. In June 2022, Poland announced its plan to acquire 32 Leonardo AW149 multirole support helicopters under the Perkoz multirole support helicopter program. The 32 helicopters acquired under the Perkoz program would be for combat support, command and reconnaissance, and electronic warfare missions. Under the Kondor program, the country plans to replace the Polish Navy's four Kaman SH-2G Super Seasprite anti-submarine warfare (ASW) helicopters. The country plans to acquire four to eight multirole helicopters for ASW operations and target acquisition applications. Such investments into new programs are anticipated to boost the segment's growth in the coming years.

Russia Accounted for Highest Share in the Market in 2021

Russia currently dominates the market and is expected to continue its dominance over the market during the forecast period. This is primarily due to the increasing military investments of the country toward the modernization of its land, air, and sea military equipment over the past few years. The investments into the military sector further increased due to the ongoing war between the country and Ukraine. The Russian Air Force has new variants of Kamov Ka-52, Mil Mi-28, and Mil Mi-8/17/171 helicopters on order. Earlier in September 2020, Russian Helicopters announced the launched serial production of Mi-28NM, the fifth-generation derivative Mi-28 attack helicopter. The company's serial production of the helicopter began as a part of the agreement between the Russian Defense Ministry and Rostec to deliver 98 Mi-28NM helicopters by 2027.

Similarly, the Russian government approved Russian Helicopters in November 2022 to begin the mass production of the Mi-26T2V military transport helicopters. The Mi-26T2V is the heaviest military transport helicopter, with a cargo-carrying capacity of 20 tonnes. The helicopter is equipped with a new NPK90-2V avionics suite, enabling it to operate in automatic mode. The introduction of such advanced helicopters is expected to drive market growth in the country during the forecast period.

Competitive Landscape

The market for Europe military helicopters is slightly consolidated, with few players accounting for the majority of the share in the market. Some of the prominent players in the Europe military helicopter market are The Boeing Company, Textron Inc. (through Bell), Airbus SE, Leonardo SpA, and Rostec (through Russian Helicopters). Currently, most helicopter fleet and aircraft on order in the European region is dominated by European companies like Airbus, Leonardo, and Rostec. In addition to the Europe-based companies, other companies have also been expanding their presence in the region through contracts with the armed forces. As of May 2022, Sikorsky, a subsidiary of Lockheed Martin, announced plans to capture new market opportunities in the Eastern European region due to the ongoing war tension between Ukraine and Russia. Due to the ongoing tensions, the countries in the region are expected to replace their aging Russian helicopter fleet in service, which is expected to create a new market for the companies.

Furthermore, the companies are expected to collaborate in the coming years to develop new helicopter programs such as Next Generation Rotorcraft Capability (NGRC) to cater to the requirement of future procurement programs. Such collaborations are anticipated to help the companies increase their share in the market in the coming years.

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