Military Transport Aircraft Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Military Transport Aircraft Market is projected to expand from USD 33.43 Billion in 2025 to USD 49.92 Billion by 2031, reflecting a CAGR of 6.91%. These aircraft, comprising specialized fixed-wing and rotary-wing platforms, are engineered for the strategic airlift of personnel, weaponry, and logistical supplies to operational zones. The market is primarily driven by escalating geopolitical instability and the necessity for rapid deployment capabilities to handle cross-border conflicts, alongside the systematic modernization of aging national defense fleets to improve payload capacity and range. This strong demand is supported by increased financial allocations; according to the Stockholm International Peace Research Institute, global military expenditure rose by 9.4 percent in 2024, reaching $2.71 trillion.

However, the market faces significant obstacles regarding the rising costs of acquisition and lifecycle maintenance, which strain government budgets. Global supply chain disruptions worsen this issue by causing delays in the delivery of critical components, such as avionics and advanced materials. These logistical bottlenecks create uncertainty in production schedules and threaten to hinder the timely expansion of air mobility fleets for armed forces worldwide.

Market Drivers

Rising global defense expenditure and budget allocations act as the primary catalyst for the military transport aircraft market, driven by the need to enhance strategic airlift capabilities amidst growing security concerns. Governments are prioritizing the procurement of versatile platforms that ensure rapid mobility for troops and equipment in contested environments. This financial commitment is visible in the investment strategies of major military powers; for instance, the Office of the Under Secretary of Defense (Comptroller) reported in March 2024 that the United States Department of Defense requested $61.2 billion for the Aviation and Related Systems category, which covers the development and procurement of critical airlift platforms.

The modernization and replacement of aging transport fleets further stimulate industrial activity as air forces retire legacy models to adopt technologically advanced solutions. Older aircraft often suffer from airframe fatigue and obsolete avionics, necessitating a transition to modern airlifters that offer superior range, payload efficiency, and interoperability. This trend is accelerating international cooperation and joint procurement initiatives to share lifecycle costs. According to Embraer S.A., in July 2024, the Netherlands and Austria finalized a joint acquisition for nine C-390 Millennium aircraft to replace their veteran C-130 Hercules fleets. Such renewal cycles are fueling significant order backlogs, as evidenced by Airbus SE's February 2024 report, where the Defence and Space division recorded a surged order intake valued at €15.7 billion.

Market Challenges

The Global Military Transport Aircraft Market is continually impeded by severe supply chain disruptions and the consequent escalation in acquisition and lifecycle costs. These logistical constraints cause critical shortages of essential high-tech components, such as avionics and advanced composite materials, leading to unpredictable manufacturing schedules and extended delays in platform delivery. As production lines stall, defense agencies are unable to execute timely fleet modernization strategies, forcing them to rely on aging assets that incur exorbitant maintenance expenses rather than inducting new, more efficient transport capabilities.

The magnitude of this production bottleneck is substantiated by recent industrial data reflecting the widening gap between demand and output. According to ADS Group, aircraft deliveries across the major aerospace sector decreased by 12 percent in the first quarter of 2024 compared to the same period in the previous year, primarily due to persistent supply chain limitations. This decline in delivery rates directly hampers market growth by physically restricting the volume of new military transport aircraft entering operational service, thereby stalling the expansion of air mobility fleets despite robust funding.

Market Trends

The shift toward multi-mission capabilities is reshaping procurement as air forces demand platforms capable of performing aerial refueling and medical evacuation alongside standard logistics. This consolidation reduces the cost of maintaining specialized fleets while enhancing operational readiness. This preference for adaptable airframes is driving international acquisitions; according to Embraer S.A., in October 2024, the Czech Ministry of Defense signed a contract for two C-390 Millennium aircraft configured for diverse missions including air-to-air refueling, confirming the strategic emphasis on multi-role functionality.

Concurrently, the integration of autonomous unmanned aerial systems is revolutionizing cargo delivery for contested environments. Defense departments are prioritizing pilotless technologies to mitigate human risk and ensure resupply continuity where manned flights are vulnerable. These systems enable decentralized logistics, allowing precise delivery of supplies to forward bases. This technological progression is evidenced by funding for uncrewed platforms, such as the $1.2 million contract awarded to Silent Arrow in October 2024 to validate its autonomous CLS-300 drone, which supports contested logistics with a 1,000-pound payload capacity.

Key Players Profiled in the Military Transport Aircraft Market

• Airbus SE
• Aviation Industry Corporation of China, Ltd.
• Embraer SA
• Kawasaki Heavy Industries, Ltd.
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Mitsubishi Heavy Industries, Ltd.
• Textron Inc.
• The Boeing Company
• Hindustan Aeronautics Limited

Report Scope

In this report, the Global Military Transport Aircraft Market has been segmented into the following categories:

Military Transport Aircraft Market, by Aircraft Type:

• Fixed Wings
• Rotorcraft

Military Transport Aircraft Market, by Payload:

• Below 50 Tons
• 51 Tons to 100 Tons
• 101 Tons & Above

Military Transport Aircraft Market, by Application:

• Troop Airlifting
• Cargo Supply
• Others

Military Transport Aircraft Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Military Transport Aircraft Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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