Automated Aerial Refueling System Market Global Report 2026

The automated aerial refueling system market size has grown rapidly in recent years. It will grow from $0.76 billion in 2025 to $0.84 billion in 2026 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to rising demand for extended aircraft endurance, increasing military aerial operations, growing adoption of unmanned aerial vehicles, rising need for safer in-flight refueling, and expanding defense aircraft modernization programs.

The automated aerial refueling system market size is expected to see strong growth in the next few years. It will grow to $1.21 billion in 2030 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to increasing demand for fully autonomous refueling capabilities, rising need to reduce pilot workload, growing adoption of unmanned combat missions, expanding demand for precision aerial refueling, and increasing defense investments in autonomous aviation systems. Major trends in the forecast period include increasing adoption of automated refueling alignment, growing integration of precision fuel transfer controls, rising use of autonomous refueling mission management, increasing demand for reliable in-flight fuel transfer, and growing adoption of automated refueling training and simulation.

The increasing defense spending is expected to drive the growth of the automated aerial refueling system market in the coming years. Defense spending refers to the funds allocated by governments to military and national defense activities, including armed forces, weapons, equipment, and security operations. Defense spending is increasing due to rising geopolitical tensions, which are encouraging countries to strengthen military capabilities and modernize their air fleets. Increased defense spending drives the adoption of automated aerial refueling systems (AARS) by supporting investments in autonomous technologies, tanker modernization, and mission capabilities that improve operational efficiency, range, and readiness. For instance, in April 2025, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based research institute, global military expenditure increased from $2.443 trillion in 2023 to $2.718 trillion in 2024, representing an increase of $275 billion, or 9.4%, compared with 2023. Therefore, the increasing defense spending is driving the growth of the automated aerial refueling system market.

Major companies operating in the automated aerial refueling systems market are focusing on developing innovative technologies, such as autonomous air-to-air refueling (A4R) technologies, to improve operational safety, enhance mission efficiency, reduce crew workload, enable unmanned aircraft operations, and increase precision during in-flight refueling. Autonomous air-to-air refueling technologies use artificial intelligence (AI), advanced sensor fusion, machine vision, high-precision navigation, secure communications, and autonomous flight control algorithms to guide receiver aircraft into refueling positions with minimal or no human intervention. For instance, in March 2023, Airbus, a France-based aerospace and defense company, demonstrated its Auto’Mate technology, an innovative autonomous aerial refueling solution introduced for the automated aerial refueling systems market. Auto’Mate combines AI-powered cooperative control algorithms, high-precision relative navigation, secure intra-flight communication, and autonomous guidance capabilities to enable tanker aircraft to control unmanned receiver aircraft and safely guide them into refueling positions. The system integrates camera-based sensing, LiDAR, satellite positioning, and sensor fusion technologies to achieve highly accurate positioning while incorporating collision avoidance and multi-platform communication capabilities.

In June 2023, The Boeing Company, a US-based aerospace and defense company that develops and provides automated aerial refueling (AAR) systems, partnered with Aurora Flight Sciences Corporation to advance next-generation aerial refueling and mobility solutions. Through this partnership, The Boeing Company and Aurora Flight Sciences Corporation aimed to enhance aerial refueling capabilities by leveraging advanced design, composite manufacturing, autonomous systems, and defensive technologies for platforms such as the KC-46A Pegasus and MQ-25 Stingray. Aurora Flight Sciences Corporation is a US-based aerospace company specializing in autonomous aircraft systems, advanced manufacturing, and innovative aerospace technologies.

Major companies operating in the automated aerial refueling system market are The Boeing Company, RTX Corporation, Airbus SE, Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems plc, Safran S.A., Eaton Corporation plc, Leonardo S.p.A., Saab AB, Elbit Systems Ltd., Israel Aerospace Industries Ltd., HENSOLDT AG, Northstar Engineering Corporation, Modern Technology Solutions Inc., Marshall of Cambridge (Holdings) Limited, Integrated Solutions for Systems Inc., Omega Air Refueling Services Inc., Stratom Inc., Target Arm Inc.

North America was the dominant region in the automated aerial refueling system market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the automated aerial refueling system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the automated aerial refueling system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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