Automated Aerial Refueling (AAR) Systems Market Global Report 2026

The automated aerial refueling (AAR) systems market size has grown rapidly in recent years. It will grow from $0.78 billion in 2025 to $0.88 billion in 2026 at a compound annual growth rate (CAGR) of 12.1%. The growth in the historic period can be attributed to increasing demand for extended military mission endurance, rising procurement of aerial refueling aircraft fleets, growing deployment of unmanned aircraft for long-duration missions, increasing need to reduce pilot workload during refueling operations, and expanding military air operations requiring mid-air fuel replenishment.

The automated aerial refueling (AAR) systems market size is expected to see rapid growth in the next few years. It will grow to $1.4 billion in 2030 at a compound annual growth rate (CAGR) of 12.4%. The growth in the forecast period can be attributed to increasing demand for contested-environment aerial refueling capabilities, rising adoption of unmanned tanker and receiver aircraft, growing need for cross-platform refueling interoperability, increasing demand for precision aircraft positioning during fuel transfer, and expanding use of autonomous refueling for long-range drone missions. Major trends in the forecast period include increasing adoption of multi-aircraft aerial refueling compatibility, rising demand for extended aircraft mission endurance, growing integration of advanced refueling interfaces, increasing focus on in-flight refueling operational reliability, and expanding use of aerial refueling for unmanned aircraft operations.

The rising defense budgets are expected to propel the growth of the automated aerial refueling (AAR) systems market in the coming years. Defense budgets refer to the financial allocations made by governments to support military operations, procurement, modernization, research, and national security initiatives. Defense budgets are increasing due to growing geopolitical tensions, as governments seek to strengthen national security, modernize military capabilities, enhance defense preparedness, and address evolving regional and global security threats. Rising defense budgets drive demand for automated aerial refueling (AAR) systems by enabling greater investments in advanced force-multiplying technologies that enhance mission endurance, improve operational efficiency, reduce pilot workload, and support the expanding deployment of modern military aircraft. For instance, in April 2026, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based research institute, world military expenditure reached $2.887 trillion in 2025, representing a 2.9% increase in real terms compared with 2024. Therefore, the rising defense budgets are driving the growth of the automated aerial refueling (AAR) systems market.

Major companies operating in the automated aerial refueling (AAR) systems market are focusing on developing advanced systems, such as autonomous tanker-receiver systems, to enhance mission endurance, operational efficiency, refueling precision, and the seamless integration of crewed and uncrewed aircraft in contested environments. Autonomous tanker-receiver systems are advanced aerial refueling technologies that use automation, artificial intelligence, relative navigation, and sensor-based control to enable tanker and receiver aircraft to autonomously coordinate rendezvous and fuel transfer with minimal human intervention, improving refueling accuracy, reducing pilot workload, and increasing mission safety compared with conventional manually controlled aerial refueling systems. For instance, in April 2025, The Boeing Company, a US-based aerospace and defense company, advanced its autonomous aerial refueling capabilities through the Combat Refueling and Operations Network User System (CRONUS) program under a contract awarded by the U.S. Air Force Research Laboratory. The program integrates Boom Automation for automated airborne refueling and Relative Navigation (RelNav) technologies that enable uncrewed receiver aircraft to autonomously navigate aerial refueling rendezvous. The solution builds on Boeing's demonstrated autonomous boom refueling capabilities for the KC-46A Pegasus and autonomous navigation technologies for the MQ-25 Stingray, supporting scalable next-generation aerial refueling operations for both crewed and uncrewed platforms.

In February 2026, Embraer S.A., a Brazil-based aerospace and defense company specializing in military transport and aerial refueling aircraft, partnered with Northrop Grumman Corporation to jointly develop advanced air-tanking capabilities for the KC-390 Millennium for the U.S. and allied markets. Through this partnership, Embraer S.A. and Northrop Grumman Corporation aim to advance next-generation aerial refueling capabilities by integrating an advanced autonomous aerial refueling boom into the proposed KC-390 Multi-Mission Tanker, improving automated refueling operations, mission flexibility, and operational efficiency for defense applications. Northrop Grumman Corporation is a US-based aerospace and defense company specializing in advanced autonomous, surveillance, and mission systems.

Major companies operating in the automated aerial refueling (AAR) systems market are The Boeing Company, RTX Corporation, Lockheed Martin Corporation, Airbus SE, GE Aerospace, Northrop Grumman Corporation, BAE Systems plc, L3Harris Technologies Inc, Leonardo S.p.A., Safran, Honeywell International Inc, Eaton Corporation plc, Parker-Hannifin Corporation, Israel Aerospace Industries Ltd, Embraer S.A., Melrose Industries plc, Saab AB, Elbit Systems Ltd, Liebherr-Aerospace Lindenberg GmbH, Moog Inc, General Atomics Aeronautical Systems Inc, Sierra Nevada Corporation, Curtiss-Wright Corporation, AMETEK Inc, Marshall Group, SENER Aeroespacial S.A., ARESIA.

North America was the dominant region in the automated aerial refueling (AAR) systems 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 (AAR) systems 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 (AAR) systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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