PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1609473
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1609473
Global fighter jets market is projected to witness a CAGR of 4.08% during the forecast period 2025-2032, growing from USD 52.32 billion in 2024 to USD 72.04 billion in 2032. Advances in military capabilities, in response to growing geopolitical changes, are driving demand for superior fighter jets. This market is characterized by significant technological investments, thereby developing breakthroughs such as stealth properties, advanced avionics, and multirole features. Some of the prominent companies in this market focus more on building better performance with extended services of their aircraft.
In addition, many regions are affecting the fighter jet market as defense spending and consumption in these regions increase Air Force modernization. The future development of next-generation jets is also influencing this market. Countries are replacing old fleets and indigenous capabilities to enhance strategic autonomy. As geopolitical tensions continue and technological advancements evolve, the fighter jet market will likely experience continued growth and innovation. The increasing importance of military fighter jets has emphasized Unmanned Aerial Vehicles (UAVs) and drone technology capabilities as advanced elements that must be integrated into current fighter jets. Therefore, such an integration can enhance operational action's flexibility and effectiveness during a fight. International collaboration is becoming common for countries to pool their resources and technical expertise in achieving modern aircraft warfare capabilities. Many partnerships create shared-cost approaches and accelerated developmental timelines. Along with the complexities nations face with their security positions, fighter jets always hold importance in world defense plans, fueling competition and cooperation between global powers.
For instance, in April 2023, the United Kingdom's Ministry of Defence (MoD) awarded a contract extension worth USD 689 million to BAE Systems plc to progress the conceptualization of new technology for the next-generation combat aircraft known as Tempest. The co-project was under development with Japan and Italy as part of the Global Combat Air Programme (GCAP). It highlights more than 60 new technologies, such as flexible payload bay, high-density power systems, and integrated communications, by 2035, which would help to enhance the nation's defense capabilities.
Geopolitical Tensions Drive Fighter Jet Market
The war between Russia and Ukraine vividly affected the fighter jet market as NATO countries have greatly increased their defense spending. As tensions continue to escalate, causing geopolitical tensions and threats, nations are rushing to upgrade their air defense capabilities and are, therefore, accelerating purchases of advanced fighter jets. European countries have invested immensely in modernizing air forces to counter Russian threats. The conflict impacts military technology-related components and parts; the disruption to supply chains implies loss of time and money, which adds to the complexity of military equipment production. Therefore, countries search for alternative suppliers and solutions with other countries. Outsourcing technology implications affect the aircraft's development but further strengthen the nations' ties for advancing their collective security, helping to project higher sales of fighter jets and growing their market.
For instance, in October 2024, the Philippines announced the process of replenishing its depleting fleet strength by acquiring 40 Multi-Role Fighter Aircraft (MRFA). The procurement aims to strengthen the nation's air defense capabilities against increasing regional tensions. Several companies have offered their latest fighter jets; this procurement is timely, given the increasing tensions in the South China Sea. With the tender opening up to several global aerospace companies like Saab AB, Lockheed Martin Corporation, Korea Aerospace Industries Ltd., and Dassault Aviation, this approach will make sure that the nation's air defense is upgraded steadily as it also focuses on cost-effectiveness, operational capabilities, and even potential technology transfer agreements, all of which will serve as important steps for military modernization in the Philippines.
Technological Advancements with the Mass Production of Fighter Jets
Technological advancements in mass fighter jet production are changing the world's defense landscape. Nations are becoming more self-sufficient and militarily powerful. Developing countries are investing in manufacturing fighter jets with better performance, stealth, and avionics capabilities. Moreover, the next-generation fighter jets are being developed jointly between nations, marking another strategic shift towards collaborative development and production. These developments demonstrate the strength of national defense and ensure countries' positions in the international arms market. Given that military modernization continues to be a priority for any country, local production, and technological innovation are likely to help set the future for aerial combat and defense strategies.
For instance, in September 2024, South Korea introduced direct deployment of new technology and technological improvement. This development stimulates economic growth and positions South Korea as a strong country in the military transformation of aviation. Advanced stealth capabilities and next-generation avionics will thus provide future opportunities for export customers interested in the fighter jet KF-21.
North America Holds a Significant Share in the Global Fighter Jets Market
North America boasts a strong defense infrastructure and world-class military capabilities. Over the years, it has been the best military in the air, focusing on innovation using technology and producing some of the world's most advanced fighter aircraft. Significant companies like Lockheed Martin Corporation and Boeing Company are also involved, and these companies constantly push for next-generation fighters that enhance air superiority and operational effectiveness. Modernization in the U.S. Air Force, alongside global tension, has increased spending insistently on fighter jet capabilities. North America will maintain its competitive edge in the race as the countries of this region focus more on national security. Advancements in stealth technology, avionics, and weapon systems will enhance military readiness and set trends along with innovations that would profile the future of aerial combat.
For instance, in March 2024, the United States Air Force proposed a development program, Next Generation Air Dominance (NGAD). In this program, the sixth-generation fighter is under development to replace the F-22 Raptor until 2030. It shall be a system-of-systems approach, incorporating manned and unmanned jets with advanced command and control and communication systems. The focus on lethality and air dominance remains important. Pratt & Whitney, a subsidiary of Raytheon Technologies Corporation, recently completed a significant risk review of the next-generation fighter jet for adaptive propulsion solutions for NGAD.
Future Market Scenario (2025-2032F)
Global geopolitical tensions and military modernization will drive the demand for fighter jet markets between 2025 and 2032.
Coming up with innovative fighter aircraft programs in the market, that is, cooperative defenses between countries can be the reason for stiff competition, contributing to an increase in innovations like stealth and/or avionics.
With each country replacing its aging fleets, the demand for indigenous production will continue to grow and become increasingly significant in enhancing global supply chains and positioning nations as critical players in the fighter jet market.
Key Players Landscape and Outlook
The global fighter jet market is highly competitive, with intense technological advancements as firms aim to improve their competencies and market share. Major defense contractors' heavy investments in research and development into aircraft designs that integrate stealth, artificial intelligence, and advanced avionics are also common in the industry. Geopolitical tensions thus form another factor propelling nations to look into a modernized air force that would seek highly advanced fighters. Strategic partnership and cooperation among the countries are trending, where different nations share experience and equipment to produce newer-generation fighters. As the market continues to evolve, these factors of sustainability and resilience in supply chains will equally mold the strategies of all key players by remaining relevant in a fast-changing scenario.
For instance, in November 2023, Hindustan Aeronautics Limited (HAL) unveiled the Tejas Mk1A, an advanced multi-role fighter jet built to bolster India's air combat power. It features modern technologies like the active electronically scanned array radar and superior avionics.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.